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USA Technologies

Nasdaq:USAT
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
USAT
Nasdaq
$235M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

USA Technologies, Inc. provides wireless networking, cashless transactions, asset monitoring, and other value-added services in the United States and internationally. The last earnings update was 314 days ago. More info.


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  • USA Technologies has significant price volatility in the past 3 months.
USAT Share Price and Events
7 Day Returns
-3.7%
NasdaqGM:USAT
2.9%
US Tech
1.2%
US Market
1 Year Returns
-59.6%
NasdaqGM:USAT
3.1%
US Tech
3%
US Market
USAT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
USA Technologies (USAT) -3.7% 7.1% 13.3% -59.6% -11.3% 95%
US Tech 2.9% 8.7% 16.8% 3.1% 64.8% 107.3%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • USAT underperformed the Tech industry which returned 3.1% over the past year.
  • USAT underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
USAT
Industry
5yr Volatility vs Market
Related Companies

Value

 Is USA Technologies 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 USA Technologies 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 USA Technologies.

NasdaqGM:USAT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NasdaqGM:USAT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tech Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.027 (1 + (1- 21%) (15.89%))
1.104
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.104 * 5.96%)
9.31%

Discounted Cash Flow Calculation for NasdaqGM:USAT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for USA Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:USAT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.31%)
2019 2.26 Est @ -21.93% 2.07
2020 1.93 Est @ -14.53% 1.62
2021 1.75 Est @ -9.35% 1.34
2022 1.65 Est @ -5.73% 1.16
2023 1.60 Est @ -3.19% 1.02
2024 1.57 Est @ -1.42% 0.92
2025 1.57 Est @ -0.17% 0.84
2026 1.58 Est @ 0.7% 0.78
2027 1.60 Est @ 1.31% 0.72
2028 1.63 Est @ 1.73% 0.67
Present value of next 10 years cash flows $11.13
NasdaqGM:USAT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1.63 × (1 + 2.73%) ÷ (9.31% – 2.73%)
$25.47
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $25.47 ÷ (1 + 9.31%)10
$10.46
NasdaqGM:USAT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $11.13 + $10.46
$21.59
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $21.59 / 60.00
$0.36
NasdaqGM:USAT Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.36
Current discount Discount to share price of $3.92
= -1 x ($3.92 - $0.36) / $0.36
-989.3%

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

  • The current share price of USA Technologies 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 USA Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are USA Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:USAT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in USD $-0.25
NasdaqGM:USAT Share Price ** NasdaqGM (2019-03-20) in USD $3.92
United States of America Tech Industry PE Ratio Median Figure of 15 Publicly-Listed Tech Companies 16.8x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

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

** Primary Listing of USA Technologies.

NasdaqGM:USAT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:USAT Share Price ÷ EPS (both in USD)

= 3.92 ÷ -0.25

-15.82x

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

  • USA Technologies is loss making, we can't compare its value to the US Tech industry average.
  • USA Technologies 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 USA Technologies's expected growth come at a high price?
Raw Data
NasdaqGM:USAT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -15.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
119.6%per year
United States of America Tech Industry PEG Ratio Median Figure of 8 Publicly-Listed Tech Companies 1.09x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*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 USA Technologies, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on USA Technologies's assets?
Raw Data
NasdaqGM:USAT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in USD $2.10
NasdaqGM:USAT Share Price * NasdaqGM (2019-03-20) in USD $3.92
United States of America Tech Industry PB Ratio Median Figure of 37 Publicly-Listed Tech Companies 1.87x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGM:USAT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:USAT Share Price ÷ Book Value per Share (both in USD)

= 3.92 ÷ 2.10

1.87x

* Primary Listing of USA Technologies.

