NZSE:PYS

Stock Analysis Report

Executive Summary

PaySauce Limited provides cloud payroll software and services in New Zealand.

Rewards

Trading at 80.8% below its fair value

Risk Analysis

Earnings have declined by -48.58% per year over past 5 years

Makes less than USD$1m in revenue (NZ$1M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap (NZ$58M)



Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PYS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

PYS

-1.4%

NZ Software

0.07%

NZ Market


1 Year Return

n/a

PYS

10.0%

NZ Software

22.2%

NZ Market

Return vs Industry: Insufficient data to determine how PYS performed against the NZ Software industry.

Return vs Market: Insufficient data to determine how PYS performed against the NZ Market.


Shareholder returns

PYSIndustryMarket
7 Day0%-1.4%0.07%
30 Day-1.0%-10.7%3.4%
90 Day1.0%-10.5%3.3%
1 Yearn/a11.2%10.0%27.3%22.2%
3 Yearn/a79.9%70.8%62.7%41.3%
5 Yearn/a111.9%98.1%95.1%51.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PaySauce 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: PYS (NZ$0.5) is trading below our estimate of fair value (NZ$2.58)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PYS has negative assets, so we can't compare its PB Ratio to the NZ Software industry average.


Next Steps

Future Growth

How is PaySauce forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

36.9%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as PaySauce has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has PaySauce performed over the past 5 years?

-48.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PYS is currently unprofitable.

Growing Profit Margin: PYS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PYS is unprofitable, and losses have increased over the past 5 years at a rate of -48.6% per year.

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

Earnings vs Industry: PYS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22%).


Return on Equity

High ROE: PYS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PaySauce's financial position?


Financial Position Analysis

Short Term Liabilities: PYS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PYS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PYS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PYS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: PYS has a low level of unsold assets or inventory.

Debt Coverage by Assets: PYS has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: Whilst unprofitable PYS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PYS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.6% per year.


Next Steps

Dividend

What is PaySauce's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%3.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if PYS'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 PYS's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

What is the CEO of PaySauce's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Asantha Wijeyeratne 0

1yrs

Tenure

NZ$1,035,395

Compensation

Mr. Asantha Wijeyeratne is a Co-founder, CEO and Non-Independent Director of PaySauce Limited since December 21, 2018. With a background in accounting and payroll, he successfully built SmartPayroll to hav ...


CEO Compensation Analysis

Compensation vs Market: Asantha's total compensation ($USD681.67K) is above average for companies of similar size in the NZ market ($USD246.46K).

Compensation vs Earnings: Insufficient data to compare Asantha's compensation with company performance.


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: PYS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

Experienced Board: PYS's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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: PYS only recently listed within the past 12 months, with total shares outstanding growing by 50.2% in the past year..


Management Team

  • Asantha Wijeyeratne

    Co-founder

    • Tenure: 1yrs
    • Compensation: NZ$1.04m
  • Troy Tarrant

    Co-Founder & CTO

    • Tenure: 0yrs
  • Krishnakumar Guda

    Board Advisor on International Expansion

    • Tenure: 0.6yrs
  • Warren Choisy

    Head of Development

    • Tenure: 1yrs
  • Logan Tyson

    Head of Growth & Partnerships

    • Tenure: 1yrs
  • Ben Colgate

    Head of Design

    • Tenure: 1yrs
  • Vicky Taylor

    Head of Customer Exeperience

    • Tenure: 1yrs
  • Tod Rookes

    Head of Finance

    • Tenure: 0.6yrs
  • Mat Stokes

    Chief Operating Officer

    • Tenure: 0.5yrs
  • Jaime Monaghan

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Andrew Barnes (59yo)

    Chairman

    • Tenure: 1yrs
  • Nick Lewis

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: NZ$7.50k
  • Mandy Simpson

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: NZ$7.50k
  • Asantha Wijeyeratne

    Co-founder

    • Tenure: 1yrs
    • Compensation: NZ$1.04m
  • Gavin Thompson

    Non-Independent Director

    • Tenure: 1yrs

Company Information

PaySauce Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PaySauce Limited
  • Ticker: PYS
  • Exchange: NZSE
  • Founded: 2015
  • Industry: Application Software
  • Sector: Software
  • Market Cap: NZ$57.851m
  • Shares outstanding: 116.87m
  • Website: https://www.paysauce.com

Number of Employees


Location

  • PaySauce Limited
  • 21-23 Andrews Avenue
  • Level 2
  • Lower Hutt
  • 5010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PYSNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 2018

Biography

PaySauce Limited provides cloud payroll software and services in New Zealand. It serves agriculture, horticulture, SMEs, retail and service, and tech companies, as well as manufacturers, traders, charities ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 10:43
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.