PaySauce (NZSE:PYS) - Stock price, News & Analysis

PYS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

PYS Stock Overview

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

Rewards

Trading at 39.8% below our estimate of its fair value

Risk Analysis

Earnings have declined by 4.8% per year over past 5 years

Volatile share price over the past 3 months

Does not have meaningful revenue (NZ$2M)

Does not have a meaningful market cap (NZ$44M)

Price History & Performance

Summary of all time highs, changes and price drops for PaySauce
Historical stock prices
Current Share Price	NZ$0.32
52 Week High	NZ$0.35
52 Week Low	NZ$0.25
Beta	0.98
1 Month Change	5.00%
3 Month Change	1.61%
1 Year Change	6.78%
3 Year Change	-42.73%
5 Year Change	n/a
Change since IPO	-71.36%

Shareholder Returns

	PYS	NZ Software	NZ Market
7D	8.6%	-0.9%	-0.5%
1Y	6.8%	3.2%	-5.5%

Return vs Industry: PYS exceeded the NZ Software industry which returned 0.5% over the past year.

Return vs Market: PYS exceeded the NZ Market which returned -6.5% over the past year.

Price Volatility

Is PYS's price volatile compared to industry and market?
PYS volatility
PYS Average Weekly Movement	6.3%
Software Industry Average Movement	6.4%
Market Average Movement	3.7%
10% most volatile stocks in NZ Market	6.4%
10% least volatile stocks in NZ Market	2.3%

Stable Share Price: PYS is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PYS's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of NZ stocks.

About the Company

Founded	Employees	CEO	Website
2015	31	Asantha Wijeyeratne	https://www.paysauce.com

PaySauce Limited provides cloud-based employment solutions software to small and medium-sized businesses in New Zealand. It offers mobile timesheets, rosters, payroll calculations, banking integration, PAYE filing, labor costing, automated general ledger entries, and digital employment contract services. The company also provides management consulting services.

PaySauce Fundamentals Summary

How do PaySauce's earnings and revenue compare to its market cap?
PYS fundamental statistics
Market Cap	NZ$43.65m
Earnings (TTM)	-NZ$1.68m
Revenue (TTM)	NZ$2.47m

17.7x

P/S Ratio

-26.0x

P/E Ratio

Is PYS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PYS income statement (TTM)
Revenue	NZ$2.47m
Cost of Revenue	NZ$2.53m
Gross Profit	-NZ$64.00k
Expenses	NZ$1.62m
Earnings	-NZ$1.68m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.012
Gross Margin	-2.59%
Net Profit Margin	-68.06%
Debt/Equity Ratio	0%

How did PYS perform over the long term?

See historical performance and comparison

Valuation

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

39.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PYS (NZ$0.32) is trading below our estimate of fair value (NZ$0.52)

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 Oceanic 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 (23.7x) compared to the NZ Software industry average (3.3x).

Future Growth

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

36.5%

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.

Past Performance

How has PaySauce performed over the past 5 years?

-4.8%

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 4.8% 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 (28.9%).

Return on Equity

High ROE: PYS has a negative Return on Equity (-91.31%), as it is currently unprofitable.

Financial Health

How is PaySauce's financial position?

Financial Position Analysis

Short Term Liabilities: PYS's short term assets (NZ$23.9M) exceed its short term liabilities (NZ$23.6M).

Long Term Liabilities: PYS's short term assets (NZ$23.9M) exceed its long term liabilities (NZ$256.0K).

Debt to Equity History and Analysis

Debt Level: PYS is debt free.

Reducing Debt: PYS had no debt 5 years ago.

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 29.3% per year.

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

Explore strong dividend paying companies in the Software industry.

Management

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

2.9yrs

Average management tenure

CEO

Asantha Wijeyeratne

3.08yrs

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: Insufficient data to establish whether Asantha's total compensation is reasonable compared to companies of similar size in the NZ market.

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

Leadership Team

Experienced Management: PYS's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: PYS's board of directors are not considered experienced ( 1.9 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: PYS 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.

Data	Last Updated (UTC time)
Company Analysis	2022/01/17 12:14
End of Day Share Price	2022/01/17 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31