Solution Dynamics
Solution Dynamics Limited provides customer communication solutions in New Zealand, Australia, Europe, and the United States. The last earnings update was 50 days ago. More info.
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SDL Share Price and Events
7 Day Returns
1 Year Returns
SDL Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Solution Dynamics (SDL) | 3.1% | 9.1% | -0.6% | -21.9% | -20% | 309.8% |
| Oceania IT | -0.3% | 2.4% | 10.7% | 24% | 54.3% | 51% |
| NZ Market | 1.4% | 3.7% | 6.6% | 11.6% | 23.8% | 48.8% |
1 Year Return vs Industry and Market
- SDL underperformed the IT industry which returned 24% over the past year.
- SDL underperformed the Market in New Zealand which returned 11.6% over the past year.
SDL Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Solution Dynamics
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Solution Dynamics.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Extrapolated from most recent financials. | See below |
| Discount Rate (Cost of Equity) | See below | 8.5% |
| Perpetual Growth Rate | 10-Year NZ Government Bond Rate | 2.4% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year NZ Govt Bond Rate | 2.4% |
| Equity Risk Premium | S&P Global | 6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.05 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 28%) (0%)) |
1.036 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.04 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (1.036 * 5.96%) |
8.55% |
Discounted Cash Flow Calculation for NZSE:SDL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Solution Dynamics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (NZD, Millions) | Source |
Present Value Discounted (@ 8.55%) |
|
|---|---|---|---|
| 2019 | 0.51 | Est @ -22.19% | 0.47 |
| 2020 | 0.44 | Est @ -14.82% | 0.37 |
| 2021 | 0.39 | Est @ -9.66% | 0.31 |
| 2022 | 0.37 | Est @ -6.05% | 0.27 |
| 2023 | 0.36 | Est @ -3.53% | 0.24 |
| 2024 | 0.35 | Est @ -1.76% | 0.21 |
| 2025 | 0.35 | Est @ -0.52% | 0.20 |
| 2026 | 0.35 | Est @ 0.35% | 0.18 |
| 2027 | 0.35 | Est @ 0.95% | 0.17 |
| 2028 | 0.36 | Est @ 1.38% | 0.16 |
| Present value of next 10 years cash flows | NZ$2.57 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= NZ$0.36 × (1 + 2.37%) ÷ (8.55% – 2.37%) |
NZ$5.93 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= NZ$5.93 ÷ (1 + 8.55%)10 |
NZ$2.61 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= NZ$2.57 + NZ$2.61 |
NZ$5.18 |
| Equity Value per Share (NZD) |
= Total value / Shares Outstanding
= NZ$5.18 / 14.64 |
NZ$0.35 |
| Calculation | Result | |
|---|---|---|
| Value per share (NZD) | From above. | NZ$0.35 |
| Current discount | Discount to share price of
NZ$1.68
= -1 x (NZ$1.68 - NZ$0.35) / NZ$0.35 |
-374.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Solution Dynamics is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Solution Dynamics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Solution Dynamics's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in NZD | NZ$0.05 |
| NZSE:SDL Share Price ** | NZSE (2019-04-18) in NZD | NZ$1.68 |
| Oceania IT Industry PE Ratio | Median Figure of 19 Publicly-Listed IT Companies | 18.86x |
| New Zealand Market PE Ratio | Median Figure of 90 Publicly-Listed Companies | 17.72x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Solution Dynamics.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NZSE:SDL Share Price ÷ EPS (both in NZD) = 1.68 ÷ 0.05 |
35.08x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Solution Dynamics is overvalued based on earnings compared to the Oceania IT industry average.
- Solution Dynamics is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does
Solution Dynamics's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 35.08x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts |
-5.8%per year |
| Oceania IT Industry PEG Ratio | Median Figure of 13 Publicly-Listed IT Companies | 1.6x |
| New Zealand Market PEG Ratio | Median Figure of 66 Publicly-Listed Companies | 1.5x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for Solution Dynamics, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Solution Dynamics's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in NZD | NZ$0.26 |
| NZSE:SDL Share Price * | NZSE (2019-04-18) in NZD | NZ$1.68 |
| Oceania IT Industry PB Ratio | Median Figure of 35 Publicly-Listed IT Companies | 2.54x |
| New Zealand Market PB Ratio | Median Figure of 126 Publicly-Listed Companies | 1.55x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NZSE:SDL Share Price ÷ Book Value per Share (both in NZD) = 1.68 ÷ 0.26 |
6.59x |
* Primary Listing of Solution Dynamics.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Solution Dynamics is overvalued based on assets compared to the Oceania IT industry average.
