PAYMENTUS HOLDINGS INC-A (PAY) Stock Fundamental Analysis
NYSE:PAY - New York Stock Exchange, Inc. - US70439P1084 - Common Stock - Currency: USD
Overall PAY gets a fundamental rating of 5 out of 10. We evaluated PAY against 101 industry peers in the Financial Services industry. PAY has an excellent financial health rating, but there are some minor concerns on its profitability. PAY is valued quite expensively, but it does show have an excellent growth rating.
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 positive earnings in 4 of the past 5 years.
PAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PAY's Return On Assets of 7.66% is amongst the best of the industry. PAY outperforms 84.16% of its industry peers.
PAY has a Return On Equity of 9.10%. This is comparable to the rest of the industry: PAY outperforms 46.53% of its industry peers.
PAY's Return On Invested Capital of 7.74% is fine compared to the rest of the industry. PAY outperforms 77.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 9.1% | ||
| ROIC | 7.74% |
ROA(3y)3.99%
ROA(5y)4.05%
ROE(3y)4.72%
ROE(5y)5.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.07%, PAY is doing worse than 65.35% of the companies in the same industry.
In the last couple of years the Profit Margin of PAY has grown nicely.
The Operating Margin of PAY (5.15%) is worse than 68.32% of its industry peers.
In the last couple of years the Operating Margin of PAY has declined.
PAY has a Gross Margin (27.32%) which 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 | 5.15% | ||
| PM (TTM) | 5.07% | ||
| GM | 27.32% |
OM growth 3Y18.92%
OM growth 5Y-7.99%
PM growth 3Y41.99%
PM growth 5Y5.83%
GM growth 3Y-3.81%
GM growth 5Y-2.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAY is destroying value.
PAY has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 26.66 indicates that PAY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 26.66, PAY belongs to the best of the industry, outperforming 99.01% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 26.66 |
ROIC/WACC0.86
WACC8.98%
2.3 Liquidity
A Current Ratio of 4.24 indicates that PAY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.24, PAY belongs to the top of the industry, outperforming 93.07% of the companies in the same industry.
A Quick Ratio of 4.24 indicates that PAY has no problem at all paying its short term obligations.
The Quick ratio of PAY (4.24) is better than 93.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.24 | ||
| Quick Ratio | 4.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.67% over the past year.
Measured over the past years, PAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.01% on average per year.
Looking at the last year, PAY shows a very strong growth in Revenue. The Revenue has grown by 41.89%.
The Revenue has been growing by 29.89% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)66.67%
EPS 3Y79.29%
EPS 5Y34.01%
EPS Q2Q%18.18%
Revenue 1Y (TTM)41.89%
Revenue growth 3Y30.14%
Revenue growth 5Y29.89%
Sales Q2Q%56.48%
3.2 Future
The Earnings Per Share is expected to grow by 16.88% on average over the next years. This is quite good.
Based on estimates for the next years, PAY will show a quite strong growth in Revenue. The Revenue will grow by 12.00% on average per year.
EPS Next Y17.02%
EPS Next 2Y21.91%
EPS Next 3Y22.05%
EPS Next 5Y16.88%
Revenue Next Year28.03%
Revenue Next 2Y23.85%
Revenue Next 3Y22.66%
Revenue Next 5Y12%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 58.28, PAY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PAY indicates a slightly more expensive valuation: PAY is more expensive than 78.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PAY to the average of the S&P500 Index (28.29), we can say PAY is valued expensively.
Based on the Price/Forward Earnings ratio of 49.80, the valuation of PAY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAY indicates a slightly more expensive valuation: PAY is more expensive than 73.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. PAY is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.28 | ||
| Fwd PE | 49.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAY is valued a bit more expensive than 64.36% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PAY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 134.59 | ||
| EV/EBITDA | 42.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PAY does not grow enough to justify the current Price/Earnings ratio.
