Fund Manager Summary
The fund managers believe that FINEOS Corporation Ltd presents a compelling investment opportunity due to its leadership position in the Life Accident & Health (LA&H) sector and its innovative AdminSuite platform. In their opinion, the company’s strong financials, including a debt-free status and forecast of cashflow positivity throughout 2025, further enhance its attractiveness. With a total addressable market of US$125 billion and a significant annual recurring revenue (ARR) growth potential, FINEOS is well-positioned to capitalize on the ongoing shift away from legacy systems. The fund managers also highlight the strategic value of FINEOS’ partnerships with leading consulting firms, which could accelerate client adoption and drive subscription revenue growth. Overall, they see a promising trajectory for the company's EBITDA margin expansion and long-term value creation.
Source: Trading View
Commentary From The Managers
Subscribe To Unlock
Date
Price
Summary
Unlock Recent Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Selector Funds Management
31 Mar 2025
$0.06
Summary
- Selector Funds Management continues to hold a positive outlook on FINEOS Corporation Holdings PLC (ASX: FCL), a leading provider of software solutions for the Life Accident & Health industry.
- FINEOS AdminSuite is a cloud-native SaaS platform that offers a comprehensive suite of administration products for insurers and employers.
- FINEOS is the global market leader in LA&H, with significant penetration among top U.S. carriers.
- The company has a strong financial position, being debt-free with cash reserves and projected cash flow positivity for 2025.
- Annual recurring revenue (ARR) is currently at A$123 million, with potential for significant growth as penetration increases.
- FINEOS clients represent a substantial portion of the market, with opportunities for upselling and cross-selling existing clients.
- CEO Michael Kelly maintains a significant shareholding and continues to buy stock, indicating confidence in the company's future.
- The platform is AI & ML ready, positioning FINEOS to leverage data for improved business intelligence and efficiencies.
- Industry consolidation may provide additional growth opportunities as carriers modernize their systems.
- Selector Funds Management sees potential for organic revenue growth of 8%-10% through existing client expansion and new logo acquisitions.
- FINEOS is focused on reducing R&D expenses as a percentage of revenue, targeting increased margins and cash flow in the coming years.
- Overall, Selector Funds Management believes that FINEOS is well-positioned for long-term growth in a rapidly evolving industry.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Updates are made available to members within 12 hours in accordance with the ThesisTracker Pro Service Level Agreement.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Selector Funds Management
31 Mar 2025
$0.06
- Selector Funds Management continues to hold a positive outlook on FINEOS Corporation Holdings PLC (ASX: FCL), a leading provider of software solutions for the Life Accident & Health industry.
- FINEOS AdminSuite is a cloud-native SaaS platform that offers a comprehensive suite of administration products for insurers and employers.
- FINEOS is the global market leader in LA&H, with significant penetration among top U.S. carriers.
- The company has a strong financial position, being debt-free with cash reserves and projected cash flow positivity for 2025.
- Annual recurring revenue (ARR) is currently at A$123 million, with potential for significant growth as penetration increases.
- FINEOS clients represent a substantial portion of the market, with opportunities for upselling and cross-selling existing clients.
- CEO Michael Kelly maintains a significant shareholding and continues to buy stock, indicating confidence in the company's future.
- The platform is AI & ML ready, positioning FINEOS to leverage data for improved business intelligence and efficiencies.
- Industry consolidation may provide additional growth opportunities as carriers modernize their systems.
- Selector Funds Management sees potential for organic revenue growth of 8%-10% through existing client expansion and new logo acquisitions.
- FINEOS is focused on reducing R&D expenses as a percentage of revenue, targeting increased margins and cash flow in the coming years.
- Overall, Selector Funds Management believes that FINEOS is well-positioned for long-term growth in a rapidly evolving industry.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"While the path appears challenging, the potential for Fluence Corporation Ltd to disrupt the legacy systems market in LA&H is undeniable. As clients increasingly recognize the efficiencies of modern platforms, the tide may turn, unlocking significant growth opportunities for those willing to invest now."
Last Updated: 31 Mar 2025
Query The Data
Frequently Asked Questions
Who is investing in Fluence Corporation Ltd (ASX:FLC)?
Fund managers including Selector Funds Management have invested in Fluence Corporation Ltd (ASX:FLC).
Why do fund managers invest in Fluence Corporation Ltd?
Fund managers are investing in Fluence Corporation Ltd due to its strong market position in the Life Accident & Health (LA&H) software sector, particularly through its FINEOS AdminSuite platform. The company is recognized for its mission-critical solutions that address regulatory challenges in the U.S. insurance market. With a robust annual recurring revenue (ARR) model, a debt-free status, and significant cash reserves, Fluence demonstrates financial stability and growth potential. The platform's ability to integrate advanced AI and machine learning capabilities positions it favorably for future expansion in a market valued at $125 billion. Additionally, the company has established strong relationships with top-tier clients, showcasing its operational excellence and capacity for upselling and cross-selling, which further enhances its attractiveness to fund managers.
What happened to Fluence Corporation Ltd (ASX:FLC)?
There have been no recent updates from fund managers regarding Fluence Corporation Ltd although fund managers including Selector Funds Management have previously commented.