PAYSAFE LTD (PSFE) Stock Fundamental Analysis
USA - NYSE:PSFE - BMG6964L2062 - Common Stock
12.39 USD
+0.36 (+2.99%)
12.39 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PSFE. PSFE was compared to 99 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.
In the past year PSFE had a positive cash flow from operations.
PSFE had negative earnings in 4 of the past 5 years.
In the past 5 years PSFE always reported a positive cash flow from operatings.
1.2 Ratios
PSFE's Return On Assets of -1.00% is on the low side compared to the rest of the industry. PSFE is outperformed by 79.80% of its industry peers.
PSFE has a Return On Equity of -6.08%. This is in the lower half of the industry: PSFE underperforms 79.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.58%, PSFE is in line with its industry, outperforming 50.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSFE is below the industry average of 7.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1% | ||
| ROE | -6.08% | ||
| ROIC | 2.58% |
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
Looking at the Operating Margin, with a value of 6.79%, PSFE is doing worse than 65.66% of the companies in the same industry.
In the last couple of years the Operating Margin of PSFE has declined.
With a decent Gross Margin value of 56.70%, PSFE is doing good in the industry, outperforming 70.71% of the companies in the same industry.
In the last couple of years the Gross Margin of PSFE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.79% | ||
| PM (TTM) | N/A | ||
| GM | 56.7% |
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.
The debt/assets ratio for PSFE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.07, we must say that PSFE is in the distress zone and has some risk of bankruptcy.
PSFE has a Altman-Z score of -0.07. This is in the lower half of the industry: PSFE underperforms 64.65% of its industry peers.
PSFE has a debt to FCF ratio of 20.92. This is a negative value and a sign of low solvency as PSFE would need 20.92 years to pay back of all of its debts.
PSFE has a Debt to FCF ratio (20.92) which is comparable to the rest of the industry.
PSFE has a Debt/Equity ratio of 3.15. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PSFE (3.15) is worse than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | 20.92 | ||
| Altman-Z | -0.07 |
ROIC/WACC0.34
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.20 indicates that PSFE should not have too much problems paying its short term obligations.
PSFE has a Current ratio of 1.20. This is comparable to the rest of the industry: PSFE outperforms 58.59% of its industry peers.
A Quick Ratio of 1.20 indicates that PSFE should not have too much problems paying its short term obligations.
PSFE's Quick ratio of 1.20 is in line compared to the rest of the industry. PSFE outperforms 58.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 638.10% over the past year.
PSFE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
The Revenue has been growing slightly by 3.75% on average over the past years.
EPS 1Y (TTM)638.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2400%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y4.66%
Revenue growth 5Y3.75%
Sales Q2Q%-2.66%
3.2 Future
The Earnings Per Share is expected to grow by 114.74% on average over the next years. This is a very strong growth
PSFE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.24% yearly.
EPS Next Y582.93%
EPS Next 2Y190.3%
EPS Next 3Y114.74%
EPS Next 5YN/A
Revenue Next Year0.57%
Revenue Next 2Y3.76%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.96, the valuation of PSFE can be described as very reasonable.
Based on the Price/Earnings ratio, PSFE is valued a bit cheaper than 64.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. PSFE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.08, the valuation of PSFE can be described as very cheap.
Based on the Price/Forward Earnings ratio, PSFE is valued cheaply inside the industry as 95.96% of the companies are valued more expensively.
PSFE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 4.08 |
4.2 Price Multiples
91.92% of the companies in the same industry are more expensive than PSFE, based on the Enterprise Value to EBITDA ratio.
PSFE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PSFE is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 5.1 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PSFE's earnings are expected to grow with 114.74% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y190.3%
EPS Next 3Y114.74%
5. Dividend
5.1 Amount
PSFE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.39
+0.36 (+2.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners38.9%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap729.15M
Analysts53.33
Price Target15.86 (28.01%)
Short Float %5.52%
Short Ratio5.34
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)0
Avg EPS beat(2)-9.74%
Min EPS beat(2)-18.76%
Max EPS beat(2)-0.73%
EPS beat(4)1
Avg EPS beat(4)-245.29%
Min EPS beat(4)-1035.83%
Max EPS beat(4)74.15%
EPS beat(8)1
Avg EPS beat(8)-194.93%
EPS beat(12)1
Avg EPS beat(12)-203.74%
EPS beat(16)3
Avg EPS beat(16)-1471.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)-1.03%
Revenue beat(8)2
Avg Revenue beat(8)-1.46%
Revenue beat(12)5
Avg Revenue beat(12)-0.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.92%
PT rev (1m)0%
PT rev (3m)-2.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)0.84%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 4.08 | ||
| P/S | 0.43 | ||
| P/FCF | 5.98 | ||
| P/OCF | 3.13 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.1 |
EPS(TTM)1.13
EY9.12%
EPS(NY)3.03
Fwd EY24.49%
FCF(TTM)2.07
FCFY16.72%
OCF(TTM)3.96
OCFY31.94%
SpS28.49
BVpS13.71
TBVpS-37.68
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1% | ||
| ROE | -6.08% | ||
| ROCE | 3.26% | ||
| ROIC | 2.58% | ||
| ROICexc | 4.07% | ||
| ROICexgc | N/A | ||
| OM | 6.79% | ||
| PM (TTM) | N/A | ||
| GM | 56.7% | ||
| FCFM | 7.27% |
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-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | 20.92 | ||
| Debt/EBITDA | 6.55 | ||
| Cap/Depr | 40.49% | ||
| Cap/Sales | 6.62% | ||
| Interest Coverage | 0.86 | ||
| Cash Conversion | 60.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | -0.07 |
F-Score5
WACC7.51%
ROIC/WACC0.34
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 Y582.93%
EPS Next 2Y190.3%
EPS Next 3Y114.74%
EPS Next 5YN/A
Revenue 1Y (TTM)0.47%
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-31.08%
EBIT growth 3Y20.15%
EBIT growth 5Y-5.55%
EBIT Next Year218.68%
EBIT Next 3Y55.49%
EBIT Next 5YN/A
FCF growth 1Y113.36%
FCF growth 3Y0.33%
FCF growth 5Y-8.23%
OCF growth 1Y128.82%
OCF growth 3Y4.17%
OCF growth 5Y-2.56%