PAY's earnings are expected to grow with 22.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.42
PEG (5Y)1.71
EPS Next 2Y21.91%
EPS Next 3Y22.05%
5. Dividend
5.1 Amount
PAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.14
+0.03 (+0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners88.73%
Inst Owner Change0%
Ins Owners2.52%
Ins Owner Change2.54%
Market Cap3.64B
Analysts74.55
Price Target34.17 (17.26%)
Short Float %4.26%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.64%
Min EPS beat(2)7.26%
Max EPS beat(2)62.01%
EPS beat(4)4
Avg EPS beat(4)36.52%
Min EPS beat(4)7.26%
Max EPS beat(4)62.01%
EPS beat(8)8
Avg EPS beat(8)152.74%
EPS beat(12)11
Avg EPS beat(12)204.92%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)17.63%
Min Revenue beat(2)14.98%
Max Revenue beat(2)20.28%
Revenue beat(4)4
Avg Revenue beat(4)12.32%
Min Revenue beat(4)5.78%
Max Revenue beat(4)20.28%
Revenue beat(8)7
Avg Revenue beat(8)7.53%
Revenue beat(12)11
Avg Revenue beat(12)5.8%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.37%
PT rev (3m)3.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.07%
EPS NY rev (1m)1.63%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)4.86%
Revenue NY rev (1m)4.65%
Revenue NY rev (3m)4.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.28 | ||
| Fwd PE | 49.8 | ||
| P/S | 4.18 | ||
| P/FCF | 134.59 | ||
| P/OCF | 57.23 | ||
| P/B | 7.5 | ||
| P/tB | 13.62 | ||
| EV/EBITDA | 42.24 |
EPS(TTM)0.5
EY1.72%
EPS(NY)0.59
Fwd EY2.01%
FCF(TTM)0.22
FCFY0.74%
OCF(TTM)0.51
OCFY1.75%
SpS6.98
BVpS3.89
TBVpS2.14
PEG (NY)3.42
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 9.1% | ||
| ROCE | 9.07% | ||
| ROIC | 7.74% | ||
| ROICexc | 13.26% | ||
| ROICexgc | 54.29% | ||
| OM | 5.15% | ||
| PM (TTM) | 5.07% | ||
| GM | 27.32% | ||
| FCFM | 3.1% |
ROA(3y)3.99%
ROA(5y)4.05%
ROE(3y)4.72%
ROE(5y)5.21%
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 3Y13.34%
ROICexcg growth 5Y-11.06%
ROICexc growth 3Y43.48%
ROICexc growth 5Y-18.27%
OM growth 3Y18.92%
OM growth 5Y-7.99%
PM growth 3Y41.99%
PM growth 5Y5.83%
GM growth 3Y-3.81%
GM growth 5Y-2.84%
F-Score6
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 100.25% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.23% | ||
| Profit Quality | 61.26% | ||
| Current Ratio | 4.24 | ||
| Quick Ratio | 4.24 | ||
| Altman-Z | 26.66 |
F-Score6
WACC8.98%
ROIC/WACC0.86
Cap/Depr(3y)114.14%
Cap/Depr(5y)135.98%
Cap/Sales(3y)5.36%
Cap/Sales(5y)5.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.67%
EPS 3Y79.29%
EPS 5Y34.01%
EPS Q2Q%18.18%
EPS Next Y17.02%
EPS Next 2Y21.91%
EPS Next 3Y22.05%
EPS Next 5Y16.88%
Revenue 1Y (TTM)41.89%
Revenue growth 3Y30.14%
Revenue growth 5Y29.89%
Sales Q2Q%56.48%
Revenue Next Year28.03%
Revenue Next 2Y23.85%
Revenue Next 3Y22.66%
Revenue Next 5Y12%
EBIT growth 1Y148.65%
EBIT growth 3Y54.77%
EBIT growth 5Y19.51%
EBIT Next Year177.86%
EBIT Next 3Y62.03%
EBIT Next 5Y39.13%
FCF growth 1Y-21.64%
FCF growth 3YN/A
FCF growth 5Y40.29%
OCF growth 1Y-7.55%
OCF growth 3Y48.35%
OCF growth 5Y29.44%