OTCPK:TNSG.F

Stock Analysis Report

Executive Summary

Findev Inc. provides real estate financing secured by investment properties and real estate developments.

Rewards

Trading at 46.9% below its fair value

Earnings grew by 12.7% over the past year

Risk Analysis

Makes less than USD$1m in revenue (CA$-8M)

Unstable dividend track record

Profit margins (-19.9%) are lower than last year (12.3%)

Does not have a meaningful market cap ($13M)



Snowflake Analysis

Undervalued with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TNSG.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

n/a

TNSG.F

-2.1%

US Mortgage

0.9%

US Market


1 Year Return

-4.7%

TNSG.F

6.8%

US Mortgage

20.0%

US Market

Return vs Industry: TNSG.F underperformed the US Mortgage industry which returned 7.3% over the past year.

Return vs Market: TNSG.F underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

TNSG.FIndustryMarket
7 Dayn/a-2.1%0.9%
30 Dayn/a-1.6%1.4%
90 Day-6.6%-1.9%8.8%
1 Year1.8%-4.7%9.3%6.8%22.5%20.0%
3 Year-21.6%-34.9%19.3%10.9%49.9%40.3%
5 Year-81.2%-84.6%60.9%43.1%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TNSG.F ($0.32) is trading below our estimate of fair value ($0.61)

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


Price To Earnings Ratio

PE vs Industry: TNSG.F is good value based on its PE Ratio (8.3x) compared to the Mortgage industry average (13.7x).

PE vs Market: TNSG.F is good value based on its PE Ratio (8.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TNSG.F is good value based on its PB Ratio (0.8x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Findev forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Findev has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Findev is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Findev's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has Findev performed over the past 5 years?

64.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TNSG.F has high quality earnings.

Growing Profit Margin: TNSG.F's current net profit margins (-19.9%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: TNSG.F has become profitable over the past 5 years, growing earnings by 64.7% per year.

Accelerating Growth: TNSG.F's earnings growth over the past year (12.7%) is below its 5-year average (64.7% per year).

Earnings vs Industry: TNSG.F earnings growth over the past year (12.7%) exceeded the Mortgage industry 11.1%.


Return on Equity

High ROE: TNSG.F's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Findev's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TNSG.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TNSG.F's debt is covered by short term assets.


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: TNSG.F is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: TNSG.F is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: TNSG.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if TNSG.F has a sufficient allowance for bad loans.

Low Risk Liabilities: TNSG.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if TNSG.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TNSG.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if TNSG.F has an appropriate level of bad loans.


Next Steps

Dividend

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

6.45%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: TNSG.F's dividend (6.45%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TNSG.F's dividend (6.45%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TNSG.F has been paying a dividend for less than 10 years.

Growing Dividend: TNSG.F has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.3%), TNSG.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.4yrs

Average board tenure


CEO

Yisroel Weinreb (39yo)

3.4yrs

Tenure

CA$90,000

Compensation

Mr. Sruli Weinreb, also known as Yisroel, has been the Chief Executive Officer of Findev Inc., since September 23, 2016. He serves as Director of Senternet Phi Gamma Inc. since June 13, 2018. Mr. Weinreb i ...


CEO Compensation Analysis

Compensation vs Market: Yisroel's total compensation ($USD68.03K) is below average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Yisroel's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Sruli Weinreb
CEO & Director3.4yrsCA$90.00k0.096% CA$9.7k
Anthony Heller
Director3.4yrsCA$750.000.38% CA$38.0k
David Roff
Independent Director3.4yrsCA$750.000.58% CA$58.6k
Brice Scheschuk
Chairman of the Board4.3yrsCA$1.00k0.59% CA$59.8k
Niall Finnegan
Independent Director3.4yrsCA$750.00no data
Devon Cranson
Independent Director3.4yrsCA$750.000.24% CA$24.0k

3.4yrs

Average Tenure

48yo

Average Age

Experienced Board: TNSG.F's board of directors are considered experienced (3.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Findev Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Findev Inc.
  • Ticker: TNSG.F
  • Exchange: OTCPK
  • Founded: 2001
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: CA$13.321m
  • Listing Market Cap: CA$10.069m
  • Shares outstanding: 28.65m
  • Website: https://www.findev.ca

Number of Employees


Location

  • Findev Inc.
  • 10 Wanless Avenue
  • Suite 201
  • Toronto
  • Ontario
  • M4N 1V6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDITSXV (TSX Venture Exchange)YesClass A Common SharesCACADNov 2005
TNSG.FOTCPK (Pink Sheets LLC)YesClass A Common SharesUSUSDNov 2005
0T41DB (Deutsche Boerse AG)YesClass A Common SharesDEEURNov 2005

Biography

Findev Inc. provides real estate financing secured by investment properties and real estate developments. It primarily focuses on lending to residential and retail development projects. The company was formerly known as TransGaming Inc. and changed its name to Findev Inc. in October 2016. Findev Inc. was founded in 2001 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:48
End of Day Share Price2020/02/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.