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SYS

Systems KASE:SYS Stock Report

Last Price

PK₨325.38

Market Cap

PK₨90.6b

7D

-5.8%

1Y

44.5%

Updated

16 May, 2022

Data

Company Financials +
SYS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance5/6
Financial Health5/6
Dividends0/6

SYS Stock Overview

Systems Limited engages in the software development and trading, and business process outsourcing (BPO) service businesses in Pakistan, North America, the Middle East, and Europe.

Systems Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Systems
Historical stock prices
Current Share PricePK₨325.38
52 Week HighPK₨417.60
52 Week LowPK₨206.03
Beta0.91
1 Month Change-20.28%
3 Month Change-5.68%
1 Year Change44.50%
3 Year Change654.86%
5 Year Change745.42%
Change since IPO1,962.96%

Recent News & Updates

Shareholder Returns

SYSPK ITPK Market
7D-5.8%-2.4%-1.8%
1Y44.5%4.0%-12.1%

Return vs Industry: SYS exceeded the PK IT industry which returned 4.1% over the past year.

Return vs Market: SYS exceeded the PK Market which returned -9.9% over the past year.

Price Volatility

Is SYS's price volatile compared to industry and market?
SYS volatility
SYS Average Weekly Movement6.2%
IT Industry Average Movement6.7%
Market Average Movement5.8%
10% most volatile stocks in PK Market8.8%
10% least volatile stocks in PK Market3.6%

Stable Share Price: SYS is not significantly more volatile than the rest of PK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SYS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19774,143Muhammad Peerhttps://www.systemsltd.com

Systems Limited engages in the software development and trading, and business process outsourcing (BPO) service businesses in Pakistan, North America, the Middle East, and Europe. The company offers solutions in the areas of digital commerce, business applications, data management and analytics, BPO, cloud services, application development and integration, security, IT infrastructure, user experience, quality assurance, and application modernization. Its products include Partner Communication, which transmits data between large enterprises with either VAN-based or direct-to-partner connections; and Middleware Connector that unifies existing eCommerce solution with Dynamics 365 and eliminates error-prone and time-consuming manual integration between platforms, as well as creates a single synchronized system for centralized channel management.

Systems Fundamentals Summary

How do Systems's earnings and revenue compare to its market cap?
SYS fundamental statistics
Market CapPK₨90.57b
Earnings (TTM)PK₨5.04b
Revenue (TTM)PK₨17.59b

18.0x

P/E Ratio

5.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SYS income statement (TTM)
RevenuePK₨17.59b
Cost of RevenuePK₨12.07b
Gross ProfitPK₨5.52b
Other ExpensesPK₨477.46m
EarningsPK₨5.04b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)18.12
Gross Margin31.40%
Net Profit Margin28.68%
Debt/Equity Ratio20.7%

How did SYS perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

14%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


17.95x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: SYS (PKR325.38) is trading above our estimate of fair value (PKR53.11)

Significantly Below Fair Value: SYS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SYS is good value based on its PE Ratio (18x) compared to the Asian IT industry average (21x).

PE vs Market: SYS is poor value based on its PE Ratio (18x) compared to the PK market (5.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SYS is overvalued based on its PB Ratio (6.7x) compared to the XA IT industry average (2.2x).


Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


20.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SYS's forecast earnings growth is above the savings rate (10.2%).

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

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

Revenue vs Market: SYS's revenue (20.7% per year) is forecast to grow faster than the PK market (4.1% per year).

High Growth Revenue: SYS's revenue (20.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SYS's Return on Equity is forecast to be high in 3 years time (33.3%)


Past Performance

How has Systems performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


41.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SYS has a high level of non-cash earnings.

Growing Profit Margin: SYS's current net profit margins (28.7%) are higher than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: SYS's earnings have grown significantly by 41.9% per year over the past 5 years.

Accelerating Growth: SYS's earnings growth over the past year (119.8%) exceeds its 5-year average (41.9% per year).

Earnings vs Industry: SYS earnings growth over the past year (119.8%) exceeded the IT industry 20.8%.


Return on Equity

High ROE: SYS's Return on Equity (36.7%) is considered high.


Financial Health

How is Systems's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SYS's short term assets (PKR14.5B) exceed its short term liabilities (PKR5.1B).

Long Term Liabilities: SYS's short term assets (PKR14.5B) exceed its long term liabilities (PKR347.9M).


Debt to Equity History and Analysis

Debt Level: SYS has more cash than its total debt.

Reducing Debt: SYS's debt to equity ratio has increased from 0.06% to 20.7% over the past 5 years.

Debt Coverage: SYS's debt is well covered by operating cash flow (79.4%).

Interest Coverage: SYS's interest payments on its debt are well covered by EBIT (89.2x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.77%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SYS's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the PK market (3.66%).

High Dividend: SYS's dividend (0.77%) is low compared to the top 25% of dividend payers in the PK market (10.86%).


Stability and Growth of Payments

Stable Dividend: SYS is not paying a notable dividend for the PK market, therefore no need to check if payments are stable.

Growing Dividend: SYS is not paying a notable dividend for the PK market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: SYS is not paying a notable dividend for the PK market.


Cash Payout to Shareholders

Cash Flow Coverage: SYS is not paying a notable dividend for the PK market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Muhammad Peer

9.33yrs

Tenure

Mr. Muhammad Asif Peer has been the Chief Executive Officer and Managing Director of Systems Limited since January 1, 2013. Mr. Peer served as Senior Vice President of Services at Visionet Systems Inc. and...


Leadership Team

Experienced Management: SYS's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: SYS's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Systems Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Systems Limited
  • Ticker: SYS
  • Exchange: KASE
  • Founded: 1977
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: PK₨90.574b
  • Shares outstanding: 278.37m
  • Website: https://www.systemsltd.com

Number of Employees


Location

  • Systems Limited
  • Ex-Air Avenue
  • E-1, Sehjpal
  • Lahore
  • Pakistan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.