Value checks
We assess Solution Dynamics's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) Solution Dynamics has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
SDL Future Performance
- No analysts cover Solution Dynamics, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Solution Dynamics's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.4%.
Growth vs Market Checks
- Solution Dynamics's earnings are expected to decrease over the next 1-3 years, this is below the New Zealand market average.
- Unable to compare Solution Dynamics's revenue growth to the New Zealand market average as no estimate data is available.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NZSE:SDL Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts | -5.8% |
| Oceania IT Industry Earnings Growth Rate | Market Cap Weighted Average | 35.8% |
| Oceania IT Industry Revenue Growth Rate | Market Cap Weighted Average | 14.1% |
| New Zealand Market Earnings Growth Rate | Market Cap Weighted Average | 6.1% |
| New Zealand Market Revenue Growth Rate | Market Cap Weighted Average | 5% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
| Date (Data in NZD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 24 | 1 | 1 |
| 2018-09-30 | 23 | 1 | 1 |
| 2018-06-30 | 22 | 2 | 1 |
| 2018-03-31 | 22 | 2 | 1 |
| 2017-12-31 | 21 | 2 | 1 |
| 2017-09-30 | 20 | 2 | 1 |
| 2017-06-30 | 20 | 2 | 1 |
| 2017-03-31 | 19 | 2 | 1 |
| 2016-12-31 | 19 | 2 | 1 |
| 2016-09-30 | 17 | 1 | 1 |
| 2016-06-30 | 16 | 1 | 1 |
| 2016-03-31 | 15 | 1 | 1 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
All data from Solution Dynamics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in NZD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.05 |
| 2018-09-30 | 0.07 |
| 2018-06-30 | 0.09 |
| 2018-03-31 | 0.10 |
| 2017-12-31 | 0.10 |
| 2017-09-30 | 0.10 |
| 2017-06-30 | 0.09 |
| 2017-03-31 | 0.09 |
| 2016-12-31 | 0.08 |
| 2016-09-30 | 0.08 |
| 2016-06-30 | 0.07 |
| 2016-03-31 | 0.07 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Solution Dynamics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Solution Dynamics's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Solution Dynamics has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
SDL Past Performance
How has Solution Dynamics performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Solution Dynamics's year on year earnings growth rate has been positive over the past 5 years.
- Solution Dynamics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Solution Dynamics's 1-year earnings growth is negative, it can't be compared to the Oceania IT industry average.
Earnings and Revenue History
All data from Solution Dynamics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in NZD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 23.86 | 0.69 | 1.62 | 0.20 |
| 2018-09-30 | 23.12 | 1.01 | 1.17 | 0.10 |
| 2018-06-30 | 22.38 | 1.33 | 0.72 | |
| 2018-03-31 | 21.58 | 1.39 | 1.17 | 0.02 |
| 2017-12-31 | 20.77 | 1.44 | 1.62 | 0.03 |
| 2017-09-30 | 20.28 | 1.37 | 1.16 | 0.02 |
| 2017-06-30 | 19.79 | 1.31 | 0.69 | |
| 2017-03-31 | 19.19 | 1.22 | 1.26 | -0.01 |
| 2016-12-31 | 18.59 | 1.13 | 1.82 | -0.01 |
| 2016-09-30 | 17.39 | 1.07 | 1.28 | -0.01 |
| 2016-06-30 | 16.19 | 1.02 | 0.74 | |
| 2016-03-31 | 15.11 | 0.93 | 1.30 | -0.01 |
| 2015-12-31 | 14.04 | 0.85 | 1.86 | -0.02 |
| 2015-09-30 | 13.51 | 0.83 | 1.50 | -0.01 |
| 2015-06-30 | 12.99 | 0.81 | 1.15 | |
| 2015-03-31 | 12.50 | 0.76 | 2.00 | 0.08 |
| 2014-12-31 | 12.02 | 0.72 | 2.86 | 0.17 |
| 2014-09-30 | 11.41 | 0.61 | 2.05 | 0.08 |
| 2014-06-30 | 10.80 | 0.50 | 1.24 | |
| 2014-03-31 | 10.50 | 0.34 | 1.23 | |
| 2013-12-31 | 10.21 | 0.18 | 1.23 | |
| 2013-09-30 | 10.20 | 0.01 | 1.25 | |
| 2013-06-30 | 10.19 | -0.17 | 1.28 | |
| 2013-03-31 | 10.06 | -0.45 | 1.28 | |
| 2012-12-31 | 9.93 | -0.74 | 1.29 | |
| 2012-09-30 | 10.38 | -0.69 | 1.29 | |
| 2012-06-30 | 10.82 | -0.63 | 1.30 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Solution Dynamics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Solution Dynamics used its assets more efficiently than the Oceania IT industry average last year based on Return on Assets.
