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.


Snowflake Analysis

Good value with imperfect balance sheet.

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

0.9%

FIN

5.3%

NZ Software

2.0%

NZ Market


1 Year Return

n/a

FIN

-64.5%

NZ Software

-6.0%

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 Day0.9%5.3%2.0%
30 Day21.5%-49.5%-14.1%
90 Day20.2%-61.0%-18.0%
1 Yearn/a-64.2%-64.5%-2.7%-6.0%
3 Year-54.8%-54.8%-37.0%-40.0%28.1%12.3%
5 Year-65.8%-65.8%-24.3%-29.2%60.9%26.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FIN (NZ$1.12) is trading below our estimate of fair value (NZ$4.8)

Significantly Below Fair Value: FIN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FIN is good value based on its PE Ratio (21.8x) compared to the Software industry average (27.6x).

PE vs Market: FIN is poor value based on its PE Ratio (21.8x) compared to the NZ market (15.5x).


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 (2.4x) compared to the NZ Software industry average (2.4x).


Next Steps

Future Growth

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

36.3%

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?

-48.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIN has a high level of non-cash earnings.

Growing Profit Margin: FIN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FIN's earnings have declined by -48.5% 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 (12.8%).


Return on Equity

High ROE: FIN's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Finzsoft Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: FIN's short term assets (NZ$1.5M) do not cover its short term liabilities (NZ$6.1M).

Long Term Liabilities: FIN's short term assets (NZ$1.5M) do not cover its long term liabilities (NZ$3.4M).


Debt to Equity History and Analysis

Debt Level: FIN's debt to equity ratio (49.5%) is considered high.

Reducing Debt: FIN's debt to equity ratio has increased from 0% to 49.5% over the past 5 years.

Debt Coverage: FIN's debt is well covered by operating cash flow (157.3%).

Interest Coverage: FIN's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: FIN's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

1.3yrs

Average board tenure


CEO

Andrew Holliday

8.08s

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 Members

NamePositionTenureCompensationOwnership
Andrew Holliday
MD & Director8.08yrsNZ$573.46k41.88% NZ$4.2m
Yong Sin Kwong
Director5yrsno datano data
Robert McKinnon
Independent Chairman1.33yrsNZ$49.69kno data
Simon Scott
Alternate Director1.25yrsNZ$45.00kno data
Gary Sim
Non Executive Director5.5yrsNZ$289.63kno data
Helen Hatchard
Non-Independent Non-Executive Director1.33yrsNZ$32.96kno data
Josephine Grierson
Deputy Chairman1.25yrsNZ$33.78kno data

1.3yrs

Average Tenure

Experienced Board: FIN's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: FIN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$9.954m
  • 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 offers demand generation solutions; secure mobile and Internet banking solutions; various tools to facilitate the automated lifecycle of lending management; transactional banking and investment solutions; collection solutions; publishing and media management document solutions; analytics and reporting software; and wholesale business solutions, as well as sovereign solutions for financial services institutions. In addition, it engages in the provision of consulting services; maintenance and support services; and other contracted services. Finzsoft Solutions Limited was founded in 1986 and is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 10:32
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.