Sezzle Inc.
Sezzle Inc. Fundamental Analysis
Sezzle Inc. (SZL.AX) shows strong financial fundamentals with a PE ratio of 13.26, profit margin of 4.45%, and ROE of 45.89%. The company generates $0.1B in annual revenue with strong year-over-year growth of 1700.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SZL.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakSZL.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSZL.AX trades at attractive valuation levels.
Growth Score
ModerateSZL.AX shows steady but slowing expansion.
Financial Health Score
ModerateSZL.AX shows balanced financial health with some risks.
Profitability Score
WeakSZL.AX struggles to sustain strong margins.
Key Financial Metrics
Is SZL.AX Expensive or Cheap?
P/E Ratio
SZL.AX trades at 13.26 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SZL.AX's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values Sezzle Inc. at 4.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.41 times EBITDA. This is generally considered low.
How Well Does SZL.AX Make Money?
Net Profit Margin
For every $100 in sales, Sezzle Inc. keeps $4.45 as profit after all expenses.
Operating Margin
Core operations generate 13.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.89 in profit for every $100 of shareholder equity.
ROA
Sezzle Inc. generates $3.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sezzle Inc. generates limited operating cash flow of $-17.13M, signaling weaker underlying cash strength.
Free Cash Flow
Sezzle Inc. generates weak or negative free cash flow of $-18.04M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.83 in free cash annually.
FCF Yield
SZL.AX converts -43.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.87
vs 25 benchmark
How SZL.AX Stacks Against Its Sector Peers
| Metric | SZL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.26 | 18.66 | Better (Cheaper) |
| ROE | 45.89% | 804.00% | Weak |
| Net Margin | 4.45% | 2258.00% | Weak |
| Debt/Equity | 4.33 | 1.03 | Weak (High Leverage) |
| Current Ratio | 1.12 | 662.03 | Neutral |
| ROA | 3.34% | -24049.00% (disorted) | Weak |
SZL.AX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sezzle Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
887140.26%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
410.86%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
106269.21%
Industry Style: Value, Dividend, Cyclical
High Growth