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Smartpay Holdings

NZSE:SPY
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPY
NZSE
NZ$34M
Market Cap
  1. Home
  2. NZ
  3. Software
Company description

Smartpay Holdings Limited designs, develops, and implements electronic fund transfer at point of sale (EFTPOS) solutions for retail, business payment, and transactional processing requirements. The last earnings update was 174 days ago. More info.


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SPY Share Price and Events
7 Day Returns
0%
NZSE:SPY
-3.1%
Oceania IT
1.1%
NZ Market
1 Year Returns
4.7%
NZSE:SPY
21.1%
Oceania IT
11.2%
NZ Market
SPY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Smartpay Holdings (SPY) 0% 0% 0% 4.7% 5.3% -45.2%
Oceania IT -3.1% 0% 7.9% 21.1% 45.8% 43.4%
NZ Market 1.1% 1.9% 7.6% 11.2% 27.1% 51.9%
1 Year Return vs Industry and Market
  • SPY underperformed the IT industry which returned 21.1% over the past year.
  • SPY underperformed the Market in New Zealand which returned 11.2% over the past year.
Price Volatility
SPY
Industry
5yr Volatility vs Market

Value

 Is Smartpay Holdings 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 Smartpay Holdings 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 Smartpay Holdings.

NZSE:SPY 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 11.3%
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:SPY
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))
= 1.049 (1 + (1- 28%) (91.07%))
1.494
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.49
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (1.494 * 5.96%)
11.27%

Discounted Cash Flow Calculation for NZSE:SPY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Smartpay Holdings 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:SPY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 11.27%)
2019 1.42 Est @ 88.25% 1.27
2020 2.30 Est @ 62.49% 1.86
2021 3.33 Est @ 44.45% 2.42
2022 4.39 Est @ 31.83% 2.86
2023 5.40 Est @ 22.99% 3.16
2024 6.30 Est @ 16.8% 3.32
2025 7.09 Est @ 12.47% 3.36
2026 7.76 Est @ 9.44% 3.30
2027 8.33 Est @ 7.32% 3.18
2028 8.81 Est @ 5.84% 3.03
Present value of next 10 years cash flows NZ$27.76
NZSE:SPY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$8.81 × (1 + 2.37%) ÷ (11.27% – 2.37%)
NZ$101.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$101.31 ÷ (1 + 11.27%)10
NZ$34.81
NZSE:SPY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$27.76 + NZ$34.81
NZ$62.57
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$62.57 / 171.75
NZ$0.36
NZSE:SPY Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$0.36
Current discount Discount to share price of NZ$0.20
= -1 x (NZ$0.20 - NZ$0.36) / NZ$0.36
45.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Smartpay Holdings is available for.
Intrinsic value
45%
Share price is NZ$0.2 vs Future cash flow value of NZ$0.36432
Current Discount Checks
For Smartpay Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Smartpay Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Smartpay Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Smartpay Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Smartpay Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:SPY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in NZD NZ$0.01
NZSE:SPY Share Price ** NZSE (2019-05-22) in NZD NZ$0.2
Oceania IT Industry PE Ratio Median Figure of 18 Publicly-Listed IT Companies 15.87x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 18.27x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Smartpay Holdings.

NZSE:SPY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:SPY Share Price ÷ EPS (both in NZD)

= 0.2 ÷ 0.01

18.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Smartpay Holdings is overvalued based on earnings compared to the Oceania IT industry average.
  • Smartpay Holdings is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Smartpay Holdings's expected growth come at a high price?
Raw Data
NZSE:SPY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
15.9%per year
Oceania IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.09x
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 Smartpay Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Smartpay Holdings's assets?
Raw Data
NZSE:SPY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in NZD NZ$0.09
NZSE:SPY Share Price * NZSE (2019-05-22) in NZD NZ$0.2
Oceania IT Industry PB Ratio Median Figure of 34 Publicly-Listed IT Companies 2.53x
New Zealand Market PB Ratio Median Figure of 125 Publicly-Listed Companies 1.54x
NZSE:SPY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:SPY Share Price ÷ Book Value per Share (both in NZD)

= 0.2 ÷ 0.09

2.11x

* Primary Listing of Smartpay Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Smartpay Holdings is good value based on assets compared to the Oceania IT industry average.
X
Value checks
We assess Smartpay Holdings'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. Smartpay Holdings has a total score of 3/6, 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.

