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): 1.18
• 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$0.08 ▲(95.00% Upside)
• Action: Reiterated Date: 01/09/26
• Date: Action: Reiterated 01/09/26

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

Low Financial Leverage

Having zero debt is a durable strength: it lowers near-term refinancing and interest obligations, giving management flexibility to allocate cash or raise equity if needed. This reduces bankruptcy risk and supports survival while the company repairs operating performance.

High Gross Margins

Consistently high gross margins point to attractive core product economics typical of scalable software/infrastructure models. If demand recovers or costs are controlled, these margins provide room for operating leverage and sustainable profit restoration over the medium term.

Lean Operating Base

A small headcount supports a lower fixed-cost base and operational agility, enabling the company to scale without proportionate SG&A increases. This structural lean footprint can help conserve cash and improve margins as revenue stabilizes or grows.

Negative Factors

Revenue and Profitability Decline

A meaningful revenue decline coupled with a swing to a substantial net loss indicates demand weakness or pricing/competition pressures. This undermines sustainable earnings generation and makes restoring long-term profitability a multi-quarter challenge requiring either revenue recovery or structural cost reductions.

Negative Shareholders' Equity

Negative shareholders' equity reflects cumulative losses and a thin capital cushion, limiting the firm's ability to absorb further losses. It increases the likelihood of dilutive capital raises or constrained strategic moves, reducing financial flexibility over the coming months.

Weak Cash Generation

The shift to negative operating and free cash flow creates a persistent funding need and heightens refinancing or fundraising risk despite zero debt. Sustained cash burn could force asset sales, aggressive cost cuts, or equity issuance, pressuring strategic execution and value for existing shareholders.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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$7.29M	-5.64	-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	42 Neutral	C$4.46M	-1.23	―	―	-67.21%	―