PAGAYA TECHNOLOGIES LTD -A (PGY)
IL0011858912 - Common Stock
We assign a fundamental rating of 3 out of 10 to PGY. PGY was compared to 279 industry peers in the Software industry. Both the profitability and financial health of PGY have multiple concerns. PGY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PGY has reported negative net income.
PGY had a positive operating cash flow in the past year.
1.2 Ratios
Looking at the Return On Assets, with a value of -12.98%, PGY is doing worse than 64.52% of the companies in the same industry.
PGY's Return On Equity of -33.16% is on the low side compared to the rest of the industry. PGY is outperformed by 63.08% of its industry peers.
With a decent Return On Invested Capital value of 3.24%, PGY is doing good in the industry, outperforming 71.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.98% | ||
| ROE | -33.16% | ||
| ROIC | 3.24% |
ROA(3y)-21.16%
ROA(5y)N/A
ROE(3y)-40.22%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of PGY (4.71%) is better than 70.61% of its industry peers.
Looking at the Gross Margin, with a value of 40.89%, PGY is doing worse than 75.99% of the companies in the same industry.
In the last couple of years the Gross Margin of PGY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.71% | ||
| PM (TTM) | N/A | ||
| GM | 40.89% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.54%
GM growth 5YN/A
2. Health
2.1 Basic Checks
PGY 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 PGY has been reduced compared to 1 year ago.
PGY has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.60, we must say that PGY is in the distress zone and has some risk of bankruptcy.
PGY has a Altman-Z score of 0.60. This is in the lower half of the industry: PGY underperforms 69.89% of its industry peers.
The Debt to FCF ratio of PGY is 18.68, which is on the high side as it means it would take PGY, 18.68 years of fcf income to pay off all of its debts.
PGY has a Debt to FCF ratio (18.68) which is in line with its industry peers.
PGY has a Debt/Equity ratio of 0.83. This is a neutral value indicating PGY is somewhat dependend on debt financing.
The Debt to Equity ratio of PGY (0.83) is worse than 73.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 18.68 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.39
WACC8.35%
2.3 Liquidity
PGY has a Current Ratio of 1.17. This is a normal value and indicates that PGY is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PGY (1.17) is worse than 67.03% of its industry peers.
PGY has a Quick Ratio of 1.17. This is a normal value and indicates that PGY is financially healthy and should not expect problems in meeting its short term obligations.
PGY has a Quick ratio of 1.17. This is in the lower half of the industry: PGY underperforms 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 53.57% over the past year.
Looking at the last year, PGY shows a very strong growth in Revenue. The Revenue has grown by 23.38%.
PGY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 101.67% yearly.
EPS 1Y (TTM)53.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%222.22%
Revenue 1Y (TTM)23.38%
Revenue growth 3Y101.67%
Revenue growth 5YN/A
Sales Q2Q%21.47%
3.2 Future
PGY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.94% yearly.
The Revenue is expected to grow by 18.57% on average over the next years. This is quite good.
EPS Next Y12.07%
EPS Next 2Y49.54%
EPS Next 3Y35.94%
EPS Next 5YN/A
Revenue Next Year24.03%
Revenue Next 2Y19.96%
Revenue Next 3Y18.57%
Revenue Next 5YN/A
3.3 Evolution
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
PGY reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
PGY is valuated rather expensively with a Price/Forward Earnings ratio of 17.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PGY indicates a rather cheap valuation: PGY is cheaper than 84.23% of the companies listed in the same industry.
PGY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PGY indicates a rather cheap valuation: PGY is cheaper than 86.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PGY is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.3 | ||
| EV/EBITDA | 15.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PGY's earnings are expected to grow with 35.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y49.54%
EPS Next 3Y35.94%
5. Dividend
5.1 Amount
PGY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAGAYA TECHNOLOGIES LTD -A
NASDAQ:PGY (11/21/2024, 11:44:01 AM)
9.175
+0.41 (+4.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap675.83M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.98% | ||
| ROE | -33.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.71% | ||
| PM (TTM) | N/A | ||
| GM | 40.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)53.57%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y12.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.38%
Revenue growth 3Y101.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y