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PAYA HOLDINGS INC (PAYA) Stock Fundamental Analysis

USA - NASDAQ:PAYA - US70434P1030 - Common Stock

9.74 USD
+0.01 (+0.1%)
Last: 2/21/2023, 8:00:03 PM
9.74 USD
0 (0%)
After Hours: 2/21/2023, 8:00:03 PM
Fundamental Rating

3

Overall PAYA gets a fundamental rating of 3 out of 10. We evaluated PAYA against 86 industry peers in the IT Services industry. While PAYA seems to be doing ok healthwise, there are quite some concerns on its profitability. PAYA is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

PAYA had positive earnings in the past year.
PAYA had a positive operating cash flow in the past year.
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.
The Return On Equity of PAYA (3.75%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.00%, PAYA perfoms like the industry average, outperforming 54.14% of the companies in the same industry.
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 has a Profit Margin of 3.42%. This is in the better half 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.
Looking at the Gross Margin, with a value of 51.29%, PAYA is in the better half of 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAYA is destroying value.
The number of shares outstanding for PAYA has been increased compared to 1 year ago.
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

An Altman-Z score of 2.68 indicates that PAYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
PAYA has a better Altman-Z score (2.68) than 64.66% of its industry peers.
The Debt to FCF ratio of PAYA is 6.30, which is on the high side as it means it would take PAYA, 6.30 years of fcf income to pay off all of its debts.
PAYA has a Debt to FCF ratio of 6.30. This is in the better half 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 Debt to Equity ratio of 0.95. This is in the lower half of the industry: PAYA underperforms 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.
The Current ratio of PAYA (2.11) is better 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.
PAYA has a better Quick ratio (2.11) than 75.19% of its industry peers.
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

The Earnings Per Share is expected to grow by 15.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.51% on average over the next years. This is quite good.
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

PAYA is valuated quite expensively with a Price/Earnings ratio of 26.32.
PAYA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.27. PAYA is around the same levels.
PAYA is valuated rather expensively with a Price/Forward Earnings ratio of 22.21.
60.15% of the companies in the same industry are more expensive than PAYA, based on the Price/Forward Earnings ratio.
PAYA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.77.
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

PAYA's Enterprise Value to EBITDA is on the same level as the industry average.
PAYA's Price/Free Cash Flow is on the same level as 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

PAYA's 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 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