Fintech Select Ltd (FTEC) AI Stock Analysis

• Market Cap: C$7.20M
• Dividend Yield: N/A
• Average Volume (3M): 71.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• 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$0.09 ▲(117.50% 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

Low Financial Leverage

Zero reported debt is a durable financial strength: it materially reduces refinancing and interest-rate risk, gives management flexibility to fund operations or strategic investments, and extends runway while the company works to restore operating cash flow and profitability.

High Gross Margins

Sustained high gross margins indicate attractive unit economics typical of software-infrastructure businesses. This structural advantage supports scalability: once fixed costs are controlled, revenue recovery can drive operating leverage and durable profitability improvement over a multi-quarter horizon.

Capital-Light, Scalable Model

A small headcount in a software-infrastructure business points to a capital-light, scalable model. If demand stabilizes, incremental revenue can flow to the bottom line quickly, enabling efficient redeployment of limited resources into product development or customer acquisition over months.

Negative Factors

Return to Net Loss and Negative Cash Flow

A recent swing to net losses and negative operating/free cash flow is a structural concern: sustained cash burn erodes reserves, forces external financing or dilution, constrains investment in product and sales, and makes it harder to regain durable revenue and margin momentum.

Negative Shareholders' Equity

Negative shareholders’ equity signals accumulated losses and a thin capital cushion. Over months this limits strategic optionality, raises stakeholder scrutiny, can complicate financing terms, and increases the risk that the company cannot absorb further operating setbacks without dilutive or costly capital raises.

Declining Revenue Trend

Material top-line decline harms long-term unit economics: shrinking revenue reduces operating leverage, pressures margins despite strong gross profit, and makes fixed-cost absorption harder. Continued revenue contraction would impair sustainable cash generation and recovery prospects over quarters.

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 demonstrates a mixed financial performance. The income statement highlights strong revenue growth and improved margins in the TTM period, but historical profitability has been inconsistent. The balance sheet reflects 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 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: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTEC, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 88.04 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	50 Neutral	C$7.29M	-4.14	-79.05%	―	―	0.75%
FTEC	44 Neutral	C$7.20M	-18.75	―	―	-26.64%	-187.27%
PKK	43 Neutral	C$8.13M	-0.26	―	―	-75.67%	77.36%
IP	40 Underperform	C$4.46M	-1.96	―	―	-67.21%	―