PAYSAFE LTD (PSFE) Stock Fundamental Analysis
USA - NYSE:PSFE - BMG6964L2062 - Common Stock
12.38 USD
+0.39 (+3.25%)
12.38 USD
0 (0%)
PSFE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. PSFE may be in some trouble as it scores bad on both profitability and health. 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
PSFE has a Return On Assets of -1.00%. This is in the lower half of the industry: PSFE underperforms 78.79% of its industry peers.
Looking at the Return On Equity, with a value of -6.08%, PSFE is doing worse than 78.79% of the companies in the same industry.
PSFE has a Return On Invested Capital (2.58%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSFE is below the industry average of 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1% | ||
| ROE | -6.08% | ||
| ROIC | 2.58% |
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 worse Operating Margin (6.79%) than 64.65% of its industry peers.
PSFE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 56.70%, PSFE is in the better half of the industry, outperforming 70.71% of the companies in the same industry.
In the last couple of years the Gross Margin of PSFE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.79% | ||
| PM (TTM) | N/A | ||
| GM | 56.7% |
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.
Compared to 1 year ago, PSFE has less shares outstanding
PSFE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PSFE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.07, we must say that PSFE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PSFE (-0.07) is worse than 64.65% of its industry peers.
PSFE has a debt to FCF ratio of 20.92. This is a negative value and a sign of low solvency as PSFE would need 20.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.92, PSFE is in line with its industry, outperforming 45.45% of the companies in the same industry.
PSFE has a Debt/Equity ratio of 3.15. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.15, PSFE is doing worse than 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | 20.92 | ||
| Altman-Z | -0.07 |
ROIC/WACC0.34
WACC7.52%
2.3 Liquidity
A Current Ratio of 1.20 indicates that PSFE should not have too much problems paying its short term obligations.
The Current ratio of PSFE (1.20) is comparable to the rest of the industry.
PSFE has a Quick Ratio of 1.20. This is a normal value and indicates that PSFE is financially healthy and should not expect problems in meeting its short term obligations.
PSFE has a Quick ratio of 1.20. This is comparable to the rest of the industry: PSFE outperforms 58.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
PSFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 638.10%, which is quite impressive.
The Revenue has been growing slightly by 0.47% in the past year.
PSFE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.75% yearly.
EPS 1Y (TTM)638.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2400%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y4.66%
Revenue growth 5Y3.75%
Sales Q2Q%-2.66%
3.2 Future
Based on estimates for the next years, PSFE will show a very strong growth in Earnings Per Share. The EPS will grow by 114.74% on average per year.
Based on estimates for the next years, PSFE will show a small growth in Revenue. The Revenue will grow by 4.24% on average per year.
EPS Next Y582.93%
EPS Next 2Y190.3%
EPS Next 3Y114.74%
EPS Next 5YN/A
Revenue Next Year0.57%
Revenue Next 2Y3.76%
Revenue Next 3Y4.24%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.96 indicates a reasonable valuation of PSFE.
Based on the Price/Earnings ratio, PSFE is valued a bit cheaper than 64.65% of the companies in the same industry.
PSFE is valuated cheaply when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.08, the valuation of PSFE can be described as very cheap.
Based on the Price/Forward Earnings ratio, PSFE is valued cheaply inside the industry as 95.96% of the companies are valued more expensively.
PSFE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 4.08 |
4.2 Price Multiples
PSFE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PSFE is cheaper than 91.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PSFE is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.97 | ||
| EV/EBITDA | 5.1 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PSFE's earnings are expected to grow with 114.74% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y190.3%
EPS Next 3Y114.74%
5. Dividend
5.1 Amount
No dividends for PSFE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.38
+0.39 (+3.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners38.9%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap728.56M
Analysts53.33
Price Target15.86 (28.11%)
Short Float %5.52%
Short Ratio5.34
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)-9.74%
Min EPS beat(2)-18.76%
Max EPS beat(2)-0.73%
EPS beat(4)1
Avg EPS beat(4)-245.29%
Min EPS beat(4)-1035.83%
Max EPS beat(4)74.15%
EPS beat(8)1
Avg EPS beat(8)-194.93%
EPS beat(12)1
Avg EPS beat(12)-203.74%
EPS beat(16)3
Avg EPS beat(16)-1471.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)-1.03%
Revenue beat(8)2
Avg Revenue beat(8)-1.46%
Revenue beat(12)5
Avg Revenue beat(12)-0.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.92%
PT rev (1m)0%
PT rev (3m)-2.1%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)0.84%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 4.08 | ||
| P/S | 0.43 | ||
| P/FCF | 5.97 | ||
| P/OCF | 3.13 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.1 |
EPS(TTM)1.13
EY9.13%
EPS(NY)3.03
Fwd EY24.51%
FCF(TTM)2.07
FCFY16.74%
OCF(TTM)3.96
OCFY31.97%
SpS28.49
BVpS13.71
TBVpS-37.68
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1% | ||
| ROE | -6.08% | ||
| ROCE | 3.26% | ||
| ROIC | 2.58% | ||
| ROICexc | 4.07% | ||
| ROICexgc | N/A | ||
| OM | 6.79% | ||
| PM (TTM) | N/A | ||
| GM | 56.7% | ||
| FCFM | 7.27% |
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-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | 20.92 | ||
| Debt/EBITDA | 6.55 | ||
| Cap/Depr | 40.49% | ||
| Cap/Sales | 6.62% | ||
| Interest Coverage | 0.86 | ||
| Cash Conversion | 60.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | -0.07 |
F-Score5
WACC7.52%
ROIC/WACC0.34
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)638.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2400%
EPS Next Y582.93%
EPS Next 2Y190.3%
EPS Next 3Y114.74%
EPS Next 5YN/A
Revenue 1Y (TTM)0.47%
Revenue growth 3Y4.66%
Revenue growth 5Y3.75%
Sales Q2Q%-2.66%
Revenue Next Year0.57%
Revenue Next 2Y3.76%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
EBIT growth 1Y-31.08%
EBIT growth 3Y20.15%
EBIT growth 5Y-5.55%
EBIT Next Year218.68%
EBIT Next 3Y55.49%
EBIT Next 5YN/A
FCF growth 1Y113.36%
FCF growth 3Y0.33%
FCF growth 5Y-8.23%
OCF growth 1Y128.82%
OCF growth 3Y4.17%
OCF growth 5Y-2.56%