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PAYA HOLDINGS INC (PAYA)

US70434P1030 - Common Stock

9.74  +0.01 (+0.1%)

After market: 9.74 0 (0%)

Fundamental Rating

3

PAYA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. The financial health of PAYA is average, but there are quite some concerns on its profitability. PAYA has a expensive valuation and it also scores bad on growth.



3

1. Profitability

1.1 Basic Checks

PAYA had positive earnings in the past year.
In the past year PAYA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PAYA reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: PAYA reported negative operating cash flow in multiple years.

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 in line with its industry peers.
PAYA has a Return On Invested Capital of 4.00%. This is comparable to the rest of the industry: PAYA outperforms 54.14% of its industry peers.
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

1.3 Margins

PAYA has a better Profit Margin (3.42%) than 60.15% of its industry peers.
With a decent Operating Margin value of 9.60%, PAYA is doing good in the industry, outperforming 61.65% of the companies in the same industry.
The Gross Margin of PAYA (51.29%) is better 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

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.
The number of shares outstanding for PAYA has been increased compared to 1 year ago.
The debt/assets ratio for PAYA has been reduced compared to a year ago.

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.
PAYA has a Altman-Z score of 2.68. This is in the better half of the industry: PAYA outperforms 64.66% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 6.30, PAYA is in the better half of the industry, outperforming 62.41% of the companies in the same industry.
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%

2.3 Liquidity

PAYA has a Current Ratio of 2.11. This indicates that PAYA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PAYA (2.11) is better than 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.
With a decent Quick ratio value of 2.11, PAYA is doing good in the industry, outperforming 75.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 2.11

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.
Looking at the last year, PAYA shows a very negative growth in Revenue. The Revenue has decreased by -28.69% in the last year.
EPS 1Y (TTM)15.63%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q125%
Revenue 1Y (TTM)-28.69%
Revenue growth 3YN/A
Revenue growth 5YN/A
Revenue growth Q2Q13.18%

3.2 Future

The Earnings Per Share is expected to grow by 15.17% on average over the next years. This is quite good.
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

3

4. Valuation

4.1 Price/Earnings Ratio

PAYA is valuated quite expensively with a Price/Earnings ratio of 26.32.
PAYA's Price/Earnings ratio is in line with the industry average.
PAYA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
With a Price/Forward Earnings ratio of 22.21, PAYA is valued on the expensive side.
PAYA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAYA is cheaper than 60.15% of the companies in the same industry.
PAYA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.88.
Industry RankSector Rank
PE 26.32
Fwd PE 22.21

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

4.3 Compensation for Growth

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

0

5. Dividend

5.1 Amount

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

PAYA HOLDINGS INC

NASDAQ:PAYA (2/21/2023, 7:00:03 PM)

After market: 9.74 0 (0%)

9.74

+0.01 (+0.1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.29B
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)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 26.32
Fwd PE 22.21
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)1.41
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.42%
ROE 3.75%
ROCE
ROIC
ROICexc
ROICexgc
OM 9.6%
PM (TTM) 3.42%
GM 51.29%
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 Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.11
Quick Ratio 2.11
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)
Growth
EPS 1Y (TTM)15.63%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y18.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.69%
Revenue growth 3YN/A
Revenue growth 5Y
Revenue growth 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