OM:WPAY

Stock Analysis Report

Executive Summary

Westpay AB provides smart transaction and payment solutions in Europe, Africa, South East Asia, Australia, and Nordic countries.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.2%

WPAY

-3.6%

SE Electronic

-5.3%

SE Market


1 Year Return

-33.8%

WPAY

12.3%

SE Electronic

15.2%

SE Market

Return vs Industry: WPAY underperformed the Swedish Electronic industry which returned 12.3% over the past year.

Return vs Market: WPAY underperformed the Swedish Market which returned 15.2% over the past year.


Shareholder returns

WPAYIndustryMarket
7 Day-6.2%-3.6%-5.3%
30 Day2.7%-4.7%-2.2%
90 Day-12.9%2.7%3.7%
1 Year-29.9%-33.8%13.8%12.3%19.8%15.2%
3 Year-56.8%-59.2%42.0%36.0%31.7%11.8%
5 Year3.7%-1.9%98.9%83.3%41.3%11.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WPAY (SEK3.04) is trading above our estimate of fair value (SEK1.14)

Significantly Below Fair Value: WPAY is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WPAY is good value based on its PB Ratio (3.1x) compared to the SE Electronic industry average (3.1x).


Next Steps

Future Growth

How is Westpay forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

100.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPAY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: WPAY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WPAY's is expected to become profitable in the next 3 years.

Revenue vs Market: WPAY's revenue (19.6% per year) is forecast to grow faster than the Swedish market (4.6% per year).

High Growth Revenue: WPAY's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WPAY's Return on Equity is forecast to be high in 3 years time (23.9%)


Next Steps

Past Performance

How has Westpay performed over the past 5 years?

-65.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPAY is currently unprofitable.

Growing Profit Margin: WPAY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WPAY is unprofitable, and losses have increased over the past 5 years at a rate of -65.5% per year.

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

Earnings vs Industry: WPAY is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (8.3%).


Return on Equity

High ROE: WPAY has a negative Return on Equity (-70.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Westpay's financial position?


Financial Position Analysis

Short Term Liabilities: WPAY's short term assets (SEK33.8M) exceed its short term liabilities (SEK17.8M).

Long Term Liabilities: WPAY's short term assets (SEK33.8M) exceed its long term liabilities (SEK3.6M).


Debt to Equity History and Analysis

Debt Level: WPAY is debt free.

Reducing Debt: WPAY had no debt 5 years ago.


Balance Sheet

Inventory Level: WPAY has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if WPAY's debt is 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: WPAY has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: WPAY has less than a year of cash runway if free cash flow continues to reduce at historical rates of -37% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Sten Karlsson (56yo)

9.7yrs

Tenure

Mr. Sten Karlsson has been the Chief Executive Officer of West International AB. since June 2010. Mr. Karlsson co-founded Real Venture Group and serves as its Chief Executive Officer. Mr. Karlsson serves a ...


Leadership Team

NamePositionTenureCompensationOwnership
Sten Karlsson
Chief Executive Officer9.7yrsno data1.6% SEK1.7m
Lars Levin
Chief Financial Officer2.1yrsno datano data
Alf Egnell
Chief Operating Officer0yrsno datano data
Tomas Nilsson
Chief Technology Officer0yrsno datano data
Hans Edin
Chief Marketing Officer0.4yrsno datano data
Jessica Ponselius
HR Manager0yrsno datano data

2.1yrs

Average Tenure

Experienced Management: WPAY's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Per Jörgen Nordlund
Director6.1yrsno data1.07% SEK1.1m
Christina Detlefsen
Chairman of the Board4.1yrsno data0.21% SEK214.9k
Malte Roggetin
Director25.1yrsno datano data
Jan Lundblad
Director2.1yrsno datano data
Paivo Eerola
Director4.1yrsno datano data

4.1yrs

Average Tenure

65yo

Average Age

Experienced Board: WPAY's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WPAY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 50%.


Top Shareholders

Company Information

Westpay AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Westpay AB
  • Ticker: WPAY
  • Exchange: OM
  • Founded: 1988
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: kr103.613m
  • Shares outstanding: 33.75m
  • Website: https://www.westpay.se

Number of Employees


Location

  • Westpay AB
  • Kanalvägen 14, 2tr
  • Upplands Väsby
  • Stockholm County
  • 194 61
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WPAYOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKOct 2007

Biography

Westpay AB provides smart transaction and payment solutions in Europe, Africa, South East Asia, Australia, and Nordic countries. It offers counter-top, mobile, and unattended terminals for in-store and card present transactions; online payment solutions for Web or mobile apps for use in a separate window or form, or integrated into the Web shop of the merchant; and self-service and payment solutions. The company sells its solutions to retail, travel and hospitality, fuel and charging, and retail banking sectors. Westpay AB was founded in 1988 and is headquartered in Upplands Väsby, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:42
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.