| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 2/6 |
SDL Stock Overview
Solution Dynamics Limited provides customer communication solutions in New Zealand, Australia, Europe, and the United States.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | NZ$2.95 |
| 52 Week High | NZ$3.30 |
| 52 Week Low | NZ$2.80 |
| Beta | 0.33 |
| 1 Month Change | 0% |
| 3 Month Change | 2.43% |
| 1 Year Change | -8.95% |
| 3 Year Change | 74.56% |
| 5 Year Change | 25.53% |
| Change since IPO | 126.92% |
Recent News & Updates
Is Solution Dynamics Limited (NZSE:SDL) A Smart Choice For Dividend Investors?
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With EPS Growth And More, Solution Dynamics (NZSE:SDL) Is Interesting
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Is It Smart To Buy Solution Dynamics Limited (NZSE:SDL) Before It Goes Ex-Dividend?
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Shareholder Returns
| SDL | NZ IT | NZ Market | |
|---|---|---|---|
| 7D | 0% | -3.2% | -0.5% |
| 1Y | -9.0% | -28.3% | -5.5% |
Return vs Industry: SDL exceeded the NZ IT industry which returned -25.9% over the past year.
Return vs Market: SDL underperformed the NZ Market which returned -6.5% over the past year.
Price Volatility
| SDL volatility | |
|---|---|
| SDL Average Weekly Movement | 4.2% |
| IT Industry Average Movement | 7.4% |
| Market Average Movement | 3.7% |
| 10% most volatile stocks in NZ Market | 6.4% |
| 10% least volatile stocks in NZ Market | 2.3% |
Stable Share Price: SDL is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SDL's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1996 | 98 | Patrick Brand | https://www.solutiondynamics.com |
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 central repository to store, manage, and access brand assets, as well as associated accurate brand and product information together with integrated publishing applications; and communications content generation solutions, such as communication content generation workflows, digital asset and smart document ingestion, smart template ingestion, advanced database driven templates, online preview, multi-language capabilities, approval workflows, and advanced user rights management. It also provides automated workflows for communications personalization; content personalization and automated workflows for printed mail, email, and SMS; smart document and data driven templates; online preview and approval workflows; automated workflows for dispatch of personalized communications; automated workflows to effect print and mail house services; and access to print and mail house, database cleansing workflow, and bulk mail rates.
Solution Dynamics Fundamentals Summary
| SDL fundamental statistics | |
|---|---|
| Market Cap | NZ$43.19m |
| Earnings (TTM) | NZ$2.03m |
| Revenue (TTM) | NZ$34.30m |
21.2x
P/E Ratio1.3x
P/S RatioIs SDL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SDL income statement (TTM) | |
|---|---|
| Revenue | NZ$34.30m |
| Cost of Revenue | NZ$31.23m |
| Gross Profit | NZ$3.07m |
| Expenses | NZ$1.04m |
| Earnings | NZ$2.03m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.14 |
| Gross Margin | 8.95% |
| Net Profit Margin | 5.93% |
| Debt/Equity Ratio | 0% |
How did SDL perform over the long term?
See historical performance and comparisonDividends
3.7%
Current Dividend Yield79%
Payout RatioValuation
Is Solution Dynamics undervalued compared to its fair value and its price relative to the market?
21.23x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SDL (NZ$2.95) is trading above our estimate of fair value (NZ$2.26)
Significantly Below Fair Value: SDL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SDL is good value based on its PE Ratio (21.2x) compared to the Oceanic IT industry average (29.4x).
PE vs Market: SDL is poor value based on its PE Ratio (21.2x) compared to the NZ market (19.2x).
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 (8.8x) compared to the XO IT industry average (3.4x).
Future Growth
How is Solution Dynamics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
46.1%
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 Solution Dynamics 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.
Past Performance
How has Solution Dynamics performed over the past 5 years?
15.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SDL has high quality earnings.
Growing Profit Margin: SDL's current net profit margins (5.9%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: SDL's earnings have grown by 15.7% per year over the past 5 years.
Accelerating Growth: SDL's earnings growth over the past year (9%) is below its 5-year average (15.7% per year).
Earnings vs Industry: SDL earnings growth over the past year (9%) exceeded the IT industry 1.9%.
Return on Equity
High ROE: SDL's Return on Equity (41.2%) is considered outstanding.
Financial Health
How is Solution Dynamics's financial position?
Financial Position Analysis
Short Term Liabilities: SDL's short term assets (NZ$11.3M) exceed its short term liabilities (NZ$8.9M).
Long Term Liabilities: SDL's short term assets (NZ$11.3M) exceed its long term liabilities (NZ$483.0K).
Debt to Equity History and Analysis
Debt Level: SDL is debt free.
Reducing Debt: SDL has not had any debt for past 5 years.
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
Dividend
What is Solution Dynamics's current dividend yield, its reliability and sustainability?
3.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SDL's dividend (3.73%) is higher than the bottom 25% of dividend payers in the NZ market (2.66%).
High Dividend: SDL's dividend (3.73%) is low compared to the top 25% of dividend payers in the NZ market (4.98%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (79.2%), 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
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Patrick Brand
1
Tenure
Mr. Patrick Brand serves as Chief Executive Officer of Solution Dynamics Limited since 2021 and served as President of Solution Dynamics Inc. - North America & Europe at Solution Dynamics Limited since Sep...
Leadership Team
Experienced Management: SDL's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
Experienced Board: SDL's board of directors are considered experienced (5.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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
Solution Dynamics Limited's 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
- Implied Market Cap: NZ$43.187m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/17 06:01 |
| End of Day Share Price | 2021/12/24 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.