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Nayax Ltd. (IL:NYAX)
:NYAX

Nayax (NYAX) AI Stock Analysis

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IL

Nayax

(NYAX)

Rating:69Neutral
Price Target:
17,575.00
▲(13.02%Upside)
Nayax's strong financial performance and positive earnings call sentiment are key drivers of the score. The technical analysis supports a bullish trend, though potential overvaluation and short-term overbought signals are risks. The high P/E ratio negatively impacts valuation, while the lack of dividend yield detracts from the stock's overall appeal.
Positive Factors
Market Position
Improved integration with over 2,400 original equipment manufacturers should help reduce customer acquisition costs and support growth in new verticals.
Partnerships
Nayax announced a new partnership with Lynkwell, a top 10 charging network in the U.S., which will leverage the company’s Uno Mini device.
Revenue Growth
Management expressed confidence in reaching the company’s 2025 guidance, which calls for 30%-35% revenue growth and adjusted EBITDA of $65 million to $70 million, implying 16% margin at the midpoint.
Negative Factors
Stock Liquidity
Low stock liquidity will likely remain a challenge and could create stock price volatility.
Stock Volatility
Nayax maintains a strong trajectory, and there is encouragement from improving trading liquidity with average daily volume on the Nasdaq increasing.

Nayax (NYAX) vs. iShares MSCI Israel ETF (EIS)

Nayax Business Overview & Revenue Model

Company DescriptionNayax (NYAX) is a global fintech company specializing in providing cashless payment solutions, management systems, and value-added services for retailers and service providers across various sectors. The company's core products include point-of-sale (POS) systems, vending management software, and telemetry solutions, which are designed to enhance operational efficiency and consumer convenience. Nayax serves a diverse clientele, including unattended machine operators, retail businesses, and hospitality providers, enabling them to seamlessly integrate cashless payments and improve customer experiences.
How the Company Makes MoneyNayax generates revenue through multiple streams, primarily by offering payment processing services, telemetry, and management software solutions. The company charges transaction fees to merchants for processing cashless payments, which form a significant portion of its income. Additionally, Nayax sells its proprietary POS terminals and related hardware, thereby earning revenue from equipment sales. The company also offers subscription-based services for its management and telemetry software, providing businesses with data analytics and operational insights. Strategic partnerships with financial institutions and technology providers further enhance Nayax's offerings and expand its market reach, contributing to its financial performance.

Nayax Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 6.73%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong start to the fiscal year with significant revenue growth, expansion in recurring revenue, and strategic acquisitions. Despite some challenges with foreign currency volatility and negative free cash flow, the company remains optimistic about its growth trajectory and strategic initiatives.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue for the quarter increased by 27% over Q1 2024, reaching $81 million. On a constant currency basis, revenue grew by 28% to $82 million.
Increase in Recurring Revenue
Recurring revenue grew by 35% over Q1 2024, representing 77% of total revenue compared to 72% in the same quarter last year.
Expansion of Customer Base
Customer base expanded by more than 30% since Q1 2024, reaching over 100,000 customers at the end of Q1.
Growth in Managed Devices
Installed base of managed and connected devices grew by 20% since Q1 2024 to more than 1.3 million devices.
Profitability Increase
Adjusted EBITDA was $9.7 million, representing 12% of total revenue, up from 6% of revenue in the previous year.
Strategic Acquisitions
Acquired UPPay and increased ownership in Tigapo to 84%. Also acquired Inpro Pay in the Benelux region.
Negative Updates
Impact of Foreign Currency Volatility
Revenue impact of approximately $700,000 due to foreign currency volatility in the quarter.
Negative Free Cash Flow
Free cash flow for the quarter was negative $5.7 million, mainly due to the timing of cash settlements from processing activities.
Company Guidance
During Nayax's First Quarter 2025 Earnings Conference Call, the company provided positive guidance, highlighting a robust start to the fiscal year. Nayax reported a 27% increase in revenue compared to Q1 2024, reaching $81 million, with constant currency revenue at $82 million, representing a 28% increase. Recurring revenue grew by 35%, comprising 77% of total revenue, an increase from 72% in the previous year. The company achieved an adjusted EBITDA of $9.7 million, 12% of total revenue, demonstrating a focus on profitable growth. Key performance indicators included an 18% rise in total transaction value to $1.3 billion and a 30% expansion in the customer base to over 100,000. Nayax reaffirmed its full-year 2025 guidance, projecting revenue growth of 30% to 35% and an adjusted EBITDA range of $65 million to $70 million. The company remains focused on expanding its market share, enhancing its recurring revenue mix, and exploring strategic M&A opportunities while prioritizing organic growth.

