WAG Payment Solutions Plc (EWG) AI Stock Analysis

• Market Cap: £882.85M
• Dividend Yield: N/A
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): 96.6
• Beta (1Y): 0.02
• Revenue Growth: -0.85%
• EPS Growth: N/A
• Country: UK
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 692,428,160
• 10 Day Avg. Volume: 470,372
• 30 Day Avg. Volume: 2,513,010
• PEG Ratio: -2.33
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 8.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 139.00p ▲(19.83% Upside)

Score reflects improving financial performance (better operating profitability and strong cash flow) as the primary positive. Technicals show a strong uptrend but are heavily overbought, increasing near-term risk. Valuation meaningfully drags the score due to a very high P/E and lack of dividend yield support.

Positive Factors

Operating profitability improvement

Transitioning EBIT/EBITDA to positive margins signals improved core operating efficiency and cost structure. This creates a more durable earnings base, enhances ability to self-fund growth initiatives and investment in product development, and reduces reliance on one-off items for profitability.

Free cash flow generation

Sustained positive free cash flow strengthens liquidity and financial flexibility, enabling debt reduction, reinvestment in the platform, and funding of strategic partnerships without external capital. Reliable cash generation supports long-term solvency and strategic optionality.

Diverse, recurring revenue model

A mix of transaction fees, recurring POS/subscription income and partner channels provides revenue diversification and predictable cash flows. Recurring subscriptions and bank/tech partnerships can create structural customer stickiness and scale benefits over multiple reporting periods.

Negative Factors

High leverage burden

A debt-to-equity of 1.54 indicates material leverage that can constrain strategic flexibility. High debt increases interest costs and refinancing risk, reducing capacity to invest in product development or absorb demand shocks, and makes the business more sensitive to macro rate or liquidity stress.

Very thin net profit margin

A net margin near zero shows earnings are almost entirely absorbed by costs and financing charges. This leaves little buffer for margin compression, limits retained earnings for reinvestment, and makes long-term returns vulnerable to small cost increases or adverse pricing pressure.

Low returns and limited equity buffer

ROE of ~1% signals weak capital efficiency and limited value creation for shareholders. A modest equity ratio also means limited balance-sheet cushion versus peers, constraining the firm's ability to absorb losses, pursue acquisitions, or scale without increasing costly leverage.

WAG Payment Solutions Plc Business Overview & Revenue Model

Company Description

W.A.G payment solutions plc operates integrated payments and mobility platform that focuses on the commercial road transportation industry in Europe. It offers fuel and energy services, such as acceptance network, standard fuels, alternative fuels, and emobility; payment services, including fuel card, visa card, mobile payment, and protection payment; toll services; and financial services comprise TAX refund, excise duty refund, invoice currency exchange, and insurance. It also provides fleet management services, as well as roadside services, posted drivers registration, and freight ferry booking. The company was founded in 1995 and is based in London, the United Kingdom.

How the Company Makes Money

WAG Payment Solutions Plc primarily generates revenue through transaction fees charged to merchants for processing payments. Each time a customer makes a purchase using a card or mobile payment solution, WAG collects a percentage of the transaction value as a fee. In addition to transaction fees, the company also earns revenue from subscription services for its POS systems and software solutions, which may include monthly or annual fees for ongoing support and updates. Furthermore, WAG has established strategic partnerships with financial institutions and technology providers, enhancing its service offerings and contributing to its revenue through co-branded solutions and referral agreements. These partnerships allow WAG to expand its market reach and leverage additional revenue streams through bundled offerings and shared services.

WAG Payment Solutions Plc Financial Statement Overview

Summary

WAG Payment Solutions Plc has shown a commendable recovery in financial performance for 2024, with improvements in revenue growth, operational efficiency, and cash flow generation. However, the company still faces challenges with profitability margins and a relatively high debt level. Continued focus on cost control and debt management could further strengthen its financial position.

Income Statement

WAG Payment Solutions Plc shows a strong recovery in revenue with a positive growth rate from 2023 to 2024. The gross profit margin improved significantly in 2024 to 13.08%, up from 12.29% in 2023. Additionally, the EBIT and EBITDA margins turned positive in 2024, reflecting better operational efficiency. However, the net profit margin remains low at 0.12%, indicating potential challenges in cost control or high interest expenses affecting net income.