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

  • USA Technologies is good value based on assets compared to the US Tech industry average.
X
Value checks
We assess USA Technologies'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 Tech 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 Tech industry average (and greater than 0)? (1 check)
  5. USA Technologies has a total score of 1/6, 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 USA Technologies expected to perform in the next 1 to 3 years based on estimates from 3 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
119.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is USA Technologies expected to grow at an attractive rate?
  • USA Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • USA Technologies's earnings growth is expected to exceed the United States of America market average.
  • USA Technologies's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:USAT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:USAT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 119.6%
NasdaqGM:USAT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 19.9%
United States of America Tech Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
United States of America Tech Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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
NasdaqGM:USAT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:USAT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-06-30 200 10 3
2019-06-30 169 -1 3
2018-06-30 137 -12 3
NasdaqGM:USAT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 128 6 -12
2017-12-31 119 3 -13
2017-09-30 108 0 0
2017-06-30 104 -7 -3
2017-03-31 92 -3 -4
2016-12-31 86 0 -9
2016-09-30 82 0 -10
2016-06-30 77 6 -7
2016-03-31 73 8 -7
2015-12-31 68 4 -2
2015-09-30 62 0 -1
2015-06-30 58 -2 -2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • USA Technologies's earnings are expected to grow significantly at over 20% yearly.
  • USA Technologies's revenue is expected to grow by 19.9% yearly, however this is not considered high growth (20% yearly).
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
NasdaqGM:USAT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from USA Technologies Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:USAT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-06-30 0.10 0.19 0.00 2.00
2019-06-30 -0.01 0.10 -0.11 2.00
2018-06-30 -0.23 -0.21 -0.25 2.00
NasdaqGM:USAT Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 -0.25
2017-12-31 -0.29
2017-09-30 -0.01
2017-06-30 -0.06
2017-03-31 -0.09
2016-12-31 -0.24
2016-09-30 -0.28
2016-06-30 -0.21
2016-03-31 -0.19
2015-12-31 -0.05
2015-09-30 -0.04
2015-06-30 -0.05

*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 USA Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess USA Technologies'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.
USA Technologies has a total score of 4/6, 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 USA Technologies performed over the past 5 years?

  • USA Technologies's last earnings update was 314 days ago.
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 USA Technologies's growth in the last year to its industry (Tech).
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.
  • USA Technologies does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare USA Technologies's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare USA Technologies's 1-year growth to the US Tech industry average as it is not currently profitable.
Earnings and Revenue History
USA Technologies'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 USA Technologies Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:USAT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 128.24 -11.99 31.46
2017-12-31 118.87 -13.02 27.83
2017-09-30 108.12 -0.27 25.29
2017-06-30 104.09 -2.52 25.35
2017-03-31 91.75 -3.64 24.95
2016-12-31 85.65 -9.19 24.53
2016-09-30 82.40 -10.30 23.40
2016-06-30 77.41 -7.47 21.38
2016-03-31 73.11 -6.80 19.97
2015-12-31 68.11 -1.95 18.72
2015-09-30 62.43 -1.34 17.60
2015-06-30 58.08 -1.76 16.45
2015-03-31 51.64 -1.60 15.51
2014-12-31 46.73 25.84 14.71
2014-09-30 44.47 26.51 14.37
2014-06-30 42.35 26.86 14.04
2014-03-31 40.82 28.58 13.12
2013-12-31 39.36 0.70 12.64
2013-09-30 37.67 0.44 12.15
2013-06-30 35.94 0.19 12.07
2013-03-31 34.16 -4.26 14.34
2012-12-31 32.70 -3.78 14.38
2012-09-30 30.70 -5.76 14.23
2012-06-30 29.02 -5.88 14.49
2012-03-31 28.00 -5.03 12.46

*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 USA Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if USA Technologies has efficiently used its assets last year compared to the US Tech industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if USA Technologies 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 USA Technologies'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 Tech 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.
USA Technologies 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 USA Technologies'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 USA Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • USA Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • USA Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of USA Technologies'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 1.5x 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 USA Technologies Company Filings, last reported 11 months ago.