- Solution Dynamics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Solution Dynamics's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Solution Dynamics has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
SDL Health
How is Solution Dynamics's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Solution Dynamics's finances.
The net worth of a company is the difference between its assets and liabilities.
- Solution Dynamics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Solution Dynamics has no long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Solution Dynamics has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Solution Dynamics Company Filings, last reported 3 months ago.
| Date (Data in NZD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 3.71 | 0.00 | 1.39 |
| 2018-09-30 | 3.71 | 0.00 | 1.39 |
| 2018-06-30 | 4.01 | 0.00 | 1.96 |
| 2018-03-31 | 4.01 | 0.00 | 1.96 |
| 2017-12-31 | 3.97 | 0.00 | 2.41 |
| 2017-09-30 | 3.97 | 0.00 | 2.41 |
| 2017-06-30 | 3.52 | 0.00 | 2.08 |
| 2017-03-31 | 3.52 | 0.00 | 2.08 |
| 2016-12-31 | 3.39 | 0.00 | 1.86 |
| 2016-09-30 | 3.39 | 0.00 | 1.86 |
| 2016-06-30 | 2.98 | 0.01 | 1.42 |
| 2016-03-31 | 2.98 | 0.01 | 1.42 |
| 2015-12-31 | 2.93 | 0.02 | 1.37 |
| 2015-09-30 | 2.93 | 0.02 | 1.37 |
| 2015-06-30 | 2.53 | 0.03 | 1.37 |
| 2015-03-31 | 2.53 | 0.03 | 1.37 |
| 2014-12-31 | 2.28 | 0.04 | 1.15 |
| 2014-09-30 | 2.28 | 0.04 | 1.15 |
| 2014-06-30 | 1.72 | 0.26 | 1.01 |
| 2014-03-31 | 1.72 | 0.26 | 1.01 |
| 2013-12-31 | 1.55 | 0.32 | 0.49 |
| 2013-09-30 | 1.55 | 0.32 | 0.49 |
| 2013-06-30 | 1.03 | 0.23 | 0.04 |
| 2013-03-31 | 1.03 | 0.23 | 0.04 |
| 2012-12-31 | 1.18 | 0.82 | 0.20 |
| 2012-09-30 | 1.18 | 0.82 | 0.20 |
| 2012-06-30 | 1.19 | 0.63 | 0.08 |
- Solution Dynamics has no debt.
- Solution Dynamics has no debt compared to 5 years ago when it was 20.4%.
- Solution Dynamics has no debt, it does not need to be covered by operating cash flow.
- Solution Dynamics has no debt, therefore coverage of interest payments is not a concern.
Financial health checks
We assess Solution Dynamics's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Solution Dynamics has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
SDL Dividends
What is Solution Dynamics's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
NZ$2,000 of
Solution Dynamics
shares you are expected to receive
NZ$65
in your first year as a dividend.
Dividend Amount
- Solution Dynamics's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.23%).
