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JetPay

Nasdaq:JTPY
Snowflake Description

Flawless balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JTPY
Nasdaq
$80M
Market Cap
  1. Home
  2. US
  3. Software
Company description

JetPay Corporation provides debit and credit card processing, payroll, human capital management (HCM) and card services to businesses and their employees in the United States. The last earnings update was 25 days ago. More info.


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  • JetPay has significant price volatility in the past 3 months.
JTPY Share Price and Events
7 Day Returns
0%
NasdaqCM:JTPY
4%
US IT
3%
US Market
1 Year Returns
159%
NasdaqCM:JTPY
18.6%
US IT
3.4%
US Market
JTPY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
JetPay (JTPY) 0% 1% 184.5% 159% 74.1% 152.5%
US IT 4% 1.3% -7.8% 18.6% -11.7% -79.3%
US Market 3% 1% -6.2% 3.4% 8.8% -53.5%
1 Year Return vs Industry and Market
  • JTPY outperformed the IT industry which returned 18.6% over the past year.
  • JTPY outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
JTPY
Industry
5yr Volatility vs Market

Value

 Is JetPay undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of JetPay to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for JetPay.

NasdaqCM:JTPY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:JTPY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
IT Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.029 (1 + (1- 21%) (18.45%))
1.179
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.179 * 7.05%)
11.26%

Discounted Cash Flow Calculation for NasdaqCM:JTPY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for JetPay is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqCM:JTPY DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 1.95 2.32 2.74 3.20 3.71
Source Est @ 20%, capped from 22.3% Est @ 19%, capped from 22.3% Est @ 18%, capped from 22.3% Est @ 17%, capped from 22.3% Est @ 16%, capped from 22.3%
Present Value
Discounted (@ 11.26%)
1.75 1.87 1.99 2.09 2.18
Present value of next 5 years cash flows $9.88
NasdaqCM:JTPY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $3.71 × (1 + 2.95%) ÷ (11.26% – 2.95%)
$46.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $46.02 ÷ (1 + 11.26%)5
$26.99
NasdaqCM:JTPY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $9.88 + $26.99
$36.88
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $36.88 / 15.74
$2.34
NasdaqCM:JTPY Discount to Share Price
Calculation Result
Value per share (USD) From above. $2.34
Current discount Discount to share price of $5.05
= -1 x ($5.05 - $2.34) / $2.34
-115.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of JetPay is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for JetPay's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are JetPay's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:JTPY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $-0.86
NasdaqCM:JTPY Share Price ** NasdaqCM (2018-12-04) in USD $5.05
United States of America IT Industry PE Ratio Median Figure of 76 Publicly-Listed IT Companies 26.18x
United States of America Market PE Ratio Median Figure of 2,991 Publicly-Listed Companies 18.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of JetPay.

NasdaqCM:JTPY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:JTPY Share Price ÷ EPS (both in USD)

= 5.05 ÷ -0.86

-5.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • JetPay is loss making, we can't compare its value to the US IT industry average.
  • JetPay is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does JetPay's expected growth come at a high price?
Raw Data
NasdaqCM:JTPY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -5.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
Not available
United States of America IT Industry PEG Ratio Median Figure of 62 Publicly-Listed IT Companies 1.83x
United States of America Market PEG Ratio Median Figure of 2,102 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for JetPay, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on JetPay's assets?
Raw Data
NasdaqCM:JTPY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $-0.65
NasdaqCM:JTPY Share Price * NasdaqCM (2018-12-04) in USD $5.05
United States of America IT Industry PB Ratio Median Figure of 120 Publicly-Listed IT Companies 4.22x
United States of America Market PB Ratio Median Figure of 5,007 Publicly-Listed Companies 1.86x
NasdaqCM:JTPY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:JTPY Share Price ÷ Book Value per Share (both in USD)

