PAYFARE INC (PAY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PAY - CA70437C1095 - Common Stock
4 CAD
0 (0%)
Overall PAY gets a fundamental rating of 4 out of 10. We evaluated PAY against 28 industry peers in the Financial Services industry. PAY scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PAY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year PAY was profitable.
- PAY had a positive operating cash flow in the past year.
- In the past 5 years PAY reported 4 times negative net income.
- 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
- The Return On Assets of PAY (5.26%) is better than 65.63% of its industry peers.
- PAY's Return On Equity of 22.19% is amongst the best of the industry. PAY outperforms 87.50% of its industry peers.
- PAY has a Return On Invested Capital of 13.92%. This is amongst the best in the industry. PAY outperforms 93.75% 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
- PAY has a Profit Margin of 8.94%. This is in the lower half of the industry: PAY underperforms 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.
- The Gross Margin of PAY (25.74%) is comparable to the rest of the 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
- PAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- PAY has more shares outstanding than it did 1 year 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
- 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.
- PAY's Altman-Z score of 1.14 is on the low side compared to the rest of the industry. PAY is outperformed by 75.00% of its industry peers.
- The Debt to FCF ratio of PAY is 0.00, which is an excellent value as it means it would take PAY, only 0.00 years of fcf income to pay off 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 Current ratio of 1.24. This is in the better half of the industry: PAY outperforms 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.
- The Quick ratio of PAY (1.24) is better than 71.88% 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.
- 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
- The Revenue is expected to decrease by -39.64% 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 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
- Based on the Price/Earnings ratio of 10.00, the valuation of PAY can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of PAY indicates a rather cheap valuation: PAY is cheaper than 81.25% of the companies listed in the same industry.
- PAY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Forward Price/Earnings Ratio is negative for PAY. No positive earnings are expected for the next year.
| 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.
- Based on the Price/Free Cash Flow ratio, PAY is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| 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 |
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.
Can you provide the valuation status for PAYFARE INC?
ChartMill assigns a valuation rating of 5 / 10 to PAYFARE INC (PAY.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for PAYFARE INC?
PAYFARE INC (PAY.CA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of PAYFARE INC (PAY.CA) stock?
The Price/Earnings (PE) ratio for PAYFARE INC (PAY.CA) is 10 and the Price/Book (PB) ratio is 2.21.