PAYFARE INC (PAY.CA) Stock Fundamental Analysis
TSX:PAY - Toronto Stock Exchange - CA70437C1095 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to PAY. PAY was compared to 33 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.
In multiple years PAY reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of PAY (5.26%) is better than 75.76% of its industry peers.
The Return On Equity of PAY (22.19%) is better than 87.88% of its industry peers.
The Return On Invested Capital of PAY (13.92%) is better than 93.94% of its industry peers.
| 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
The Profit Margin of PAY (8.94%) is worse than 60.61% of its industry peers.
PAY's Operating Margin of 7.79% is on the low side compared to the rest of the industry. PAY is outperformed by 87.88% of its industry peers.
With a Gross Margin value of 25.74%, PAY perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
PAY's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PAY is creating some value.
Compared to 1 year ago, PAY has more shares outstanding
The number of shares outstanding for PAY has been increased compared to 5 years ago.
PAY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PAY has an Altman-Z score of 1.13. This is a bad value and indicates that PAY is not financially healthy and even has some risk of bankruptcy.
PAY has a Altman-Z score of 1.13. This is in the lower half of the industry: PAY underperforms 72.73% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.00, PAY belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
PAY has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.00, PAY belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.13 |
ROIC/WACC1.78
WACC7.8%
2.3 Liquidity
A Current Ratio of 1.24 indicates that PAY should not have too much problems paying its short term obligations.
The Current ratio of PAY (1.24) is better than 69.70% 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.
PAY has a better Quick ratio (1.24) than 72.73% of its industry peers.
| 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.
PAY shows a strong growth in Revenue. In the last year, 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
The Revenue is expected to decrease by -39.03% on average over the next years. This is quite bad
EPS Next Y-13.43%
EPS Next 2Y-67.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.3%
Revenue Next 2Y-39.03%
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
The Price/Earnings ratio is 9.82, which indicates a very decent valuation of PAY.
Compared to the rest of the industry, the Price/Earnings ratio of PAY indicates a somewhat cheap valuation: PAY is cheaper than 78.79% of the companies listed in the same industry.
PAY is valuated cheaply when we compare the Price/Earnings ratio to 28.12, which is the current average of the S&P500 Index.
PAY is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | N/A |
4.2 Price Multiples
PAY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PAY is cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAY indicates a somewhat cheap valuation: PAY is cheaper than 75.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.89 | ||
| EV/EBITDA | 4.46 |
4.3 Compensation for Growth
A cheap valuation may be justified as PAY's earnings are expected to decrease with -67.14% in the coming years.
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 |
PAYFARE INC
TSX:PAY (2/7/2025, 7:00:00 PM)
3.93
+0.01 (+0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners21.67%
Inst Owner ChangeN/A
Ins Owners10.93%
Ins Owner ChangeN/A
Market Cap188.95M
Analysts72.5
Price Target5.51 (40.2%)
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)8%
PT rev (3m)-31.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-122.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-52.94%
Revenue NQ rev (1m)-1.7%
Revenue NQ rev (3m)-55.43%
Revenue NY rev (1m)2.02%
Revenue NY rev (3m)-16.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | N/A | ||
| P/S | 0.87 | ||
| P/FCF | 6.89 | ||
| P/OCF | 5.49 | ||
| P/B | 2.16 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 4.46 |
EPS(TTM)0.4
EY10.18%
EPS(NY)-0.22
Fwd EYN/A
FCF(TTM)0.57
FCFY14.51%
OCF(TTM)0.72
OCFY18.23%
SpS4.51
BVpS1.82
TBVpS1.67
PEG (NY)N/A
PEG (5Y)N/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
ROICexcg growth 3YN/A
ROICexcg 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 | 1.13 |
F-Score5
WACC7.8%
ROIC/WACC1.78
Cap/Depr(3y)179.13%
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 Year7.3%
Revenue Next 2Y-39.03%
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