Future Performance

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

  • No analysts cover Smartpay Holdings, 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
15.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Smartpay Holdings expected to grow at an attractive rate?
  • Smartpay Holdings's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Smartpay Holdings's earnings growth is expected to exceed the New Zealand market average.
  • Unable to compare Smartpay Holdings's revenue growth to the New Zealand market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NZSE:SPY Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:SPY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 15.9%
Oceania IT Industry Earnings Growth Rate Market Cap Weighted Average 29.8%
Oceania IT Industry Revenue Growth Rate Market Cap Weighted Average 14.8%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 6.9%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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:SPY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 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:SPY Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NZSE:SPY Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-09-30 20 8 2
2018-06-30 20 8 2
2018-03-31 20 9 3
2017-12-31 20 8 3
2017-09-30 21 7 3
2017-06-30 21 7 2
2017-03-31 21 6 2
2016-12-31 21 6 1
2016-09-30 21 6 1
2016-06-30 21 6 0
2016-03-31 20 6 0
2015-12-31 20 6 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Smartpay Holdings's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Smartpay Holdings 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:SPY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Smartpay Holdings Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:SPY Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NZSE:SPY Past Financials Data
Date (Data in NZD Millions) EPS *
2018-09-30 0.01
2018-06-30 0.01
2018-03-31 0.01
2017-12-31 0.01
2017-09-30 0.01
2017-06-30 0.01
2017-03-31 0.01
2016-12-31 0.01
2016-09-30 0.00
2016-06-30 0.00
2016-03-31 0.00
2015-12-31 0.00

*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 Smartpay Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Smartpay Holdings'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.
Smartpay Holdings has a total score of 2/6, 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.

Past Performance

  How has Smartpay Holdings 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 Smartpay Holdings'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.
  • Smartpay Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Smartpay Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Smartpay Holdings's 1-year earnings growth is negative, it can't be compared to the Oceania IT industry average.
Earnings and Revenue History
Smartpay Holdings'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 Smartpay Holdings Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:SPY Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 20.04 1.82 0.64
2018-06-30 20.19 2.17 0.67
2018-03-31 20.35 2.52 0.70
2017-12-31 20.47 2.54 0.89
2017-09-30 20.60 2.56 1.08
2017-06-30 20.75 2.38 1.17
2017-03-31 20.89 2.20 1.25
2016-12-31 21.03 1.40 1.36
2016-09-30 21.17 0.59 1.46
2016-06-30 20.76 0.40 1.42
2016-03-31 20.36 0.22 1.38
2015-12-31 20.34 0.21 1.26
2015-09-30 20.32 0.21 1.14
2015-06-30 21.25 0.89 1.14
2015-03-31 22.19 1.57 1.14
2014-12-31 22.77 1.96 1.19
2014-09-30 23.35 2.35 1.23
2014-06-30 23.12 2.04 1.31
2014-03-31 22.88 1.74 1.38
2013-12-31 21.68 -0.01 1.96
2013-09-30 20.47 -1.76 2.54
2013-06-30 18.57 -3.40 2.89
2013-03-31 16.67 -5.04 3.23
2012-12-31 16.32 -8.19 1.75
2012-09-30 15.96 -11.34 0.27
2012-06-30 15.86 -11.89 2.14

*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.
  • Smartpay Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Smartpay Holdings used its assets less efficiently than the Oceania IT industry average last year based on Return on Assets.
  • Smartpay Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Smartpay Holdings'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.
Smartpay Holdings has a total score of 1/6, 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.

Health

 How is Smartpay Holdings'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 Smartpay Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Smartpay Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Smartpay Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Smartpay Holdings'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.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
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 Smartpay Holdings Company Filings, last reported 7 months ago.

NZSE:SPY Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 16.31 31.28 8.80
2018-06-30 16.31 31.28 8.80
2018-03-31 16.02 24.22 2.40
2017-12-31 16.02 24.22 2.40
2017-09-30 14.45 25.72 0.82
2017-06-30 14.45 25.72 0.82
2017-03-31 13.61 26.92 2.90
2016-12-31 13.61 26.92 2.90
2016-09-30 11.81 26.98 2.21
2016-06-30 11.81 26.98 2.21
2016-03-31 11.48 27.34 3.41
2015-12-31 11.48 27.34 3.41
2015-09-30 11.40 26.53 3.68
2015-06-30 11.40 26.53 3.68
2015-03-31 11.43 26.32 4.97
2014-12-31 11.43 26.32 4.97
2014-09-30 11.10 26.79 3.66
2014-06-30 11.10 26.79 3.66
2014-03-31 9.69 25.96 4.45
2013-12-31 9.69 25.96 4.45
2013-09-30 8.50 27.35 3.56
2013-06-30 8.50 27.35 3.56
2013-03-31 7.09 28.75 4.43
2012-12-31 7.09 28.75 4.43
2012-09-30 9.41 18.31 3.54
2012-06-30 9.41 18.31 3.54
  • Smartpay Holdings's level of debt (191.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (321.1% vs 191.8% today).
  • Debt is well covered by operating cash flow (26.3%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Smartpay Holdings'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. Smartpay Holdings has a total score of 3/6, 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.

