OTCPK:PAYD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

PAID, Inc. develops online shipping and tax management tools.


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

8.5%

PAYD

3.5%

US Software

2.3%

US Market


1 Year Return

-4.6%

PAYD

37.9%

US Software

6.7%

US Market

Return vs Industry: PAYD underperformed the US Software industry which returned 36.2% over the past year.

Return vs Market: PAYD underperformed the US Market which returned 6% over the past year.


Shareholder returns

PAYDIndustryMarket
7 Day8.5%3.5%2.3%
30 Day-6.9%11.3%-0.7%
90 Day2.7%34.0%17.1%
1 Year-4.6%-4.6%39.0%37.9%9.0%6.7%
3 Year-23.1%-23.1%155.6%146.9%36.7%27.8%
5 Yearn/a251.2%230.5%65.2%46.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

26.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PAYD ($2.69) is trading above our estimate of fair value ($0.01)

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


Price To Earnings Ratio

PE vs Industry: PAYD is good value based on its PE Ratio (26.8x) compared to the Software industry average (53.3x).

PE vs Market: PAYD is poor value based on its PE Ratio (26.8x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PAYD is overvalued based on its PB Ratio (6.7x) compared to the US Software industry average (6.4x).


Next Steps

Future Growth

How is PAID forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as PAID has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine PAID's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access PAID's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has PAID performed over the past 5 years?

-45.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAYD has a large one-off gain of $982.5K impacting its March 31 2020 financial results.

Growing Profit Margin: PAYD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PAYD has become profitable over the past 5 years, growing earnings by -45.7% per year.

Accelerating Growth: PAYD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PAYD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (7.9%).


Return on Equity

High ROE: PAYD's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

How is PAID's financial position?


Financial Position Analysis

Short Term Liabilities: PAYD's short term assets ($739.1K) do not cover its short term liabilities ($1.1M).

Long Term Liabilities: PAYD's short term assets ($739.1K) do not cover its long term liabilities ($1.1M).


Debt to Equity History and Analysis

Debt Level: PAYD is debt free.

Reducing Debt: PAYD currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: PAYD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PAYD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if PAYD'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 PAYD'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?

3.6yrs

Average board tenure


CEO

William Lewis (44yo)

0.42

Tenure

US$180,000

Compensation

Mr. William Austin Lewis, IV, serves as the Chief Financial Officer of PAID, Inc. and served as its President. He also serves as its Interim Chief Executive Officer since February 29, 2020. Mr. Lewis serve ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD180.00K) is below average for companies of similar size in the US market ($USD609.39K).

Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
William Lewis
Interim CEO0.42yrUS$180.00k19.24% $3.2m
Allan Pratt
Director3.58yrsUS$185.00k29.25% $4.9m
Laurie Bradley
Independent Director3.58yrsUS$71.35k0.43% $71.9k
Andrew Pilaro
Independent Director19.83yrsUS$85.27k0.038% $6.3k
David Ogden
Independent Director3.58yrsUS$57.08kno data

3.6yrs

Average Tenure

56yo

Average Age

Experienced Board: PAYD's board of directors are considered experienced (3.6 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 283%.


Top Shareholders

Company Information

PAID, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PAID, Inc.
  • Ticker: PAYD
  • Exchange: OTCPK
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$16.637m
  • Shares outstanding: 6.18m
  • Website: https://www.paid-corp.com

Number of Employees


Location

  • PAID, Inc.
  • 200 Friberg Parkway
  • Suite 4004
  • Westborough
  • Massachusetts
  • 1581
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PAYDOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2016

Biography

PAID, Inc. develops online shipping and tax management tools. It operates through four segments: Client Services, Shipping Calculator Services, Brewery Management Software, and Shipping Coordination and Label Generation Services. The company offers AuctionInc, a suite of online shipping and tax management tools, which assists businesses with e-commerce storefronts, shipping solutions, tax calculation, inventory management, and auction processing. It also provides BeerRun, a brewery management, and alcohol and tobacco tax and trade bureau tax reporting software to small craft brewers. In addition, the company offers ShipTime, a platform that enables its members to quote, process, track, and dispatch shipments. PAID, Inc. was incorporated in 1995 and is headquartered in Westborough, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 00:11
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
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.