Payton (PAYT) AI Stock Analysis

• Market Cap: 482.19M
• Dividend Yield: 8.91%
• Average Volume (3M): 1.24K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.46
• Revenue Growth: -24.59%
• EPS Growth: -20.40%
• Country: IL
• Employees: 170
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Electrical Equipment & Parts
• EPS (TTM): 4.72
• Shares Outstanding: 8,268,057
• 10 Day Avg. Volume: 1,113
• 30 Day Avg. Volume: 1,235
• PEG Ratio: -1.17
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 11.48
• 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: 72 Outperform
• Price Target: ―

Payton's stock is supported by strong financial fundamentals, particularly its robust balance sheet with no debt and high profitability. However, the technical analysis indicates potential short-term volatility, and the modest valuation reflects only moderate growth prospects. The high dividend yield is a significant advantage, making the stock appealing for income-focused investors. The primary challenge lies in addressing the slowdown in revenue and free cash flow growth to sustain its financial strength.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet provides financial flexibility and stability, allowing Payton to invest in growth opportunities without the burden of interest payments.

Profitability Margins

Strong profitability margins indicate effective cost management and pricing power, which can sustain earnings even in competitive or challenging market conditions.

Cash Flow Management

Effective cash flow management ensures that Payton can fund operations and growth initiatives internally, reducing reliance on external financing and enhancing financial resilience.

Negative Factors

Revenue Growth Decline

A decline in revenue growth suggests potential challenges in market expansion or increased competition, which could impact long-term profitability and market share.

Free Cash Flow Growth Slowdown

Slowing free cash flow growth may indicate operational inefficiencies or reduced demand, potentially limiting the company's ability to reinvest in its business or return capital to shareholders.

EPS Growth Decline

A decline in EPS growth can signal weakening profitability or increased costs, which may affect investor confidence and the company's ability to attract capital for future expansion.

Payton Business Overview & Revenue Model

Company Description

Payton Industries Ltd develops, produces, trades, markets, and sells transformers for communications, electronics, automotive, and industrial equipment industries in Israel, Europe, the United States, and East Asia. It offers planar and magnetic transformers, and inductors, as well as off the shelf SMT planar transformers. The company was incorporated in 1987 and is based in Ness Ziona, Israel.

How the Company Makes Money

Payton Financial Statement Overview

Summary

Payton exhibits a strong financial position with excellent profitability margins and no debt burden. The balance sheet is robust, supporting future growth and stability. While cash flow is managed well, the slowdown in revenue growth and free cash flow growth presents a minor risk. Overall, the company is well-positioned but should focus on reigniting revenue momentum.

Income Statement

Payton's income statement reflects a robust financial performance with a healthy gross profit margin and consistent profitability. The net profit margin has remained stable, indicating strong cost management. However, there has been a decline in revenue growth over the past year, signaling potential challenges in market expansion or competition.

Balance Sheet

The balance sheet is strong, with zero debt, leading to an excellent debt-to-equity ratio. The high equity ratio indicates financial stability and a solid foundation for future growth. Return on equity is impressive, reflecting effective use of shareholder funds, although slightly diminished by stagnant revenue.

Cash Flow

Cash flow management is commendable with solid free cash flow generation and a favorable operating cash flow to net income ratio. The slight decline in free cash flow growth suggests a need for attention towards operational efficiency improvements to sustain cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.31M	50.83M	54.86M	60.27M	43.98M	43.87M
Gross Profit	19.91M	22.12M	24.10M	24.49M	17.37M	18.14M
EBITDA	18.50M	18.05M	19.26M	18.68M	11.12M	12.91M
Net Income	10.60M	9.90M	9.97M	13.77M	8.28M	9.79M
Balance Sheet
Total Assets	110.31M	106.70M	84.92M	75.19M	72.07M	71.98M
Cash, Cash Equivalents and Short-Term Investments	80.93M	78.93M	56.48M	45.48M	38.92M	44.77M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	7.83M	7.10M	9.42M	6.65M	9.47M	10.39M
Stockholders Equity	75.70M	73.06M	50.05M	45.41M	41.51M	40.88M
Cash Flow
Free Cash Flow	12.69M	13.72M	18.44M	10.58M	6.46M	10.43M
Operating Cash Flow	13.28M	14.20M	18.98M	11.57M	6.98M	11.10M
Investing Cash Flow	4.11M	-26.95M	-2.89M	-6.41M	-8.90M	15.64M
Financing Cash Flow	-5.27M	9.37M	-8.21M	-8.02M	-7.27M	0.00

Payton Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6084.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PAYT, the sentiment is Neutral. The current price of 6084 is below the 20-day moving average (MA) of 6254.00, above the 50-day MA of 5978.02, and below the 200-day MA of 6183.33, indicating a neutral trend. The MACD of 19.74 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 24.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:PAYT.

Payton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYT	72 Outperform	482.19M	12.49	―	8.91%	-24.59%	-20.40%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GNCL	38 Underperform	28.99M	-0.38	―	―	110.02%	26.70%