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FINBOND GROUP LTDFINBOND GROUP LTDFINBOND GROUP LTD

FINBOND GROUP LTD

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FGL trade ideas

Our opinion on the current state of FINBOND(FGL)Finbond (FGL) is a micro-lending and insurance operation which operates in South Africa and America. This company aims to expand in the US to the point where 70% to 80% of its income is derived from that country within 3 to 5 years. It already has 66% of its income coming from the US and believes that the US offers significant growth opportunities. Including South Africa, Finbond has a total of 694 branches. In its results for the year to 29th February 2024, the company reported revenue up 22.8% and headline earnings per share (HEPS) up 97.7%. The company said, "Profit for the year attributable to owners of the Company increased by 100.2% to R0.6 million (February 2023: loss of R274.8 million). Net asset value per share increased by 82.6% to 182.2 cents per share (February 2023: 99.8 cents per share)." Technically, the share was in a long-term downward trend and has been drifting sideways since March 2022. It trades about R229,000 worth of shares each day on average. We believe that there may be better options than this penny stock, but it has begun to move up recently.
JSE:FGL
by PDSnetSA
Our opinion on the current state of FINBOND(FGL)Finbond is a micro-lending and insurance operation with a presence in South Africa and America. The company is ambitiously planning to expand in the US, aiming for 70% to 80% of its income to come from that country within the next 3 to 5 years. Currently, 66% of its income is already sourced from the US, a market Finbond views as having significant growth opportunities. Including its operations in South Africa, Finbond operates a total of 694 branches. In its financial results for the six months ending on 31st August 2023, Finbond reported that loans advanced were up by 23.2% and headline earnings per share (HEPS) increased by 72.4%. However, the company's net asset value (NAV) saw a slight decrease of 2.6% to R1.13 billion. The company commented on its performance, stating, "Sales volumes have continued to increase in both South Africa ('SA') and North America and are ahead of the corresponding reporting period, and significantly ahead of pre-COVID and Illinois regulatory change volumes." Looking ahead, in a trading statement for the year ending 29th February 2024, Finbond estimated that HEPS would increase by between 88% and 108% compared with a restated loss of 19.1c in the previous period. Despite these positive projections, the share has been in a long-term downward trend and has been drifting sideways since March 2022. It trades about R229,000 worth of shares each day on average. Given the current market dynamics and the stock's performance, it appears that there may be better investment options available than this penny stock.
JSE:FGL
by PDSnetSA
Our opinion on the current state of FINBOND(FGL)Finbond Group Ltd (FGL) is a company engaged in micro-lending and insurance operations, with a significant presence in both South Africa and the United States. The company has outlined ambitious plans to expand its operations in the US, aiming for 70% to 80% of its income to come from the American market within the next 3 to 5 years. As of the latest reports, Finbond already derives 66% of its income from the US, a market it views as having substantial growth potential. Across both its operational regions, Finbond manages a total of 694 branches. For the six-month period ending on 31st August 2023, the company reported a notable increase in loans advanced by 23.2% and a significant rise in headline earnings per share (HEPS) by 72.4%. However, its net asset value (NAV) saw a slight decline of 2.6%, totaling R1.13 billion. The company attributes the growth in sales volumes to strong performance in both the South African and North American markets, surpassing both the previous corresponding period and the levels seen before the COVID-19 pandemic and regulatory changes in Illinois. Looking ahead, in its trading statement for the fiscal year ending on 29th February 2024, Finbond projected that HEPS would increase by at least 20%, a turnaround from a loss of 15.1 cents in the previous period. This forecast indicates a positive trajectory for the company's earnings, despite previous financial setbacks. From a technical perspective, Finbond's stock has been in a long-term downward trend and has only been drifting sideways since March 2022. Additionally, the trading volume is relatively low, with an average of about R117,000 worth of shares being traded daily. This low liquidity can pose challenges for investors looking to buy or sell large quantities of shares without impacting the price. Given the company's ambitious expansion plans in the US and its significant income generation from that market, Finbond presents certain opportunities for investors interested in a financial services company with growing international exposure. However, the stock's historical performance, the ongoing downward trend, and its status as a penny stock suggest that it may carry higher risks compared to more stable investment options. Potential investors should consider these factors and possibly look for more robust opportunities, especially those seeking less volatility and higher liquidity in their investments.
JSE:FGL
by PDSnetSA
Our opinion on the current state of FGLFinbond (FGL) is a micro-lending and insurance operation which operates in South Africa and America. This company wants to expand in the US to the point where 70% to 80% of its income is derived from that country within 3 to 5 years. It already has 66% of its income coming from the US and believes that the US offers significant growth opportunities. Including South Africa, Finbond has a total of 694 branches. In its results for the six months to 31st August 2023 the company reported loans advanced up 23,2% and headline earnings per share (HEPS) up 72,4%. The company's net asset value (NAV) fell 2,6% to R1,13bn. The company said, "Sales volumes have continued to increase in both South Africa (“SA”) and North America and are ahead of the corresponding reporting period, and significantly ahead of pre-COVID and Illinois regulatory change volumes". Technically, the share was in a long-term a downward trend and has been drifting sideways since March 2022. A further problem is the volume traded, with only about R28 000 worth of shares changing hands each day on average. We believe that there are better options than this penny stock.
JSE:FGL
by PDSnetSA
Our opinion on the current state of FGLFinbond (FGL) is a micro-lending and insurance operation which operates in South Africa and America. This company wants to expand in the US to the point where 70% to 80% of its income is derived from that country within 3 to 5 years. It already has 66% of its income coming from the US and believes that the US offers significant growth opportunities. Including South Africa, Finbond has a total of 694 branches. In its results for the year to 28th February 2023 the company reported revenue up 21% and a headline loss of 15,1c compared with a loss of 17,9c in the previous period. The losses are a result of, "Firstly, the slower COVID recovery in our traditional US business, as discussed above. Secondly, a profitability lag effect created by SAIL as its book grows. Most SAIL loans are 18 to 24-month products, with interest earned over this period". In a trading statement for the six months to 31st August 2023 the compamny estimated that it would make a headline loss of between 1,4c and 3,1c compared with a loss of 8,2c in the previous period. Technically, the share was in a long-term a downward trend and has been drifting sideways since March 2022 although there is a slight uptrend now visible. A further problem is the volume traded, with only about R22 000 worth of shares changing hands each day on average. We believe that there are better options than this penny stock.
JSE:FGL
by PDSnetSA