Paya Holdings (NasdaqCM:PAYA) - Share price, News & Analysis

PAYA fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	1/6
Financial Health	1/6
Dividends	0/6

PAYA Stock Overview

Paya Holdings Inc., through its subsidiaries, operates as an independent integrated payments platform.

Rewards

Earnings are forecast to grow 50.85% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.1%) are lower than last year (0.6%)

Shareholders have been diluted in the past year

Paya Holdings Competitors

Fiserv

NasdaqGS:FISV

US$60.9b

Fidelity National Information Services

NYSE:FIS

US$59.1b

Global Payments

NYSE:GPN

US$33.7b

EVO Payments

NasdaqGM:EVOP

US$1.9b

Price History & Performance

Summary of all time highs, changes and price drops for Paya Holdings
Historical stock prices
Current Share Price	US$5.66
52 Week High	US$11.99
52 Week Low	US$4.51
Beta	0.013
1 Month Change	4.62%
3 Month Change	-6.45%
1 Year Change	-41.77%
3 Year Change	-42.13%
5 Year Change	n/a
Change since IPO	n/a

Shareholder Returns

	PAYA	US IT	US Market
7D	14.6%	2.4%	0.1%
1Y	-41.8%	-27.6%	-12.7%

Return vs Industry: PAYA underperformed the US IT industry which returned -27.4% over the past year.

Return vs Market: PAYA underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is PAYA's price volatile compared to industry and market?
PAYA volatility
PAYA Average Weekly Movement	10.9%
IT Industry Average Movement	10.3%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: PAYA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: PAYA's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	300	Jeff Hack	https://www.paya.com

Paya Holdings Inc., through its subsidiaries, operates as an independent integrated payments platform. It operates through two segments, Integrated Solutions and Payment Services. The company processes payments through credit and debit card, automated clearing house, and check payments.

Paya Holdings Fundamentals Summary

How do Paya Holdings's earnings and revenue compare to its market cap?
PAYA fundamental statistics
Market Cap	US$729.04m
Earnings (TTM)	US$356.00k
Revenue (TTM)	US$260.09m

2,104x

P/E Ratio

2.9x

P/S Ratio

Is PAYA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAYA income statement (TTM)
Revenue	US$260.09m
Cost of Revenue	US$124.35m
Gross Profit	US$135.74m
Other Expenses	US$135.39m
Earnings	US$356.00k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.0027
Gross Margin	52.19%
Net Profit Margin	0.14%
Debt/Equity Ratio	99.3%

How did PAYA perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

2104.09x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: PAYA ($5.66) is trading above our estimate of fair value ($4.21)

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

Price To Earnings Ratio

PE vs Industry: PAYA is poor value based on its PE Ratio (2104.1x) compared to the US IT industry average (27.2x).

PE vs Market: PAYA is poor value based on its PE Ratio (2104.1x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: PAYA is poor value based on its PEG Ratio (41.4x)

Price to Book Ratio

PB vs Industry: PAYA's PB Ratio (3x) is in line with the US IT industry average.

Future Growth

How is Paya Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

50.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAYA's forecast earnings growth (50.9% per year) is above the savings rate (1.9%).

Earnings vs Market: PAYA's earnings (50.9% per year) are forecast to grow faster than the US market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PAYA's revenue (10.9% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: PAYA's revenue (10.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PAYA's Return on Equity is forecast to be low in 3 years time (7.9%).

Past Performance

How has Paya Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-25.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PAYA has a large one-off loss of $9.3M impacting its March 31 2022 financial results.

Growing Profit Margin: PAYA's current net profit margins (0.1%) are lower than last year (0.6%).

Past Earnings Growth Analysis

Earnings Trend: PAYA has become profitable over the past 5 years, growing earnings by -25.8% per year.

Accelerating Growth: PAYA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PAYA had negative earnings growth (-70.2%) over the past year, making it difficult to compare to the IT industry average (21.4%).

Return on Equity

High ROE: PAYA's Return on Equity (0.1%) is considered low.

Financial Health

How is Paya Holdings's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PAYA's short term assets ($262.3M) exceed its short term liabilities ($123.7M).

Long Term Liabilities: PAYA's short term assets ($262.3M) do not cover its long term liabilities ($274.0M).

Debt to Equity History and Analysis

Debt Level: PAYA's net debt to equity ratio (40.9%) is considered high.

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

Debt Coverage: PAYA's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: PAYA's interest payments on its debt are not well covered by EBIT (1.8x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if PAYA's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PAYA has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.5yrs

Average management tenure

CEO

Jeff Hack (56 yo)

3.5yrs

Tenure

US$1,009,750

Compensation

Mr. Jeffrey I. Hack, also known as Jeff, serves as Chief Executive Officer and Director at Paya Holdings Inc. since November 2018. Mr. Hack served as an Executive Vice President and Chief Operating Officer...

CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.01M) is below average for companies of similar size in the US market ($USD3.83M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: PAYA's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: PAYA's board of directors are not considered experienced ( 2.3 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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31