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Solution Dynamics

NZSE:SDL
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SDL
NZSE
NZ$25M
Market Cap
  1. Home
  2. NZ
  3. Software
Company description

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
3.1%
NZSE:SDL
-0.3%
Oceania IT
1.4%
NZ Market
1 Year Returns
-21.9%
NZSE:SDL
24%
Oceania IT
11.6%
NZ Market
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.
Price Volatility
SDL
Industry
5yr Volatility vs Market

SDL Value

 Is Solution Dynamics undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Solution Dynamics.

NZSE:SDL Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NZSE:SDL
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.

NZSE:SDL DCF 1st Stage: Next 10 year cash flow forecast
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
NZSE:SDL DCF 2nd Stage: Terminal Value
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
NZSE:SDL Total Equity Value
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
NZSE:SDL Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NZSE:SDL PE (Price to Earnings) Ratio Data Sources
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.

NZSE:SDL PE (Price to Earnings) Ratio Calculation
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?
Raw Data
NZSE:SDL PEG (Price to Earnings to Growth) Ratio Data Sources
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?
Raw Data
NZSE:SDL PB (Price to Book) Ratio Data Sources
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
NZSE:SDL PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Solution Dynamics's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. 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

 How is Solution Dynamics expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • 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!
Annual Growth Rate
-5.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Solution Dynamics expected to grow at an attractive rate?
  • 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
Raw Data
NZSE:SDL Future Growth Rates Data Sources
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
Raw Data
NZSE:SDL Analysts Growth Expectations Data Sources
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 numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:SDL Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Solution Dynamics's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Solution Dynamics is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:SDL 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.

NZSE:SDL Past Financials Data
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.
X
Future performance checks
We assess Solution Dynamics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Solution Dynamics's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Solution Dynamics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Solution Dynamics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:SDL Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Solution Dynamics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Solution Dynamics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Solution Dynamics Company Filings, last reported 3 months ago.

NZSE:SDL Past Debt and Equity Data
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.
X
Financial health checks
We assess Solution Dynamics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Solution Dynamics has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
3.27%
Current annual income from Solution Dynamics dividends.
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
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NZSE:SDL Annualized Past and Future Dividends
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.

NZSE:SDL Past Annualized Dividends Data
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.
Current Payout to shareholders
What portion of Solution Dynamics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Solution Dynamics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Siva Sivasubramaniam
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:

7.3
Average Tenure
  • 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

TITLE
CEO & Director
COMPENSATION
NZ$413K
TENURE
12.7 yrs

Chris Veale

TITLE
CFO, Financial Controller & Company Secretary
TENURE
13.3 yrs

Nick Williams

TITLE
General Manager of Technology Services
TENURE
1.3 yrs

Lynda Fish

TITLE
Head of Sales - Asia Pacific
TENURE
1.8 yrs

David Thornber

TITLE
Group Manager of Infrastructure
Board of Directors Tenure

Average tenure of the Solution Dynamics board of directors in years:

7.4
Average Tenure
  • The tenure for the Solution Dynamics board of directors is about average.
Board of Directors

John McMahon

TITLE
Chairman
COMPENSATION
NZ$45K
TENURE
6.3 yrs

Siva Sivasubramaniam

TITLE
CEO & Director
COMPENSATION
NZ$413K
TENURE
8.4 yrs

Peter Beavis

TITLE
Independent Director
COMPENSATION
NZ$25K
TENURE
8.9 yrs

Elmar Toime

TITLE
Director
COMPENSATION
NZ$30K
AGE
69
TENURE
3.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
X
Management checks
We assess Solution Dynamics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Can 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

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Is 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.

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Does 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

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Does 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?

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How 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

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Is 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.

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Is 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

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What 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

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Here'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)

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SDL 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
Staff numbers
0
Solution Dynamics employees.
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.