Nayax Ltd. (IL:NYAX)
TASE:NYAX
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Nayax
(TASE:NYAX)
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Rating:61Neutral
Price Target:
22,841.00
▲(17.80% Upside)
Action:Reiterated
Date:05/20/26
The score is primarily supported by improved profitability and positive TTM free cash flow, plus a constructive outlook from reaffirmed 2026 guidance. It is held back by elevated leverage and a very high P/E valuation, while technical signals are mixed with weaker near-term momentum despite longer-term moving-average support.
Positive Factors
Recurring revenue mix
A high and growing recurring-revenue base (27% growth; ~74% of revenue) boosts revenue visibility and reduces cyclicality. Subscription and processing fees underpin durable margins, predictable cash flows and lower customer churn risk, supporting sustainable scaling over months to years.
Negative Factors
Elevated leverage
Debt-to-equity around 1.46 and gross debt roughly matching cash increases financial risk. Elevated leverage raises interest sensitivity, limits strategic flexibility, and requires consistent cash generation to de-risk the balance sheet if organic growth softens in the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue mix
A high and growing recurring-revenue base (27% growth; ~74% of revenue) boosts revenue visibility and reduces cyclicality. Subscription and processing fees underpin durable margins, predictable cash flows and lower customer churn risk, supporting sustainable scaling over months to years.
Read all positive factors
Nayax (NYAX) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪7.11B
Dividend YieldN/A
Average Volume (3M)61.08K
Price to Earnings (P/E)81.4
Beta (1Y)0.73
Revenue Growth15.81%
EPS Growth327.88%
CountryIL
Employees1,100
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.81
Shares Outstanding36,607,407
10 Day Avg. Volume55,479
30 Day Avg. Volume61,082
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)8.09
Price to Sales (P/S)4.31
P/FCF Ratio26.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪22,869.91Price Target Upside17.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.81
Revenue Forecast (FY)₪515.01M
Nayax Business Overview & Revenue Model
Company Description
Nayax Ltd., an Israeli fintech enterprise founded in Herzliya in 2005, operates a comprehensive global system and payment platform. The company provides a wide array of payment and telemetry solutions tailored for various commercial settings. Its ...
How the Company Makes Money
Nayax primarily makes money by monetizing payment acceptance and operating tools sold to merchants (operators of unattended/self-service machines). Key revenue streams typically include: (1) Transaction-based revenue from payment processing when c...
Nayax Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum: double-digit top-line growth (32%), robust transaction volume expansion (33%), ARPU and processing margin improvement, notable hardware demand (46% growth), and active strategic initiatives (embedded banking pilot, AI, Brazil integration, EV focus and M&A pipeline). Challenges highlighted were a Q1 negative free cash flow (-$6M) driven by investments and settlement timing, a decline in hardware gross margin due to promotions, higher interest expense from bond issuance, and modest FX and take-rate impacts. Management reaffirmed full-year guidance ($510M–$520M revenue; adjusted EBITDA ~$85M–$90M; free cash flow conversion ~40%), signaling confidence in execution despite near-term cash and margin pressure in hardware.Positive Updates
Strong Top-Line Growth
Revenue grew 32% year-over-year to $107M (26% organic growth), with recurring revenue up 27% and representing ~74% of total revenue.
Negative Updates
Hardware Gross Margin Compression
Hardware gross margin declined to 33.1% from 39.5% in Q1 2025, primarily due to promotional activity for VPOS Media launches in Europe; management expects hardware margins to remain around current levels with potential modest improvement.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Revenue grew 32% year-over-year to $107M (26% organic growth), with recurring revenue up 27% and representing ~74% of total revenue.
Read all positive updates
Company Guidance
Management reaffirmed 2026 guidance for revenue of $510–$520 million (including organic revenue growth of 22%–25%), an adjusted EBITDA margin of approximately 17% (implying $85–$90 million of adjusted EBITDA), and expected free cash flow conversion of about 40% of adjusted EBITDA, with this outlook framed against the company’s current scale (more than 1.5 million installed devices and ~120,000 customers) and taking FX and ongoing investments into account.Nayax Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 429.88M | 433.46M | 314.01M | 235.49M | 173.51M | 119.13M |
| Gross Profit | 195.48M | 193.54M | 141.53M | 88.29M | 60.04M | 48.16M |
| EBITDA | 69.83M | 57.39M | 23.70M | 458.00K | -26.71M | -15.54M |
| Net Income | 29.96M | 38.45M | -5.63M | -15.89M | -37.51M | -24.76M |
Balance Sheet | ||||||
| Total Assets | 880.21M | 852.82M | 432.89M | 323.86M | 230.49M | 216.01M |
| Cash, Cash Equivalents and Short-Term Investments | 408.27M | 412.76M | 92.46M | 39.66M | 33.96M | 87.38M |
| Total Debt | 337.49M | 337.70M | 54.90M | 75.10M | 29.52M | 19.96M |
| Total Liabilities | 642.57M | 621.75M | 267.65M | 226.27M | 125.85M | 84.33M |
| Stockholders Equity | 237.65M | 231.06M | 165.25M | 97.59M | 104.64M | 131.68M |
Cash Flow | ||||||
| Free Cash Flow | 38.32M | 70.79M | 17.93M | -7.76M | -42.77M | -21.50M |
| Operating Cash Flow | 51.02M | 76.56M | 42.90M | 8.80M | -27.55M | -12.81M |
| Investing Cash Flow | -88.42M | -91.74M | -45.91M | -36.83M | -26.54M | -22.64M |
| Financing Cash Flow | 181.11M | 295.57M | 50.84M | 31.55M | 6.21M | 114.14M |
Nayax Technical Analysis
Positive
19390.00
Price Trends
19673.00
Negative
18629.20
Positive
17007.70
Positive
Market Momentum
-126.04
Positive
47.83
Neutral
36.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NYAX, the sentiment is Positive. The current price of 19390 is below the 20-day moving average (MA) of 19888.00, below the 50-day MA of 19673.00, and above the 200-day MA of 17007.70, indicating a neutral trend. The MACD of -126.04 indicates Positive momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 36.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:NYAX.
Nayax Peers Comparison
UnderperformOutperform
Sector (61)
IL:NYAX
Nayax
19,430.00
2,970.00
18.04%
IL:FORTY
Formula
32,450.00
-4,528.79
-12.25%
IL:CMDR
Computer Direct
31,570.00
-11,386.06
-26.51%
IL:TOPG
Top Group
1,049.00
-243.41
-18.83%
IL:MLTM
Malam Team
7,257.00
-2,153.00
-22.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.