Solution Dynamics Limited provides customer communication solutions in New Zealand, Australia, Europe, and the United States. More Details
Flawless balance sheet with outstanding 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 is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: SDL's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: SDL exceeded the NZ IT industry which returned 68.5% over the past year.
Return vs Market: SDL exceeded the NZ Market which returned 9% over the past year.
Long-Term 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
3 weeks ago | Simply Wall StIs Solution Dynamics Limited's (NZSE:SDL) 3.8% Dividend Worth Your Time?
1 month ago | Simply Wall StSolution Dynamics Limited (NZSE:SDL) Passed Our Checks, And It's About To Pay A NZ$0.06 Dividend
2 months ago | Simply Wall StA Look At The Fair Value Of Solution Dynamics Limited (NZSE:SDL)
Is Solution Dynamics undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SDL (NZ$3.3) is trading below our estimate of fair value (NZ$21.99)
Significantly Below Fair Value: SDL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SDL is poor value based on its PE Ratio (25.9x) compared to the XO IT industry average (24.4x).
PE vs Market: SDL is poor value based on its PE Ratio (25.9x) compared to the NZ market (23x).
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 (9.9x) compared to the XO IT industry average (3.3x).
How is Solution Dynamics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- Check out Solution Dynamics's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
- Solution Dynamics competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
How has Solution Dynamics performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SDL has high quality earnings.
Growing Profit Margin: SDL's current net profit margins (5.8%) are higher than last year (2.1%).
Past Earnings Growth Analysis
Earnings Trend: SDL's earnings have grown by 3.9% per year over the past 5 years.
Accelerating Growth: SDL's earnings growth over the past year (252.5%) exceeds its 5-year average (3.9% per year).
Earnings vs Industry: SDL earnings growth over the past year (252.5%) exceeded the IT industry -21%.
Return on Equity
High ROE: SDL's Return on Equity (38.1%) is considered high.
How is Solution Dynamics's financial position?
Financial Position Analysis
Short Term Liabilities: SDL's short term assets (NZ$10.3M) exceed its short term liabilities (NZ$8.4M).
Long Term Liabilities: SDL's short term assets (NZ$10.3M) exceed its long term liabilities (NZ$729.0K).
Debt to Equity History and Analysis
Debt Level: SDL is debt free.
Reducing Debt: SDL has not had any debt for past 5 years.
Debt Coverage: SDL has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SDL has no debt, therefore coverage of interest payments is not a concern.
What is Solution Dynamics's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SDL's dividend (3.64%) is higher than the bottom 25% of dividend payers in the NZ market (2.73%).
High Dividend: SDL's dividend (3.64%) is low compared to the top 25% of dividend payers in the NZ market (4.35%).
Stability and Growth of Payments
Stable Dividend: SDL has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: SDL's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (70.6%), SDL's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Indrajit Nelson Sivasubramaniam, also known as Siva, has been the Chief Executive Officer of Solution Dynamics Limited since August 2006. Mr. Sivasubramaniam career began with an American based Telecom...
CEO Compensation Analysis
Compensation vs Market: Siva's total compensation ($USD259.87K) is about average for companies of similar size in the NZ market ($USD324.77K).
Compensation vs Earnings: Siva's compensation has been consistent with company performance over the past year.
|CEO & Director||14.25yrs||NZ$374.00k||6.08% |
|CFO, Financial Controller & Company Secretary||14.83yrs||no data||0.91% |
|General Manager of Technology Services||2.83yrs||no data||no data|
|Sales Manager of Asia Pacific||1.83yrs||no data||no data|
|Chief Operating Officer of Technology Services||1.67yrs||no data||no data|
|President of Solution Dynamics Inc. - North America & Europe||0.17yr||no data||no data|
|Group Manager of Infrastructure||no data||no data||no data|
Experienced Management: SDL's management team is considered experienced (2.3 years average tenure).
|CEO & Director||14.25yrs||NZ$374.00k||6.08% |
|Independent Director||4.75yrs||NZ$25.00k||no data|
|Independent Director||10.5yrs||NZ$25.00k||no data|
|Independent Director||1.5yrs||NZ$4.00k||0.36% |
|Independent Director||1.5yrs||NZ$4.00k||0.12% |
Experienced Board: SDL's board of directors are considered experienced (6.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Solution Dynamics Limited's company bio, employee growth, exchange listings and data sources
- Name: Solution Dynamics Limited
- Ticker: SDL
- Exchange: NZSE
- Founded: 1996
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: NZ$48.311m
- Shares outstanding: 14.64m
- Website: https://www.solutiondynamics.com
Number of Employees
- Solution Dynamics Limited
- 18 Canaveral Drive
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SDL||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Jul 2004|
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||2020/11/23 10:33|
|End of Day Share Price||2020/11/23 00:00|
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.