LSE:PAY

Stock Analysis Report

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Executive Summary

PayPoint plc provides specialist consumer payment, transaction processing, settlement, and other services and products in the United Kingdom, Ireland, and Romania. More Details


Snowflake Analysis

Established dividend payer with proven track record.

Share Price & News

How has PayPoint's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PAY is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PAY's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

PAY

-1.9%

GB Commercial Services

-2.3%

GB Market


1 Year Return

-29.6%

PAY

-4.1%

GB Commercial Services

1.1%

GB Market

Return vs Industry: PAY underperformed the UK Commercial Services industry which returned -5.3% over the past year.

Return vs Market: PAY underperformed the UK Market which returned -0.2% over the past year.


Shareholder returns

PAYIndustryMarket
7 Day0.7%-1.9%-2.3%
30 Day-8.0%0.9%-0.1%
90 Day-1.7%4.0%4.2%
1 Year-26.2%-29.6%-0.4%-4.1%7.1%1.1%
3 Year-9.1%-27.2%12.1%0.7%9.7%-3.4%
5 Year19.4%-22.1%28.1%3.6%36.9%10.5%

Long-Term Price Volatility Vs. Market

How volatile is PayPoint's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAY (£5.84) is trading below our estimate of fair value (£7.04)

Significantly Below Fair Value: PAY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PAY is good value based on its PE Ratio (9.5x) compared to the GB Commercial Services industry average (36.8x).

PE vs Market: PAY is good value based on its PE Ratio (9.5x) compared to the UK market (24x).


Price to Earnings Growth Ratio

PEG Ratio: PAY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PAY is overvalued based on its PB Ratio (8.9x) compared to the GB Commercial Services industry average (2.3x).


Next Steps

Future Growth

How is PayPoint forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAY's earnings are forecast to decline over the next 3 years (-3.2% per year).

Earnings vs Market: PAY's earnings are forecast to decline over the next 3 years (-3.2% per year).

High Growth Earnings: PAY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PAY's revenue is expected to decline over the next 3 years (-5.3% per year).

High Growth Revenue: PAY's revenue is forecast to decline over the next 3 years (-5.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PAY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PayPoint performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAY has high quality earnings.

Growing Profit Margin: PAY's current net profit margins (20.6%) are lower than last year (23.3%).


Past Earnings Growth Analysis

Earnings Trend: PAY's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: PAY's earnings growth over the past year (3.7%) is below its 5-year average (15.6% per year).

Earnings vs Industry: PAY earnings growth over the past year (3.7%) exceeded the Commercial Services industry -11.4%.


Return on Equity

High ROE: PAY's Return on Equity (93.7%) is considered outstanding.


Next Steps

Financial Health

How is PayPoint's financial position?


Financial Position Analysis

Short Term Liabilities: PAY's short term assets (£163.3M) do not cover its short term liabilities (£163.4M).

Long Term Liabilities: PAY's short term assets (£163.3M) exceed its long term liabilities (£12.0K).


Debt to Equity History and Analysis

Debt Level: PAY's debt to equity ratio (46.7%) is considered high.

Reducing Debt: Insufficient data to determine if PAY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PAY's debt is well covered by operating cash flow (317.8%).

Interest Coverage: PAY's interest payments on its debt are well covered by EBIT (78.5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PAY's dividend (5.34%) is higher than the bottom 25% of dividend payers in the UK market (1.48%).

High Dividend: PAY's dividend (5.34%) is in the top 25% of dividend payers in the UK market (4.52%)


Stability and Growth of Payments

Stable Dividend: PAY's dividend payments have been volatile in the past 10 years.

Growing Dividend: PAY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.6%), PAY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PAY's dividends in 3 years are forecast to be covered by earnings (78.4% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Nick Wiles (58 yo)

0.75

Tenure

UK£539,298

Compensation

Mr. Nicholas Wiles, also known as Nick, serves as Chief Executive Officer at PayPoint plc since May 20, 2020. Mr. Wiles served as Non-Executive Director of Picton Property Income Limited since January 1, 2...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD751.01K) is about average for companies of similar size in the UK market ($USD782.75K).

Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Wiles
CEO & Director0.75yrUK£539.30k0.066%
£ 263.0k
Timothy Watkin-Rees
Founder & Members of the Executive Boardno dataUK£732.00k0.14%
£ 568.5k
Alan Dale
Finance Director0.25yrno datano data
Jon Marchant
Chief Information Officer & Member of Executive Boardno datano data0.019%
£ 76.2k
Katy Wilde
Human Resources Director & Member of Executive Boardno datano datano data
Lewis Alcraft
COO & Member of Executive Board0.75yrno datano data
Andy Parnis
Investor Relationsno datano datano data
Tanya Murphy
General Counsel & Head of Compliance0.42yrno datano data
Ian Kennedy
Sales Directorno datano datano data
Neil Ashworth
Chief Executive Officer CollectPlusno datano datano data
Sarah Carne
Secretary1.17yrsno datano data

0.8yrs

Average Tenure

Experienced Management: PAY's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nicholas Wiles
CEO & Director0.75yrUK£539.30k0.066%
£ 263.0k
Alan Dale
Finance Director0.25yrno datano data
Giles F. Kerr
Independent Chairman0.75yrUK£64.00k0.011%
£ 43.8k
Ben Wishart
Independent Non-Executive Director1.25yrsUK£18.00kno data
Gill Barr
Independent Non-Executive Director5.67yrsUK£49.00k0.0038%
£ 15.2k
Rakesh Sharma
Senior Independent Director0.75yrUK£58.00k0.0063%
£ 24.9k
Rosie Shapland
Independent Non-Executive Director0.33yrno datano data

0.8yrs

Average Tenure

59yo

Average Age

Experienced Board: PAY's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PayPoint plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PayPoint plc
  • Ticker: PAY
  • Exchange: LSE
  • Founded: 1996
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: UK£397.752m
  • Shares outstanding: 68.11m
  • Website: https://www.paypoint.com

Number of Employees


Location

  • PayPoint plc
  • 1 The Boulevard
  • Shire Park
  • Welwyn Garden City
  • Hertfordshire
  • AL7 1EL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PAYLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2004
PYPT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2004
PAYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2004
PANDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2004
PAY NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNSep 2004

Biography

PayPoint plc provides specialist consumer payment, transaction processing, settlement, and other services and products in the United Kingdom, Ireland, and Romania. It offers bill and general services, such...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 20:24
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.