Payment Fina (PMNT) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.28%
• Average Volume (3M): 14.31K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.64
• Revenue Growth: 38.85%
• EPS Growth: 89.56%
• Country: IL
• Employees: 45
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 10.80
• Shares Outstanding: 39,245,033
• 10 Day Avg. Volume: 22,833
• 30 Day Avg. Volume: 14,311
• PEG Ratio: 0.28
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 2.89
• P/FCF Ratio: 32.90
• 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: 71 Outperform
• Price Target: 722.00 ▲(12.58% Upside)

Payment Fina's strong financial performance, characterized by robust revenue growth and profitability, is the most significant factor in its overall score. The stock's technical indicators suggest strong momentum, although caution is advised due to overbought signals. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, liquidity concerns from cash flow challenges need to be addressed to sustain long-term growth.

Positive Factors

Profitability and margins

Sustained, very high margins indicate a capital-light, scalable payment platform able to convert revenue into durable operating profit. High EBIT/EBITDA margins support reinvestment and cushion competitive pressure, underpinning long-term cash generation if converted to cash.

Strong top-line and EPS growth

Robust revenue and EPS expansion reflect accelerating adoption and pricing power in core products. Such multi-quarter growth supports market share gains, scale economies, and the ability to invest in product development and distribution over the next several quarters.

Diversified fintech revenue model

Multiple revenue streams—transaction fees, recurring subscriptions, bank partnerships and analytics—reduce reliance on any single source and increase resilience to payment-cycle volatility, supporting steady recurring revenue and long-term monetization opportunities.

Negative Factors

Negative operating cash flow

Operating losses in cash terms, despite accounting profits, signal that earnings may not be translating into liquid resources. Persistent negative operating cash flow undermines funding for growth, forces external financing, and raises sustainability risks across the next several quarters.

Sharp free cash flow decline

A large negative FCF growth rate indicates the company is consuming cash rapidly relative to its prior baseline. This reduces flexibility for investments, dividends, or debt paydown and makes the business more reliant on capital markets or short-term financing to sustain strategic initiatives.

Material leverage

Near‑1x debt-to-equity creates meaningful fixed obligations. Combined with weak cash conversion it elevates refinancing and liquidity risk, constraining capital allocation and increasing vulnerability to adverse revenue or margin shocks over a multi-month horizon.

Payment Fina Business Overview & Revenue Model

Company Description

Payment Financial Technologies Ltd. owns and operates a payment platform in Israel. Its platform sells retail credit through businesses. The company was founded in 2014 and is based in Omer, Israel.

How the Company Makes Money

Payment Fina generates revenue through multiple streams, primarily from transaction fees charged on the payment processing services it offers to merchants and consumers. Each time a transaction is completed through its platform, PMNT collects a small percentage of the transaction value as a fee. Additionally, the company earns money from subscription services for its premium financial management tools, where users pay a monthly or annual fee for enhanced features. PMNT also engages in partnerships with banks and financial institutions, which can provide additional revenue through referral fees and collaborative offerings. Moreover, the company may capitalize on data analytics by offering insights and reports to businesses for a fee, further diversifying its revenue sources.

Payment Fina Financial Statement Overview

Summary

Payment Fina shows strong revenue growth and profitability, supported by efficient operations and cost management. The balance sheet reflects a stable financial position with manageable leverage, though some caution is warranted. However, cash flow challenges indicate potential liquidity issues that could impact future operations. Overall, the company is performing well but should focus on improving cash flow management.

Income Statement

Payment Fina shows strong revenue growth with a TTM increase of 9.98%. The company maintains excellent gross profit margins at 100%, indicating effective cost management. Net profit margin is robust at 32.96%, reflecting strong profitability. EBIT and EBITDA margins are also healthy at 50.78% and 55.06%, respectively, suggesting efficient operations. Overall, the income statement reflects a solid financial performance with consistent growth and profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.98, indicating manageable leverage. Return on equity is strong at 23.12%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which could provide further insights into financial stability. Overall, the balance sheet demonstrates a stable financial position with some leverage concerns.

Cash Flow

Cash flow analysis shows challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is significantly negative at -119.50%, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, suggesting cash flow difficulties relative to reported earnings. Despite these challenges, the free cash flow to net income ratio is positive at 124.41%, indicating some ability to convert earnings into cash. Overall, the cash flow statement highlights liquidity concerns that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.41M	43.05M	38.52M	23.87M	7.85M	3.04M
Gross Profit	49.41M	43.05M	38.52M	21.18M	7.42M	3.04M
EBITDA	27.21M	22.60M	21.37M	10.56M	-83.00K	584.00K
Net Income	16.29M	13.29M	10.30M	8.81M	-769.00K	225.00K
Balance Sheet
Total Assets	156.20M	166.56M	186.34M	163.88M	32.94M	3.38M
Cash, Cash Equivalents and Short-Term Investments	4.58M	10.92M	16.92M	31.41M	20.95M	1.88M
Total Debt	74.88M	88.48M	119.50M	105.82M	9.14M	4.60M
Total Liabilities	79.64M	98.48M	124.77M	107.69M	10.78M	5.30M
Stockholders Equity	76.56M	68.08M	61.57M	56.19M	22.16M	-1.92M
Cash Flow
Free Cash Flow	-1.58M	3.78M	-5.41M	-7.96M	-1.17M	-184.00K
Operating Cash Flow	-1.27M	3.91M	-5.30M	-7.57M	-1.11M	-168.00K
Investing Cash Flow	-1.87M	-2.34M	-2.90M	-2.72M	-804.00K	184.00K
Financing Cash Flow	-5.74M	-7.57M	-6.29M	23.27M	19.55M	586.00K

Payment Fina Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 641.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PMNT, the sentiment is Positive. The current price of 641.3 is above the 20-day moving average (MA) of 588.81, above the 50-day MA of 559.99, and above the 200-day MA of 438.77, indicating a bullish trend. The MACD of 25.33 indicates Negative momentum. The RSI at 80.85 is Negative, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:PMNT.

Payment Fina Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TASE	77 Outperform	10.41B	66.69	―	0.58%	24.95%	61.05%
PMNT	71 Outperform	―	15.18	―	4.28%	38.85%	89.56%
NYAX	69 Neutral	6.30B	76.65	―	―	20.86%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%