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Solution Dynamics Limited

SDL.NZ
27
Software - Application · Technology
Price
NZ$0.59
+0.01 (+1.72%)
Market Cap
NZ$8.7M
Exchange
New Zealand Exchange
Winston Score
27
Winston is worried
Below-average fundamentals — multiple weak pillars.
Data as of Jul 25, 2026 · filings through Dec 31, 2025

Share count falling — buybacks

2.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 15.0M (2021) → 14.7M (2025)

Solution Dynamics Limited, founded in 1996 and based in Auckland, New Zealand, delivers comprehensive customer communication services across New Zealand, Australia, Europe, and the United States. The company specializes in advanced digital asset management, providing a centralized system for storing, managing, and accessing brand assets and product information, integrated with publishing applications. Its suite of offerings includes sophisticated communication content generation tools, featuring automated workflows, ingestion of digital and smart documents, sophisticated database-driven templates, online preview capabilities, multi-language support, approval processes, and advanced user rights management. The company also develops automated workflows for personalized communications via print, email, and SMS, incorporating smart, data-driven templates, online preview and approval systems, and automated dispatch. This includes facilitating print and mail house services, database cleansing, and optimizing bulk mail rates. Solution Dynamics provides communication logistics solutions encompassing inbound and outbound communications management, high-volume document scanning and data capture, conversion of physical documents to digital formats, metadata tagging, secure handling of critical documents, and outsourced digital archiving. Moreover, it offers "post on demand" services through a convenient self-service online portal. Complementary services include print management, mail house and fulfillment, direct and transactional marketing, communications database cleansing, document and financial management, business process and IT consultancy, and specialized communications software.

Winston Score History

Score breakdown

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Quality

Gross Margin
11.2%
Thin — 11.2% gross margin
Operating Margin
0.8%
Thin — 0.8% operating margin
ROCE
1.0%
Weak — 1.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-23.0%
Shrinking sales (-23.0% YoY)
EPS YoY
-81.8%
Earnings shrinking (-81.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
-326%
Weak — only -326% of profit becomes cash
FCF Margin
-9.2%
Burning cash (-9.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.13
Conservative — low debt load (0.13)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
17.7x
Fair value — P/E 17.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
8.47%
Healthy income — 8.47% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth
-40.8%
Dividend cut (-40.8% YoY) — warning sign

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