PAYSAFE LTD (PSFE) Stock Fundamental Analysis
NYSE:PSFE - New York Stock Exchange, Inc. - BMG6964L2062 - Common Stock - Currency: USD
Taking everything into account, PSFE scores 3 out of 10 in our fundamental rating. PSFE was compared to 99 industry peers in the Financial Services industry. Both the profitability and financial health of PSFE have multiple concerns. PSFE may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year PSFE was profitable.
PSFE had a positive operating cash flow in the past year.
PSFE had negative earnings in 4 of the past 5 years.
PSFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PSFE (-0.01%) is worse than 76.77% of its industry peers.
The Return On Equity of PSFE (-0.04%) is worse than 76.77% of its industry peers.
PSFE has a Return On Invested Capital (2.94%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PSFE is significantly below the industry average of 11.83%.
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 Operating Margin of 7.39%. This is in the lower half of the industry: PSFE underperforms 64.65% of its industry peers.
In the last couple of years the Operating Margin of PSFE has declined.
PSFE has a better Gross Margin (57.37%) than 72.73% 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
Compared to 1 year ago, PSFE has a worse debt to assets ratio.
2.2 Solvency
PSFE has an Altman-Z score of -0.06. This is a bad value and indicates that PSFE is not financially healthy and even has some risk of bankruptcy.
PSFE has a Altman-Z score of -0.06. This is in the lower half of the industry: PSFE underperforms 67.68% 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.
The Debt to FCF ratio of PSFE (17.94) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.75 is on the high side and indicates that PSFE has dependencies on debt financing.
PSFE has a Debt to Equity ratio of 2.75. This is in the lower half of the industry: PSFE underperforms 70.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 17.94 | ||
| Altman-Z | -0.06 |
ROIC/WACC0.39
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.16 indicates that PSFE should not have too much problems paying its short term obligations.
PSFE's Current ratio of 1.16 is in line compared to the rest of the industry. PSFE outperforms 58.59% of its industry peers.
A Quick Ratio of 1.16 indicates that PSFE should not have too much problems paying its short term obligations.
The Quick ratio of PSFE (1.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
PSFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 395.45%, which is quite impressive.
The Revenue has been growing slightly by 3.50% in the past year.
The Revenue has been growing slightly by 3.75% on average over the past years.
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
The Earnings Per Share is expected to grow by 106.55% on average over the next years. This is a very strong growth
Based on estimates for the next years, PSFE will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y583.32%
EPS Next 2Y187.96%
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.60, the valuation of PSFE can be described as rather expensive.
PSFE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. PSFE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 4.05, which indicates a rather cheap valuation of PSFE.
92.93% of the companies in the same industry are more expensive than PSFE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. PSFE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 4.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSFE is valued cheaper than 92.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PSFE is valued cheaper than 94.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.4 | ||
| EV/EBITDA | 4.79 |
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 2Y187.96%
EPS Next 3Y106.55%
5. Dividend
5.1 Amount
PSFE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.09
-0.82 (-6.35%)
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 Cap717.30M
Analysts53.33
Price Target16.2 (34%)
Short Float %4.29%
Short Ratio3.39
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)100.92%
EPS NY rev (1m)0%
EPS NY rev (3m)164.06%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-7.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 4.05 | ||
| P/S | 0.42 | ||
| P/FCF | 5.4 | ||
| P/OCF | 2.9 | ||
| P/B | 0.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.79 |
EPS(TTM)0.65
EY5.38%
EPS(NY)2.99
Fwd EY24.69%
FCF(TTM)2.24
FCFY18.53%
OCF(TTM)4.17
OCFY34.5%
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 | -0.06 |
F-Score6
WACC7.47%
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 Y583.32%
EPS Next 2Y187.96%
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%