Fintech Select Ltd (FTEC) AI Stock Analysis

Fintech Select Ltd

(TSXV:FTEC)

Select Model

Rating:34Underperform

Price Target:CAD 0.03▲(12.00% Upside)

Action:reiterated

Date:10/21/26

The score is driven primarily by weak financial fundamentals: Fintech Select is unprofitable, burning cash, and carries negative shareholders' equity on a very small asset base, with highly erratic revenue and margin history. Positives include a strong recent revenue rebound, margin recovery, the elimination of interest-bearing debt, and minimal capital spending needs. Technicals add limited support — a short-term bounce above the 20- and 50-day averages is offset by price remaining well under the 200-day average with a negative MACD. Valuation offers no cushion, with negative earnings and no dividend. No earnings call or corporate event data was available, so those components were excluded and their weight redistributed.

Positive Factors

Debt-free balance sheetThe absence of reported debt limits refinancing needs and interest-burden risk, giving the company more flexibility than a similarly loss-making business with leverage. This is a durable balance-sheet advantage, although it does not offset the strain from negative equity.

Negative Factors

Persistently negative shareholders’ equityPersistent negative equity indicates accumulated deficits and/or balance-sheet impairment, weakening financial resilience and reducing flexibility to absorb further losses. With total assets also described as modest and declining from 2024, the company has a limited balance-sheet cushion over the next several quarters.

Fintech Select Ltd (FTEC) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 2.00M
Dividend Yield: ―
Average Volume (3M): 68.59K
Price to Earnings (P/E): -8.6
Beta (1Y): -0.08
Revenue Growth: -3.30%
EPS Growth: 11.76%
Country: Canada
Employees: 51
Sector: General
Sector Strength: 55
Industry: Software - Infrastructure

Fintech Select Ltd Business Overview & Revenue Model

Company Description

Fintech Select Ltd., founded in 1999 and based in Toronto, Canada, delivers a range of financial payment services and solutions throughout Canada. Its operations are structured across three key divisions: Distribution, Call Center, and Financial Serv...

How the Company Makes Money

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Fintech Select Ltd Financial Statement Overview

Summary

Weak across all three statements. Income statement (30): revenue rebounded sharply to roughly $3.1M TTM with gross margin recovering to about 26%, but the company remains unprofitable with a TTM operating loss near $267K and net loss of about $237K, and history shows extreme swings in revenue and margins. Balance sheet (26): shareholders' equity is negative at roughly -$480K against only about $722K of total assets, though the deficit has narrowed from prior years and reported interest-bearing debt has been eliminated. Cash flow (28): operating and free cash flow of about -$143K TTM continues a pattern of inconsistent cash generation, partly offset by negligible capital spending and earnings quality that tracks cash flow closely. Overall, this is a fragile micro-cap reliant on external financing until sustained operating profit is demonstrated.

Income Statement

30Negative

Balance Sheet

26Negative

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.06M	2.78M	4.00M	3.82M	2.59M	2.77M
Gross Profit	801.81K	-165.65K	3.77M	3.60M	2.40M	2.53M
EBITDA	-246.70K	-429.88K	507.32K	415.13K	1.34M	42.19K
Net Income	-237.24K	-500.75K	489.75K	329.21K	1.20M	-112.80K
Balance Sheet
Total Assets	721.76K	785.19K	1.01M	555.25K	483.03K	1.22M
Cash, Cash Equivalents and Short-Term Investments	449.02K	607.63K	774.31K	294.68K	147.83K	364.31K
Total Debt	0	0	0	89.16K	535.36K	308.01K
Total Liabilities	1.20M	1.28M	978.28K	1.34M	1.89M	3.91M
Stockholders Equity	-479.75K	-498.39K	35.85K	-786.95K	-1.41M	-2.68M
Cash Flow
Free Cash Flow	-142.92K	-284.50K	176.94K	432.72K	-248.91K	121.83K
Operating Cash Flow	-142.68K	-284.26K	179.85K	434.91K	-243.62K	124.19K
Investing Cash Flow	-245	-245	-2,911	-2,190	-5,294	-2,363
Financing Cash Flow	0	182.00K	-89.16K	-452.96K	212.36K	-87.06K

Fintech Select Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price0.03

Price Trends

50DMA0.02Negative

100DMA0.03Negative

200DMA0.04Negative

Market Momentum

MACD-0.00Positive

RSI46.38Neutral

STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTEC, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FTEC.

Fintech Select Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TSE:FTEC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TSE:IP	41Neutral	CAD 1.75M	-0.88	54.16%	―	-100.00%	49.11%
TSE:FTEC	34Underperform	CAD 2.00M	-8.62	69.66%	―	-3.30%	11.76%
TSE:PKK	24Underperform	CAD 62.43M	-28.41	11.52%	―	3675.64%	98.04%

* General Sector Average

Performance Comparison

TSE:FTEC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:FTEC	Fintech Select Ltd	0.03	-0.01	-37.50%
TSE:PKK	Tenet Fintech Group Inc.	0.13	0.10	400.00%
TSE:IP	Imaginear Inc.	0.01	-0.02	-60.00%
TSE:HRO	Euro Asia Pay Holdings, Inc.	0.03	0.00	0.00%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 21, 2026

Fintech Select Ltd AI Stock Analysis