- Solution Dynamics's dividend is below the markets top 25% of dividend payers in New Zealand (5.65%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
| Oceania IT Industry Average Dividend Yield | Market Cap Weighted Average of 13 Stocks | 2.2% |
| New Zealand Market Average Dividend Yield | Market Cap Weighted Average of 75 Stocks | 3.8% |
| New Zealand Minimum Threshold Dividend Yield | 10th Percentile | 1.9% |
| New Zealand Bottom 25% Dividend Yield | 25th Percentile | 3.2% |
| New Zealand Top 25% Dividend Yield | 75th Percentile | 5.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in NZ$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-03-18 | 0.055 | 3.418 |
| 2018-09-28 | 0.075 | 4.603 |
| 2017-08-28 | 0.068 | 3.365 |
| 2016-09-20 | 0.045 | 1.946 |
| 2016-08-09 | 0.045 | 1.937 |
| 2016-02-29 | 0.060 | 2.875 |
| 2016-02-15 | 0.060 | 3.685 |
| 2015-09-17 | 0.015 | 1.044 |
| 2015-08-27 | 0.015 | 1.357 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Solution Dynamics has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
- Dividend payments have increased, but Solution Dynamics only paid a dividend in the past 4 years.
Income/ dividend checks
We assess Solution Dynamics's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Solution Dynamics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Solution Dynamics has a total score of 1/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
SDL Management
CEO
| COMPENSATION | NZ$413,000 |
| TENURE AS CEO | 12.7 years |
CEO Bio
Mr. Indrajit Nelson Sivasubramaniam, also known as Siva, has been the Chief Executive Officer of Solution Dynamics Limited since August 2006. Mr. Siva career began with an American based Telecommunications company in London, he moved to New Zealand in 1979 with a UK based computer company, holding technical positions and moving into Engineering Management. This led to his appointment as Managing Director and then Chief Executive Officer of the Asia Pacific Operations of a European based Telecommunications Company. He also served as Managing Director of Moore Business Forms and Systems (NZ) in the mid 90's. He was part of a Management Buy Out of the Australasian business of Moore (US based multinational in the Business forms and systems market), which led to his appointment as the Sales Director and then Managing Director of Moore Business Systems Australia. Over the past ten years, Mr. Siva has invested in and revitalised under-performing companies, working with venture capital organisations in Australia and New Zealand, completing two successful projects. He experience also includes, start up of small businesses, owning a business in the hospitality industry in Australia. Mr. Siva was formerly Sales Director and shareholder of Datacap a leading New Zealand technology solutions business. He has been a Director of Solution Dynamics Ltd. since November 2010.
CEO Compensation
- Siva's compensation has been consistent with company performance over the past year.
- Siva's remuneration is higher than average for companies of similar size in New Zealand.
Management Team Tenure
Average tenure of the Solution Dynamics management team in years:
- The average tenure for the Solution Dynamics management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Siva Sivasubramaniam
CEO & Director
NZ$413K
12.7 yrs
Chris Veale
CFO, Financial Controller & Company Secretary
13.3 yrs
Nick Williams
General Manager of Technology Services
1.3 yrs
Lynda Fish
Head of Sales - Asia Pacific
1.8 yrs
David Thornber
Group Manager of Infrastructure
Board of Directors Tenure
Average tenure of the Solution Dynamics board of directors in years:
- The tenure for the Solution Dynamics board of directors is about average.
Board of Directors
John McMahon
Chairman
NZ$45K
6.3 yrs
Siva Sivasubramaniam
CEO & Director
NZ$413K
8.4 yrs
Peter Beavis
Independent Director
NZ$25K
8.9 yrs
Elmar Toime
Director
NZ$30K
69
3.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (NZ$) | Value (NZ$) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Solution Dynamics's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Solution Dynamics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
SDL News
Simply Wall St News
Is Solution Dynamics Limited (NZSE:SDL) A Smart Choice For Dividend Investors?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Solution Dynamics Limited (NZSE:SDL) has recently paid dividends to shareholders, and currently yields 3.4%. … Let's dig deeper into whether Solution Dynamics should have a place in your portfolio.
