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PAYA HOLDINGS INC (PAYA) Stock Fundamental Analysis

USA - NASDAQ:PAYA - US70434P1030 - Common Stock

9.74 USD
+0.01 (+0.1%)
Last: 2/21/2023, 8:00:03 PM
9.74 USD
0 (0%)
After Hours: 2/21/2023, 8:00:03 PM
Fundamental Rating

3

Overall PAYA gets a fundamental rating of 3 out of 10. We evaluated PAYA against 87 industry peers in the IT Services industry. While PAYA seems to be doing ok healthwise, there are quite some concerns on its profitability. PAYA does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

PAYA had positive earnings in the past year.
PAYA had a positive operating cash flow in the past year.
PAYA Yearly Net Income VS EBIT VS OCF VS FCFPAYA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 0 10M 20M 30M

1.2 Ratios

PAYA has a Return On Assets of 1.42%. This is comparable to the rest of the industry: PAYA outperforms 56.39% of its industry peers.
PAYA has a Return On Equity (3.75%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.00%, PAYA perfoms like the industry average, outperforming 54.14% of the companies in the same industry.
Industry RankSector Rank
ROA 1.42%
ROE 3.75%
ROIC 4%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
PAYA Yearly ROA, ROE, ROICPAYA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 0 1 2 3 4

1.3 Margins

Looking at the Profit Margin, with a value of 3.42%, PAYA is in the better half of the industry, outperforming 60.15% of the companies in the same industry.
The Operating Margin of PAYA (9.60%) is better than 61.65% of its industry peers.
PAYA has a better Gross Margin (51.29%) than 70.68% of its industry peers.
Industry RankSector Rank
OM 9.6%
PM (TTM) 3.42%
GM 51.29%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
PAYA Yearly Profit, Operating, Gross MarginsPAYA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 0 10 20 30 40 50

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAYA is destroying value.
PAYA has more shares outstanding than it did 1 year ago.
PAYA has a better debt/assets ratio than last year.
PAYA Yearly Shares OutstandingPAYA Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 20M 40M 60M 80M 100M
PAYA Yearly Total Debt VS Total AssetsPAYA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 200M 400M 600M

2.2 Solvency

PAYA has an Altman-Z score of 2.68. This is not the best score and indicates that PAYA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.68, PAYA is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
The Debt to FCF ratio of PAYA is 6.30, which is on the high side as it means it would take PAYA, 6.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PAYA (6.30) is better than 62.41% of its industry peers.
PAYA has a Debt/Equity ratio of 0.95. This is a neutral value indicating PAYA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, PAYA is not doing good in the industry: 64.66% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 6.3
Altman-Z 2.68
ROIC/WACC0.44
WACC9.2%
PAYA Yearly LT Debt VS Equity VS FCFPAYA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 2.11 indicates that PAYA has no problem at all paying its short term obligations.
PAYA has a Current ratio of 2.11. This is in the better half of the industry: PAYA outperforms 75.19% of its industry peers.
A Quick Ratio of 2.11 indicates that PAYA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.11, PAYA is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 2.11
PAYA Yearly Current Assets VS Current LiabilitesPAYA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M

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3

3. Growth

3.1 Past

PAYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.63%, which is quite good.
PAYA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.69%.
EPS 1Y (TTM)15.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%125%
Revenue 1Y (TTM)-28.69%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.18%

3.2 Future

PAYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.17% yearly.
Based on estimates for the next years, PAYA will show a quite strong growth in Revenue. The Revenue will grow by 11.51% on average per year.
EPS Next Y18.73%
EPS Next 2Y17.07%
EPS Next 3Y15.17%
EPS Next 5YN/A
Revenue Next Year14.7%
Revenue Next 2Y12.89%
Revenue Next 3Y12.24%
Revenue Next 5Y11.51%

3.3 Evolution

PAYA Yearly Revenue VS EstimatesPAYA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 100M 200M 300M
PAYA Yearly EPS VS EstimatesPAYA Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 26.32, the valuation of PAYA can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PAYA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.38. PAYA is around the same levels.
PAYA is valuated rather expensively with a Price/Forward Earnings ratio of 22.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAYA indicates a somewhat cheap valuation: PAYA is cheaper than 60.15% of the companies listed in the same industry.
PAYA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.32
Fwd PE 22.21
PAYA Price Earnings VS Forward Price EarningsPAYA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAYA is on the same level as its industry peers.
PAYA's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.39
EV/EBITDA 23.62
PAYA Per share dataPAYA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5 1 1.5 2

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PAYA's earnings are expected to grow with 15.17% in the coming years.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y17.07%
EPS Next 3Y15.17%

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0

5. Dividend

5.1 Amount

No dividends for PAYA!.
Industry RankSector Rank
Dividend Yield N/A

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PAYA HOLDINGS INC

NASDAQ:PAYA (2/21/2023, 8:00:03 PM)

After market: 9.74 0 (0%)

9.74

+0.01 (+0.1%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-27 2023-02-27
Earnings (Next)05-08 2023-05-08
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners49.15%
Ins Owner Change0%
Market Cap1.29B
Analysts71.25
Price Target9.84 (1.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0.1%
Min EPS beat(2)-5.46%
Max EPS beat(2)5.67%
EPS beat(4)3
Avg EPS beat(4)4.22%
Min EPS beat(4)-5.46%
Max EPS beat(4)10.64%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)1.67%
Revenue beat(4)2
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-1.09%
Max Revenue beat(4)2.73%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.37%
PT rev (3m)7.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 26.32
Fwd PE 22.21
P/S 4.65
P/FCF 33.39
P/OCF 29.56
P/B 5.1
P/tB N/A
EV/EBITDA 23.62
EPS(TTM)0.37
EY3.8%
EPS(NY)0.44
Fwd EY4.5%
FCF(TTM)0.29
FCFY2.99%
OCF(TTM)0.33
OCFY3.38%
SpS2.09
BVpS1.91
TBVpS-0.74
PEG (NY)1.41
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.42%
ROE 3.75%
ROCE N/A
ROIC 4%
ROICexc 5.69%
ROICexgc 111.35%
OM 9.6%
PM (TTM) 3.42%
GM 51.29%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
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 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 6.3
Debt/EBITDA 4.18
Cap/Depr 15.82%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 407.47%
Current Ratio 2.11
Quick Ratio 2.11
Altman-Z 2.68
F-Score6
WACC9.2%
ROIC/WACC0.44
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%125%
EPS Next Y18.73%
EPS Next 2Y17.07%
EPS Next 3Y15.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-28.69%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.18%
Revenue Next Year14.7%
Revenue Next 2Y12.89%
Revenue Next 3Y12.24%
Revenue Next 5Y11.51%
EBIT growth 1Y-33.13%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year203.09%
EBIT Next 3Y58.4%
EBIT Next 5Y44.07%
FCF growth 1Y1297.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1453.39%
OCF growth 3YN/A
OCF growth 5YN/A