PAYMENTUS HOLDINGS INC-A (PAY)

US70439P1084 - Common Stock

19.39  +0.06 (+0.31%)

After market: 19.39 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to PAY. PAY was compared to 102 industry peers in the Financial Services industry. PAY has an excellent financial health rating, but there are some minor concerns on its profitability. PAY is valued quite expensively, but it does show have an excellent growth rating.



4

1. Profitability

1.1 Basic Checks

In the past year PAY was profitable.
PAY had a positive operating cash flow in the past year.
Of the past 5 years PAY 4 years were profitable.
PAY had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 4.42%, PAY is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
PAY has a Return On Equity of 5.19%. This is comparable to the rest of the industry: PAY outperforms 41.18% of its industry peers.
The Return On Invested Capital of PAY (3.63%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA 4.42%
ROE 5.19%
ROIC 3.63%
ROA(3y)1.93%
ROA(5y)4.76%
ROE(3y)2.29%
ROE(5y)6.01%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

PAY has a Profit Margin (3.63%) which is in line with its industry peers.
PAY's Profit Margin has improved in the last couple of years.
PAY's Operating Margin of 2.94% is on the low side compared to the rest of the industry. PAY is outperformed by 66.67% of its industry peers.
PAY's Operating Margin has declined in the last couple of years.
The Gross Margin of PAY (29.69%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PAY has remained more or less at the same level.
Industry RankSector Rank
OM 2.94%
PM (TTM) 3.63%
GM 29.69%
OM growth 3Y-21.54%
OM growth 5YN/A
PM growth 3Y8.85%
PM growth 5YN/A
GM growth 3Y-1.11%
GM growth 5YN/A

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAY is destroying value.
Compared to 1 year ago, PAY has more shares outstanding
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 21.11. This indicates that PAY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PAY (21.11) is better than 97.06% of its industry peers.
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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 21.11
ROIC/WACC0.41
WACC8.86%

2.3 Liquidity

PAY has a Current Ratio of 4.31. This indicates that PAY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PAY (4.31) is better than 91.18% of its industry peers.
PAY has a Quick Ratio of 4.31. This indicates that PAY is financially healthy and has no problem in meeting its short term obligations.
PAY's Quick ratio of 4.31 is amongst the best of the industry. PAY outperforms 91.18% of its industry peers.
Industry RankSector Rank
Current Ratio 4.31
Quick Ratio 4.31

9

3. Growth

3.1 Past

PAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 708.51%, which is quite impressive.
PAY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.61% yearly.
Looking at the last year, PAY shows a very strong growth in Revenue. The Revenue has grown by 23.64%.
PAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.75% yearly.
EPS 1Y (TTM)708.51%
EPS 3Y36.61%
EPS 5YN/A
EPS Q2Q%400%
Revenue 1Y (TTM)23.64%
Revenue growth 3Y26.75%
Revenue growth 5YN/A
Sales Q2Q%24.64%

3.2 Future

PAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.11% yearly.
The Revenue is expected to grow by 16.30% on average over the next years. This is quite good.
EPS Next Y28.21%
EPS Next 2Y25.3%
EPS Next 3Y23.67%
EPS Next 5Y23.11%
Revenue Next Year23.49%
Revenue Next 2Y21.06%
Revenue Next 3Y19.94%
Revenue Next 5Y16.3%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 51.03, PAY can be considered very expensive at the moment.
67.65% of the companies in the same industry are cheaper than PAY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.57. PAY is valued rather expensively when compared to this.
PAY is valuated quite expensively with a Price/Forward Earnings ratio of 41.17.
74.51% of the companies in the same industry are cheaper than PAY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PAY to the average of the S&P500 Index (20.18), we can say PAY is valued expensively.
Industry RankSector Rank
PE 51.03
Fwd PE 41.17

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAY indicates a slightly more expensive valuation: PAY is more expensive than 61.76% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PAY is valued a bit more expensive than 62.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 69.73
EV/EBITDA 45.66

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PAY does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as PAY's earnings are expected to grow with 23.67% in the coming years.
PEG (NY)1.81
PEG (5Y)N/A
EPS Next 2Y25.3%
EPS Next 3Y23.67%

0

5. Dividend

5.1 Amount

PAY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

PAYMENTUS HOLDINGS INC-A

NYSE:PAY (6/20/2024, 5:40:01 PM)

After market: 19.39 0 (0%)

19.39

+0.06 (+0.31%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.41B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 51.03
Fwd PE 41.17
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.81
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.42%
ROE 5.19%
ROCE
ROIC
ROICexc
ROICexgc
OM 2.94%
PM (TTM) 3.63%
GM 29.69%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.22
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 4.31
Quick Ratio 4.31
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)708.51%
EPS 3Y36.61%
EPS 5Y
EPS Q2Q%
EPS Next Y28.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.64%
Revenue growth 3Y26.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y