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SDL

Solution DynamicsNZSE:SDL Stock Report

Last Price

NZ$2.95

Market Cap

NZ$43.2m

7D

0%

1Y

-9.0%

Updated

17 Jan, 2022

Data

Company Financials
SDL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends2/6

SDL Stock Overview

Solution Dynamics Limited provides customer communication solutions in New Zealand, Australia, Europe, and the United States.

Price History & Performance

Summary of all time highs, changes and price drops for Solution Dynamics
Historical stock prices
Current Share PriceNZ$2.95
52 Week HighNZ$3.30
52 Week LowNZ$2.80
Beta0.33
1 Month Change0%
3 Month Change2.43%
1 Year Change-8.95%
3 Year Change74.56%
5 Year Change25.53%
Change since IPO126.92%

Recent News & Updates

May 08
Is Solution Dynamics Limited (NZSE:SDL) A Smart Choice For Dividend Investors?

Is Solution Dynamics Limited (NZSE:SDL) A Smart Choice For Dividend Investors?

Is Solution Dynamics Limited ( NZSE:SDL ) a good dividend stock? How can we tell? Dividend paying companies with...

Apr 01
With EPS Growth And More, Solution Dynamics (NZSE:SDL) Is Interesting

With EPS Growth And More, Solution Dynamics (NZSE:SDL) Is Interesting

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Mar 06
Is It Smart To Buy Solution Dynamics Limited (NZSE:SDL) Before It Goes Ex-Dividend?

Is It Smart To Buy Solution Dynamics Limited (NZSE:SDL) Before It Goes Ex-Dividend?

Solution Dynamics Limited ( NZSE:SDL ) stock is about to trade ex-dividend in four days. You will need to purchase...

Shareholder Returns

SDLNZ ITNZ Market
7D0%-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

Is SDL's price volatile compared to industry and market?
SDL volatility
SDL Average Weekly Movement4.2%
IT Industry Average Movement7.4%
Market Average Movement3.7%
10% most volatile stocks in NZ Market6.4%
10% least volatile stocks in NZ Market2.3%

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

FoundedEmployeesCEOWebsite
199698Patrick Brandhttps://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


Earnings & Revenue

Key profitability statistics from the latest earnings report
SDL income statement (TTM)
RevenueNZ$34.30m
Cost of RevenueNZ$31.23m
Gross ProfitNZ$3.07m
ExpensesNZ$1.04m
EarningsNZ$2.03m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin8.95%
Net Profit Margin5.93%
Debt/Equity Ratio0%

How did SDL perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

79%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 06:01
End of Day Share Price2021/12/24 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.