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PAY

PayPoint LSE:PAY Stock Report

Last Price

UK£5.80

Market Cap

UK£396.3m

7D

0.9%

1Y

-2.8%

Updated

23 May, 2022

Data

Company Financials +
PAY fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance1/6
Financial Health4/6
Dividends3/6

PAY Stock Overview

PayPoint plc provides payments and banking, shopping, and E-commerce services and products in the United Kingdom.

PayPoint Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for PayPoint
Historical stock prices
Current Share PriceUK£5.80
52 Week HighUK£7.42
52 Week LowUK£5.00
Beta1.33
1 Month Change0.52%
3 Month Change-6.90%
1 Year Change-2.85%
3 Year Change-45.69%
5 Year Change-39.33%
Change since IPO189.28%

Recent News & Updates

Jan 20
PayPoint (LON:PAY) Is Paying Out A Larger Dividend Than Last Year

PayPoint (LON:PAY) Is Paying Out A Larger Dividend Than Last Year

PayPoint plc ( LON:PAY ) will increase its dividend on the 7th of March to UK£0.085. This makes the dividend yield...

Jan 01
PayPoint (LON:PAY) Is Increasing Its Dividend To UK£0.085

PayPoint (LON:PAY) Is Increasing Its Dividend To UK£0.085

The board of PayPoint plc ( LON:PAY ) has announced that it will be increasing its dividend on the 7th of March to...

Dec 04
PayPoint (LON:PAY) Is Increasing Its Dividend To UK£0.085

PayPoint (LON:PAY) Is Increasing Its Dividend To UK£0.085

PayPoint plc's ( LON:PAY ) dividend will be increasing to UK£0.085 on 7th of March. This makes the dividend yield 5.5...

Shareholder Returns

PAYGB ITGB Market
7D0.9%0.8%-0.4%
1Y-2.8%-18.9%-4.0%

Return vs Industry: PAY exceeded the UK IT industry which returned -18.9% over the past year.

Return vs Market: PAY exceeded the UK Market which returned -4% over the past year.

Price Volatility

Is PAY's price volatile compared to industry and market?
PAY volatility
PAY Average Weekly Movement3.5%
IT Industry Average Movement6.9%
Market Average Movement6.2%
10% most volatile stocks in GB Market11.6%
10% least volatile stocks in GB Market3.2%

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.

About the Company

FoundedEmployeesCEOWebsite
1996669Nick Wileshttps://www.paypoint.com

PayPoint plc provides payments and banking, shopping, and E-commerce services and products in the United Kingdom. It offers bill payment services, such as over-the-counter payments, digital bill payments, and cash out services; top-ups, including mobiles phones, eMoney vouchers, prepaid debit cards, and lottery tickets; and retail services comprising ATM, card payments, parcels, money transfer, SIM cards, EPoS, and receipt advertising. The company also provides MultiPay, an integrated solution that offers a suite of digital payments; and PayPoint One retail terminal.

PayPoint Fundamentals Summary

How do PayPoint's earnings and revenue compare to its market cap?
PAY fundamental statistics
Market CapUK£396.31m
Earnings (TTM)UK£22.14m
Revenue (TTM)UK£137.24m

18.1x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAY income statement (TTM)
RevenueUK£137.24m
Cost of RevenueUK£48.87m
Gross ProfitUK£88.36m
Other ExpensesUK£66.22m
EarningsUK£22.14m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

May 26, 2022

Earnings per share (EPS)0.32
Gross Margin64.39%
Net Profit Margin16.13%
Debt/Equity Ratio54.4%

How did PAY perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

104%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


49.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PAY (£5.8) is trading below our estimate of fair value (£11.46)

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


Price To Earnings Ratio

PE vs Industry: PAY is good value based on its PE Ratio (18.1x) compared to the UK IT industry average (32.4x).

PE vs Market: PAY is poor value based on its PE Ratio (18.1x) compared to the UK market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: PAY is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: PAY is overvalued based on its PB Ratio (5x) compared to the GB IT industry average (3.8x).


Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAY's forecast earnings growth (30.6% per year) is above the savings rate (0.9%).

Earnings vs Market: PAY's earnings (30.6% per year) are forecast to grow faster than the UK market (11.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PAY's revenue (0.9% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: PAY's revenue (0.9% per year) is forecast to grow slower than 20% 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


Past Performance

How has PayPoint performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PAY has a large one-off loss of £13.2M impacting its September 30 2021 financial results.

Growing Profit Margin: PAY's current net profit margins (16.1%) are lower than last year (26.8%).


Past Earnings Growth Analysis

Earnings Trend: PAY's earnings have declined by 12.9% per year over the past 5 years.

Accelerating Growth: PAY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PAY had negative earnings growth (-39.3%) over the past year, making it difficult to compare to the IT industry average (26.7%).


Return on Equity

High ROE: PAY's Return on Equity (27.6%) is considered high.


Financial Health

How is PayPoint's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PAY's short term assets (£95.3M) do not cover its short term liabilities (£125.6M).

Long Term Liabilities: PAY's short term assets (£95.3M) exceed its long term liabilities (£21.7M).


Debt to Equity History and Analysis

Debt Level: PAY's net debt to equity ratio (25.3%) is considered satisfactory.

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 (70.3%).

Interest Coverage: PAY's interest payments on its debt are well covered by EBIT (26.6x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.86%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PAY's dividend (5.86%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: PAY's dividend (5.86%) is in the top 25% of dividend payers in the UK market (4.86%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (104%), PAY's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (95.8%), PAY's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure


CEO

Nick Wiles (59 yo)

2yrs

Tenure

UK£1,001,000

Compensation

Mr. Nicholas Wiles, also known as Nick, serves as Chief Executive Officer at PayPoint plc since May 20, 2020 and serves as its Member of Executive Board. Mr. Wiles served as Non-Executive Director of Picto...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD1.26M) is about average for companies of similar size in the UK market ($USD1.02M).

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


Leadership Team

Experienced Management: PAY's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: PAY's board of directors are considered experienced (5 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.


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 employee growth, exchange listings and data sources


Key Information

  • Name: PayPoint plc
  • Ticker: PAY
  • Exchange: LSE
  • Founded: 1996
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: UK£396.313m
  • Shares outstanding: 68.92m
  • Website: https://www.paypoint.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/23 00:00
End of Day Share Price2022/05/23 00:00
Earnings2021/09/30
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.