NZSE:PYS

Stock Analysis Report

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Executive Summary

PaySauce Limited provides cloud based employment solutions software to small and medium-sized businesses in New Zealand. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

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 is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PYS's weekly volatility has decreased from 14% to 5% over the past year.


Market Performance


7 Day Return

-1.4%

PYS

-0.3%

NZ Software

-1.3%

NZ Market


1 Year Return

-22.2%

PYS

-29.4%

NZ Software

9.0%

NZ Market

Return vs Industry: PYS exceeded the NZ Software industry which returned -29.4% over the past year.

Return vs Market: PYS underperformed the NZ Market which returned 9% over the past year.


Shareholder returns

PYSIndustryMarket
7 Day-1.4%-0.3%-1.3%
30 Day-7.9%5.8%1.1%
90 Day-15.7%23.7%5.4%
1 Year-16.9%-22.2%-27.1%-29.4%13.1%9.0%
3 Yearn/a-3.2%-9.7%48.0%29.2%
5 Yearn/a33.9%21.7%98.4%50.9%

Long-Term 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$0.35) is trading below our estimate of fair value (NZ$2.14)

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 XO 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 is overvalued based on its PB Ratio (20.5x) compared to the NZ Software industry average (9.3x).


Next Steps

Future Growth

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

29.8%

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?

-36.2%

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 36.2% 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 (21.8%).


Return on Equity

High ROE: PYS has a negative Return on Equity (-105.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is PaySauce's financial position?


Financial Position Analysis

Short Term Liabilities: PYS's short term assets (NZ$15.6M) exceed its short term liabilities (NZ$14.1M).

Long Term Liabilities: PYS's short term assets (NZ$15.6M) exceed its long term liabilities (NZ$326.0K).


Debt to Equity History and Analysis

Debt Level: PYS's debt to equity ratio (0.7%) is considered satisfactory.

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


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: 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 45.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PYS'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 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

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

1.7yrs

Average management tenure


CEO

Asantha Wijeyeratne

1.92yrs

Tenure

NZ$106,150

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 ($USD74.04K) is below average for companies of similar size in the NZ market ($USD262.32K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Asantha Wijeyeratne
Co-founder1.92yrsNZ$106.15k20.34%
NZ$ 9.9m
Troy Tarrant
Co-Founder & CTOno datano data12.26%
NZ$ 5.9m
Jaime Monaghan
Chief Financial Officer0.92yrno data0.11%
NZ$ 53.3k
Mat Stokes
Chief Operating Officer1.42yrsno datano data
Krishnakumar Guda
Board Advisor on International Expansion1.5yrsno data1.37%
NZ$ 663.8k
Warren Choisy
Head of Development1.92yrsno datano data
Victoria Taylor
Head of Customer Exeperience1.92yrsno data0.88%
NZ$ 426.6k
Ben Colgate
Head of Design1.92yrsno data0.54%
NZ$ 263.3k
Tod Rookes
Head of Finance1.5yrsno datano data

1.7yrs

Average Tenure

Experienced Management: PYS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Asantha Wijeyeratne
Co-founder1.92yrsNZ$106.15k20.34%
NZ$ 9.9m
Nicholas Lewis
Independent Chairman of the Board0.83yrNZ$37.50k0.62%
NZ$ 301.0k
Patrick Gamble
Board Adviser0.75yrno datano data
Gavin Thompson
Non-Executive Director1.92yrsno data1.67%
NZ$ 808.3k
Jacqueline Cheyne
Independent Non-Executive Director0.25yrno datano data
Michael O'Donnell
Independent Non-Executive Director0.083yrno datano data

0.8yrs

Average Tenure

Experienced Board: PYS'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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

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$48.429m
  • Shares outstanding: 136.42m
  • 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 based employment solutions software to small and medium-sized businesses in New Zealand. It offers mobile timesheets, payroll calculations, banking integration, PAYE filing,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 10:44
End of Day Share Price2020/11/25 00:00
Earnings2020/03/31
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.