Fintech Select Ltd (FTEC) AI Stock Analysis

• Market Cap: C$5.60M
• Dividend Yield: N/A
• Average Volume (3M): 71.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -26.64%
• EPS Growth: -187.27%
• Country: CA
• Employees: 51
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 80,049,515
• 10 Day Avg. Volume: 95,241
• 30 Day Avg. Volume: 71,229
• PEG Ratio: 0.08
• Price to Book (P/B): 55.82
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 11.31
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$0.07 ▲(70.00% Upside)

The score is held down primarily by deteriorating financial performance (return to losses, negative operating/free cash flow, and negative equity). Technicals are a partial offset with strong trend strength, but extreme overbought readings raise pullback risk, while valuation remains unattractive due to loss-making earnings and a negative P/E.

Positive Factors

Zero Leverage

Reported zero debt in the trailing period materially reduces near-term refinancing and interest-rate pressure. Over the next 2–6 months this gives management flexibility to prioritize operating stability, allocate cash to R&D or defend market share without debt servicing constraints.

Strong Gross Margins

Consistently high gross margins signal attractive core product economics and pricing power typical of infrastructure software. Sustainably wide gross margins create room to invest in sales and R&D while preserving unit profitability as revenue recovers, supporting durable margin recovery.

Lean Headcount

A small, focused workforce implies lower fixed labor overhead and operational agility common in scalable software businesses. Over a multi-month horizon this enables faster product iteration, tighter cost control, and potentially higher operating leverage as revenues stabilize or grow.

Negative Factors

Revenue Decline and Losses

A meaningful revenue drop alongside a swing to net losses weakens internal funding and undermines profitability durability. Over 2–6 months this elevates the risk that management must cut investment or pursue dilutive capital to sustain operations and growth initiatives.

Negative Operating/Free Cash Flow

The reversal from positive to negative operating and free cash flow reduces self-funded leeway and raises financing needs. Persistently negative cash conversion can force equity raises or spending cuts, constraining product development and go-to-market investment over the medium term.

Negative Shareholders' Equity

Negative shareholders' equity indicates a thin capital cushion despite zero debt, reflecting cumulative losses. This structural balance-sheet weakness limits strategic optionality, can hinder partner or lender confidence, and raises solvency concerns if earnings or cash flow do not stabilize.

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

TTM fundamentals weakened materially: revenue declined (~6.7%), profitability swung from a positive net margin (~12% in 2024) to a net loss (~-13%), and operating/free cash flow turned negative. Zero debt helps, but negative equity in TTM signals a thin capital cushion and higher balance-sheet risk.

Income Statement

Profitability deteriorated meaningfully in TTM (Trailing-Twelve-Months), with revenue down ~6.7% and the company moving from solid profitability in 2024 (positive net margin ~12%) to a net loss (net margin ~-13%) and negative operating earnings. A positive offset is consistently strong gross profitability historically (gross margin ~71% in TTM and ~94% in 2023–2024), suggesting the core product economics can be attractive, but current cost structure and/or demand softness is pressuring earnings.

Balance Sheet

The balance sheet shows low financial leverage with zero debt in TTM and 2024, which reduces refinancing risk. However, stockholders’ equity is negative in TTM and was negative in multiple prior years (only modestly positive in 2024), pointing to thin capital cushion and elevated balance-sheet risk despite the lack of debt.

Cash Flow

Cash generation weakened in TTM (Trailing-Twelve-Months), with operating cash flow and free cash flow turning negative. While 2023–2024 showed positive operating and free cash flow, the recent reversal raises concerns about near-term funding needs and the sustainability of cash conversion during softer profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96M	4.00M	3.82M	2.59M	2.77M	2.88M
Gross Profit	2.09M	3.77M	3.60M	2.40M	2.53M	2.53M
EBITDA	-307.55K	507.32K	415.13K	1.34M	42.19K	601.11K
Net Income	-381.85K	489.75K	329.21K	1.20M	-112.80K	405.15K
Balance Sheet
Total Assets	990.90K	1.01M	555.25K	483.03K	1.22M	1.26M
Cash, Cash Equivalents and Short-Term Investments	799.30K	774.31K	294.68K	147.83K	364.31K	221.60K
Total Debt	0.00	0.00	89.16K	535.36K	308.01K	435.13K
Total Liabilities	1.09M	978.28K	1.34M	1.89M	3.91M	4.08M
Stockholders Equity	-98.25K	35.85K	-786.95K	-1.41M	-2.68M	-2.82M
Cash Flow
Free Cash Flow	-278.36K	176.94K	432.72K	-248.91K	121.83K	113.73K
Operating Cash Flow	-278.36K	179.85K	434.91K	-243.62K	124.19K	165.22K
Investing Cash Flow	0.00	-2.91K	-2.19K	-5.29K	-2.36K	17.01K
Financing Cash Flow	0.00	-89.16K	-452.96K	212.36K	-87.06K	-171.70K

Fintech Select Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTEC, the sentiment is Neutral. The current price of 0.04 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VENZ	47 Neutral	C$6.28M	-4.70	-79.05%	―	―	0.75%
FTEC	44 Neutral	C$5.60M	-14.58	―	―	-26.64%	-187.27%
PKK	43 Neutral	C$8.13M	-0.26	―	―	-75.67%	77.36%
IP	43 Neutral	C$4.46M	-1.23	―	―	-67.21%	―