Solution Dynamics
Market Cap
NZ$23.7m
Last Updated
2020/02/17 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.
Risk Analysis
Snowflake Analysis
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
1.3%
SDL
2.5%
NZ IT
1.0%
NZ Market
1 Year Return
-0.6%
SDL
33.7%
NZ IT
21.1%
NZ Market
Return vs Industry: SDL underperformed the NZ IT industry which returned 32.7% over the past year.
Return vs Market: SDL underperformed the NZ Market which returned 20.9% over the past year.
Shareholder returns
| SDL | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 2.5% | 1.0% |
| 30 Day | 1.3% | 7.4% | -0.5% |
| 90 Day | 1.3% | 14.4% | 7.4% |
| 1 Year | 1.9%-0.6% | 36.0%33.7% | 26.1%21.1% |
| 3 Year | -26.3%-32.8% | 71.0%57.9% | 59.7%38.9% |
| 5 Year | 157.2%125.0% | 137.4%111.5% | 96.5%52.7% |
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) 17% ROE Better Than Average?3 weeks ago | Simply Wall St
Do Insiders Own Lots Of Shares In Solution Dynamics Limited (NZSE:SDL)?1 month ago | Simply Wall St
Should Solution Dynamics Limited (NZSE:SDL) Be Part Of Your Dividend Portfolio?Valuation
Is Solution Dynamics undervalued compared to its fair value and its price relative to the market?
35.3x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SDL (NZ$1.62) is trading above our estimate of fair value (NZ$0.73)
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 (35.3x) compared to the IT industry average (29.1x).
PE vs Market: SDL is poor value based on its PE Ratio (35.3x) compared to the NZ market (19.9x).
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 (6x) compared to the XO IT industry average (3.2x).
Next Steps
Future Growth
How is Solution Dynamics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
32.5%
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.
Next Steps
- Examine Solution Dynamics's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Solution Dynamics competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
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 (28.7%).
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) exceed 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?
2.47%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SDL's dividend (2.47%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.88%).
High Dividend: SDL's dividend (2.47%) is low compared to the top 25% of dividend payers in the NZ market (5.59%).
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
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Siva Sivasubramaniam 0
13.5yrs
Tenure
NZ$374,000
Compensation
Mr. Indrajit Nelson Sivasubramaniam, also known as Siva, has been the Chief Executive Officer of Solution Dynamics Limited since August 2006. Mr. Siva career began with an American based Telecommunications ...
CEO Compensation Analysis
Compensation vs Market: Siva's total compensation ($USD240.64K) is about average for companies of similar size in the NZ market ($USD272.33K).
Compensation vs Earnings: Siva's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 13.5yrs | NZ$374.00k | 6.63% NZ$1.6m | |
| CFO, Financial Controller & Company Secretary | 14.1yrs | no data | 0.91% NZ$215.2k | |
| General Manager of Technology Services | 2.1yrs | no data | no data | |
| Sales Manager of Asia Pacific | 1.1yrs | no data | no data | |
| Chief Operating Officer of Technology Services | 0.9yrs | no data | no data | |
| Group Manager of Infrastructure | 0yrs | no data | no data |
2.1yrs
Average Tenure
Experienced Management: SDL's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 13.5yrs | NZ$374.00k | 6.63% NZ$1.6m | |
| Independent Director | 4yrs | NZ$25.00k | no data | |
| Independent Director | 9.8yrs | NZ$25.00k | no data | |
| Independent Director | 0.8yrs | NZ$4.00k | no data | |
| Chairman | 7.2yrs | NZ$45.00k | 10.56% NZ$2.5m | |
| Independent Director | 0.8yrs | NZ$4.00k | no data |
5.6yrs
Average Tenure
Experienced Board: SDL's board of directors are considered experienced (5.6 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 been diluted in the past year, with total shares outstanding growing by 2.1%.
Top Shareholders
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$23.716m
- 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 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. In addition, the company offers communication logistics solutions comprising outbound and inbound communications management, high volume document scanning and data capture, conversion of file from paper to digital and bulk ingestion, meta-data tagging automation, managing sensitive and time critical documents, and outsourced digital archiving and document management; and post on demand solutions, such as access to self-service delivery portal, and drag and drop workflows, as well as automated postal mail, email and SMS workflows. Further, it provides print management, mail house and fulfilment, communications database cleansing, direct and transactional marketing, and business process and IT consultancy services, as well as API driven customer communication software. Solution Dynamics Limited was founded in 1996 and is based in Auckland, New Zealand.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 10:30 |
| End of Day Share Price | 2020/02/12 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.