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Earlypay Limited
Financial Services · Credit Services
Updated just now
$0.15
MARKET CAP
$40.15M
P/E RATIO
14.9
DIV. YIELD
4.5%
FRANKING
100%
EPY has red flags on value, looks strong on dividends — see the full breakdown
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Earlypay Limited engages in the provision of financial solutions to businesses in Australia. It offers invoice finance, such as debtor and trade finance; invoice factoring and discounting, and clean energy finance services, as well as business line of credit.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$0.83
Discounted cash flow estimate
$0.30
For 6% dividend yield
Business quality and balance-sheet durability.
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$9M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $9M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Profit generated per $1 of shareholder investment
Price versus estimated intrinsic value and required return thresholds.
How current price compares with estimated intrinsic value
Consistency of profits over time
Is the business growing or shrinking over time?
Revenue has declined 19% over 4 years. Declining revenue in a financial institution may signal shrinking market share or margin compression.
Current Snapshot
Revenue Change
-19.5%
Debt Change
N/A (financials)
Trend State
Weakening
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by -19.5% across the displayed period.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue has declined 19% over 4 years. Declining revenue in a financial institution may signal shrinking market share or margin compression.
Sources
Annual dividends as percentage of stock price
11.42% yield significantly exceeds Barsi's 6% minimum. Based on 6-year average, not one-time spikes.
Current Snapshot
6Y Avg Yield
11.4%
6% Requirement
6.0%
Gross Yield
16.3%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.02 and a share price of $0.15, the Barsi yield is 11.4%. The minimum requirement is 6%. Including franking credits, the gross yield is 16.3%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Very high yields can signal trouble — the stock price may have dropped because the market expects a dividend cut. Verify the payout ratio is sustainable and the company can maintain this level of distributions before relying on this income.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| ~29 June 2026Est | ~27 July 2026 | ~$0.02 | 100% | ~$0.01 | $0.00 |
| ~16 Apr 2027Est | ~19 Apr 2027 | ~$0.01 | 100% | ~$0.01 | $0.00 |
Highest price to lock in 6% yield
Industry category of the business
Financial Services is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Credit Services
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Credit Services (Financial Services sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
The company is paying out more in dividends than it earns (141%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Current Snapshot
Latest Ratio
141.1%
Healthy Range
30%-75%
Zone
Unsustainable
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.01 dividend / $0.01 EPS equals 76.0% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
The company is paying out more in dividends than it earns (141%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Sources
Earlypay Limited engages in the provision of financial solutions to businesses in Australia. It offers invoice finance, such as debtor and trade finance; invoice factoring and discounting, and clean energy finance services, as well as business line of credit. The company also provides equipment finance services for old and new equipment, such as sale back of owned or partially owned equipment, private sales, and mid-term refinancing. In addition, it offers payroll and trade finance services, and asset finance.
Additionally, it offers supplier early payment platform solutions and ATO tax debt services. The company was formerly known as CML Group Limited and changed its name to Earlypay Limited in November 2020. Earlypay Limited was incorporated in 2001 and is based in North Sydney, Australia.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
Professional fund managers have done their homework and chosen to own this
Shares freely traded on the ASX by individual investors like you
The people running this company own a large chunk of it (34.1%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Current Snapshot
Insider %
34.1%
Institutional %
34.0%
Float %
31.9%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 34.1% and institutions own 34.0%, public float is 31.9%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
The people running this company own a large chunk of it (34.1%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 24 Apr 2025 | Healy (Sue) Former | Unknown | 667K | — |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
8.7% average is below the 12% threshold. This suggests the business may lack a durable competitive advantage. Note: Royal Commission into Banking year(s) excluded — ROE recovered to 265% of target.
Current Snapshot
10Y Avg
8.7%
Threshold
12.0%
Worst Year
-10.5%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 8.7%, meaning each $1 of shareholder equity generates $0.09 in annual profit. The threshold is 12%, and the worst single year was -10.5%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
Lower ROE means your investment compounds more slowly. At 8.7%, this business needs more capital to generate the same returns as competitors. Consider whether other strengths (yield, stability) compensate for weaker profitability.
Sources
Exceptional discount: 73% BELOW the fair-value threshold (includes 30% margin of safety).
Current Snapshot
Current Margin
80.7%
Industry Threshold
30%
Status
73% Undervalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $0.83 per share, current price is $0.15, and margin of safety is 80.7%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
The market price sits far below your required entry threshold, providing a substantial valuation buffer if assumptions prove optimistic.
Sources
What percentage of the stock price comes back as earnings each year
6.7% earnings yield is below the 7.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
6.7%
Required Yield
7.5%
Spread
-0.8pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.01 and a share price of $0.15, earnings yield is 6.7%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
1 loss year(s) found with only 4 years of data. Limited data requires 100% positive EPS - industry exemptions don't apply.
Current Snapshot
Positive Years
9/4
Allowed Losses
0 (limited)
EPS CAGR
50.3%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 9 of the last 4 years, with 1 loss year. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is 50.3%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Loss years signal unpredictable earnings. During loss periods, companies often cut dividends to preserve cash. Your income could be at risk in the next downturn.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 11 Sept 2025Final | 26 Sept 2025 | $0.01 | 100% | $0.01 | $0.00 |
| 20 Mar 2025Interim | 17 Apr 2025 | $0.00 | 0% | $0.00 | $0.00 |
| 12 Sept 2024Final | 10 Oct 2024 | $0.00 | 0% | $0.00 | $0.00 |
| 15 Sept 2022Final | 13 Oct 2022 | $0.02 | 0% | $0.02 | $0.00 |
| 16 Mar 2022Interim | 13 Apr 2022 | $0.01 | 0% | $0.01 | $0.00 |
| 15 Sept 2021Final | 13 Oct 2021 | $0.01 | 0% | $0.01 | $0.00 |
| 17 Mar 2021Interim | 14 Apr 2021 | $0.01 | 0% | $0.01 | $0.00 |
| 15 Sept 2020Final | 13 Oct 2020 | $0.02 | 0% | $0.02 | $0.00 |
| 13 Sept 2019Final | 11 Oct 2019 | $0.01 | 0% | $0.01 | $0.00 |
| 20 Mar 2019Interim | 17 Apr 2019 | $0.01 | 0% | $0.01 | $0.00 |
9 years of consistent dividends meets Barsi's 6-year minimum requirement.
Current Snapshot
History
9yr
Predictability
Variable
Payout Health
Elevated
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 9 years of dividend history (2016–2025). No suspensions detected — 9 consecutive years of payments. Predictability: Variable. Payout health: Elevated. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A consistent track record through recent years gives confidence your income will continue. This company has shown commitment to shareholder returns.
Sources
Priced well below ceiling. 50% below means you're locking in well over 6% yield.
Current Snapshot
Current Price
$0.15
Max Buy Price
$0.30
Delta
+48.3%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $0.15 and a ceiling of $0.30, the entry is 48.3% below the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
Buying this far below the ceiling locks in a yield well above 6% based on proven historical dividends. Your income starts strong from day one.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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