Solution Dynamics
Market Cap
NZ$23.1m
Last Updated
2019/11/13 10:30 UTC
Data Sources
Company Financials
Executive Summary
Solution Dynamics Limited provides customer communication solutions in New Zealand, Australia, Europe, and the United States.
Snowflake
Fundamentals
Flawless balance sheet with poor track record.
Share Price & News
How has Solution Dynamics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SDL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.6%
SDL
6.6%
NZ IT
1.1%
NZ Market
1 Year Return
n/a
SDL
18.8%
NZ IT
16.5%
NZ Market
Return vs Industry: Insufficient data to determine how SDL performed against the NZ IT industry.
Return vs Market: Insufficient data to determine how SDL performed against the NZ Market.
Shareholder returns
| SDL | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.6% | 6.6% | 1.1% |
| 30 Day | 1.3% | -3.9% | -1.1% |
| 90 Day | -6.5% | 16.1% | 1.6% |
| 1 Year | n/a | 21.2%18.8% | 21.5%16.5% |
| 3 Year | -24.6%-31.3% | 53.9%42.6% | 57.1%36.5% |
| 5 Year | 261.2%216.0% | 90.0%67.3% | 94.0%50.4% |
Price Volatility Vs. Market
How volatile is Solution Dynamics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Solution Dynamics Limited's (NZSE:SDL) ROE Of 17% Impressive?3 weeks ago | Simply Wall St
Did You Miss Solution Dynamics's (NZSE:SDL) Impressive 239% Share Price Gain?1 month ago | Simply Wall St
What Kind Of Investor Owns Most Of Solution Dynamics Limited (NZSE:SDL)?Valuation
Is Solution Dynamics undervalued compared to its fair value and its price relative to the market?
34.43x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SDL (NZ$1.58) is trading above our estimate of fair value (NZ$0.65)
Significantly Below Fair Value: SDL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SDL is poor value based on its PE Ratio (34.4x) compared to the IT industry average (23.6x).
PE vs Market: SDL is poor value based on its PE Ratio (34.4x) compared to the NZ market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SDL's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SDL is overvalued based on its PB Ratio (5.9x) compared to the XO IT industry average (2.6x).
Next Steps
Future Growth
How is Solution Dynamics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
-2.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SDL's earnings are forecast to decline over the next 3 years (-2.1% per year).
Earnings vs Market: SDL's earnings are forecast to decline over the next 3 years (-2.1% per year).
High Growth Earnings: SDL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: Insufficient data to determine if SDL's revenue is forecast to grow faster than the NZ market.
High Growth Revenue: Insufficient data to determine if SDL's revenue is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SDL's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Solution Dynamics performed over the past 5 years?
7.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SDL has a high level of non-cash earnings.
Growing Profit Margin: SDL's current net profit margins (2.7%) are lower than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: SDL's earnings have grown by 7.7% per year over the past 5 years.
Accelerating Growth: SDL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SDL had negative earnings growth (-49.7%) over the past year, making it difficult to compare to the IT industry average (38.5%).
Return on Equity
High ROE: SDL's Return on Equity (17%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Solution Dynamics's financial position?
Financial Position Analysis
Short Term Liabilities: SDL's short term assets (NZ$5.0M) exceeds its short term liabilities (NZ$3.7M)
Long Term Liabilities: SDL has no long term liabilities
Debt to Equity History and Analysis
Debt Level: SDL is debt free.
Reducing Debt: SDL had no debt 5 years ago.
Debt Coverage: SDL has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SDL has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: SDL has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if SDL's debt is covered by short term assets.
Next Steps
Dividend
What is Solution Dynamics's current dividend yield, its reliability and sustainability?
2.53%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SDL's dividend (2.53%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (3.1%).
High Dividend: SDL's dividend (2.53%) is low compared to the top 25% of dividend payers in the NZ market (5.5%).
Stability and Growth of Payments
Stable Dividend: SDL has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: SDL's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (87.2%), SDL's 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
What is the CEO of Solution Dynamics's salary, the management and board of directors tenure and is there insider trading?
1.8yrs
Average management tenure
CEO
Siva Sivasubramaniam 0
13.3yrs
Tenure
NZ$374,000
Compensation
Mr. Indrajit Nelson Sivasubramaniam, also known as Siva, has been the Chief Executive Officer of Solution Dynamics Limited since August 2006. Mr. Siva career began with an American based Telecommunications ...
CEO Compensation Analysis
Compensation vs Market: Siva's total compensation ($USD236.74K) is above average for companies of similar size in the NZ market ($USD63.81K).
Compensation vs Earnings: Siva's compensation has been consistent with company performance over the past year.
Management Age and Tenure
1.8yrs
Average Tenure
Experienced Management: SDL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Age and Tenure
5.3yrs
Average Tenure
Experienced Board: SDL's board of directors are considered experienced (5.3 years average tenure).
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 been diluted in the past year, with total shares outstanding growing by 2.1%.
Management Team
David Thornber
Group Manager of Infrastructure
- Tenure: 0yrs
Siva Sivasubramaniam
CEO & Director
- Tenure: 13.3yrs
- Compensation: NZ$374.00k
Chris Veale
CFO, Financial Controller & Company Secretary
- Tenure: 13.8yrs
Nick Williams
General Manager of Technology Services
- Tenure: 1.8yrs
Tony Edwards
Sales Manager of Asia Pacific
- Tenure: 0.8yrs
Mark Wootton
Chief Operating Officer of Technology Services
- Tenure: 0.7yrs
Board Members
Elmar Toime (70yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: NZ$25.00k
Siva Sivasubramaniam
CEO & Director
- Tenure: 13.3yrs
- Compensation: NZ$374.00k
Peter Beavis
Independent Director
- Tenure: 9.5yrs
- Compensation: NZ$25.00k
Andy Preece
Independent Director
- Tenure: 0.5yrs
- Compensation: NZ$4.00k
John McMahon
Chairman
- Tenure: 6.9yrs
- Compensation: NZ$45.00k
Lee Eglinton
Independent Director
- Tenure: 0.5yrs
- Compensation: NZ$4.00k
Company Information
Solution Dynamics Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Solution Dynamics Limited
- Ticker: SDL
- Exchange: NZSE
- Founded: 1996
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: NZ$23.131m
- Shares outstanding: 14.64m
- Website: https://www.solutiondynamics.com
Number of Employees
Location
- Solution Dynamics Limited
- 18 Canaveral Drive
- Albany
- Auckland
- 632
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SDL | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | Jul 2004 |
Biography
Solution Dynamics Limited provides customer communication solutions in New Zealand, Australia, Europe, and the United States. The company offers advanced digital asset management solutions, which combine a ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/13 10:30 |
| End of Day Share Price | 2019/11/07 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.