NasdaqGM:USAT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 115.91 37.37 17.11
2017-12-31 114.17 39.00 15.39
2017-09-30 106.10 10.75 51.87
2017-06-30 65.78 11.33 12.75
2017-03-31 65.00 9.05 17.78
2016-12-31 64.63 9.24 18.03
2016-09-30 64.16 9.61 18.20
2016-06-30 55.03 9.32 19.27
2016-03-31 50.43 9.35 14.90
2015-12-31 53.30 9.11 14.81
2015-09-30 53.97 6.34 11.59
2015-06-30 53.31 6.33 11.37
2015-03-31 53.33 6.13 8.47
2014-12-31 53.68 4.47 6.73
2014-09-30 53.81 5.43 10.92
2014-06-30 53.74 5.42 9.07
2014-03-31 53.48 4.57 6.58
2013-12-31 26.59 4.32 6.65
2013-09-30 23.88 4.42 5.81
2013-06-30 23.38 3.37 5.98
2013-03-31 21.24 2.47 3.95
2012-12-31 21.98 1.56 5.05
2012-09-30 21.82 2.03 6.20
2012-06-30 21.66 0.73 6.43
2012-03-31 24.20 0.57 6.19
  • USA Technologies's level of debt (32.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (11.7% vs 32.2% today).
  • Debt is not well covered by operating cash flow (16.6%, less than 20% of total debt).
  • USA Technologies is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess USA Technologies'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. USA Technologies has a total score of 3/6, 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 USA Technologies'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 USA Technologies dividends.
If you bought $2,000 of USA Technologies 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 USA Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate USA Technologies'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
NasdaqGM:USAT 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 3 Analyst Estimates (S&P Global) See Below
United States of America Tech Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 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 3.6%

Industry and Market average data is calculated daily.

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

NasdaqGM:USAT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-06-30
2019-06-30
2018-06-30

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

  • Unable to perform a dividend volatility check as USA Technologies has not reported any payouts.
  • Unable to verify if USA Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of USA Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as USA Technologies 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 USA Technologies'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 USA Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. USA Technologies 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 USA Technologies'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
Stephen Herbert
COMPENSATION $1,305,686
AGE 56
TENURE AS CEO 7.3 years
CEO Bio

Mr. Stephen P. Herbert has been the Chief Executive Officer at USA Technologies Inc. since November 30, 2011. Mr. Herbert served as Chairman ofUSA Technologies Inc. since November 30, 2011 until January 2019 and served as its President. Mr. Herbert served as the Chief Operating Officer at USA Technologies Inc., since August 1999 until October 05, 2011. Mr. Herbert served as the President of USA Technologies since June 1999 and served as its Secretary. Since 1986, Mr. Herbert had been employed by Pepsi-Cola, the beverage division of PepsiCo, Inc. From 1994 to April 1996, Mr. Herbert served as a Manager of Market Strategy of PepsiCo, Inc. and was responsible for directing development of market strategy for the vending channel and subsequently the supermarket channel for Pepsi-Cola in North America. Mr. Herbert held various sales and management positions with Pepsi-Cola. Mr. Herbert has been a Director of USA Technologies since April 1996. Mr. Herbert holds a Bachelor of Science from Louisiana State University.

CEO Compensation
  • Stephen's compensation has increased whilst company is loss making.
  • Insufficient data for Stephen to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team

Stephen Herbert

TITLE
CEO & Director
COMPENSATION
$1M
AGE
56
TENURE
7.3 yrs

Glen Goold

TITLE
Interim Chief Financial Officer
AGE
47
TENURE
0.2 yrs

Adele Hepburn

TITLE
Director of Investor Relations
COMPENSATION
$130K

Letitia McNeil

TITLE
Secretary
Board of Directors Tenure

Average tenure and age of the USA Technologies board of directors in years:

6.7
Average Tenure
56
Average Age
  • The tenure for the USA Technologies board of directors is about average.
Board of Directors

