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PSFE

PaysafeNYSE:PSFE Stock Report

Market Cap

US$2.8b

7D

-0.3%

1Y

-62.7%

Updated

26 Nov, 2021

Data

Company Financials +
PSFE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

PSFE Stock Overview

Paysafe Limited provides digital commerce solutions to online businesses, SMB merchants, and consumers through its Paysafe Network worldwide.

Paysafe Competitors

PayPal Holdings

NasdaqGS:PYPL

US$220.6b

Square

NYSE:SQ

US$97.8b

Fidelity National Information Services

NYSE:FIS

US$65.8b

Fiserv

NasdaqGS:FISV

US$64.9b

Price History & Performance

Summary of all time highs, changes and price drops for Paysafe
Historical stock prices
Current Share PriceUS$3.89
52 Week HighUS$19.57
52 Week LowUS$3.69
Beta0
1 Month Change-47.15%
3 Month Change-54.07%
1 Year Change-62.74%
3 Year Changen/a
5 Year Changen/a
Change since IPO-60.91%

Recent News & Updates

Nov 25

Paysafe: SPAC Bloodbath Leads To Compelling Yield Selling Puts

Paysafe stock has gotten slaughtered; shares are down from a 52-week high of $18 to just $4 now. The company is now selling at an enterprise value below where private equity purchased the company in 2017. This valuation is silly; the market has drastically overreacted to short-term headwinds. Implied volatility on the stock is much too high, creating a fascinating opportunity to secure a 29% yield over 14 months on cash-secured puts.

Oct 25

Paysafe: Great Combination Of Online Gambling, Sports Betting, And Fintech

Paysafe went public via a SPAC earlier this year and has seen their stock trade near $20, though has pulled back over recent months to $8. The company reported good Q2 results, though guidance for the full year came in a little below expectations. Significant growth opportunity remains in the US iGaming business, which represents around 1% of total revenue, though could drive growth for many years to come. Recent M&A activity has expanded the company's operations further into Latin America and Europe. Valuation appears attractive at just ~13x a conservative F2022 adjusted EBITDA for a payments company growing 15%+.

Sep 27
Are Investors Undervaluing Paysafe Limited (NYSE:PSFE) By 42%?

Are Investors Undervaluing Paysafe Limited (NYSE:PSFE) By 42%?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Paysafe Limited...

Sep 21

Paysafe Stock: Not Just DeSPAC Trade, There's More Here

Paysafe continues to fall in price, but investors don't need to rush to buy this dip. On a positive note, unlike other payment solutions, Paysafe is making some EBITDA profits. Furthermore, Paysafe is guiding for mid to high EBITDA growth rates. But its large amount of leverage together with poor top-line growth doesn't provide investors with enough margin of safety.

Shareholder Returns

PSFEUS ITUS Market
7D-0.3%-4.0%-2.7%
1Y-62.7%2.9%21.3%

Return vs Industry: PSFE underperformed the US IT industry which returned 2.9% over the past year.

Return vs Market: PSFE underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is PSFE's price volatile compared to industry and market?
PSFE volatility
PSFE Average Weekly Movement13.7%
IT Industry Average Movement7.0%
Market Average Movement5.9%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.2%

Stable Share Price: PSFE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: PSFE's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a3,400Philip McHughhttps://www.paysafe.com

Paysafe Limited provides digital commerce solutions to online businesses, SMB merchants, and consumers through its Paysafe Network worldwide. It offers digital wallet solutions under the Skrill and NETELLER brands, which enable users to upload, store, withdraw, and pay funds and APMs from a virtual account; Knect, a Skrill-related loyalty program; Net+Prepaid Mastercard, a companion product enabling NETELLER digital wallet active users to access and use stored funds anywhere that Mastercard card products are accepted; rapid transfer solutions; and issuing services for prepaid, virtual, and private label cards on behalf of its merchant customers. The company also provides eCash solutions, such as Paysafecash, a bill payment eCash solution that allow users to shop online and then pay offline in cash to finalize the transaction; paysafecard, a prepaid eCash solution; and paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases.

Paysafe Fundamentals Summary

How do Paysafe's earnings and revenue compare to its market cap?
PSFE fundamental statistics
Market CapUS$2.82b
Earnings (TTM)-US$204.64m
Revenue (TTM)US$1.49b

1.9x

P/S Ratio

-13.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSFE income statement (TTM)
RevenueUS$1.49b
Cost of RevenueUS$595.51m
Gross ProfitUS$890.13m
ExpensesUS$1.09b
Earnings-US$204.64m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.28
Gross Margin59.92%
Net Profit Margin-13.77%
Debt/Equity Ratio84.3%

How did PSFE perform over the long term?

See historical performance and comparison

Valuation

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

42.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSFE ($3.89) is trading below our estimate of fair value ($6.79)

Significantly Below Fair Value: PSFE is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PSFE is good value based on its PB Ratio (1.1x) compared to the US IT industry average (4.7x).


Future Growth

How is Paysafe forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

116.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSFE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: PSFE's revenue (6.2% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: PSFE's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PSFE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Paysafe performed over the past 5 years?

8.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: PSFE is currently unprofitable.

Growing Profit Margin: PSFE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PSFE's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: PSFE is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (38.3%).


Return on Equity

High ROE: PSFE has a negative Return on Equity (-7.82%), as it is currently unprofitable.


Financial Health

How is Paysafe's financial position?


Financial Position Analysis

Short Term Liabilities: PSFE's short term assets ($1.8B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: PSFE's short term assets ($1.8B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: PSFE's net debt to equity ratio (74.3%) is considered high.

Reducing Debt: Insufficient data to determine if PSFE'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 PSFE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PSFE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 60.7% per year.


Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

0.7yrs

Average board tenure


CEO

Philip McHugh (49 yo)

2.42yrs

Tenure

Mr. Philip C. McHugh serves as Chief Executive Officer and Executive Director at Paysafe Limited since June 24, 2019. He is Executive Director at Paysafe Group Plc. Mr. McHugh is the Chief Executive Office...


Board Members

Experienced Board: PSFE's board of directors are not considered experienced ( 0.7 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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Paysafe Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Paysafe Limited
  • Ticker: PSFE
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$2.815b
  • Shares outstanding: 723.71m
  • Website: https://www.paysafe.com

Number of Employees


Location

  • Paysafe Limited
  • Victoria Place
  • 31 Victoria Street
  • Hamilton
  • H10
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:18
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.