Simply Wall St - – Full articleCan Solution Dynamics Limited (NZSE:SDL) Maintain Its Strong Returns?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Solution Dynamics Limited (NZSE:SDL). … One way to conceptualize this, is that for each NZ$1 of shareholders' equity it has, the company made NZ$0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs Solution Dynamics's 288% Share Price Increase Well Justified?
One great example is Solution Dynamics Limited (NZSE:SDL) which saw its share price drive 288% higher over five years. … During the five years of share price growth, Solution Dynamics moved from a loss to profitability. … Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too.
Simply Wall St - – Full articleDoes Solution Dynamics Limited (NZSE:SDL) Have A Good P/E Ratio?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Solution Dynamics has a price to earnings ratio of 17.49, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio
Simply Wall St - – Full articleDoes Solution Dynamics Limited's (NZSE:SDL) CEO Salary Compare Well With Others?
Siva Sivasubramaniam became the CEO of Solution Dynamics Limited (NZSE:SDL) in 2006. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Siva Sivasubramaniam's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleHow Much Of Solution Dynamics Limited (NZSE:SDL) Do Insiders Own?
A look at the shareholders of Solution Dynamics Limited (NZSE:SDL) can tell us which group is most powerful. … With a market capitalization of NZ$25m, Solution Dynamics is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Solution Dynamics
Simply Wall St - – Full articleIs Solution Dynamics Limited's (NZSE:SDL) Balance Sheet A Threat To Its Future?
The direct benefit for Solution Dynamics Limited (NZSE:SDL), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is SDL will have to adhere to stricter debt covenants and have less financial flexibility. … Is financial flexibility worth the lower cost of capital.
Simply Wall St - – Full articleIs Solution Dynamics Limited's (NZSE:SDL) 33% Better Than Average?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every NZ$1 worth of shareholders' equity, it generated NZ$0.33 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Should Investors Know About Solution Dynamics Limited's (NZSE:SDL) Capital Returns?
and looking to gauge the potential return on investment in Solution Dynamics Limited (NZSE:SDL). … To understand Solution Dynamics’s capital returns we will look at a useful metric called return on capital employed. … Solution Dynamics's Return On Capital Employed
Simply Wall St - – Full articleHere's What Solution Dynamics Limited's (NZSE:SDL) P/E Ratio Is Telling Us
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Solution Dynamics Limited's (NZSE:SDL) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleSDL Company Info
Description
Solution Dynamics Limited provides customer communication solutions in New Zealand, Australia, Europe, and the United States. It provides marketing campaign management solutions, such as advanced digital asset management, Internet proofing, ticketing, stationery, email newsletter, video proofing, database publishing, and online ordering. The company also offers personalized customer emails, letters, or newsletters using templates and pre-determined content options; and various mail processing and fulfillment services, including collateral stocking management and distribution, as well as provides desktop or hybrid mail, and scanning services. The company’s mail processing services for transactional or direct mail processing include database management, data manipulation, data extraction, document formatting and designing, multichannel distribution, digital printing and envelope insertion, postal lodgement preparation, lodgement manifest posting, direct marketing project management, collateral warehousing, response management, and remittance processing services. Further, it develops and markets software products related to multi-channel marketing communications comprising digital asset management, communication templates and campaign management, document archiving, document composition, and desktop mail solutions, as well as scanning and scanning workflow, and cross-border print-on-demand management software products. The company offers its products and services to utility, telecommunication, insurance, transport, not for profit, publication, service, retail, and banking and finance companies, as well as to government sectors. The company was founded in 1996 and is based in Auckland, New Zealand.
Details
| Name: | Solution Dynamics Limited |
| SDL | |
| Exchange: | NZSE |
| Founded: | 1996 |
| NZ$24,594,880 | |
| 14,639,810 | |
| Website: | http://www.solutiondynamics.com |
| Address: |
Solution Dynamics Limited 18 - 24 Canaveral Drive, Rosedale, Auckland, 0632, New Zealand |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NZSE | SDL | Ordinary Shares | New Zealand Stock Exchange | NZ | NZD | 27. Jul 2004 |
Number of employees
Current staff
Industry
| Data Processing and Outsourced Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 10:30 |
| End of day share price update: | 2019/04/18 00:00 |
| Last earnings filing: | 2019/02/28 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