= 5.05 ÷ -0.65

-7.73x

* Primary Listing of JetPay.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • JetPay has negative assets, we can't compare the value of its assets to the US IT industry average.
X
Value checks
We assess JetPay's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. JetPay has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is JetPay expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.6%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is JetPay expected to grow at an attractive rate?
  • Unable to compare JetPay's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare JetPay's earnings growth to the United States of America market average as no estimate data is available.
  • JetPay's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:JTPY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:JTPY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts -2.6%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 17.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:JTPY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:JTPY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2019-12-31 72 2
2018-12-31 64 1
NasdaqCM:JTPY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 81 6 -13
2018-06-30 79 5 -13
2018-03-31 77 3 -15
2017-12-31 76 2 -14
2017-09-30 59 2 -11
2017-06-30 61 2 -10
2017-03-31 59 1 -14
2016-12-31 56 2 -15
2016-09-30 51 1 -14
2016-06-30 46 2 -13
2016-03-31 44 4 -7
2015-12-31 43 3 -6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if JetPay is high growth as no earnings estimate data is available.
  • JetPay's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:JTPY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from JetPay Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:JTPY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2019-12-31
2018-12-31
NasdaqCM:JTPY Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 -0.86
2018-06-30 -0.84
2018-03-31 -0.98
2017-12-31 -0.85
2017-09-30 -0.65
2017-06-30 -0.62
2017-03-31 -0.81
2016-12-31 -0.89
2016-09-30 -0.90
2016-06-30 -0.88
2016-03-31 -0.52
2015-12-31 -0.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if JetPay will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess JetPay's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
JetPay has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has JetPay performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare JetPay's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • JetPay does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare JetPay's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare JetPay's 1-year growth to the US IT industry average as it is not currently profitable.
Earnings and Revenue History
JetPay's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from JetPay Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:JTPY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 81.02 -13.41 22.74
2018-06-30 79.12 -13.06 21.65
2018-03-31 77.41 -15.38 20.69
2017-12-31 76.04 -13.51 19.62
2017-09-30 58.86 -10.71 19.17
2017-06-30 60.50 -10.43 19.03
2017-03-31 59.18 -13.62 17.91
2016-12-31 56.33 -14.59 16.91
2016-09-30 50.67 -13.91 15.82
2016-06-30 45.77 -12.71 14.30
2016-03-31 44.12 -7.34 13.72
2015-12-31 43.32 -6.36 13.29
2015-09-30 41.54 -6.56 12.40
2015-06-30 38.96 -7.49 12.39
2015-03-31 36.12 -8.76 12.15
2014-12-31 33.45 -9.22 11.54
2014-09-30 31.74 -8.47 11.85
2014-06-30 31.82 -9.36 11.40
2014-03-31 31.39 -8.10 10.99
2013-12-31 30.91 -5.32 10.67
2013-09-30 26.92 -3.83 8.01
2013-06-30 23.90 -0.68 6.62
2013-03-31 21.35 1.11 5.22
2012-12-31 18.29 0.40 4.03
2011-12-31 17.45 2.10 2.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if JetPay has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if JetPay has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if JetPay improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess JetPay's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
JetPay has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is JetPay's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up JetPay's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • JetPay is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • JetPay's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of JetPay's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from JetPay Company Filings, last reported 2 months ago.

NasdaqCM:JTPY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 59.41 14.67 8.29
2018-06-30 60.37 15.32 8.68
2018-03-31 58.77 15.69 6.70
2017-12-31 58.25 16.06 6.82
2017-09-30 59.08 15.73 7.21
2017-06-30 59.30 16.28 8.48
2017-03-31 59.08 16.24 7.22
2016-12-31 63.53 21.87 12.58
2016-09-30 53.68 24.33 5.42
2016-06-30 52.33 18.30 4.44
2016-03-31 54.13 17.99 6.07
2015-12-31 54.99 16.61 5.59
2015-09-30 53.84 16.93 5.48
2015-06-30 54.17 17.12 5.23
2015-03-31 54.42 16.07 6.16
2014-12-31 54.56 16.37 5.36
2014-09-30 34.80 18.83 3.94
2014-06-30 36.77 18.84 4.12
2014-03-31 35.92 18.72 4.49
2013-12-31 37.22 18.75 4.80
2013-09-30 28.46 24.77 2.90
2013-06-30 31.82 24.81 2.05
2013-03-31 33.47 24.25 2.68
2012-12-31 32.59 24.58 1.39
2011-12-31 -5.07 8.61 2.22
  • JetPay's level of debt (24.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (86.5% vs 24.7% today).
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.