Nayax Financial Statement Overview

Summary
Nayax demonstrates strong revenue growth and improved operational efficiency, with significant progress in cash flow generation. Despite persistent net losses, the trajectory is positive, and cash flow improvements are a strong indicator of future potential. The balance sheet remains solid, though profitability and return on equity are key areas for improvement.
Income Statement
72
Positive
The company has shown a strong revenue growth with a 33% increase from the previous year. Gross profit margin improved to 45.1%, indicating efficient cost management. However, the net profit margin remains negative due to persistent net losses, though the losses have reduced significantly compared to prior years. EBIT and EBITDA margins have improved, reflecting better operational performance, but profitability remains a challenge.
Balance Sheet
65
Positive
The company maintains a healthy equity position with an equity ratio of 38.2%, up from the previous year. The debt-to-equity ratio has improved, indicating better leverage management. However, the return on equity is still negative due to net losses, but the narrowing losses suggest potential for future improvement.
Cash Flow
78
Positive
Operating cash flow has significantly improved, showing positive cash generation. The free cash flow has turned positive, indicating improved liquidity and financial flexibility. Free cash flow to net income ratio is positive, suggesting that the company is generating cash even though it is not yet profitable.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
314.01M235.49M173.51M119.13M78.78M
Gross Profit
141.53M88.29M60.04M48.16M37.18M
EBIT
3.10M-12.38M-34.04M-22.48M-2.22M
EBITDA
23.70M458.00K-28.66M-15.54M1.26M
Net Income Common Stockholders
-5.63M-15.89M-37.51M-24.76M-6.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
92.46M39.66M33.96M87.38M8.28M
Total Assets
432.89M323.86M230.49M216.01M92.75M
Total Debt
54.90M75.10M29.52M19.96M31.09M
Net Debt
-28.23M36.71M-4.36M-67.37M22.90M
Total Liabilities
267.65M226.27M125.85M84.33M80.25M
Stockholders Equity
165.25M97.59M104.64M131.68M12.50M
Cash FlowFree Cash Flow
17.93M-7.76M-42.77M-21.50M-1.37M
Operating Cash Flow
42.90M8.80M-27.55M-12.81M6.49M
Investing Cash Flow
-45.91M-36.83M-26.54M-22.64M-8.57M
Financing Cash Flow
50.84M31.55M6.21M114.14M6.05M

Nayax Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15550.00
Price Trends
50DMA
14376.20
Positive
100DMA
13843.50
Positive
200DMA
11949.27
Positive
Market Momentum
MACD
376.65
Negative
RSI
56.66
Neutral
STOCH
50.97
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 15550 is above the 20-day moving average (MA) of 15090.50, above the 50-day MA of 14376.20, and above the 200-day MA of 11949.27, indicating a bullish trend. The MACD of 376.65 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 50.97 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$39.09B23.3513.40%11.65%25.43%
77
Outperform
$3.45B28.6324.82%1.76%32.63%46.16%
76
Outperform
$1.66B22.9316.09%1.96%3.84%10.25%
74
Outperform
$4.49B22.967.88%5.22%-58.99%
69
Neutral
5.74B245.81
32.81%
64
Neutral
$12.83B9.787.78%16985.64%12.26%-7.81%
64
Neutral
$340.96M24.754.79%13.49%-39.61%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:NYAX
Nayax
15,550.00
6,672.00
75.15%
CAMT
Camtek
75.69
-36.46
-32.51%
GILT
Gilat
6.33
1.06
20.11%
SPNS
Sapiens
29.70
-3.18
-9.67%
TSEM
Tower
41.10
2.34
6.04%
IL:NICE
Nice
61,700.00
-2,590.00
-4.03%

Nayax Corporate Events

Nayax Reports Significant Holdings Following Private Offering
Feb 16, 2025

Nayax has announced a notice of significant holdings following a private offering conducted on February 14th. The notice details the acquisition of securities, including a series of bonds, and reflects on changes in the number of shares registered under the company’s name as of December 31, 2024. This development, according to an SEC filing on February 11, 2025, indicates strategic financial maneuvers as part of a private purchase agreement, potentially impacting Nayax’s market positioning and stakeholder interests.

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.