NZSE:SPY

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential and slightly overvalued.


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

6.1%

SPY

4.9%

NZ IT

1.5%

NZ Market


1 Year Return

181.1%

SPY

24.5%

NZ IT

1.3%

NZ Market

Return vs Industry: SPY exceeded the NZ IT industry which returned 23.9% over the past year.

Return vs Market: SPY exceeded the NZ Market which returned 1.2% over the past year.


Shareholder returns

SPYIndustryMarket
7 Day6.1%4.9%1.5%
30 Day33.3%27.9%2.8%
90 Day1.0%18.0%-4.9%
1 Year181.1%181.1%26.4%24.5%5.4%1.3%
3 Year173.7%173.7%49.7%38.7%38.8%20.5%
5 Year166.7%166.7%137.7%111.5%86.2%43.0%

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?

36.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPY (NZ$0.52) is trading below our estimate of fair value (NZ$0.82)

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 (6.8x) compared to the XO IT industry average (2.5x).


Next Steps

Future Growth

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

88.8%

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 (2.6%).

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 (23.8% per year) is forecast to grow faster than the NZ market (5% per year).

High Growth Revenue: SPY's revenue (23.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPY's Return on Equity is forecast to be low in 3 years time (5.5%).


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 (-0.3%).


Return on Equity

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


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


Next Steps

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?

5.2yrs

Average board tenure


CEO

Bradley Gerdis (46yo)

8.42yrs

Tenure

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 ($USD0.00) is below average for companies of similar size in the NZ market ($USD392.08K).

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


Board Members

NamePositionTenureCompensationOwnership
Martyn Pomeroy
COO & Executive Director6yrsno data1.66% NZ$1.8m
Bradley Gerdis
CEO, MD & Director8.42yrsno data3.18% NZ$3.4m
William Pulver
Independent Director1.42yrsNZ$16.00k1.04% NZ$1.1m
Gregor Barclay
Independent Non-Executive Chairman4.33yrsNZ$60.00k0.31% NZ$325.7k
Carlos Gil
Non-Executive Director1.42yrsNZ$17.00kno data
Matthew Turnbull
Independent Director7yrsNZ$55.00kno data

5.2yrs

Average Tenure

Experienced Board: SPY's board of directors are considered experienced (5.2 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 19.2%.


Top Shareholders

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$106.446m
  • Shares outstanding: 204.70m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 09:08
End of Day Share Price2020/05/29 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.