Dividends

 What is Smartpay Holdings'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
0%
Current annual income from Smartpay Holdings dividends.
If you bought NZ$2,000 of Smartpay Holdings shares you are expected to receive NZ$0 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?
  • Unable to evaluate Smartpay Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Smartpay Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:SPY 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 12 Stocks 2.3%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.8%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.1%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
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:SPY Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Smartpay Holdings has not reported any payouts.
  • Unable to verify if Smartpay Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Smartpay Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Smartpay Holdings has not reported any payouts.
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 Smartpay Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.1%) - 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 Smartpay Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Smartpay Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Smartpay Holdings'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
Bradley Gerdis
COMPENSATION NZ$0
AGE 45
TENURE AS CEO 7.4 years
CEO Bio

Mr. Bradley Gavin Gerdis, B.Bus. (Hon), M.Com. has been the Chief Executive Officer of SmartPay Holdings Limited since December 21, 2011 and its Managing Director since March 2012. Mr. Gerdis served as the Chief Financial Officer of Customers Ltd., from November 11, 2004 to July 2008 and served as its Head of Strategy and Investment until March 1, 2007. He served as a Founding Executive of Customers Limited. He served as an Equity Analyst of ING Groep N.V., Research Division. He has significant financial and investment management experience including structuring and executing acquisition driven growth strategies. His career includes roles with ANZ Private Equity and ANZ Development Capital. His financial and investment experience also includes roles with Gresham Private Equity and with ING Barings. He has been a Director at SmartPay Holdings Limited since July 1, 2012. He served as an Executive Director of Customers Ltd., from June 1, 2005 to march 1, 2007. He has a Bachelor of Business Honours degree and Master of Commerce degree in Advanced Financial Management.

CEO Compensation
  • Insufficient data for Bradley to compare compensation growth.
  • Bradley's remuneration is lower than average for companies of similar size in New Zealand.
Management Team

Bradley Gerdis

TITLE
CEO, MD & Director
AGE
45
TENURE
7.4 yrs

Marty Pomeroy

TITLE
COO & Executive Director

Aidan Murphy

TITLE
Chief Financial Officer

Helen Roderick

TITLE
Chief Executive Officer of CPSL

Rowena Bowman

TITLE
Company Secretary

Linc Burgess

TITLE
General Manager of Australia
Board of Directors Tenure

Average tenure of the Smartpay Holdings board of directors in years:

4.2
Average Tenure
  • The tenure for the Smartpay Holdings board of directors is about average.
Board of Directors

Greg Barclay

TITLE
Non-Executive Chairman
COMPENSATION
NZ$60K
TENURE
3.3 yrs

Bradley Gerdis

TITLE
CEO, MD & Director
AGE
45
TENURE
6.8 yrs

Marty Pomeroy

TITLE
COO & Executive Director
TENURE
5.1 yrs

Matt Turnbull

TITLE
Independent Director
COMPENSATION
NZ$55K
TENURE
6.1 yrs

Bill Pulver

TITLE
Independent Director
AGE
58
TENURE
0.4 yrs

Carlos Gil

TITLE
Non-Executive Director
TENURE
0.4 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$) Value (NZ$)
03. Jan 19 Buy William Pulver Individual 24. Dec 18 02. Jan 19 399,886 NZ$0.19 NZ$75,601
27. Nov 18 Buy Microequities Asset Management Pty Limited Company 06. Sep 18 26. Nov 18 1,749,040 NZ$0.20 NZ$354,291
06. Sep 18 Buy Microequities Asset Management Pty Limited Company 13. Feb 18 05. Sep 18 2,785,315 NZ$0.19 NZ$532,451
12. Jun 18 Buy Anacacia Capital Pty Limited Company 06. Jun 18 07. Jun 18 2,333,589 NZ$0.18 NZ$425,267
X
Management checks
We assess Smartpay Holdings'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. Smartpay Holdings 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.