Balance Sheet

The company's debt-to-equity ratio decreased in 2024, showing reduced leverage compared to 2023, but remains relatively high at 1.54, indicating significant reliance on debt financing. The equity ratio improved to 23.46%, reflecting a moderate increase in financial stability. Return on equity remains low at 1.03% in 2024, suggesting limited profitability relative to shareholder investments.

Cash Flow

The free cash flow turned positive in 2024, demonstrating strong cash generation capabilities. The operating cash flow improved significantly, supporting the company's liquidity position. The operating cash flow to net income ratio indicates robust cash flow relative to net income, suggesting efficient cash management. The free cash flow to net income ratio also highlights the company's ability to generate cash in excess of net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.25B	2.24B	2.09B	2.37B	1.65B	1.25B
Gross Profit	360.09M	292.54M	256.53M	123.64M	97.47M	87.20M
EBITDA	107.68M	101.13M	38.01M	49.52M	32.84M	44.15M
Net Income	9.15M	2.70M	-45.64M	16.63M	9.15M	21.24M
Balance Sheet
Total Assets	1.20B	1.12B	1.14B	915.41M	802.86M	586.26M
Cash, Cash Equivalents and Short-Term Investments	130.82M	107.43M	93.77M	149.85M	226.86M	118.50M
Total Debt	394.52M	402.21M	429.44M	156.58M	171.05M	180.60M
Total Liabilities	923.77M	854.47M	881.50M	598.85M	518.11M	522.15M
Stockholders Equity	276.90M	261.94M	256.45M	312.28M	275.86M	29.99M
Cash Flow
Free Cash Flow	83.25M	82.78M	-19.10M	36.97M	-14.79M	83.44M
Operating Cash Flow	131.32M	128.95M	30.92M	44.24M	-9.57M	86.66M
Investing Cash Flow	-47.97M	-55.54M	-333.72M	-104.29M	-43.08M	-23.21M
Financing Cash Flow	-48.83M	-56.14M	247.14M	-18.18M	187.78M	5.44M

WAG Payment Solutions Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EWG, the sentiment is Positive. The current price of 116 is above the 20-day moving average (MA) of 106.58, above the 50-day MA of 98.95, and above the 200-day MA of 85.02, indicating a bullish trend. The MACD of 8.04 indicates Negative momentum. The RSI at 81.89 is Negative, neither overbought nor oversold. The STOCH value of 97.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EWG.

WAG Payment Solutions Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNX	77 Outperform	£170.43M	15.29	104.98%	7.02%	-4.35%	5.34%
BOKU	70 Outperform	£651.72M	63.58	9.64%	―	22.19%	78.35%
BGO	69 Neutral	£66.59M	-32.64	-10.50%	―	6.40%	70.78%
EWG	66 Neutral	£882.85M	96.59	3.98%	―	-0.85%	―
PAY	65 Neutral	£287.58M	18.10	16.31%	20.30%	1.58%	-57.55%
BKS	64 Neutral	£150.58M	50.23	7.35%	―	26.09%	32.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

WAG Payment Solutions Plc Corporate Events

Eurowag Announces Board Change with Departure of Director Sophie Krishnan

Eurowag announced that Sophie Krishnan will step down as Director and Chair of the Remuneration Committee on 28 February 2026. Her departure marks a significant change in the board, as she has been instrumental in developing Eurowag’s digital platform and advocating for shareholder interests. The company will seek a successor and update stakeholders in due course.

The most recent analyst rating on (GB:EWG) stock is a Hold with a £102.00 price target. To see the full list of analyst forecasts on WAG Payment Solutions Plc stock, see the GB:EWG Stock Forecast page.

Eurowag Director Purchases Shares, Signaling Confidence in Strategic Direction

Eurowag announced a transaction involving the purchase of 25,880 ordinary shares at 97p each by Steve Dryden, a director of the company. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning its leadership with shareholder interests and may indicate confidence in its strategic direction.

The most recent analyst rating on (GB:EWG) stock is a Hold with a £102.00 price target. To see the full list of analyst forecasts on WAG Payment Solutions Plc stock, see the GB:EWG Stock Forecast page.

Eurowag Announces Total Voting Rights Update

Eurowag announced that its total issued ordinary share capital as of 31 October 2025 consists of 692,428,147 ordinary shares, each with one voting right. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:EWG) stock is a Hold with a £102.00 price target. To see the full list of analyst forecasts on WAG Payment Solutions Plc stock, see the GB:EWG Stock Forecast page.