W.A.G payment solutions (LSE:WPS) - Share price, News & Analysis

WPS fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

WPS Stock Overview

W.A.G payment solutions plc operates integrated payments and mobility platform that focuses on the commercial road transportation industry primary in Europe.

Rewards

Earnings are forecast to grow 65.53% per year

Revenue grew by 31.4% over the past year

Risk Analysis

High level of non-cash earnings

Profit margins (0.6%) are lower than last year (1.7%)

W.A.G payment solutions Competitors

Price History & Performance

Summary of all time highs, changes and price drops for W.A.G payment solutions
Historical stock prices
Current Share Price	UK£0.94
52 Week High	UK£1.60
52 Week Low	UK£0.80
Beta	0
1 Month Change	0.32%
3 Month Change	-3.09%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-30.37%

Recent News & Updates

Apr 03

There May Be Reason For Hope In W.A.G payment solutions' (LON:WPS) Disappointing Earnings

Soft earnings didn't appear to concern W.A.G payment solutions plc's ( LON:WPS ) shareholders over the last week. We...

Feb 26

Is W.A.G payment solutions plc (LON:WPS) Expensive For A Reason? A Look At Its Intrinsic Value

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of W.A.G payment...

Shareholder Returns

	WPS	GB IT	GB Market
7D	4.2%	4.5%	2.3%
1Y	n/a	-19.1%	-8.6%

Return vs Industry: Insufficient data to determine how WPS performed against the UK IT industry.

Return vs Market: Insufficient data to determine how WPS performed against the UK Market.

Price Volatility

Is WPS's price volatile compared to industry and market?
WPS volatility
WPS Average Weekly Movement	6.1%
IT Industry Average Movement	5.9%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: WPS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WPS's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	1,000	Martin Vohánka	https://www.eurowag.com

W.A.G payment solutions plc operates integrated payments and mobility platform that focuses on the commercial road transportation industry primary in Europe. The company uses its proprietary technology to enhance performance of commercial road transport operators by providing a range of integrated services, including frictionless energy and toll payments, tax refunds, vehicle information and telematics, smart routing, and other services, including through its Road Lords app. W.A.G payment solutions plc was founded in 1995 and is based in London, the United Kingdom.

W.A.G payment solutions Fundamentals Summary

How do W.A.G payment solutions's earnings and revenue compare to its market cap?
WPS fundamental statistics
Market Cap	€754.52m
Earnings (TTM)	€9.15m
Revenue (TTM)	€1.65b

82.5x

P/E Ratio

0.5x

P/S Ratio

Is WPS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WPS income statement (TTM)
Revenue	€1.65b
Cost of Revenue	€1.55b
Gross Profit	€97.47m
Other Expenses	€88.32m
Earnings	€9.15m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.013
Gross Margin	5.92%
Net Profit Margin	0.56%
Debt/Equity Ratio	57.2%

How did WPS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is WPS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WPS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for WPS. This is calculated by dividing WPS's market cap by their current preferred multiple.
What is WPS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€754.52m

WPS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	21.6x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does WPS's PE Ratio compare to its peers?

WPS PE Ratio vs Peers

The above table shows the PE ratio for WPS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.2x

Forward PE

Price-To-Earnings vs Peers: WPS is expensive based on its Price-To-Earnings Ratio (82.5x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

How does WPS's PE Ratio compare vs other companies in the U.K. IT Industry?

Price-To-Earnings vs Industry: WPS is expensive based on its Price-To-Earnings Ratio (82.5x) compared to the UK IT industry average (29.4x)

Price to Earnings Ratio vs Fair Ratio

What is WPS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WPS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	82.5x
Fair PE Ratio	62.2x

Price-To-Earnings vs Fair Ratio: WPS is expensive based on its Price-To-Earnings Ratio (82.5x) compared to the estimated Fair Price-To-Earnings Ratio (62.2x).

Share Price vs Fair Value

What is the Fair Price of WPS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate WPS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate WPS's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: WPS is poor value based on its PEG Ratio (1.3x)

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Future Growth

How is W.A.G payment solutions forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

65.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPS's forecast earnings growth (65.5% per year) is above the savings rate (0.9%).

Earnings vs Market: WPS's earnings (65.5% per year) are forecast to grow faster than the UK market (10.9% per year).

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

Revenue vs Market: WPS's revenue (17.6% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: WPS's revenue (17.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: WPS's Return on Equity is forecast to be low in 3 years time (15.9%).

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Past Performance

How has W.A.G payment solutions performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-56.9%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: WPS has a high level of non-cash earnings.

Growing Profit Margin: WPS's current net profit margins (0.6%) are lower than last year (1.7%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if WPS's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: WPS had negative earnings growth (-56.9%) over the past year, making it difficult to compare to the IT industry average (28.5%).

Return on Equity

High ROE: WPS's Return on Equity (3.4%) is considered low.

Discover strong past performing companies

Financial Health

How is W.A.G payment solutions'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: WPS's short term assets (€542.1M) exceed its short term liabilities (€342.1M).

Long Term Liabilities: WPS's short term assets (€542.1M) exceed its long term liabilities (€176.0M).

Debt to Equity History and Analysis

Debt Level: WPS has more cash than its total debt.

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

Debt Coverage: WPS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: WPS's interest payments on its debt are well covered by EBIT (5.1x coverage).

Balance Sheet

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Dividend

What is W.A.G payment solutions's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate WPS'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 WPS's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WPS has not reported any payouts.

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Management

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

0.8yrs

Average board tenure

CEO

Martin Vohánka

no data

Tenure

€133,853

Compensation

Mr. Martin Vohánka serves as the Chief Executive Officer and Managing Director of W.A.G. payment solutions, a.s. He is a Founder of W.A.G. payment solutions, a.s. since 1995. He served as Chairman of The B...

CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD141.20K) is below average for companies of similar size in the UK market ($USD1.34M).

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

Board Members

Experienced Board: WPS'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: WPS only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31