  • Whilst loss making JetPay has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making JetPay has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -41.8% per year.
X
Financial health checks
We assess JetPay's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. JetPay has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from JetPay dividends.
If you bought $2,000 of JetPay shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate JetPay's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate JetPay's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:JTPY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1981 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:JTPY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2019-12-31
2018-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as JetPay has not reported any payouts.
  • Unable to verify if JetPay's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of JetPay's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as JetPay has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess JetPay's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can JetPay afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. JetPay has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vogt Faro
COMPENSATION $538,428
AGE 66
TENURE AS CEO 2.6 years
CEO Bio

Diane Faro Continues to be a leader within the payments industry and, with many professional accomplishments under her belt, her demonstrated service to the financial and payments industry alone qualifies her as a Star Award and Distinguished Payments Professional. Ms. Faro has been in the payment industry since 1970 and is currently the CEO of JetPay Corporation. Her success for growing companies and leading people started early in her career. In addition to holding multiple Executive positions with First Data (“First Data”) and as CEO of Chase Merchant Services, Ms. Faro is credited for building strategic partnerships that established an international presence in Canada, Latin America and Europe while at First Data. As a pioneer in the retail sector, Ms. Faro accelerated the electonification of payments with the introduction of POS payment integrations capturing opportunities at a time when the industry changed and customer requirements included innovative products. Ms. Faro has had success as a corporate executive, entrepreneur and consultant in payments based on her ability to continuously identify and implement new ways that expand relationships based on client needs, market trends and competitive threats. She is a proven executive leader with a reputation of achievement based on her ability to deliver financial results and drive new strategic directions that enhances sales, marketing, product development, operations and partnerships. Ms. Faro has a passion for leadership development that includes mentoring and developing women professionals. She has an inspirational style that has structured proven leadership teams and, this has identified her as a dedicated strategic executive and one of the most respected women leaders within the industry. Reflective of her leadership influence, Ms. Faro is one of the founders of, Women Networking in Electronic Transactions (WNET), a national organization that is recognized as a premier professional organization for women in payments that provides personal enrichment and world-class programming, networking resources and mentorship programs dedicated to the development of women leaders. Ms. Faro proves she has a responsibility to serve the industry and strives for continuous improvement as a past President of the Electronic Transaction Association (“ETA”) for the 2004 – 2005 term, as an ETA Board Member for the past seven years and by holding advisory positions with both Visa and MasterCard, various Board positions and providing leadership direction and financial oversight focused on the future of payments and financial services.

CEO Compensation
  • Vogt's compensation has been consistent with company performance over the past year.
  • Vogt's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the JetPay management team in years:

2.6
Average Tenure
61.5
Average Age
  • The tenure for the JetPay management team is about average.
Management Team

Vogt Faro

TITLE
CEO & Director
COMPENSATION
$538K
AGE
66
TENURE
2.6 yrs

Peter Davidson

TITLE
Vice-Chairman
COMPENSATION
$275K
AGE
65
TENURE
8.1 yrs

Greg Krzemien

TITLE
Chief Financial Officer
COMPENSATION
$401K
AGE
58
TENURE
5.8 yrs

Mike Collester

TITLE
Chief Operating Officer
COMPENSATION
$327K
AGE
53
TENURE
2.3 yrs

Shiv Enjeti

TITLE
Chief Technology Officer

John Crouch

TITLE
Chief Information Officer
TENURE
1.7 yrs

Wayne Hart

TITLE
Executive Vice President of Sales

Eric Antich

TITLE
Vice President of Business Development

Michelle Jenkins

TITLE
Chief Marketing Officer

Michael Pires

TITLE
President of HR & Payroll
Board of Directors Tenure

Average tenure and age of the JetPay board of directors in years:

4.7
Average Tenure
52
Average Age
  • The tenure for the JetPay board of directors is about average.
Board of Directors

Larry Stone

TITLE
Chairman
COMPENSATION
$22K
AGE
52
TENURE
0.3 yrs

Vogt Faro

TITLE
CEO & Director
COMPENSATION
$538K
AGE
66
TENURE
4.7 yrs

Peter Davidson

TITLE
Vice-Chairman
COMPENSATION
$275K
AGE
65
TENURE
5.9 yrs

Don Edwards

TITLE
Director
COMPENSATION
$27K
AGE
52
TENURE
5.2 yrs

Rob Frankfurt

TITLE
Director
COMPENSATION
$7K
AGE
52
TENURE
1.2 yrs

Steve Michienzi

TITLE
Director
COMPENSATION
$24K
AGE
34
TENURE
5.2 yrs

Rob Metzger

TITLE
Director
COMPENSATION
$3K
AGE
50
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Mar 18 Sell WLES, L.P. Company 08. Aug 17 21. Dec 17 -221,000 $4.28 $-743,880
X
Management checks
We assess JetPay's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. JetPay has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Do Directors Own JetPay Corporation (NASDAQ:JTPY) Shares?

So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … With a market capitalization of US$31m, JetPay is a small cap stock, so it might not be well known by many institutional investors. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

Is JetPay Corporation's (NASDAQ:JTPY) Balance Sheet Strong Enough To Weather A Storm?