News

Simply Wall St News

Is Smartpay Holdings Limited's (NZSE:SPY) 16% Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Smartpay Holdings has a return on equity of 16% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Smartpay Holdings Limited (NZSE:SPY): A Look At Return On Capital

and want to better understand how you can grow your money by investing in Smartpay Holdings Limited (NZSE:SPY). … As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … Thus, to understand how your money can grow by investing in Smartpay Holdings, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Is SmartPay Holdings Limited (NZSE:SPY) A Financially Sound Company?

While small-cap stocks, such as SmartPay Holdings Limited (NZSE:SPY) with its market cap of NZ$31.77m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

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Does SmartPay Holdings Limited's (NZSE:SPY) PE Ratio Warrant A Buy?

and want to better understand how you can grow your money by investing in SmartPay Holdings Limited (NZSE:SPY). … SmartPay Holdings Limited (NZSE:SPY) trades with a trailing P/E of 12.9x, which is lower than the industry average of 22.6x. … View out our latest analysis for SmartPay Holdings

Simply Wall St -

SmartPay Holdings Limited's (NZE:SPY) Earnings Grew 14.57%, Did It Beat Long-Term Trend?

This shows that whatever tailwind the industry is profiting from, SmartPay Holdings is able to amplify this to its advantage.What does this mean? … Companies that have performed well in the past, such as SmartPay Holdings gives investors conviction. … I recommend you continue to research SmartPay Holdings to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for SPY’s future growth?

Simply Wall St -

SmartPay Holdings Limited (NZE:SPY): Why Return On Capital Employed Is Important

To understand SmartPay Holdings’s capital returns we will look at a useful metric called return on capital employed. … See our latest analysis for SmartPay Holdings What is Return on Capital Employed (ROCE)? … I have calculated SmartPay Holdings’s ROCE for you below: ROCE Calculation for SPY Return on Capital Employed (ROCE) = Earnings Before Tax (EBT) ÷ (Capital Employed) Capital Employed = (Total Assets - Current Liabilities) ∴ ROCE = NZ$1.66M ÷ (NZ$43.58M - NZ$5.99M) = 4.42% The calculation above shows that SPY’s earnings were 4.42% of capital employed.

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What Are The Drivers Of SmartPay Holdings Limited's (NZE:SPY) Risks?

SPY's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns. … Thus, we can expect SPY to be more volatile in the face of market movements, relative to its peers of similar size but with a lower proportion of fixed assets on their books. … However, this is the opposite to what SPY’s actual beta value suggests, which is lower stock volatility relative to the market.

Simply Wall St -

Future Outlook Of The Tech Industry And SmartPay Holdings Limited (NZE:SPY)

View our latest analysis for SmartPay Holdings What’s the catalyst for SmartPay Holdings's sector growth? … In terms of returns, SmartPay Holdings generated 17.69% in the past year, which is 2.82% over the tech sector. … Next Steps: SmartPay Holdings recently delivered an industry-beating growth rate in earnings, which is a positive for shareholders.

Simply Wall St -

At $0.2, Is It Time To Buy SmartPay Holdings Limited (NZE:SPY)?

Let’s take a look at SmartPay Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists. … SmartPay Holdings’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Does SmartPay Holdings Limited's (NZE:SPY) PE Ratio Warrant A Buy?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SPY Price per share = NZ$0.24 Earnings per share = NZ$0.015 ∴ Price-Earnings Ratio = NZ$0.24 ÷ NZ$0.015 = 16.1x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … SPY’s P/E of 16.1x is lower than its industry peers (23.6x), which implies that each dollar of SPY’s earnings is being undervalued by investors.

Simply Wall St -

Company Info

Description

Smartpay Holdings Limited designs, develops, and implements electronic fund transfer at point of sale (EFTPOS) solutions for retail, business payment, and transactional processing requirements. The company serves 25,000 merchants with approximately 35,000 EFTPOS terminals in New Zealand and Australia. Smartpay Holdings Limited was incorporated in 1986 and is based in Auckland, New Zealand.

Details
Name: Smartpay Holdings Limited
SPY
Exchange: NZSE
Founded: 1986
NZ$34,350,455
171,752,278
Website: http://www.smartpayinvestor.com
Address: Smartpay Holdings Limited
205-209 Wairau Road,
Wairau Valley,
Auckland,
0627,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE SPY Ordinary Shares New Zealand Stock Exchange NZ NZD 17. May 2006
ASX SMP Ordinary Shares Australian Securities Exchange AU AUD 17. May 2006
CHIA SMP Ordinary Shares Chi-X Australia AU AUD 17. May 2006
Number of employees
Current staff
Staff numbers
0
Smartpay Holdings employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 10:33
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2018/05/30
Last earnings filing: 2018/11/29
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


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.