Fintech Select Ltd (FTEC) AI Stock Analysis

• Market Cap: C$2.00M
• Dividend Yield: N/A
• Average Volume (3M): 46.32K
• Price to Earnings (P/E): 4.1
• Beta (1Y): -0.32
• Revenue Growth: 4.55%
• EPS Growth: 48.78%
• Country: CA
• Employees: 51
• Sector: Financial
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 80,049,515
• 10 Day Avg. Volume: 39,211
• 30 Day Avg. Volume: 46,317
• PEG Ratio: 0.37
• Price to Book (P/B): -49.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• 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 Business Overview & Revenue Model

Company Description

Fintech 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 Money

Fintech 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

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

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

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.03M	3.82M	2.59M	2.77M	2.88M	3.28M
	Gross Profit
2.20M	3.60M	2.40M	2.53M	2.53M	2.82M
	EBIT
445.69K	226.13K	-578.94K	-112.80K	311.96K	-269.42K
	EBITDA
475.85K	415.13K	1.34M	59.38K	601.11K	6.83K
	Net Income Common Stockholders
473.79K	329.21K	1.20M	-112.80K	405.15K	-253.51K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.02K	294.68K	147.83K	364.31K	221.60K	110.42K
	Total Assets
709.95K	555.25K	483.03K	1.22M	1.26M	1.19M
	Total Debt
190.94K	89.16K	535.36K	308.01K	435.13K	566.90K
	Net Debt
190.94K	74.06K	499.80K	236.37K	398.12K	540.68K
	Total Liabilities
4.24M	1.34M	1.89M	3.91M	4.08M	4.62M
	Stockholders Equity
-3.53M	-786.95K	-1.41M	-2.68M	-2.82M	-3.43M
Cash Flow		Free Cash Flow
351.04K	432.72K	-248.91K	121.83K	113.73K	119.36K
	Operating Cash Flow
353.95K	434.91K	-243.62K	124.19K	165.22K	150.23K
	Investing Cash Flow
-2.91K	-2.19K	-5.29K	-2.36K	17.01K	18.27K
	Financing Cash Flow
-93.71K	-452.96K	212.36K	-87.06K	-171.70K	-158.00K

Fintech Select Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%
FTEC	54 Neutral	C$2.00M	4.10	-981.49%	―	4.55%	48.78%
MBLM		C$3.22M	―		―	―	―
PERK		C$4.22M	―		―	―	―
PKK	36 Underperform	C$5.57M	―	-224.98%	―	-85.42%	51.62%
VENZF		$3.29M	―	-330.27%	―	―	―
HRO		C$2.21M	―		―	―	―

Fintech Select Ltd Corporate Events

Fintech Select Ltd. Announces RSU Issuance to Strengthen Talent Retention

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.