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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 82 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 comparable to the rest of the industry.
PAYA has a Return On Equity (3.75%) which is in line with its industry peers.
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 better Profit Margin (3.42%) than 60.15% of its industry peers.
PAYA's Operating Margin of 9.60% is fine compared to the rest of the industry. PAYA outperforms 61.65% of its industry peers.
PAYA has a better Gross Margin (51.29%) than 70.68% of its industry peers.
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.
The number of shares outstanding for PAYA has been increased compared to 1 year ago.
PAYA has a better debt/assets ratio than last year.
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'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.
The Debt to FCF ratio of PAYA (6.30) is better than 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.
With a Debt to Equity ratio value of 0.95, PAYA is not doing good in the industry: 64.66% of the companies in the same industry are doing better.
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

PAYA has a Current Ratio of 2.11. This indicates that PAYA is financially healthy and has no problem in meeting its short term obligations.
PAYA has a Current ratio of 2.11. This is in the better half of the industry: PAYA outperforms 75.19% of its industry peers.
PAYA has a Quick Ratio of 2.11. This indicates that PAYA is financially healthy and has no problem in meeting its short term obligations.
PAYA's Quick ratio of 2.11 is fine compared to the rest of the industry. PAYA outperforms 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

The Earnings Per Share has grown by an nice 15.63% over the past year.
The Revenue for PAYA has decreased by -28.69% in the past year. This is quite bad
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 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
PAYA Yearly EPS VS EstimatesPAYA Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 26.32 indicates a quite expensive valuation of PAYA.
PAYA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.62. PAYA is around the same levels.
The Price/Forward Earnings ratio is 22.21, which indicates a rather expensive current valuation of PAYA.
Based on the Price/Forward Earnings ratio, PAYA is valued a bit cheaper than 60.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PAYA to the average of the S&P500 Index (22.70), we can say PAYA is valued inline with the index average.
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

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAYA is on the same level as its industry peers.
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

PAYA does not give a dividend.
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