While small-cap stocks, such as JetPay Corporation (NASDAQ:JTPY) with its market cap of US$27.02m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

JetPay Corporation (NASDAQ:JTPY): Does The Earnings Decline Make It An Underperformer?

In this article, I will take a look at JetPay Corporation's (NASDAQ:JTPY) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, along with how the rest of JTPY's industry performed. … How Did JTPY's Recent Performance Stack Up Against Its Past. … JTPY is loss-making, with the most recent trailing twelve-month earnings of -US$15.38m (from 31 March 2018), which compared to last year has become

Simply Wall St -

Estimating The Intrinsic Value Of JetPay Corporation (NASDAQ:JTPY)

In this article I am going to calculate the intrinsic value of JetPay Corporation (NASDAQ:JTPY) by taking the expected future cash flows and discounting them to their present value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $2.28 $2.71 $3.19 $3.74 $4.34 Source Extrapolated @ (20%, capped from 24.32%) Extrapolated @ (19%, capped from 24.32%) Extrapolated @ (18%, capped from 24.32%) Extrapolated @ (17%, capped from 24.32%) Extrapolated @ (16%, capped from 24.32%) Present Value Discounted @ 12.13% $2.03 $2.15 $2.27 $2.36 $2.45 Present Value of 5-year Cash Flow (PVCF)= $11 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $4 × (1 + 2.5%) ÷ (12.1% – 2.5%) = $46 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $46 / ( 1 + 12.1%)5 = $26 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $37.

Simply Wall St -

Where JetPay Corporation (NASDAQ:JTPY) Stands In Earnings Growth Against Its Industry

Analyzing JetPay Corporation's (NASDAQ:JTPY) track record of past performance is a valuable exercise for investors. … View our latest analysis for JetPay Commentary On JTPY's Past Performance For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … NasdaqCM:JTPY Income Statement Apr 11th 18 We can further examine JetPay's loss by looking at what the industry has been experiencing over the past few years.

Simply Wall St -

How Financially Strong Is JetPay Corporation (NASDAQ:JTPY)?

JTPY has shrunken its total debt levels in the last twelve months, from US$21.87M to US$16.06M – this includes both the current and long-term debt. … With this debt payback, JTPY currently has US$6.82M remaining in cash and short-term investments , ready to deploy into the business. … On top of this, JTPY has generated cash from operations of US$2.48M in the last twelve months, leading to an operating cash to total debt ratio of 15.44%, meaning that JTPY’s operating cash is not sufficient to cover its debt.

Simply Wall St -

All You Need To Know About JetPay Corporation's (JTPY) Risks

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … JTPY's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Is It Too Late To Buy JetPay Corporation (JTPY)?

The stock’s ratio of 5.5x is currently trading slightly above its industry peers’ ratio of 4.3x, which means if you buy JTPY today, you’d be paying a relatively fair price for it. … And if you believe JTPY should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. … It seems like the market has already priced in JTPY’s positive outlook, with shares trading around its fair value.

Simply Wall St -

Company Info

Map
Description

JetPay Corporation provides debit and credit card processing, payroll, human capital management (HCM) and card services to businesses and their employees in the United States. The company operates through two segments, Payment Services and HR and Payroll Services. It offers debit and credit processing and automated clearing house payment services to small and medium-sized businesses, as well as to large entities, which processes Internet transactions and recurring billings; and HCM services, including payroll, tax filing, time and attendance, HR, and other related services to small and medium-sized employers. The company also provides transaction processing services, such as end-to-end encryption and tokenization; high speed network and authorization; batch processing; gift cards; fraud protection; and Website or payment application services; and MAGIC, a payments gateway that provides real-time integrated solutions to merchants. In addition, it provides low-cost money management and payment services to unbanked and under-banked employees through prepaid debit cards. The company was formerly known as Universal Business Payment Solutions Acquisition Corporation and changed its name to JetPay Corporation in August 2013. JetPay Corporation is headquartered in Allentown, Pennsylvania.

Details
Name: JetPay Corporation
JTPY
Exchange: NasdaqCM
Founded:
$79,508,982
15,744,353
Website: http://www.jetpaycorp.com
Address: JetPay Corporation
7450 Tilghman Street,
Allentown,
Pennsylvania, 18106,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM JTPY Common Stock Nasdaq Capital Market US USD 02. Jan 2013
Number of employees
Current staff
Staff numbers
239
JetPay employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/04 22:12
End of day share price update: 2018/12/04 00:00
Last estimates confirmation: 2018/11/12
Last earnings filing: 2018/11/09
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.