PAYSAFE LTD (PSFE) Stock Fundamental Analysis
NYSE:PSFE - BMG6964L2062 - Common Stock
14.16 USD
+0.9 (+6.79%)
14.16 USD
0 (0%)
PSFE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 100 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
PSFE had positive earnings in the past year.
In the past year PSFE had a positive cash flow from operations.
In the past 5 years PSFE reported 4 times negative net income.
PSFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSFE's Return On Assets of -0.01% is on the low side compared to the rest of the industry. PSFE is outperformed by 73.00% of its industry peers.
PSFE has a Return On Equity of -0.04%. This is in the lower half of the industry: PSFE underperforms 71.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.94%, PSFE is in line with its industry, outperforming 51.00% of the companies in the same industry.
PSFE had an Average Return On Invested Capital over the past 3 years of 2.93%. This is below the industry average of 7.90%.
The 3 year average ROIC (2.93%) for PSFE is below the current ROIC(2.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -0.04% | ||
| ROIC | 2.94% |
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
With a Operating Margin value of 7.39%, PSFE is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PSFE has declined.
The Gross Margin of PSFE (57.37%) is better than 71.00% of its industry peers.
PSFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | N/A | ||
| GM | 57.37% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSFE is destroying value.
The number of shares outstanding for PSFE has been reduced compared to 1 year ago.
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
Based on the Altman-Z score of -0.04, we must say that PSFE is in the distress zone and has some risk of bankruptcy.
PSFE has a Altman-Z score of -0.04. This is in the lower half of the industry: PSFE underperforms 64.00% of its industry peers.
PSFE has a debt to FCF ratio of 17.94. This is a negative value and a sign of low solvency as PSFE would need 17.94 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.94, PSFE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 2.75 is on the high side and indicates that PSFE has dependencies on debt financing.
PSFE's Debt to Equity ratio of 2.75 is on the low side compared to the rest of the industry. PSFE is outperformed by 73.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 17.94 | ||
| Altman-Z | -0.04 |
ROIC/WACC0.38
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.16 indicates that PSFE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.16, PSFE perfoms like the industry average, outperforming 59.00% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that PSFE should not have too much problems paying its short term obligations.
PSFE has a Quick ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
PSFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 638.10%, which is quite impressive.
The Revenue has been growing slightly by 6.48% in the past year.
PSFE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.75% yearly.
EPS 1Y (TTM)638.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2400%
Revenue 1Y (TTM)6.48%
Revenue growth 3Y4.66%
Revenue growth 5Y3.75%
Sales Q2Q%-2.66%
3.2 Future
The Earnings Per Share is expected to grow by 108.52% on average over the next years. This is a very strong growth
Based on estimates for the next years, PSFE will show a small growth in Revenue. The Revenue will grow by 4.24% on average per year.
EPS Next Y577.26%
EPS Next 2Y188.75%
EPS Next 3Y108.52%
EPS Next 5YN/A
Revenue Next Year0.57%
Revenue Next 2Y3.76%
Revenue Next 3Y4.24%
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
With a Price/Earnings ratio of 12.53, PSFE is valued correctly.
PSFE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. PSFE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.72 indicates a rather cheap valuation of PSFE.
PSFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PSFE is cheaper than 92.00% of the companies in the same industry.
PSFE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSFE is valued cheaper than 93.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PSFE is valued cheaper than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.27 | ||
| EV/EBITDA | 5.08 |
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 108.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y188.75%
EPS Next 3Y108.52%
5. Dividend
5.1 Amount
PSFE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.16
+0.9 (+6.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners41.02%
Inst Owner Change37.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap833.32M
Analysts53.33
Price Target15.86 (12.01%)
Short Float %6.3%
Short Ratio4.6
Dividend
| Industry Rank | Sector 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)27.7%
Min EPS beat(2)-18.76%
Max EPS beat(2)74.15%
EPS beat(4)1
Avg EPS beat(4)-277.41%
Min EPS beat(4)-1035.83%
Max EPS beat(4)74.15%
EPS beat(8)1
Avg EPS beat(8)-210.25%
EPS beat(12)2
Avg EPS beat(12)-179.77%
EPS beat(16)4
Avg EPS beat(16)-1454.17%
Revenue beat(2)0
Avg Revenue beat(2)-3.51%
Min Revenue beat(2)-4.2%
Max Revenue beat(2)-2.82%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)1.4%
Revenue beat(8)3
Avg Revenue beat(8)-1.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.76%
Revenue beat(16)7
Avg Revenue beat(16)-0.87%
PT rev (1m)-2.1%
PT rev (3m)-12.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.66%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 4.72 | ||
| P/S | 0.49 | ||
| P/FCF | 6.27 | ||
| P/OCF | 3.37 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.08 |
EPS(TTM)1.13
EY7.98%
EPS(NY)3
Fwd EY21.2%
FCF(TTM)2.26
FCFY15.95%
OCF(TTM)4.2
OCFY29.69%
SpS28.68
BVpS14.65
TBVpS-35.61
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -0.04% | ||
| ROCE | 3.72% | ||
| ROIC | 2.94% | ||
| ROICexc | 4.55% | ||
| ROICexgc | N/A | ||
| OM | 7.39% | ||
| PM (TTM) | N/A | ||
| GM | 57.37% | ||
| FCFM | 7.87% |
ROA(3y)-10.4%
ROA(5y)-6.89%
ROE(3y)-72.16%
ROE(5y)-45.48%
ROIC(3y)2.93%
ROIC(5y)2.43%
ROICexc(3y)5.35%
ROICexc(5y)4.21%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.7%
ROCE(5y)3.07%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y45.09%
ROICexc growth 5Y9.54%
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%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 17.94 | ||
| Debt/EBITDA | 5.94 | ||
| Cap/Depr | 41.67% | ||
| Cap/Sales | 6.78% | ||
| Interest Coverage | 0.86 | ||
| Cash Conversion | 61.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | -0.04 |
F-Score6
WACC7.78%
ROIC/WACC0.38
Cap/Depr(3y)38.14%
Cap/Depr(5y)34.21%
Cap/Sales(3y)6.4%
Cap/Sales(5y)5.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)638.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2400%
EPS Next Y577.26%
EPS Next 2Y188.75%
EPS Next 3Y108.52%
EPS Next 5YN/A
Revenue 1Y (TTM)6.48%
Revenue growth 3Y4.66%
Revenue growth 5Y3.75%
Sales Q2Q%-2.66%
Revenue Next Year0.57%
Revenue Next 2Y3.76%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
EBIT growth 1Y-23.77%
EBIT growth 3Y20.15%
EBIT growth 5Y-5.55%
EBIT Next Year218.47%
EBIT Next 3Y51.64%
EBIT Next 5YN/A
FCF growth 1Y-32.83%
FCF growth 3Y0.33%
FCF growth 5Y-8.23%
OCF growth 1Y-17.87%
OCF growth 3Y4.17%
OCF growth 5Y-2.56%