PAYSAFE LTD (PSFE) Stock Fundamental Analysis
NYSE:PSFE - New York Stock Exchange, Inc. - BMG6964L2062 - Common Stock - Currency: USD
Overall PSFE gets a fundamental rating of 3 out of 10. We evaluated PSFE against 100 industry peers in the Financial Services industry. PSFE has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past 5 years PSFE reported 4 times negative net income.
Each year in the past 5 years PSFE had a positive operating cash flow.
1.2 Ratios
PSFE has a worse Return On Assets (-0.01%) than 76.00% of its industry peers.
PSFE has a worse Return On Equity (-0.04%) than 76.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.94%, PSFE is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSFE is significantly below the industry average of 11.84%.
The last Return On Invested Capital (2.94%) for PSFE is above the 3 year average (2.93%), which is a sign of increasing profitability.
| 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's Operating Margin of 7.39% is on the low side compared to the rest of the industry. PSFE is outperformed by 64.00% of its industry peers.
In the last couple of years the Operating Margin of PSFE has declined.
The Gross Margin of PSFE (57.37%) is better than 72.00% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSFE is destroying value.
PSFE has less shares outstanding than it did 1 year ago.
PSFE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PSFE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.04, we must say that PSFE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.04, PSFE is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 17.94, PSFE is in line with its industry, outperforming 46.00% of the companies in the same 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 worse Debt to Equity ratio (2.75) than 71.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 17.94 | ||
| Altman-Z | -0.04 |
ROIC/WACC0.38
WACC7.71%
2.3 Liquidity
A Current Ratio of 1.16 indicates that PSFE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, PSFE is in line with its industry, outperforming 58.00% of the companies in the same industry.
PSFE has a Quick Ratio of 1.16. This is a normal value and indicates that PSFE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.16, PSFE is in line with its industry, outperforming 58.00% of the companies in the same 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.
PSFE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.50%.
Measured over the past years, PSFE shows a small growth in Revenue. The Revenue has been growing by 3.75% on average per year.
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
The Revenue is expected to grow by 2.94% on average over the next years.
EPS Next Y573.61%
EPS Next 2Y191.06%
EPS Next 3Y106.55%
EPS Next 5YN/A
Revenue Next Year0.46%
Revenue Next 2Y3.57%
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
A Price/Earnings ratio of 21.12 indicates a rather expensive valuation of PSFE.
Compared to the rest of the industry, the Price/Earnings ratio of PSFE is on the same level as its industry peers.
PSFE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.53.
PSFE is valuated cheaply with a Price/Forward Earnings ratio of 4.50.
90.00% of the companies in the same industry are more expensive than PSFE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PSFE to the average of the S&P500 Index (36.71), we can say PSFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 4.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSFE is valued cheaper than 92.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSFE indicates a rather cheap valuation: PSFE is cheaper than 92.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.13 | ||
| EV/EBITDA | 5.03 |
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.
PSFE's earnings are expected to grow with 106.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y191.06%
EPS Next 3Y106.55%
5. Dividend
5.1 Amount
No dividends for PSFE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.73
-0.01 (-0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners40.93%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap814.60M
Analysts53.33
Price Target16.2 (17.99%)
Short Float %5.63%
Short Ratio3.97
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)0%
PT rev (3m)-12.57%
EPS NQ rev (1m)-2.75%
EPS NQ rev (3m)-18.88%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)-2.24%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 4.5 | ||
| P/S | 0.48 | ||
| P/FCF | 6.13 | ||
| P/OCF | 3.29 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.03 |
EPS(TTM)0.65
EY4.73%
EPS(NY)3.05
Fwd EY22.21%
FCF(TTM)2.24
FCFY16.32%
OCF(TTM)4.17
OCFY30.38%
SpS28.45
BVpS14.53
TBVpS-35.32
PEG (NY)0.04
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 | -0.04 |
F-Score6
WACC7.71%
ROIC/WACC0.38
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 Y573.61%
EPS Next 2Y191.06%
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 Year0.46%
Revenue Next 2Y3.57%
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%