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PAYA HOLDINGS INC (PAYA) Stock Fundamental Analysis

NASDAQ:PAYA - Nasdaq - US70434P1030 - Common Stock - Currency: USD

9.74  +0.01 (+0.1%)

After market: 9.74 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to PAYA. PAYA was compared to 81 industry peers in the IT Services industry. The financial health of PAYA is average, but there are quite some concerns on its profitability. PAYA does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

PAYA had positive earnings in the past year.
In the past year PAYA had a positive cash flow from operations.
PAYA Yearly Net Income VS EBIT VS OCF VS FCFPAYA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 0 10M 20M 30M

1.2 Ratios

PAYA has a Return On Assets (1.42%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 3.75%, PAYA is in line with its industry, outperforming 56.39% of the companies in the same industry.
PAYA's Return On Invested Capital of 4.00% is in line compared to the rest of the industry. PAYA outperforms 54.14% of its industry peers.
Industry RankSector Rank
ROA 1.42%
ROE 3.75%
ROIC 4%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
PAYA Yearly ROA, ROE, ROICPAYA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 0 1 2 3 4

1.3 Margins

PAYA's Profit Margin of 3.42% is fine compared to the rest of the industry. PAYA outperforms 60.15% of its industry peers.
The Operating Margin of PAYA (9.60%) is better than 61.65% of its industry peers.
With a decent Gross Margin value of 51.29%, PAYA is doing good in the industry, outperforming 70.68% of the companies in the same industry.
Industry RankSector Rank
OM 9.6%
PM (TTM) 3.42%
GM 51.29%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
PAYA Yearly Profit, Operating, Gross MarginsPAYA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 0 10 20 30 40 50

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5

2. Health

2.1 Basic Checks

PAYA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PAYA has more shares outstanding
Compared to 1 year ago, PAYA has an improved debt to assets ratio.
PAYA Yearly Shares OutstandingPAYA Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 20M 40M 60M 80M 100M
PAYA Yearly Total Debt VS Total AssetsPAYA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 200M 400M 600M

2.2 Solvency

PAYA has an Altman-Z score of 2.68. This is not the best score and indicates that PAYA is in the grey zone with still only limited risk for bankruptcy at the moment.
PAYA's Altman-Z score of 2.68 is fine compared to the rest of the industry. PAYA outperforms 64.66% of its industry peers.
PAYA has a debt to FCF ratio of 6.30. This is a slightly negative value and a sign of low solvency as PAYA would need 6.30 years to pay back of all of its debts.
PAYA's Debt to FCF ratio of 6.30 is fine compared to the rest of the industry. PAYA outperforms 62.41% of its industry peers.
PAYA has a Debt/Equity ratio of 0.95. This is a neutral value indicating PAYA is somewhat dependend on debt financing.
PAYA has a worse Debt to Equity ratio (0.95) than 64.66% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 6.3
Altman-Z 2.68
ROIC/WACC0.44
WACC9.2%
PAYA Yearly LT Debt VS Equity VS FCFPAYA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 2.11 indicates that PAYA has no problem at all paying its short term obligations.
PAYA has a better Current ratio (2.11) than 75.19% of its industry peers.
A Quick Ratio of 2.11 indicates that PAYA has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.11, PAYA is doing good in the industry, outperforming 75.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 2.11
PAYA Yearly Current Assets VS Current LiabilitesPAYA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M

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3

3. Growth

3.1 Past

PAYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.63%, which is quite good.
PAYA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.69%.
EPS 1Y (TTM)15.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%125%
Revenue 1Y (TTM)-28.69%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.18%

3.2 Future

Based on estimates for the next years, PAYA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.17% on average per year.
Based on estimates for the next years, PAYA will show a quite strong growth in Revenue. The Revenue will grow by 11.51% on average per year.
EPS Next Y18.73%
EPS Next 2Y17.07%
EPS Next 3Y15.17%
EPS Next 5YN/A
Revenue Next Year14.7%
Revenue Next 2Y12.89%
Revenue Next 3Y12.24%
Revenue Next 5Y11.51%

3.3 Evolution

PAYA Yearly Revenue VS EstimatesPAYA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 100M 200M 300M
PAYA Yearly EPS VS EstimatesPAYA Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 26.32, which means the current valuation is very expensive for PAYA.
PAYA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. PAYA is around the same levels.
PAYA is valuated rather expensively with a Price/Forward Earnings ratio of 22.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAYA indicates a somewhat cheap valuation: PAYA is cheaper than 60.15% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. PAYA is around the same levels.
Industry RankSector Rank
PE 26.32
Fwd PE 22.21
PAYA Price Earnings VS Forward Price EarningsPAYA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as PAYA.
PAYA's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.39
EV/EBITDA 23.62
PAYA Per share dataPAYA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5 1 1.5 2

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PAYA's earnings are expected to grow with 15.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y17.07%
EPS Next 3Y15.17%

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0

5. Dividend

5.1 Amount

No dividends for PAYA!.
Industry RankSector Rank
Dividend Yield N/A

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PAYA HOLDINGS INC

NASDAQ:PAYA (2/21/2023, 8:00:03 PM)

After market: 9.74 0 (0%)

9.74

+0.01 (+0.1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-27 2023-02-27
Earnings (Next)05-08 2023-05-08
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners49.15%
Ins Owner Change0%
Market Cap1.29B
Analysts71.25
Price Target9.84 (1.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)1
Avg EPS beat(2)0.1%
Min EPS beat(2)-5.46%
Max EPS beat(2)5.67%
EPS beat(4)3
Avg EPS beat(4)4.22%
Min EPS beat(4)-5.46%
Max EPS beat(4)10.64%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)1.67%
Revenue beat(4)2
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-1.09%
Max Revenue beat(4)2.73%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.37%
PT rev (3m)7.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 26.32
Fwd PE 22.21
P/S 4.65
P/FCF 33.39
P/OCF 29.56
P/B 5.1
P/tB N/A
EV/EBITDA 23.62
EPS(TTM)0.37
EY3.8%
EPS(NY)0.44
Fwd EY4.5%
FCF(TTM)0.29
FCFY2.99%
OCF(TTM)0.33
OCFY3.38%
SpS2.09
BVpS1.91
TBVpS-0.74
PEG (NY)1.41
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.42%
ROE 3.75%
ROCE N/A
ROIC 4%
ROICexc 5.69%
ROICexgc 111.35%
OM 9.6%
PM (TTM) 3.42%
GM 51.29%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
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 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 6.3
Debt/EBITDA 4.18
Cap/Depr 15.82%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 407.47%
Current Ratio 2.11
Quick Ratio 2.11
Altman-Z 2.68
F-Score6
WACC9.2%
ROIC/WACC0.44
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%125%
EPS Next Y18.73%
EPS Next 2Y17.07%
EPS Next 3Y15.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-28.69%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.18%
Revenue Next Year14.7%
Revenue Next 2Y12.89%
Revenue Next 3Y12.24%
Revenue Next 5Y11.51%
EBIT growth 1Y-33.13%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year203.09%
EBIT Next 3Y58.4%
EBIT Next 5Y44.07%
FCF growth 1Y1297.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1453.39%
OCF growth 3YN/A
OCF growth 5YN/A