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 101 industry peers in the Financial Services industry. Both the profitability and financial health of PSFE have multiple concerns. PSFE is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
PSFE had positive earnings in the past year.
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
The Return On Assets of PSFE (-0.01%) is worse than 75.25% of its industry peers.
The Return On Equity of PSFE (-0.04%) is worse than 75.25% of its industry peers.
PSFE has a Return On Invested Capital of 2.94%. This is comparable to the rest of the industry: PSFE outperforms 51.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSFE is below the industry average of 7.77%.
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
The Operating Margin of PSFE (7.39%) is worse than 62.38% of its industry peers.
PSFE's Operating Margin has declined in the last couple of years.
PSFE's Gross Margin of 57.37% is fine compared to the rest of the industry. PSFE outperforms 71.29% of its industry peers.
PSFE's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, PSFE has less shares outstanding
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.
The Altman-Z score of PSFE (-0.06) is worse than 65.35% of its industry peers.
PSFE has a debt to FCF ratio of 17.94. This is a negative value and a sign of low solvency as PSFE would need 17.94 years to pay back of all of its debts.
PSFE has a Debt to FCF ratio (17.94) which is in line with its industry peers.
PSFE has a Debt/Equity ratio of 2.75. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.75, PSFE is doing worse than 72.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 17.94 | ||
| Altman-Z | -0.06 |
ROIC/WACC0.4
WACC7.36%
2.3 Liquidity
PSFE has a Current 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 Current ratio, with a value of 1.16, PSFE is in line with its industry, outperforming 56.44% 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.
PSFE has a Quick ratio (1.16) which 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.
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
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 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
With a Price/Earnings ratio of 17.71, PSFE is valued on the expensive side.
PSFE's Price/Earnings is on the same level as the industry average.
PSFE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
The Price/Forward Earnings ratio is 3.77, which indicates a rather cheap valuation of PSFE.
PSFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PSFE is cheaper than 95.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PSFE to the average of the S&P500 Index (36.28), we can say PSFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 3.77 |
4.2 Price Multiples
93.07% of the companies in the same industry are more expensive than PSFE, based on the Enterprise Value to EBITDA ratio.
95.05% 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 | 5.14 | ||
| EV/EBITDA | 4.7 |
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 2Y191.06%
EPS Next 3Y106.55%
5. Dividend
5.1 Amount
No dividends for PSFE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.51
-0.35 (-2.95%)
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 Cap682.89M
Analysts53.33
Price Target16.2 (40.75%)
Short Float %5.79%
Short Ratio4.06
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)-10.93%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-18.88%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)-2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 3.77 | ||
| P/S | 0.4 | ||
| P/FCF | 5.14 | ||
| P/OCF | 2.76 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.7 |
EPS(TTM)0.65
EY5.65%
EPS(NY)3.05
Fwd EY26.5%
FCF(TTM)2.24
FCFY19.47%
OCF(TTM)4.17
OCFY36.24%
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
WACC7.36%
ROIC/WACC0.4
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%