PAYSAFE LTD (PSFE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSFE - BMG6964L2062 - Common Stock
7.42 USD
-0.14 (-1.85%)
7.42 USD
0 (0%)
Overall PSFE gets a fundamental rating of 4 out of 10. We evaluated PSFE against 97 industry peers in the Financial Services industry. Both the profitability and financial health of PSFE have multiple concerns. PSFE may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year PSFE was profitable.
- PSFE had a positive operating cash flow in the past year.
- In the past 5 years PSFE reported 4 times negative net income.
- In the past 5 years PSFE always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of -2.64%, PSFE is not doing good in the industry: 81.44% of the companies in the same industry are doing better.
- PSFE's Return On Equity of -17.42% is on the low side compared to the rest of the industry. PSFE is outperformed by 82.47% of its industry peers.
- The Return On Invested Capital of PSFE (3.11%) is comparable to the rest of the industry.
- PSFE had an Average Return On Invested Capital over the past 3 years of 2.93%. This is significantly below the industry average of 8.44%.
- The 3 year average ROIC (2.93%) for PSFE is below the current ROIC(3.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.64% | ||
| ROE | -17.42% | ||
| ROIC | 3.11% |
ROA(3y)-10.4%
ROA(5y)-6.89%
ROE(3y)-72.16%
ROE(5y)-45.48%
ROIC(3y)2.93%
ROIC(5y)2.43%
1.3 Margins
- PSFE's Operating Margin of 7.77% is on the low side compared to the rest of the industry. PSFE is outperformed by 63.92% of its industry peers.
- PSFE's Operating Margin has declined in the last couple of years.
- PSFE has a better Gross Margin (56.58%) than 70.10% of its industry peers.
- PSFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.77% | ||
| PM (TTM) | N/A | ||
| GM | 56.58% |
OM growth 3Y14.8%
OM growth 5Y-8.97%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.93%
GM growth 5Y-1.98%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSFE is destroying value.
- Compared to 1 year ago, PSFE has less shares outstanding
- The number of shares outstanding for PSFE has been increased compared to 5 years ago.
- Compared to 1 year ago, PSFE has a worse debt to assets ratio.
2.2 Solvency
- PSFE has an Altman-Z score of -0.13. This is a bad value and indicates that PSFE is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of -0.13, PSFE is not doing good in the industry: 64.95% of the companies in the same industry are doing better.
- PSFE has a debt to FCF ratio of 23.41. This is a negative value and a sign of low solvency as PSFE would need 23.41 years to pay back of all of its debts.
- The Debt to FCF ratio of PSFE (23.41) is comparable to the rest of the industry.
- A Debt/Equity ratio of 3.50 is on the high side and indicates that PSFE has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 3.50, PSFE is doing worse than 78.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 23.41 | ||
| Altman-Z | -0.13 |
ROIC/WACC0.47
WACC6.6%
2.3 Liquidity
- PSFE has a Current Ratio of 1.18. This is a normal value and indicates that PSFE is financially healthy and should not expect problems in meeting its short term obligations.
- PSFE has a Current ratio (1.18) which is comparable to the rest of the industry.
- PSFE has a Quick Ratio of 1.18. This is a normal value and indicates that PSFE is financially healthy and should not expect problems in meeting its short term obligations.
- PSFE has a better Quick ratio (1.18) than 61.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 636.84% over the past year.
- PSFE shows a decrease in Revenue. In the last year, the revenue decreased by -0.95%.
- The Revenue has been growing slightly by 3.75% on average over the past years.
EPS 1Y (TTM)636.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%433.33%
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y4.66%
Revenue growth 5Y3.75%
Sales Q2Q%1.57%
3.2 Future
- PSFE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 98.81% yearly.
- PSFE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y426.88%
EPS Next 2Y155.05%
EPS Next 3Y98.81%
EPS Next 5YN/A
Revenue Next Year-0.63%
Revenue Next 2Y2.74%
Revenue Next 3Y3.76%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 3.64, the valuation of PSFE can be described as very cheap.
- PSFE's Price/Earnings ratio is rather cheap when compared to the industry. PSFE is cheaper than 96.91% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PSFE to the average of the S&P500 Index (27.21), we can say PSFE is valued rather cheaply.
- PSFE is valuated cheaply with a Price/Forward Earnings ratio of 3.17.
- Based on the Price/Forward Earnings ratio, PSFE is valued cheaply inside the industry as 98.97% of the companies are valued more expensively.
- PSFE is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.64 | ||
| Fwd PE | 3.17 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PSFE is valued cheaper than 95.88% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PSFE is valued cheaper than 96.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
- PSFE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PSFE's earnings are expected to grow with 98.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y155.05%
EPS Next 3Y98.81%
5. Dividend
5.1 Amount
- PSFE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PAYSAFE LTD / PSFE FAQ
What is the ChartMill fundamental rating of PAYSAFE LTD (PSFE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to PSFE.
What is the valuation status of PAYSAFE LTD (PSFE) stock?
ChartMill assigns a valuation rating of 9 / 10 to PAYSAFE LTD (PSFE). This can be considered as Undervalued.
What is the profitability of PSFE stock?
PAYSAFE LTD (PSFE) has a profitability rating of 3 / 10.
Can you provide the financial health for PSFE stock?
The financial health rating of PAYSAFE LTD (PSFE) is 3 / 10.