PAYSAFE LTD (PSFE) Stock Fundamental Analysis
NYSE:PSFE - New York Stock Exchange, Inc. - BMG6964L2062 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to PSFE. PSFE was compared to 100 industry peers in the Financial Services industry. PSFE may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on PSFE.
1. Profitability
1.1 Basic Checks
PSFE had positive earnings in the past year.
In the past year PSFE had a positive cash flow from operations.
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
With a Return On Assets value of -0.01%, PSFE is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
With a Return On Equity value of -0.04%, PSFE is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
PSFE has a Return On Invested Capital of 2.94%. This is comparable to the rest of the industry: PSFE outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSFE is significantly below the industry average of 11.85%.
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 64.00% 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 57.37%, PSFE is in the better half of the industry, outperforming 72.00% 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 | 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.
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 -0.04. This is a bad value and indicates that PSFE is not financially healthy and even has some risk of bankruptcy.
PSFE's Altman-Z score of -0.04 is on the low side compared to the rest of the industry. PSFE is outperformed by 66.00% 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.
PSFE has a Debt to FCF ratio (17.94) which 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.
Looking at the Debt to Equity ratio, with a value of 2.75, PSFE is doing worse than 71.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 17.94 | ||
| Altman-Z | -0.04 |
ROIC/WACC0.38
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.16 indicates that PSFE should not have too much problems paying its short term obligations.
PSFE has a Current ratio of 1.16. This is comparable to the rest of the industry: PSFE outperforms 58.00% of its industry peers.
A Quick Ratio of 1.16 indicates that PSFE should not have too much problems paying 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
The Earnings Per Share has grown by an impressive 395.45% over the past year.
PSFE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.50%.
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
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.15 indicates a rather expensive valuation of PSFE.
PSFE's Price/Earnings ratio is in line with the industry average.
PSFE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.04.
The Price/Forward Earnings ratio is 4.51, 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 91.00% of the companies in the same industry.
PSFE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 4.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSFE is valued cheaply inside the industry as 93.00% of the companies are valued more expensively.
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 | 6.14 | ||
| EV/EBITDA | 5 |
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 106.55% in the coming years.
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 |
13.75
+0.21 (+1.55%)
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 Cap815.79M
Analysts53.33
Price Target16.2 (17.82%)
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 | 21.15 | ||
| Fwd PE | 4.51 | ||
| P/S | 0.48 | ||
| P/FCF | 6.14 | ||
| P/OCF | 3.3 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5 |
EPS(TTM)0.65
EY4.73%
EPS(NY)3.05
Fwd EY22.18%
FCF(TTM)2.24
FCFY16.3%
OCF(TTM)4.17
OCFY30.33%
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
WACC7.72%
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%