PAYSAFE LTD (PSFE)
BMG6964L2062 - Common Stock
We assign a fundamental rating of 3 out of 10 to PSFE. PSFE was compared to 102 industry peers in the Financial Services industry. Both the profitability and financial health of PSFE have multiple concerns. PSFE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PSFE had negative earnings in the past year.
PSFE had a positive operating cash flow in the past year.
PSFE had negative earnings in each of the past 5 years.
In the past 5 years PSFE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.39%, PSFE is doing worse than 68.63% of the companies in the same industry.
With a Return On Equity value of -2.30%, PSFE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 3.74%, PSFE is doing good in the industry, outperforming 61.76% of the companies in the same industry.
PSFE had an Average Return On Invested Capital over the past 3 years of 2.21%. This is significantly below the industry average of 7.93%.
The last Return On Invested Capital (3.74%) for PSFE is above the 3 year average (2.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -2.3% | ||
| ROIC | 3.74% |
ROA(3y)-11.06%
ROA(5y)-7.28%
ROE(3y)-74.44%
ROE(5y)-47.05%
ROIC(3y)2.21%
ROIC(5y)2.29%
1.3 Margins
PSFE has a Operating Margin (10.39%) which is in line with its industry peers.
PSFE's Operating Margin has declined in the last couple of years.
PSFE's Gross Margin of 58.58% is fine compared to the rest of the industry. PSFE outperforms 74.51% of its industry peers.
PSFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.39% | ||
| PM (TTM) | N/A | ||
| GM | 58.58% |
OM growth 3Y-2.03%
OM growth 5Y-7.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.14%
GM growth 5Y-2.28%
2. Health
2.1 Basic Checks
PSFE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PSFE has been increased compared to 1 year ago.
PSFE has a worse debt/assets ratio than last year.
2.2 Solvency
PSFE has a debt to FCF ratio of 18.97. This is a negative value and a sign of low solvency as PSFE would need 18.97 years to pay back of all of its debts.
PSFE's Debt to FCF ratio of 18.97 is in line compared to the rest of the industry. PSFE outperforms 50.98% of its industry peers.
PSFE has a Debt/Equity ratio of 2.82. This is a high value indicating a heavy dependency on external financing.
PSFE has a worse Debt to Equity ratio (2.82) than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 18.97 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC6.96%
2.3 Liquidity
A Current Ratio of 1.11 indicates that PSFE should not have too much problems paying its short term obligations.
PSFE has a Current ratio (1.11) which is in line with its industry peers.
A Quick Ratio of 1.11 indicates that PSFE should not have too much problems paying its short term obligations.
PSFE has a Quick ratio (1.11) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 98.30% over the past year.
PSFE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.01%.
PSFE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.02% yearly.
EPS 1Y (TTM)98.3%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q64.29%
Revenue 1Y (TTM)7.01%
Revenue growth 3Y3.92%
Revenue growth 5Y7.02%
Revenue growth Q2Q8.07%
3.2 Future
PSFE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 92.20% yearly.
Based on estimates for the next years, PSFE will show a small growth in Revenue. The Revenue will grow by 5.86% on average per year.
EPS Next Y264.26%
EPS Next 2Y162.37%
EPS Next 3Y92.2%
EPS Next 5YN/A
Revenue Next Year6.13%
Revenue Next 2Y6.7%
Revenue Next 3Y5.86%
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
The Price/Earnings Ratio is negative for PSFE. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 26.68, the valuation of PSFE can be described as expensive.
PSFE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PSFE is more expensive than 65.69% of the companies in the same industry.
PSFE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.68 |
4.2 Price Multiples
PSFE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PSFE is cheaper than 95.10% of the companies in the same industry.
86.27% of the companies in the same industry are more expensive than PSFE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.77 | ||
| EV/EBITDA | 4.41 |
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.
A more expensive valuation may be justified as PSFE's earnings are expected to grow with 92.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y162.37%
EPS Next 3Y92.2%
5. Dividend
5.1 Amount
PSFE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAYSAFE LTD
NYSE:PSFE (4/26/2024, 7:11:29 PM)
After market: 14.46 0 (0%)14.46
-0.04 (-0.28%)
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 Cap892.47M
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.68 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -2.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.39% | ||
| PM (TTM) | N/A | ||
| GM | 58.58% | ||
| 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| 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)98.3%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y264.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.01%
Revenue growth 3Y3.92%
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