Al Moschner

TITLE
Non-Executive Chairman
COMPENSATION
$80K
AGE
65
TENURE
0.2 yrs

Stephen Herbert

TITLE
CEO & Director
COMPENSATION
$1M
AGE
56
TENURE
22.9 yrs

William Schoch

TITLE
Independent Director
COMPENSATION
$84K
AGE
53
TENURE
6.7 yrs

Rob Metzger

TITLE
Director
COMPENSATION
$77K
AGE
50
TENURE
3 yrs

Steve Barnhart

TITLE
Lead Independent Director
COMPENSATION
$113K
AGE
56
TENURE
7.3 yrs

Joel Brooks

TITLE
Independent Director
COMPENSATION
$82K
AGE
59
TENURE
12 yrs

Bill Reilly

TITLE
Independent Director
COMPENSATION
$90K
AGE
69
TENURE
6.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess USA Technologies'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. USA Technologies 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

Simply Wall St News

Are USA Technologies Inc's (NASDAQ:USAT) Interest Costs Too High?

USA Technologies Inc (NASDAQ:USAT) is a small-cap stock with a market capitalization of US$813.01m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

USA Technologies Inc's (NASDAQ:USAT) Path To Profitability

The company’s loss has recently broadened since it announced a -US$2.52m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$11.99m, moving it further away from breakeven? … The most pressing concern for investors is USAT’s path to profitability – when will it breakeven … I’ve put together a brief outline of industry analyst expectations for USAT, its year of breakeven and its implied growth rate.

Simply Wall St -

Should You Buy USA Technologies Inc (NASDAQ:USAT)?

This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … If you believe USAT should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

Top Growth Stocks To Buy Now

Profit growth, coupled with top-line expansion, is a positive indication. … Profit growth, coupled with top-line expansion, is a positive indication. … Profit growth, coupled with top-line expansion, is a positive indication.

Simply Wall St -

How Does USA Technologies Inc's (USAT) EPS Growth Stack Up Against Industry Performance?

Measuring USA Technologies Inc's (NASDAQ:USAT) track record of past performance is a useful exercise for investors. … Today I will assess USAT's recent performance announced on 30 September 2017 and weigh these figures against its long-term trend and industry movements. … View our latest analysis for USA Technologies How USAT fared against its long-term earnings performance and its industry I prefer to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data.

Simply Wall St -

With A Recent ROE Of 0.47%, Can USA Technologies Inc (USAT) Catch Up To Its Industry?

Check out our latest analysis for USA Technologies Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs USAT’s profit against the level of its shareholders’ equity. … ROE can be split up into three useful ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGM:USAT Last Perf Nov 14th 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Company Info

Description

USA Technologies, Inc. provides wireless networking, cashless transactions, asset monitoring, and other value-added services in the United States and internationally. It designs and markets systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services. The company's ePort Connect solution offers various POS options, card processing, wireless connectivity, customer/consumer, online sales reporting, M2M telemetry and DEX data transfer, over-the-air update capabilities, deployment planning, and value-added services, as well as planning, project management, installation support, marketing, and performance evaluation services. The company's products include ePort, a device that is used in self-service, unattended markets, such as vending, amusement and arcade, and various other kiosk applications, as well as facilitates cashless payments by capturing payment information and transmitting it to its network for authorization with the payment system. It primarily serves small ticket, and beverage and food vending industries, as well as unattended point of sale markets, including amusement, commercial laundry, kiosk, and other. USA Technologies, Inc. was founded in 1992 and is headquartered in Malvern, Pennsylvania.

Details
Name: USA Technologies, Inc.
USAT
Exchange: NasdaqGM
Founded: 1992
$235,203,590
60,000,916
Website: http://www.usatech.com
Address: USA Technologies, Inc.
100 Deerfield Lane,
Suite 140,
Malvern,
Pennsylvania, 19355,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM USAT Common Stock Nasdaq Global Market US USD 07. Mar 1995
DB UTE1 Common Stock Deutsche Boerse AG DE EUR 07. Mar 1995
NasdaqGM USAT.P CONV PFD SER A Nasdaq Global Market US USD 07. Mar 1995
Number of employees
Current staff
Staff numbers
129
USA Technologies employees.
Industry
Technology Hardware, Storage and Peripherals
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:47
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/11
Last earnings filing: 2018/05/10
Last earnings reported: 2018/03/31
Last annual earnings reported: 2017/06/30


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.