SEZZLE INC (SEZL) Stock Fundamental Analysis
NASDAQ:SEZL - Nasdaq - US78435P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to SEZL. SEZL was compared to 101 industry peers in the Financial Services industry. SEZL has an excellent financial health rating, but there are some minor concerns on its profitability. SEZL shows excellent growth, but is valued quite expensive already. This makes SEZL very considerable for growth investing!
1. Profitability
1.1 Basic Checks
SEZL had positive earnings in the past year.
SEZL had a positive operating cash flow in the past year.
In multiple years SEZL reported negative net income over the last 5 years.
In multiple years SEZL reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of SEZL (35.79%) is better than 100.00% of its industry peers.
SEZL has a better Return On Equity (84.83%) than 98.02% of its industry peers.
SEZL has a Return On Invested Capital of 47.57%. This is amongst the best in the industry. SEZL outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.79% | ||
| ROE | 84.83% | ||
| ROIC | 47.57% |
ROA(3y)2.53%
ROA(5y)-8.93%
ROE(3y)-103.09%
ROE(5y)-112.44%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 32.42%, SEZL belongs to the best of the industry, outperforming 84.16% of the companies in the same industry.
SEZL's Operating Margin of 35.95% is fine compared to the rest of the industry. SEZL outperforms 77.23% of its industry peers.
With an excellent Gross Margin value of 83.32%, SEZL belongs to the best of the industry, outperforming 89.11% of the companies in the same industry.
In the last couple of years the Gross Margin of SEZL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.95% | ||
| PM (TTM) | 32.42% | ||
| GM | 83.32% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.27%
GM growth 5Y9.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SEZL is creating value.
The number of shares outstanding for SEZL has been reduced compared to 1 year ago.
Compared to 5 years ago, SEZL has less shares outstanding
Compared to 1 year ago, SEZL has an improved debt to assets ratio.
2.2 Solvency
SEZL has an Altman-Z score of 13.43. This indicates that SEZL is financially healthy and has little risk of bankruptcy at the moment.
SEZL's Altman-Z score of 13.43 is amongst the best of the industry. SEZL outperforms 95.05% of its industry peers.
SEZL has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.17, SEZL belongs to the best of the industry, outperforming 81.19% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that SEZL is somewhat dependend on debt financing.
SEZL has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: SEZL outperforms 59.41% of its industry peers.
Although SEZL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 13.43 |
ROIC/WACC5.3
WACC8.98%
2.3 Liquidity
A Current Ratio of 2.62 indicates that SEZL has no problem at all paying its short term obligations.
SEZL has a better Current ratio (2.62) than 80.20% of its industry peers.
SEZL has a Quick Ratio of 2.62. This indicates that SEZL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.62, SEZL belongs to the best of the industry, outperforming 81.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 942.86% over the past year.
The Revenue has grown by 70.14% in the past year. This is a very strong growth!
SEZL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 76.56% yearly.
EPS 1Y (TTM)942.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%90.78%
Revenue 1Y (TTM)70.14%
Revenue growth 3Y33.16%
Revenue growth 5Y76.56%
Sales Q2Q%76.35%
3.2 Future
SEZL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.65% yearly.
Based on estimates for the next years, SEZL will show a very strong growth in Revenue. The Revenue will grow by 45.90% on average per year.
EPS Next Y17.15%
EPS Next 2Y23.58%
EPS Next 3Y25.65%
EPS Next 5YN/A
Revenue Next Year77.26%
Revenue Next 2Y49%
Revenue Next 3Y45.9%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
SEZL is valuated quite expensively with a Price/Earnings ratio of 30.85.
Based on the Price/Earnings ratio, SEZL is valued a bit more expensive than 72.28% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.41, SEZL is valued at the same level.
With a Price/Forward Earnings ratio of 20.14, SEZL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SEZL is valued a bit more expensive than the industry average as 63.37% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of SEZL to the average of the S&P500 Index (33.87), we can say SEZL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
SEZL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SEZL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.69 | ||
| EV/EBITDA | 25.37 |
4.3 Compensation for Growth
SEZL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SEZL may justify a higher PE ratio.
A more expensive valuation may be justified as SEZL's earnings are expected to grow with 25.65% in the coming years.
PEG (NY)1.8
PEG (5Y)N/A
EPS Next 2Y23.58%
EPS Next 3Y25.65%
5. Dividend
5.1 Amount
SEZL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.31
-4.2 (-4.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners27.65%
Inst Owner Change-0.56%
Ins Owners48.44%
Ins Owner Change-1.73%
Market Cap2.91B
Analysts84.44
Price Target164.22 (88.09%)
Short Float %19.54%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)206.19%
Min EPS beat(2)32.19%
Max EPS beat(2)380.18%
EPS beat(4)4
Avg EPS beat(4)188.94%
Min EPS beat(4)32.19%
Max EPS beat(4)380.18%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)42.51%
Min Revenue beat(2)26.17%
Max Revenue beat(2)58.85%
Revenue beat(4)4
Avg Revenue beat(4)35.48%
Min Revenue beat(4)26.17%
Max Revenue beat(4)58.85%
Revenue beat(8)8
Avg Revenue beat(8)25.84%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)38.4%
PT rev (3m)161.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)162.63%
EPS NY rev (1m)0%
EPS NY rev (3m)152.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)25.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)24.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 20.14 | ||
| P/S | 8.83 | ||
| P/FCF | 48.69 | ||
| P/OCF | 47.55 | ||
| P/B | 23.11 | ||
| P/tB | 23.56 | ||
| EV/EBITDA | 25.37 |
EPS(TTM)2.83
EY3.24%
EPS(NY)4.34
Fwd EY4.97%
FCF(TTM)1.79
FCFY2.05%
OCF(TTM)1.84
OCFY2.1%
SpS9.88
BVpS3.78
TBVpS3.71
PEG (NY)1.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.79% | ||
| ROE | 84.83% | ||
| ROCE | 60.21% | ||
| ROIC | 47.57% | ||
| ROICexc | 86.87% | ||
| ROICexgc | 88.86% | ||
| OM | 35.95% | ||
| PM (TTM) | 32.42% | ||
| GM | 83.32% | ||
| FCFM | 18.14% |
ROA(3y)2.53%
ROA(5y)-8.93%
ROE(3y)-103.09%
ROE(5y)-112.44%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.27%
GM growth 5Y9.49%
F-Score8
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 141.5% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 9.03 | ||
| Cash Conversion | 51.23% | ||
| Profit Quality | 55.95% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 13.43 |
F-Score8
WACC8.98%
ROIC/WACC5.3
Cap/Depr(3y)143.43%
Cap/Depr(5y)158.23%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)942.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%90.78%
EPS Next Y17.15%
EPS Next 2Y23.58%
EPS Next 3Y25.65%
EPS Next 5YN/A
Revenue 1Y (TTM)70.14%
Revenue growth 3Y33.16%
Revenue growth 5Y76.56%
Sales Q2Q%76.35%
Revenue Next Year77.26%
Revenue Next 2Y49%
Revenue Next 3Y45.9%
Revenue Next 5YN/A
EBIT growth 1Y286.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year138.73%
EBIT Next 3Y61.56%
EBIT Next 5YN/A
FCF growth 1Y1479.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1912.69%
OCF growth 3YN/A
OCF growth 5YN/A