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PYG

PayGroupASX:PYG Stock Report

Market Cap

AU$57.5m

7D

4.2%

1Y

-14.5%

Updated

18 Oct, 2021

Data

Company Financials +
PYG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

PYG Overview

PayGroup Limited provides payroll and human capital management solutions in the Asia Pacific and the Middle East.

PayGroup Competitors

Oracle

NYSE:ORCL

US$263.8b

SAP

XTRA:SAP

€147.4b

Automatic Data Processing

NasdaqGS:ADP

US$89.9b

Workday

NasdaqGS:WDAY

US$67.6b

Price History & Performance

Summary of all time highs, changes and price drops for PayGroup
Historical stock prices
Current Share PriceAU$0.50
52 Week HighAU$0.43
52 Week LowAU$0.81
Beta0.24
1 Month Change11.11%
3 Month Change2.04%
1 Year Change-14.53%
3 Year Change-23.08%
5 Year Changen/a
Change since IPO-42.53%

Recent News & Updates

May 18
Breakeven On The Horizon For PayGroup Limited (ASX:PYG)

Breakeven On The Horizon For PayGroup Limited (ASX:PYG)

With the business potentially at an important milestone, we thought we'd take a closer look at PayGroup Limited's...

Feb 02
Calculating The Fair Value Of PayGroup Limited (ASX:PYG)

Calculating The Fair Value Of PayGroup Limited (ASX:PYG)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of PayGroup Limited...

Shareholder Returns

PYGAU SoftwareAU Market
7D4.2%2.8%0.9%
1Y-14.5%27.7%20.2%

Return vs Industry: PYG underperformed the Australian Software industry which returned 27.7% over the past year.

Return vs Market: PYG underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is PYG's price volatile compared to industry and market?
PYG volatility
PYG Beta0.24
Industry Beta0.84
Market Beta1

Stable Share Price: PYG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PYG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a229Mark Samlalhttps://paygrouplimited.com

PayGroup Limited provides payroll and human capital management solutions in the Asia Pacific and the Middle East. It operates through three segments: PayAsia, Astute, and PayrollHQ. The PayAsia segment provides Software with a Service (SwaS) payroll services and solutions, and Human Capital management (HCM) platform, as well as payroll payments, payroll lodgements and other payroll related services.

PayGroup Fundamentals Summary

How do PayGroup's earnings and revenue compare to its market cap?
PYG fundamental statistics
Market CapAU$57.50m
Earnings (TTM)-AU$510.70k
Revenue (TTM)AU$15.63m

3.7x

P/S Ratio

-112.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PYG income statement (TTM)
RevenueAU$15.63m
Cost of RevenueAU$9.40m
Gross ProfitAU$6.23m
ExpensesAU$6.74m
Earnings-AU$510.70k

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0044
Gross Margin39.85%
Net Profit Margin-3.27%
Debt/Equity Ratio0%

How did PYG perform over the long term?

See historical performance and comparison

Valuation

Is PayGroup undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PYG (A$0.5) is trading below our estimate of fair value (A$1.23)

Significantly Below Fair Value: PYG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PYG is unprofitable, so we can't compare its PE Ratio to the Australian Software industry average.

PE vs Market: PYG is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PYG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PYG is good value based on its PB Ratio (2.8x) compared to the AU Software industry average (5.2x).


Future Growth

How is PayGroup forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

110.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PYG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: PYG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PYG's is expected to become profitable in the next 3 years.

Revenue vs Market: PYG's revenue (32.4% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: PYG's revenue (32.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PYG's Return on Equity is forecast to be low in 3 years time (6.1%).


Past Performance

How has PayGroup performed over the past 5 years?

-22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PYG is currently unprofitable.

Growing Profit Margin: PYG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PYG is unprofitable, and losses have increased over the past 5 years at a rate of 22.2% per year.

Accelerating Growth: Unable to compare PYG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PYG is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (37.5%).


Return on Equity

High ROE: PYG has a negative Return on Equity (-2.45%), as it is currently unprofitable.


Financial Health

How is PayGroup's financial position?


Financial Position Analysis

Short Term Liabilities: PYG's short term assets (A$17.6M) exceed its short term liabilities (A$16.8M).

Long Term Liabilities: PYG's short term assets (A$17.6M) exceed its long term liabilities (A$2.0M).


Debt to Equity History and Analysis

Debt Level: PYG is debt free.

Reducing Debt: PYG had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PYG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PYG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is PayGroup current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PYG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PYG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PYG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PYG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PYG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Mark Samlal (56 yo)

4.25yrs

Tenure

AU$361,736

Compensation

Mr. Mark Samlal has been Managing Director of Paygroup Limited. since July 2017 and its Executive Director since July 13, 2017. He serves as Chief Executive Officer of PayGroup Limited.He served as the Gr...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD268.49K) is about average for companies of similar size in the Australian market ($USD302.72K).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PYG's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: PYG's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 49.8%.


Top Shareholders

Company Information

PayGroup Limited's employee growth, exchange listings and data sources


Key Information

  • Name: PayGroup Limited
  • Ticker: PYG
  • Exchange: ASX
  • Founded: NaN
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$57.504m
  • Shares outstanding: 115.01m
  • Website: https://paygrouplimited.com

Number of Employees


Location

  • PayGroup Limited
  • 440 Collins Street
  • Level 9
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:38
End of Day Share Price2021/10/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.