PAYFARE INC (PAY.CA) Stock Fundamental Analysis
Canada - TSX:PAY - CA70437C1095 - Common Stock
4 CAD
0 (0%)
Taking everything into account, PAY scores 4 out of 10 in our fundamental rating. PAY was compared to 27 industry peers in the Financial Services industry. While PAY seems to be doing ok healthwise, there are quite some concerns on its profitability. PAY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PAY was profitable.
In the past year PAY had a positive cash flow from operations.
PAY had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: PAY reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.26%, PAY is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
With an excellent Return On Equity value of 22.19%, PAY belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.92%, PAY belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 22.19% | ||
| ROIC | 13.92% |
ROA(3y)-2.18%
ROA(5y)-31.17%
ROE(3y)-10.76%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PAY's Profit Margin of 8.94% is on the low side compared to the rest of the industry. PAY is outperformed by 68.75% of its industry peers.
With a Operating Margin value of 7.79%, PAY is not doing good in the industry: 90.63% of the companies in the same industry are doing better.
Looking at the Gross Margin, with a value of 25.74%, PAY is in line with its industry, outperforming 53.13% of the companies in the same industry.
In the last couple of years the Gross Margin of PAY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.79% | ||
| PM (TTM) | 8.94% | ||
| GM | 25.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y202.43%
GM growth 5Y-5.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAY is destroying value.
The number of shares outstanding for PAY has been increased compared to 1 year ago.
PAY has more shares outstanding than it did 5 years ago.
There is no outstanding debt for PAY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.14, we must say that PAY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.14, PAY is doing worse than 75.00% of the companies in the same industry.
PAY has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.00, PAY belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that PAY is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, PAY belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.94
WACC14.89%
2.3 Liquidity
A Current Ratio of 1.24 indicates that PAY should not have too much problems paying its short term obligations.
PAY has a better Current ratio (1.24) than 71.88% of its industry peers.
PAY has a Quick Ratio of 1.24. This is a normal value and indicates that PAY is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.24, PAY is doing good in the industry, outperforming 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
PAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.91%, which is quite impressive.
Looking at the last year, PAY shows a very strong growth in Revenue. The Revenue has grown by 26.40%.
Measured over the past years, PAY shows a very strong growth in Revenue. The Revenue has been growing by 120.24% on average per year.
EPS 1Y (TTM)73.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)26.4%
Revenue growth 3Y140.05%
Revenue growth 5Y120.24%
Sales Q2Q%24.92%
3.2 Future
The Earnings Per Share is expected to decrease by -67.14% on average over the next years. This is quite bad
Based on estimates for the next years, PAY will show a very negative growth in Revenue. The Revenue will decrease by -39.64% on average per year.
EPS Next Y-13.43%
EPS Next 2Y-67.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.2%
Revenue Next 2Y-39.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.00 indicates a reasonable valuation of PAY.
PAY's Price/Earnings ratio is rather cheap when compared to the industry. PAY is cheaper than 81.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. PAY is valued rather cheaply when compared to this.
PAY is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAY indicates a rather cheap valuation: PAY is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAY indicates a rather cheap valuation: PAY is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.05 | ||
| EV/EBITDA | 4.67 |
4.3 Compensation for Growth
PAY's earnings are expected to decrease with -67.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-67.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:PAY (3/4/2025, 7:00:00 PM)
4
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners13.25%
Inst Owner ChangeN/A
Ins Owners11.36%
Ins Owner ChangeN/A
Market Cap193.16M
Revenue(TTM)216.87M
Net Income(TTM)19.38M
Analysts48.89
Price Target5.51 (37.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.27%
Min EPS beat(2)-27.75%
Max EPS beat(2)-20.79%
EPS beat(4)1
Avg EPS beat(4)-12.33%
Min EPS beat(4)-27.75%
Max EPS beat(4)2.42%
EPS beat(8)3
Avg EPS beat(8)29.48%
EPS beat(12)6
Avg EPS beat(12)23.46%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.44%
Min Revenue beat(2)-5.1%
Max Revenue beat(2)-3.79%
Revenue beat(4)0
Avg Revenue beat(4)-3.63%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)-1.5%
Revenue beat(8)1
Avg Revenue beat(8)-3.5%
Revenue beat(12)4
Avg Revenue beat(12)0.37%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | N/A | ||
| P/S | 0.89 | ||
| P/FCF | 7.05 | ||
| P/OCF | 5.61 | ||
| P/B | 2.21 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 4.67 |
EPS(TTM)0.4
EY10%
EPS(NY)-0.22
Fwd EYN/A
FCF(TTM)0.57
FCFY14.19%
OCF(TTM)0.71
OCFY17.83%
SpS4.49
BVpS1.81
TBVpS1.66
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 22.19% | ||
| ROCE | 19.34% | ||
| ROIC | 13.92% | ||
| ROICexc | 95.72% | ||
| ROICexgc | 210.94% | ||
| OM | 7.79% | ||
| PM (TTM) | 8.94% | ||
| GM | 25.74% | ||
| FCFM | 12.64% |
ROA(3y)-2.18%
ROA(5y)-31.17%
ROE(3y)-10.76%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y202.43%
GM growth 5Y-5.73%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 133.85% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.55% | ||
| Profit Quality | 141.48% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 1.14 |
F-Score5
WACC14.89%
ROIC/WACC0.94
Cap/Depr(3y)179.14%
Cap/Depr(5y)141.17%
Cap/Sales(3y)2.72%
Cap/Sales(5y)6.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)73.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y-13.43%
EPS Next 2Y-67.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)26.4%
Revenue growth 3Y140.05%
Revenue growth 5Y120.24%
Sales Q2Q%24.92%
Revenue Next Year6.2%
Revenue Next 2Y-39.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y91.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year92.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y567.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1339.99%
OCF growth 3YN/A
OCF growth 5YN/A
PAYFARE INC / PAY.CA FAQ
What is the ChartMill fundamental rating of PAYFARE INC (PAY.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to PAY.CA.
What is the valuation status of PAYFARE INC (PAY.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to PAYFARE INC (PAY.CA). This can be considered as Fairly Valued.
What is the profitability of PAY stock?
PAYFARE INC (PAY.CA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for PAY stock?
The Price/Earnings (PE) ratio for PAYFARE INC (PAY.CA) is 10 and the Price/Book (PB) ratio is 2.21.