PAYFARE INC (PAY.CA) Stock Fundamental Analysis
Canada - TSX:PAY - CA70437C1095 - Common Stock
4 CAD
0 (0%)
Taking everything into account, PAY scores 4 out of 10 in our fundamental rating. PAY was compared to 29 industry peers in the Financial Services industry. PAY scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PAY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PAY had positive earnings in the past year.
PAY had a positive operating cash flow in the past year.
In the past 5 years PAY reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: PAY reported negative operating cash flow in multiple years.
1.2 Ratios
PAY's Return On Assets of 5.26% is fine compared to the rest of the industry. PAY outperforms 65.63% of its industry peers.
Looking at the Return On Equity, with a value of 22.19%, PAY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
PAY's Return On Invested Capital of 13.92% is amongst the best of the industry. PAY outperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 22.19% | ||
| ROIC | 13.92% |
ROA(3y)-2.18%
ROA(5y)-31.17%
ROE(3y)-10.76%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PAY has a Profit Margin of 8.94%. This is in the lower half of the industry: PAY underperforms 68.75% of its industry peers.
PAY has a worse Operating Margin (7.79%) than 90.63% of its industry peers.
PAY has a Gross Margin (25.74%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PAY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.79% | ||
| PM (TTM) | 8.94% | ||
| GM | 25.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y202.43%
GM growth 5Y-5.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAY is destroying value.
Compared to 1 year ago, PAY has more shares outstanding
The number of shares outstanding for PAY has been increased compared to 5 years ago.
There is no outstanding debt for PAY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
PAY has an Altman-Z score of 1.14. This is a bad value and indicates that PAY is not financially healthy and even has some risk of bankruptcy.
PAY's Altman-Z score of 1.14 is on the low side compared to the rest of the industry. PAY is outperformed by 75.00% of its industry peers.
The Debt to FCF ratio of PAY is 0.00, which is an excellent value as it means it would take PAY, only 0.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PAY (0.00) is better than 96.88% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that PAY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, PAY belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.94
WACC14.89%
2.3 Liquidity
A Current Ratio of 1.24 indicates that PAY should not have too much problems paying its short term obligations.
PAY's Current ratio of 1.24 is fine compared to the rest of the industry. PAY outperforms 71.88% of its industry peers.
PAY has a Quick Ratio of 1.24. This is a normal value and indicates that PAY is financially healthy and should not expect problems in meeting its short term obligations.
PAY has a Quick ratio of 1.24. This is in the better half of the industry: PAY outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
PAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.91%, which is quite impressive.
The Revenue has grown by 26.40% in the past year. This is a very strong growth!
PAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 120.24% yearly.
EPS 1Y (TTM)73.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)26.4%
Revenue growth 3Y140.05%
Revenue growth 5Y120.24%
Sales Q2Q%24.92%
3.2 Future
Based on estimates for the next years, PAY will show a very negative growth in Earnings Per Share. The EPS will decrease by -67.14% on average per year.
Based on estimates for the next years, PAY will show a very negative growth in Revenue. The Revenue will decrease by -39.64% on average per year.
EPS Next Y-13.43%
EPS Next 2Y-67.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.2%
Revenue Next 2Y-39.64%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 10.00, the valuation of PAY can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PAY indicates a rather cheap valuation: PAY is cheaper than 81.25% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PAY to the average of the S&P500 Index (27.30), we can say PAY is valued rather cheaply.
The Forward Price/Earnings Ratio is negative for PAY. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | N/A |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than PAY, based on the Enterprise Value to EBITDA ratio.
87.50% of the companies in the same industry are more expensive than PAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.05 | ||
| EV/EBITDA | 4.67 |
4.3 Compensation for Growth
A cheap valuation may be justified as PAY's earnings are expected to decrease with -67.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-67.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:PAY (3/4/2025, 7:00:00 PM)
4
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners13.25%
Inst Owner ChangeN/A
Ins Owners11.36%
Ins Owner ChangeN/A
Market Cap193.16M
Analysts48.89
Price Target5.51 (37.75%)
Short Float %N/A
Short RatioN/A
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)-24.27%
Min EPS beat(2)-27.75%
Max EPS beat(2)-20.79%
EPS beat(4)1
Avg EPS beat(4)-12.33%
Min EPS beat(4)-27.75%
Max EPS beat(4)2.42%
EPS beat(8)3
Avg EPS beat(8)29.48%
EPS beat(12)6
Avg EPS beat(12)23.46%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.44%
Min Revenue beat(2)-5.1%
Max Revenue beat(2)-3.79%
Revenue beat(4)0
Avg Revenue beat(4)-3.63%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)-1.5%
Revenue beat(8)1
Avg Revenue beat(8)-3.5%
Revenue beat(12)4
Avg Revenue beat(12)0.37%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | N/A | ||
| P/S | 0.89 | ||
| P/FCF | 7.05 | ||
| P/OCF | 5.61 | ||
| P/B | 2.21 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 4.67 |
EPS(TTM)0.4
EY10%
EPS(NY)-0.22
Fwd EYN/A
FCF(TTM)0.57
FCFY14.19%
OCF(TTM)0.71
OCFY17.83%
SpS4.49
BVpS1.81
TBVpS1.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 22.19% | ||
| ROCE | 19.34% | ||
| ROIC | 13.92% | ||
| ROICexc | 95.72% | ||
| ROICexgc | 210.94% | ||
| OM | 7.79% | ||
| PM (TTM) | 8.94% | ||
| GM | 25.74% | ||
| FCFM | 12.64% |
ROA(3y)-2.18%
ROA(5y)-31.17%
ROE(3y)-10.76%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y202.43%
GM growth 5Y-5.73%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 133.85% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.55% | ||
| Profit Quality | 141.48% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 1.14 |
F-Score5
WACC14.89%
ROIC/WACC0.94
Cap/Depr(3y)179.14%
Cap/Depr(5y)141.17%
Cap/Sales(3y)2.72%
Cap/Sales(5y)6.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)73.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y-13.43%
EPS Next 2Y-67.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)26.4%
Revenue growth 3Y140.05%
Revenue growth 5Y120.24%
Sales Q2Q%24.92%
Revenue Next Year6.2%
Revenue Next 2Y-39.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y91.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year92.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y567.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1339.99%
OCF growth 3YN/A
OCF growth 5YN/A