NZSE:FIN

Stock Analysis Report

Executive Summary

Finzsoft Solutions Limited, together with its subsidiaries, develops, sells, and supports computer software for the banking and finance sector in New Zealand, Australia, and internationally.

Rewards

Became profitable this year

Risk Analysis

Earnings have declined by -51.56% per year over past 5 years

Does not have a meaningful market cap (NZ$9M)



Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

How has Finzsoft Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FIN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

FIN

-2.2%

NZ Software

-0.2%

NZ Market


1 Year Return

n/a

FIN

10.0%

NZ Software

21.1%

NZ Market

Return vs Industry: Insufficient data to determine how FIN performed against the NZ Software industry.

Return vs Market: Insufficient data to determine how FIN performed against the NZ Market.


Shareholder returns

FINIndustryMarket
7 Day0%-2.2%-0.2%
30 Day-2.0%-9.0%2.4%
90 Dayn/a-14.0%-0.2%
1 Yearn/a11.7%10.0%26.1%21.1%
3 Year-60.8%-60.8%73.0%64.8%59.2%38.2%
5 Year-83.2%-83.9%112.9%98.7%94.7%51.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Finzsoft Solutions undervalued compared to its fair value and its price relative to the market?

129.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FIN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FIN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FIN is poor value based on its PE Ratio (129.6x) compared to the Software industry average (36.5x).

PE vs Market: FIN is poor value based on its PE Ratio (129.6x) compared to the NZ market (20.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FIN is good value based on its PB Ratio (1.8x) compared to the NZ Software industry average (3.5x).


Next Steps

Future Growth

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

37.1%

Forecasted Software 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 Finzsoft Solutions 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 Finzsoft Solutions performed over the past 5 years?

-51.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIN has high quality earnings.

Growing Profit Margin: FIN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FIN's earnings have declined by -51.6% per year over the past 5 years.

Accelerating Growth: FIN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FIN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (22%).


Return on Equity

High ROE: FIN's Return on Equity (1.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Finzsoft Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: FIN's short term assets (NZ$2.5M) do not cover its short term liabilities (NZ$6.1M).

Long Term Liabilities: FIN's short term assets (NZ$2.5M) exceed its long term liabilities (NZ$1.5M).


Debt to Equity History and Analysis

Debt Level: FIN's debt to equity ratio (37.6%) is considered satisfactory.

Reducing Debt: FIN's debt to equity ratio has increased from 0% to 37.6% over the past 5 years.

Debt Coverage: FIN's debt is well covered by operating cash flow (92.6%).

Interest Coverage: FIN's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: FIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: FIN's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Finzsoft Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%3.0%markettop25%5.5%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate FIN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FIN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FIN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FIN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FIN is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FIN's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

What is the CEO of Finzsoft Solutions's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average board tenure


CEO

Andrew Holliday 0

7.8yrs

Tenure

NZ$573,462

Compensation

Mr. Andrew Holliday serves as Managing Director of Finzsoft Solutions Limited since March 23, 2012. Mr. Holliday served as the Joint Managing Director of Finzsoft Solutions Limited since March 2012. He has ...


Board Age and Tenure

1.0yrs

Average Tenure

Experienced Board: FIN's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Tim Hurring

    Chief Technical Officer

    • Tenure: 0yrs
  • Andrew Holliday

    MD & Director

    • Tenure: 7.8yrs
    • Compensation: NZ$573.46k

Board Members

  • Raymond Kwong (63yo)

    Director

    • Tenure: 4.7yrs
  • Bob McKinnon (66yo)

    Independent Chairman

    • Tenure: 1yrs
    • Compensation: NZ$49.69k
  • Andrew Holliday

    MD & Director

    • Tenure: 7.8yrs
    • Compensation: NZ$573.46k
  • Simon Scott

    Alternate Director

    • Tenure: 0.9yrs
    • Compensation: NZ$45.00k
  • Gary Sim

    Non Executive Director

    • Tenure: 5.2yrs
    • Compensation: NZ$289.63k
  • Helen Hatchard

    Non-Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: NZ$32.96k
  • Josephine Grierson

    Deputy Chairman

    • Tenure: 0.9yrs
    • Compensation: NZ$33.78k

Company Information

Finzsoft Solutions Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Finzsoft Solutions Limited
  • Ticker: FIN
  • Exchange: NZSE
  • Founded: 1986
  • Industry: Application Software
  • Sector: Software
  • Market Cap: NZ$8.633m
  • Shares outstanding: 8.81m
  • Website: https://www.finzsoft.com

Number of Employees


Location

  • Finzsoft Solutions Limited
  • 45 Queen Street
  • Level 9
  • Auckland
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FINNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 2000

Biography

Finzsoft Solutions Limited, together with its subsidiaries, develops, sells, and supports computer software for the banking and finance sector in New Zealand, Australia, and internationally. The company of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 10:33
End of Day Share Price2019/12/02 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.