WAG Payment Solutions Plc (WPS) AI Stock Analysis

• Market Cap: £580.01M
• Dividend Yield: N/A
• Average Volume (3M): 454.18K
• Price to Earnings (P/E): 254.5
• Beta (1Y): 0.22
• Revenue Growth: 4.31%
• EPS Growth: N/A
• Country: UK
• Employees: 1,900
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.02
• Shares Outstanding: 690,483,500
• 10 Day Avg. Volume: 545,077
• 30 Day Avg. Volume: 454,177
• PEG Ratio: 0.66
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.71
• 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: £103.00
• Price Target Upside: 22.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: 90.00p ▲(7.14%Upside)

The overall stock score is driven primarily by strong technical indicators indicating bullish momentum, and positive corporate events reinforcing strategic direction. However, the high P/E ratio suggests overvaluation risks, and financial performance reveals challenges in profitability margins and debt levels.

Positive Factors

Business Quality Improvement

There is a consistent upgrade in underlying quality of the business.

Financial Health

A special dividend is being offered, indicating financial health and rewarding shareholders.

Platform Strategy

Eurowag is well-positioned with its new platform strategy over the medium-term.

Negative Factors

Earnings Expectations

Adjusted EBITDA margin is 3-5% below expectations despite increased R&D capitalisation.

Macroeconomic Uncertainty

Caution is advised due to macroeconomic factors which remain uncertain.

Revenue Guidance

2025 guidance of net revenue growth is 1-4% below consensus.

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 primary in Europe. The company uses its proprietary technology to enhance performance of commercial road transport operators by providing a range of integrated services, including frictionless energy and toll payments, tax refunds, vehicle information and telematics, smart routing, and other services, including through its Road Lords app. W.A.G payment solutions plc was founded in 1995 and is based in London, the United Kingdom.

How the Company Makes Money

WAG Payment Solutions Plc generates revenue through a diverse range of services targeting the commercial road transportation industry. The primary revenue streams include transaction fees from fuel and toll payments facilitated through its proprietary payment processing platforms. Additionally, WPS earns income from service fees associated with its tax refund solutions, which help clients reclaim VAT and excise duties. The company also monetizes its telematics and fleet management offerings through subscription fees and value-added services that provide insights and analytics to optimize fleet operations. Strategic partnerships with fuel stations, toll operators, and technology providers further enhance WPS's service offerings and expand its market reach, contributing to its financial performance.

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.

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

WAG Payment Solutions Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WPS, the sentiment is Positive. The current price of 84 is above the 20-day moving average (MA) of 78.04, above the 50-day MA of 66.86, and above the 200-day MA of 71.00, indicating a bullish trend. The MACD of 5.29 indicates Negative momentum. The RSI at 63.77 is Neutral, neither overbought nor oversold. The STOCH value of 52.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WPS.

WAG Payment Solutions Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNX	77 Outperform	£225.40M	20.50	101.82%	3.78%	4.77%	15.03%
WPS	71 Outperform	£580.01M	254.55	1.05%	―	4.31%	―
Sector *	50 Neutral	AU$1.46B	1.74	-28.24%	3.29%	15.64%	-7.01%
BGO		£71.07M	―	-13.63%	―	―	―
PAY	75 Outperform	£597.26M	31.99	18.01%	1.70%	43.88%	28.50%
BOKU	74 Outperform	£604.79M	208.16	2.71%	―	16.77%	-63.97%
BKS	73 Outperform	£154.92M	65.53	6.33%	―	25.72%	290.00%

WAG Payment Solutions Plc Corporate Events

Eurowag Announces Successful 2025 AGM Resolutions

W.A.G Payment Solutions Plc, also known as Eurowag, announced the results of its 2025 Annual General Meeting (AGM), where all proposed resolutions were passed with significant shareholder support. Key resolutions included the approval of the company’s annual report, a special dividend, and the re-election of several directors. The AGM outcomes reflect strong shareholder confidence in Eurowag’s strategic direction and governance, potentially reinforcing its position in the CRT industry and impacting stakeholders positively.

The most recent analyst rating on (GB:WPS) stock is a Buy with a £1.30 price target. To see the full list of analyst forecasts on WAG Payment Solutions Plc stock, see the GB:WPS Stock Forecast page.

Eurowag’s Director Appointed to Sensirion’s Board

Eurowag announced that Mirjana Blume, its senior independent director, has been appointed as a non-executive director and chair of the Audit Committee at Sensirion Holding AG. This appointment highlights Eurowag’s strategic positioning in the industry and reflects its commitment to strengthening its leadership team, potentially impacting its operational efficiency and stakeholder relations.

The most recent analyst rating on (GB:WPS) stock is a Buy with a £1.30 price target. To see the full list of analyst forecasts on WAG Payment Solutions Plc stock, see the GB:WPS Stock Forecast page.

Eurowag Announces Deferred Bonus Awards for Key Executives

Eurowag announced the granting of Deferred Bonus Awards to its CEO, Martin Vohánka, and CFO, Oskar Zahn, under its Deferred Bonus Share Plan. These awards, linked to the deferral of one-third of their 2024 annual bonuses, will vest on the third anniversary of the grant, with Vohánka’s award settled in cash and Zahn’s structured as an option. This move aligns with the company’s Directors’ Remuneration Policy and reflects its commitment to long-term value creation.

Eurowag Releases 2024 Annual Report and AGM Notice

WAG Payment Solutions Plc has published its Annual Report for 2024 and the Notice of its Annual General Meeting (AGM) for 2025 on its website. The AGM is scheduled for May 22, 2025, in London, and relevant documents have been made available to shareholders and submitted to the Financial Conduct Authority, indicating the company’s compliance with regulatory requirements.