NZSE:GFL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Geneva Finance Limited provides finance and financial services to the consumer credit and small to medium business markets primarily in New Zealand and Tonga. More Details


Snowflake Analysis

Good value second-rate dividend payer.

Share Price & News

How has Geneva Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GFL is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GFL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

GFL

5.6%

NZ Consumer Finance

-1.3%

NZ Market


1 Year Return

-25.0%

GFL

5.0%

NZ Consumer Finance

9.0%

NZ Market

Return vs Industry: GFL underperformed the NZ Consumer Finance industry which returned 6% over the past year.

Return vs Market: GFL underperformed the NZ Market which returned 9.5% over the past year.


Shareholder returns

GFLIndustryMarket
7 Day-1.2%5.6%-1.3%
30 Day-2.3%3.7%1.1%
90 Day1.2%-15.5%5.4%
1 Year-20.4%-25.0%6.1%5.0%13.1%9.0%
3 Year-21.0%-33.3%62.0%50.0%48.0%29.2%
5 Year40.6%11.1%99.7%71.1%98.4%50.9%

Long-Term Price Volatility Vs. Market

How volatile is Geneva Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Geneva Finance undervalued compared to its fair value and its price relative to the market?

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFL (NZ$0.42) is trading below our estimate of fair value (NZ$0.5)

Significantly Below Fair Value: GFL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GFL is good value based on its PE Ratio (8.3x) compared to the XO Consumer Finance industry average (23.3x).

PE vs Market: GFL is good value based on its PE Ratio (8.3x) compared to the NZ market (23x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GFL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GFL is good value based on its PB Ratio (1x) compared to the XO Consumer Finance industry average (2.8x).


Next Steps

Future Growth

How is Geneva Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

47.3%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Geneva Finance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Geneva Finance performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFL has high quality earnings.

Growing Profit Margin: GFL's current net profit margins (14.9%) are lower than last year (19.2%).


Past Earnings Growth Analysis

Earnings Trend: GFL's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: GFL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GFL had negative earnings growth (-8.5%) over the past year, making it difficult to compare to the Consumer Finance industry average (-6.8%).


Return on Equity

High ROE: GFL's Return on Equity (13.1%) is considered low.


Next Steps

Financial Health

How is Geneva Finance's financial position?


Financial Position Analysis

Short Term Liabilities: GFL's short term assets (NZ$116.3M) exceed its short term liabilities (NZ$18.6M).

Long Term Liabilities: GFL's short term assets (NZ$116.3M) exceed its long term liabilities (NZ$75.5M).


Debt to Equity History and Analysis

Debt Level: GFL's debt to equity ratio (238.7%) is considered high.

Reducing Debt: GFL's debt to equity ratio has increased from 202.5% to 238.7% over the past 5 years.

Debt Coverage: GFL's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: Insufficient data to determine if GFL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Geneva Finance current dividend yield, its reliability and sustainability?

6.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GFL's dividend (6.55%) is higher than the bottom 25% of dividend payers in the NZ market (2.72%).

High Dividend: GFL's dividend (6.55%) is in the top 25% of dividend payers in the NZ market (4.32%)


Stability and Growth of Payments

Stable Dividend: GFL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GFL's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.1%), GFL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average board tenure


CEO

David O'Connell

12.5yrs

Tenure

NZ$565,957

Compensation

Mr. David Gerard O'Connell has been Managing Director of Geneva Finance Limited (formerly known as GFNZ Group Limited) since May 2, 2008 and has been its Chief Financial Officer since joining in July 2006....


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD390.69K) is above average for companies of similar size in the NZ market ($USD264.04K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
David O'Connell
MD, CFO & Executive Director12.5yrsNZ$565.96k0.52%
NZ$ 160.5k
Ronald King
Independent Non- Executive Chairman12.42yrsNZ$41.40k2.81%
NZ$ 861.5k
Alan Leighton Hutchison
Non Executive Director7yrsNZ$41.40kno data
Malcolm Johnston
Non-Executive Director0.75yrNZ$4.15kno data
Daran Nair
Independent Non-Executive Director0.25yrno datano data

7.0yrs

Average Tenure

Experienced Board: GFL's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Geneva Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Geneva Finance Limited
  • Ticker: GFL
  • Exchange: NZSE
  • Founded: 2002
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: NZ$30.633m
  • Shares outstanding: 72.94m
  • Website: https://genevafinance.co.nz

Number of Employees


Location

  • Geneva Finance Limited
  • 6B Pacific Rise
  • Mount Wellington
  • Auckland
  • 1741
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFLNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJul 2008

Biography

Geneva Finance Limited provides finance and financial services to the consumer credit and small to medium business markets primarily in New Zealand and Tonga. It operates through Corporate, New Business, I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 10:41
End of Day Share Price2020/11/23 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.