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Fintech Select Ltd (TSE:FTEC)
:FTEC

Fintech Select Ltd (FTEC) AI Stock Analysis

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Fintech Select Ltd

(FTEC)

Rating:54Neutral
Price Target:
Fintech Select Ltd's overall stock score of 54 reflects a mixed financial performance with strengths in revenue growth and operational improvements offset by financial instability and cash flow volatility. The technical analysis suggests stable near-term prospects, while the low P/E ratio indicates valuation upside. The recent RSU issuance to retain talent is a positive corporate event that may bolster future performance.

Fintech Select Ltd (FTEC) vs. iShares MSCI Canada ETF (EWC)

Fintech Select Ltd Business Overview & Revenue Model

Company DescriptionFintech Select Ltd. offers financial payment services and solutions in Canada. It operates through three segments: Distribution, Call Center, and Financial Services. The company offers MasterCard prepaid card programs for various corporate and government organizations. Its MasterCard branded card program serves a point of sale (POS) footprint, which allows consumers to activate, fund, and reload their cards. The company also offers customized or turn-key private label card solutions for various programs and sales verticals, including government disbursements, incentives and rewards, payroll, mobile subscribers, general purpose re-loadable, retail gift, healthcare, travel, transit, loyalty, open or closed loop, and others. Its mobile banking solutions include peer-to-peer micro lending, bill payment, remittance, and other financial features. In addition, the company offers a POS cryptocurrency solution for buying and selling cryptocurrencies through its retail partners. The company was formerly known as Selectcore Ltd. and changed its name to Fintech Select Ltd. in August 2017. Fintech Select Ltd. was founded in 1999 and is based in Toronto, Canada.
How the Company Makes MoneyFintech Select Ltd makes money primarily through transaction fees generated from its point-of-sale (POS) devices and prepaid card programs. The company earns revenue by charging merchants a fee for processing transactions through its POS terminals. Additionally, it generates income from its prepaid card services by charging fees for card issuance, reloads, and foreign currency conversions. Fintech Select also engages in partnerships with financial institutions and other businesses to expand its service offerings and market reach, contributing to its revenue streams.

Fintech Select Ltd Financial Statement Overview

Summary
Fintech Select Ltd's financial performance is mixed. The income statement shows strong revenue growth and improved margins in the TTM period, but historical profitability has been inconsistent. The balance sheet indicates financial instability with negative equity positions, although recent debt reduction is a positive sign. Cash flow generation is improving, yet past volatility suggests potential risks. Overall, while there are positive growth indicators, significant financial challenges remain.
Income Statement
60
Neutral
Fintech Select Ltd's revenue has shown positive growth with a notable increase in the most recent TTM period. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has fluctuated over the years, showing some inconsistency in profitability. The TTM period reflects a positive EBIT and EBITDA margin, indicating operational efficiency improvements.
Balance Sheet
40
Negative
The company's balance sheet shows a negative stockholders' equity, which indicates financial instability. Despite the absence of debt in the latest TTM period, historical data reveals significant liabilities surpassing assets. The equity ratio remains negative, highlighting the company's weak financial positioning and potential risks.
Cash Flow
55
Neutral
Fintech Select Ltd has shown positive free cash flow growth and a satisfactory operating cash flow to net income ratio in the TTM period. However, prior years displayed volatility in free cash flow, raising concerns about cash flow consistency. The company's ability to generate cash from operations is improving, but historical fluctuations pose risks.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
4.03M3.82M2.59M2.77M2.88M3.28M
Gross Profit
2.20M3.60M2.40M2.53M2.53M2.82M
EBIT
445.69K226.13K-578.94K-112.80K311.96K-269.42K
EBITDA
475.85K415.13K1.34M59.38K601.11K6.83K
Net Income Common Stockholders
473.79K329.21K1.20M-112.80K405.15K-253.51K
Balance SheetCash, Cash Equivalents and Short-Term Investments
64.02K294.68K147.83K364.31K221.60K110.42K
Total Assets
709.95K555.25K483.03K1.22M1.26M1.19M
Total Debt
190.94K89.16K535.36K308.01K435.13K566.90K
Net Debt
190.94K74.06K499.80K236.37K398.12K540.68K
Total Liabilities
4.24M1.34M1.89M3.91M4.08M4.62M
Stockholders Equity
-3.53M-786.95K-1.41M-2.68M-2.82M-3.43M
Cash FlowFree Cash Flow
351.04K432.72K-248.91K121.83K113.73K119.36K
Operating Cash Flow
353.95K434.91K-243.62K124.19K165.22K150.23K
Investing Cash Flow
-2.91K-2.19K-5.29K-2.36K17.01K18.27K
Financing Cash Flow
-93.71K-452.96K212.36K-87.06K-171.70K-158.00K

Fintech Select Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
47.53
Neutral
STOCH
-33.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTEC, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of -33.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FTEC.

Fintech Select Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.67B9.747.58%17015.08%12.21%-6.96%
54
Neutral
C$2.00M4.10-981.49%4.55%48.78%
C$3.22M
C$4.22M
TSPKK
36
Underperform
C$5.57M-224.98%-85.42%51.62%
$3.29M-330.27%
TSHRO
C$2.21M
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FTEC
Fintech Select Ltd
0.02
>-0.01
-33.33%
TSE:MBLM
Mobilum Technologies Inc
0.02
0.00
0.00%
TSE:PERK
Perk Labs
0.01
-0.01
-50.00%
TSE:PKK
Tenet Fintech Group Inc.
0.02
-0.04
-66.67%
VENZF
Venzee Technologies
0.08
-0.08
-50.00%
TSE:HRO
Euro Asia Pay Holdings
0.03
-0.11
-78.57%

Fintech Select Ltd Corporate Events

Business Operations and Strategy
Fintech Select Ltd. Announces RSU Issuance to Strengthen Talent Retention
Positive
Apr 12, 2025

Fintech Select Ltd. has announced the issuance of 3.2 million Restricted Stock Units (RSUs) to its management, directors, and employees, pending approval from the Toronto Stock Exchange. This move is part of the company’s strategy to attract and retain top talent while aligning employee interests with those of shareholders, under its previously approved Equity Incentive Plan.

Spark’s Take on TSE:FTEC Stock

According to Spark, TipRanks’ AI Analyst, TSE:FTEC is a Neutral.

Fintech Select Ltd’s overall stock score of 58 reflects its mixed financial performance, with strengths in revenue growth and operational improvements offset by financial instability and cash flow volatility. The technical analysis indicates stable near-term prospects, while the low P/E ratio suggests valuation upside. However, the absence of dividend yield and potential financial risks weigh on the overall score.

To see Spark’s full report on TSE:FTEC stock, click here.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.