PAYSAFE LTD (PSFE) Stock Fundamental Analysis
NYSE:PSFE - New York Stock Exchange, Inc. - BMG6964L2062 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to PSFE. PSFE was compared to 100 industry peers in the Financial Services industry. PSFE has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
PSFE has a worse Return On Assets (-0.01%) than 76.00% of its industry peers.
The Return On Equity of PSFE (-0.04%) is worse than 76.00% 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 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSFE is significantly below the industry average of 11.84%.
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
PSFE has a worse Operating Margin (7.39%) than 64.00% of its industry peers.
PSFE's Operating Margin has declined in the last couple of years.
PSFE has a better Gross Margin (57.37%) than 72.00% of its industry peers.
In the last couple of years the Gross Margin of PSFE has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSFE is destroying value.
The number of shares outstanding for PSFE has been reduced compared to 1 year ago.
Compared to 5 years ago, PSFE has more shares outstanding
The debt/assets ratio for PSFE is higher compared to a year ago.
2.2 Solvency
PSFE has an Altman-Z score of -0.05. This is a bad value and indicates that PSFE is not financially healthy and even has some risk of bankruptcy.
PSFE's Altman-Z score of -0.05 is on the low side compared to the rest of the industry. PSFE is outperformed by 68.00% of its industry peers.
The Debt to FCF ratio of PSFE is 17.94, which is on the high side as it means it would take PSFE, 17.94 years of fcf income to pay off all of its debts.
PSFE's Debt to FCF ratio of 17.94 is in line compared to the rest of the industry. PSFE outperforms 46.00% of its industry peers.
PSFE has a Debt/Equity ratio of 2.75. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.75, PSFE is not doing good in the industry: 71.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 17.94 | ||
| Altman-Z | -0.05 |
ROIC/WACC0.39
WACC7.55%
2.3 Liquidity
PSFE has a Current Ratio of 1.16. This is a normal value and indicates that PSFE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, PSFE is in line with its industry, outperforming 58.00% 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.
With a Quick ratio value of 1.16, PSFE perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 395.45% over the past year.
PSFE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.50%.
PSFE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.75% yearly.
EPS 1Y (TTM)395.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%580%
Revenue 1Y (TTM)3.5%
Revenue growth 3Y4.66%
Revenue growth 5Y3.75%
Sales Q2Q%-4.01%
3.2 Future
PSFE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 106.55% yearly.
PSFE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
EPS Next Y579.27%
EPS Next 2Y191.41%
EPS Next 3Y106.55%
EPS Next 5YN/A
Revenue Next Year0.29%
Revenue Next 2Y3.46%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.25, PSFE is valued on the expensive side.
PSFE's Price/Earnings ratio is in line with the industry average.
PSFE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 4.30, the valuation of PSFE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSFE indicates a rather cheap valuation: PSFE is cheaper than 94.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, PSFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 4.3 |
4.2 Price Multiples
PSFE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PSFE is cheaper than 93.00% of the companies in the same industry.
PSFE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PSFE is cheaper than 94.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 4.87 |
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 106.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y191.41%
EPS Next 3Y106.55%
5. Dividend
5.1 Amount
No dividends for PSFE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.16
+0.54 (+4.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners40.93%
Inst Owner Change-9.95%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap780.78M
Analysts53.33
Price Target16.2 (23.1%)
Short Float %5.7%
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)-10.93%
PT rev (3m)-20.91%
EPS NQ rev (1m)-7.1%
EPS NQ rev (3m)-19.69%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)162.49%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 4.3 | ||
| P/S | 0.46 | ||
| P/FCF | 5.87 | ||
| P/OCF | 3.16 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.87 |
EPS(TTM)0.65
EY4.94%
EPS(NY)3.06
Fwd EY23.23%
FCF(TTM)2.24
FCFY17.03%
OCF(TTM)4.17
OCFY31.69%
SpS28.45
BVpS14.53
TBVpS-35.32
PEG (NY)0.03
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 | -0.05 |
F-Score6
WACC7.55%
ROIC/WACC0.39
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)395.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%580%
EPS Next Y579.27%
EPS Next 2Y191.41%
EPS Next 3Y106.55%
EPS Next 5YN/A
Revenue 1Y (TTM)3.5%
Revenue growth 3Y4.66%
Revenue growth 5Y3.75%
Sales Q2Q%-4.01%
Revenue Next Year0.29%
Revenue Next 2Y3.46%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
EBIT growth 1Y-23.77%
EBIT growth 3Y20.15%
EBIT growth 5Y-5.55%
EBIT Next Year217.95%
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%