NZSE:SPY

Stock Analysis Report

Executive Summary

Smartpay Holdings Limited designs, develops, and implements technology products, services, and software to merchants and retailers.

Rewards

Trading at 75.5% below its fair value

Revenue is forecast to grow 24.71% per year

Risk Analysis

Earnings have declined by -26.68% per year over past 5 years

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Does not have a meaningful market cap (NZ$90M)



Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

How has Smartpay Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

SPY

-4.9%

NZ IT

1.2%

NZ Market


1 Year Return

162.5%

SPY

23.1%

NZ IT

20.5%

NZ Market

Return vs Industry: SPY exceeded the NZ IT industry which returned 23.1% over the past year.

Return vs Market: SPY exceeded the NZ Market which returned 20.5% over the past year.


Shareholder returns

SPYIndustryMarket
7 Day2.9%-4.9%1.2%
30 Day169.2%4.2%2.8%
90 Day198.3%0.5%0.3%
1 Year162.5%162.5%25.4%23.1%25.5%20.5%
3 Year208.8%208.8%61.7%49.6%59.0%38.2%
5 Year150.0%150.0%99.4%75.4%94.5%51.2%

Price Volatility Vs. Market

How volatile is Smartpay Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Smartpay Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPY (NZ$0.53) is trading below our estimate of fair value (NZ$2.14)

Significantly Below Fair Value: SPY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SPY is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: SPY is unprofitable, so we can't compare its PE Ratio to the NZ market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPY is overvalued based on its PB Ratio (6.9x) compared to the XO IT industry average (2.7x).


Next Steps

Future Growth

How is Smartpay Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

24.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SPY's forecast earnings growth is above the savings rate (1.3%).

Earnings vs Market: Insufficient data to determine if SPY's earnings are forecast to grow faster than the NZ market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SPY's revenue (24.7% per year) is forecast to grow faster than the NZ market (5% per year).

High Growth Revenue: SPY's revenue (24.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SPY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Smartpay Holdings performed over the past 5 years?

-26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPY is currently unprofitable.

Growing Profit Margin: SPY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPY is unprofitable, and losses have increased over the past 5 years at a rate of -26.7% per year.

Accelerating Growth: Unable to compare SPY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPY is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (38.5%).


Return on Equity

High ROE: SPY has a negative Return on Equity (-21.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Smartpay Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SPY's short term assets (NZ$8.8M) do not cover its short term liabilities (NZ$11.9M).

Long Term Liabilities: SPY's short term assets (NZ$8.8M) do not cover its long term liabilities (NZ$26.3M).


Debt to Equity History and Analysis

Debt Level: SPY's debt to equity ratio (217.4%) is considered high.

Reducing Debt: SPY's debt to equity ratio has reduced from 241.2% to 217.4% over the past 5 years.

Debt Coverage: SPY's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: Insufficient data to determine if SPY's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: SPY has a high level of physical assets or inventory.

Debt Coverage by Assets: SPY's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Smartpay Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%3.0%markettop25%5.6%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SPY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SPY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SPY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPY's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

What is the CEO of Smartpay Holdings's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Bradley Gerdis (46yo)

8yrs

Tenure

0

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 ...


CEO Compensation Analysis

Compensation vs Market: Bradley's total compensation ($USD0.00) is below average for companies of similar size in the NZ market ($USD65.71K).

Compensation vs Earnings: Bradley's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

4.8yrs

Average Tenure

Experienced Board: SPY's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyNZ$1,829,08602 Dec 19
Milford Asset Management Limited
EntityCompany
Shares3,489,399
Max PriceNZ$0.53
BuyNZ$75,60103 Jan 19
William Pulver
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares399,886
Max PriceNZ$0.19

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bradley Gerdis (46yo)

    CEO, MD & Director

    • Tenure: 8yrs
  • Helen Roderick

    Chief Executive Officer of CPSL

    • Tenure: 0yrs
  • Marty Pomeroy

    COO & Executive Director

    • Tenure: 5.7yrs
  • Rowena Bowman

    Company Secretary

    • Tenure: 0yrs
  • Aidan Murphy

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Bill Pulver (59yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: NZ$16.00k
  • Bradley Gerdis (46yo)

    CEO, MD & Director

    • Tenure: 8yrs
  • Greg Barclay

    Non-Executive Chairman

    • Tenure: 3.9yrs
    • Compensation: NZ$60.00k
  • Carlos Gil

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: NZ$17.00k
  • Marty Pomeroy

    COO & Executive Director

    • Tenure: 5.7yrs
  • Matt Turnbull

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: NZ$55.00k

Company Information

Smartpay Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Smartpay Holdings Limited
  • Ticker: SPY
  • Exchange: NZSE
  • Founded: 1986
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: NZ$90.170m
  • Shares outstanding: 171.75m
  • Website: https://www.smartpayinvestor.com

Number of Employees


Location

  • Smartpay Holdings Limited
  • 205-209 Wairau Road
  • Wairau Valley
  • Auckland
  • 627
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPYNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDMay 2006
SMPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2006
SMPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2006
SMPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2006

Biography

Smartpay Holdings Limited designs, develops, and implements technology products, services, and software to merchants and retailers. It provides payment and data management solutions for retail, business pa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 10:33
End of Day Share Price2019/12/04 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.