PSFE Stock Overview
Paysafe Limited provides digital commerce solutions to online businesses, SMB merchants, and consumers through its Paysafe Network worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$3.89|
|52 Week High||US$19.57|
|52 Week Low||US$3.69|
|1 Month Change||-47.15%|
|3 Month Change||-54.07%|
|1 Year Change||-62.74%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-60.91%|
Recent News & Updates
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.
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%+.
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...
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.
|PSFE||US IT||US Market|
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.
|PSFE Average Weekly Movement||13.7%|
|IT Industry Average Movement||7.0%|
|Market Average Movement||5.9%|
|10% most volatile stocks in US Market||15.1%|
|10% least volatile stocks in US Market||2.2%|
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
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
|PSFE fundamental statistics|
Is PSFE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PSFE income statement (TTM)|
|Cost of Revenue||US$595.51m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.28|
|Net Profit Margin||-13.77%|
How did PSFE perform over the long term?See historical performance and comparison
Is Paysafe undervalued compared to its fair value and its price relative to the market?
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).
How is Paysafe forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
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
How has Paysafe performed over the past 5 years?
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.
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.
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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Philip McHugh (49 yo)
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...
Experienced Board: PSFE's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.
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.
Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.
Paysafe Limited's employee growth, exchange listings and data sources
- 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
- Paysafe Limited
- Victoria Place
- 31 Victoria Street
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/26 23:18|
|End of Day Share Price||2021/11/26 00:00|
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.