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SPY

Smartpay HoldingsNZSE:SPY Stock Report

Market Cap

NZ$202.5m

7D

-4.5%

1Y

32.8%

Updated

24 Oct, 2021

Data

Company Financials +
SPY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

SPY Overview

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

Smartpay Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Smartpay Holdings
Historical stock prices
Current Share PriceNZ$0.85
52 Week HighNZ$0.61
52 Week LowNZ$1.12
Beta1.32
1 Month Change18.88%
3 Month Change0.59%
1 Year Change32.81%
3 Year Change349.74%
5 Year Change525.00%
Change since IPO-42.57%

Recent News & Updates

May 30
Smartpay Holdings (NZSE:SPY) Is Carrying A Fair Bit Of Debt

Smartpay Holdings (NZSE:SPY) Is Carrying A Fair Bit Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Mar 21
Have Insiders Been Buying Smartpay Holdings Limited (NZSE:SPY) Shares?

Have Insiders Been Buying Smartpay Holdings Limited (NZSE:SPY) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...

Shareholder Returns

SPYNZ ITNZ Market
7D-4.5%1.3%0.4%
1Y32.8%7.3%2.1%

Return vs Industry: SPY exceeded the NZ IT industry which returned 7.3% over the past year.

Return vs Market: SPY exceeded the NZ Market which returned 2.1% over the past year.

Price Volatility

Is SPY's price volatile compared to industry and market?
SPY volatility
SPY Beta1.32
Industry Beta1.66
Market Beta1

Stable Share Price: SPY is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SPY's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986177Marty Pomeroyhttps://www.smartpay.co.nz

Smartpay Holdings Limited designs, develops, and implements technology products, services, and software to merchants and retailers in New Zealand and Australia. It provides payment and data management solutions for retail, business payment, and transactional processing requirements. The company also engages in selling Eftpos terminals; and provides hardware, software, and maintenance and repairs services.

Smartpay Holdings Fundamentals Summary

How do Smartpay Holdings's earnings and revenue compare to its market cap?
SPY fundamental statistics
Market CapNZ$202.54m
Earnings (TTM)-NZ$15.20m
Revenue (TTM)NZ$33.85m

6.0x

P/S Ratio

-13.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPY income statement (TTM)
RevenueNZ$33.85m
Cost of RevenueNZ$26.01m
Gross ProfitNZ$7.84m
ExpensesNZ$23.04m
Earnings-NZ$15.20m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.064
Gross Margin23.15%
Net Profit Margin-44.91%
Debt/Equity Ratio65.7%

How did SPY perform over the long term?

See historical performance and comparison

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$0.85) is trading below our estimate of fair value (NZ$2.37)

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 Oceanic 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 (7.4x) compared to the XO IT industry average (3.4x).


Future Growth

How is Smartpay Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

50.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.1%).

Earnings vs Market: SPY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SPY's is expected to become profitable in the next 3 years.

Revenue vs Market: SPY's revenue (28.8% per year) is forecast to grow faster than the NZ market (5.3% per year).

High Growth Revenue: SPY's revenue (28.8% 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


Past Performance

How has Smartpay Holdings performed over the past 5 years?

-74.4%

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 74.4% 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 (1.9%).


Return on Equity

High ROE: SPY has a negative Return on Equity (-55.2%), as it is currently unprofitable.


Financial Health

How is Smartpay Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SPY's short term assets (NZ$18.1M) do not cover its short term liabilities (NZ$19.1M).

Long Term Liabilities: SPY's short term assets (NZ$18.1M) exceed its long term liabilities (NZ$11.2M).


Debt to Equity History and Analysis

Debt Level: SPY's debt to equity ratio (65.7%) is considered high.

Reducing Debt: SPY's debt to equity ratio has reduced from 238% to 65.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SPY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SPY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 15.2% per year.


Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Marty Pomeroy

1.08yrs

Tenure

NZ$788,000

Compensation

Mr. Martyn Richard Pomeroy, also known as Marty, serves as Chief Executive Officer & Managing Director at Smartpay Holdings Limited since September 1, 2020. He served as Chief Operating Officer at SmartPay...


CEO Compensation Analysis

Compensation vs Market: Marty's total compensation ($USD562.54K) is above average for companies of similar size in the NZ market ($USD375.58K).

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


Leadership Team

Experienced Management: SPY's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: SPY's board of directors are considered experienced (5.8 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 13.8%.


Top Shareholders

Company Information

Smartpay Holdings Limited's 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$202.542m
  • Shares outstanding: 238.28m
  • Website: https://www.smartpay.co.nz

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 06:01
End of Day Share Price2021/10/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.