Nayax Ltd. (IL:NYAX)
TASE:NYAX
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Nayax
(TASE:NYAX)
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Rating:61Neutral
Price Target:
20,340.00
▲(4.90% 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
Profitability and Margin Structure
Nayax has swung to durable profitability with high gross and EBITDA margins versus earlier losses. Strong processing (~40%) and SaaS (76.5%) margins reflect scalable, high‑return services that bolster long-term operating leverage, enabling reinvestment and margin resiliency.
Negative Factors
Elevated Leverage
Leverage materially exceeds earlier levels, tightening financial flexibility. With gross debt near cash balances and higher interest expense from recent bond issuance, the company faces greater refinancing and coverage risk if organic cash generation or growth underperforms, limiting strategic optionality.
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Positive Factors
Negative Factors
Profitability and Margin Structure
Nayax has swung to durable profitability with high gross and EBITDA margins versus earlier losses. Strong processing (~40%) and SaaS (76.5%) margins reflect scalable, high‑return services that bolster long-term operating leverage, enabling reinvestment and margin resiliency.
Read all positive factors
Nayax (NYAX) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪7.06B
Dividend YieldN/A
Average Volume (3M)61.08K
Price to Earnings (P/E)411.5
Beta (1Y)0.70
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
₪22,219.93Price Target Upside14.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.79
Revenue Forecast (FY)₪514.34M
Nayax Business Overview & Revenue Model
Company Description
Nayax Ltd., a fintech company, operates system and payment platform worldwide. The company offers VPOS TOUCH that provides contactless and contact payment options; VPOS FUSION, a cashless payment card reader; ONYX, a contactless card reader and te...
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
18828.00
Positive
17954.00
Positive
16507.30
Positive
Market Momentum
84.63
Positive
48.40
Neutral
16.75
Positive
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 20012.00, above the 50-day MA of 18828.00, and above the 200-day MA of 16507.30, indicating a neutral trend. The MACD of 84.63 indicates Positive momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 16.75 is Positive, 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
19,350.00
4,630.00
31.45%
IL:FORTY
Formula
41,960.00
6,149.42
17.17%
IL:CMDR
Computer Direct
32,040.00
-7,332.97
-18.62%
IL:TOPG
Top Group
1,192.00
-116.89
-8.93%
IL:MLTM
Malam Team
8,394.00
74.00
0.89%
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.