Stikcredit Financial Analysis
- Written by
- Just P2P
- •
- Updated October 1, 2024
This financial analysis of Stikcredit covers all the key aspects identified as important for assessing peer-to-peer lending platforms. For that, we follow an approach that balances rigorous quantitative metrics with qualitative interpretation of the trends and context.
Obviously, any feedback from the platform as well comments from other investors are welcome. It is the right of the platforms to answer, complement and/or challenge the results of this financial analysis. And investors may complement with their own views and/or ask questions in the comments.
Table des matières
Stikcredit financial data
Stikcredit is the P2P platform of the company Stik Credit JSC founded in 2013, which is managed by Svetlin Sabev. For the purpose of this financial analysis, we rely on the last 5 annual reports : 2019, 2020, 2021, 2022 and 2023. To our knowledge, these reports have been duly audited.
Based on this financial data, we have calculated the most pertinent ratios for peer-to-peer lending platforms, as the intermediaries between loan originators and investors. All metrics on which we based our financial analysis are gathered in the following chart and table.
Stikcredit Turnover & Profit
Stikcredit Financial Ratios
 | 2019 | 2020 | 2021 | 2022 | 2023 |
Return on Assets | 29.26% | 25.97% | 17.71% | 10.62% | 13.58% |
Return on Equity | 44.95% | 38.56% | 32.05% | 19.91% | 23.97% |
Current Ratio | 2.82 | 3.03 | 2.19 | 2.12 | 2.25 |
Equity to Asset | 65.31% | 67.35% | 55.25% | 53.32% | 56.62% |
Operating Expense | 35.90% | 33.57% | 48.65% | 39.24% | 37.51% |
Revenue Growth | - | 47.71% | 58.45% | 54.62% | 0.50% |
Assets Growth | - | 57.86% | 63.43% | 29.41% | 14.50% |
Liabilities to Equity | 0.53 | 0.48 | 0.81 | 0.88 | 0.77 |
Cost Efficiency | 35.90% | 33.57% | 48.65% | 39.24% | 37.51% |
Financial analysis 2023
In 2023, Stik Credit JSC showed signs of stabilization and slight improvement across several metrics. The company’s profitability ratios (ROA and ROE) increased compared to 2022, indicating better efficiency in utilizing its assets and equity to generate profits. This improvement came despite a significant slowdown in revenue growth, thanks to the implementation of effective cost-cutting measures and improved operational efficiency.
Liquidity position : improved slightly in 2023, reversing the downward trend observed in previous years. This indicates that the company has maintained a strong ability to meet its short-term obligations. The capital adequacy, represented by the equity to asset ratio, also improved in 2023, suggesting a more conservative financial approach.
Operational efficiency : slight improvement in 2023 compared to 2022. This aligns with the improvement in the cost to income ratio, indicating that the company has managed to control its costs better relative to its income. However, these ratios are still higher than the levels seen in 2020 and 2021, suggesting there’s room for further efficiency improvements.
Revenue growth : This is the most significant change in 2023 with a significant slowdown, which nearly flatlined at 0.50% compared to the high double-digit growth rates of previous years. Despite this, the company managed to increase its profit, which is a positive sign of adaptability and efficient management.
Challenges for Stikcredit
1. Stagnant Revenue Growth : The revenue growth rate in 2023 was only 0.50%, an important slowdown from previous years. This is the most significant challenge evident in the 2023 report.
2. Slower Asset Growth : While still positive at 14.50%, the asset growth rate in 2023 was much lower than in previous years, indicating potential market saturation or increased competition.
3. Maintaining Profitability : Despite slight improvements in ROA and ROE compared to 2022, these metrics remain significantly lower than in earlier years. The challenge is to continue improving profitability in a slower growth environment.
Opportunities for Stikcredit
1. Improved Operational Efficiency : The operating expense ratio and cost-to-income ratio both improved in 2023, suggesting that the company has successfully implemented cost-saving measures. There’s an opportunity to further optimize operations.
2. Strong Liquidity Position : With a current ratio of 2.25 in 2023, the company has a solid liquidity position, providing an opportunity to weather short-term challenges or invest in new initiatives.
3. Improved Capital Adequacy : The equity to asset ratio increased to 56.62% in 2023, up from 53.32% in 2022. This stronger capital position offers an opportunity for strategic investments or expansion.
4. Reduced Financial Leverage : The total liabilities to equity ratio decreased to 0.77 in 2023 from 0.88 in 2022, indicating an opportunity to potentially take on more debt for strategic growth if needed.
Long-Term Tendency
Over the 5 years analyzed, Stik Credit JSC has evolved from a high-growth, high-profitability company to a more mature, stable entity facing slowing market challenges. In its early years (2019-2021), the company experienced rapid growth in revenue and assets with strong profitability ratios, likely representing its expansion phase fueled by the growing popularity of peer-to-peer lending in Bulgaria.
From 2021 onwards, signs of market maturation emerged. Growth rates slowed, profitability ratios declined, and maintaining operational efficiency became more challenging. This trajectory is common for companies in rapidly evolving sectors like fintech.
The 2023 data suggests Stik Credit JSC is adapting to this new reality. Despite flat revenue growth, the company improved profitability and slightly enhanced operational efficiency, indicating a shift from rapid expansion to sustainable operations and profitability.
Looking forward, Stik Credit JSC is likely transitioning into a more mature phase, focusing on operational efficiency, cost management, and maintaining profitability rather than aggressive growth. We may see efforts to diversify revenue streams, expand into new markets, or introduce innovative products to reignite growth.
In conclusion, while the high-growth phase appears over, Stik Credit JSC has shown resilience and adaptability. If it can continue improving efficiency and capitalizing on its strong financial position, it has the potential to remain a significant player in the Bulgarian peer-to-peer lending market.
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