Payment Fina (PMNT) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.28%
• Average Volume (3M): 14.31K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.70
• 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: 0.40
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 3.97
• P/FCF Ratio: -7.85
• 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: 62 Neutral
• Price Target: 835.00 ▲(30.20% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by the sharp swing to deeply negative 2025 operating/free cash flow and elevated leverage, which increase funding and earnings-quality risk despite strong reported margins. Technicals are supportive with a strong uptrend, though momentum looks stretched, and valuation is reasonable with a moderate P/E and a near-3% dividend yield.

Positive Factors

Revenue Growth and Scale

Multi-year revenue scale-up through 2025 demonstrates the company has expanded market penetration and grown on a larger base. Sustained top-line expansion supports economies of scale, improves operating leverage and provides a firmer foundation for durable margin and investment plans over the medium term.

High Profitability / Margins

Exceptionally high 2025 gross and operating margins indicate a resilient, high-margin business model. Such structural profitability creates internal funding capacity, cushions against cyclical pressure, and supports sustained return generation even if growth moderates, bolstering long-term operational stability.

Strong Return on Equity

ROE near 22% in 2025 signals efficient use of shareholders' capital and consistent earnings power. High returns provide flexibility to fund growth internally, support dividend policy or buybacks, and indicate durable profitability that can withstand normal business-cycle variability over the medium term.

Negative Factors

Sharp Negative Operating Cash Flow

A large swing to negative operating and free cash flow in 2025 reveals weak cash conversion of reported profits and creates immediate funding pressure. Persistent or repeated negative OCF elevates liquidity and refinancing risk, limiting the firm's ability to self-fund capex, pay dividends or reduce debt over the medium term.

Elevated and Rising Leverage

Meaningful and rising debt (debt/equity ~1.5x) increases financial vulnerability, especially given the 2025 cash-flow shortfall. Higher leverage magnifies earnings volatility, heightens refinancing and interest-rate exposure, and constrains strategic flexibility and investment capacity absent stronger cash generation.

Inconsistent Cash Generation & Margin Volatility

Irregular cash-flow patterns and noted margin swings undermine earnings quality and forecasting reliability. This variability complicates capital allocation, raises the likelihood of future funding needs, and increases the cost of external financing, making sustained execution and planning more challenging over several quarters.

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

Strong multi-year revenue scale-up and high 2025 profitability (gross ~86%, EBIT ~42%, net ~32%) are meaningful positives. However, the sharp deterioration to negative 2025 operating/free cash flow (~-28M) and inconsistent cash generation, alongside elevated and rising leverage (debt ~123M; debt/equity ~1.50x), materially increase financial risk and reduce the score.

Income Statement

Revenue has scaled materially from 2020 to 2025, with 2025 showing solid growth (+6.9% YoY) on a much larger base. Profitability is a clear strength: 2025 delivered strong margins (gross ~86%, EBIT ~42%, net ~32%) and net income of ~18.2M, continuing the multi-year move from losses in 2021 to sustained profitability. Offsetting this, margin volatility is notable (e.g., unusually high gross margins in 2023–2024 vs. lower in 2025), which suggests earnings quality may fluctuate with mix or accounting items.

Balance Sheet

The company has expanded its asset base (to ~215.6M in 2025) and generates healthy returns on equity (~22% in 2025), indicating strong earnings power relative to equity. However, leverage is meaningful and rising: total debt increased to ~123.2M in 2025 and debt relative to equity is elevated (~1.50x). While equity is positive and growing versus earlier years, the balance sheet still carries higher financial risk due to the debt load.

Cash Flow

Cash generation is the main weak point. In 2025, operating cash flow swung sharply negative (~-28.1M) and free cash flow was also deeply negative (~-28.6M), a major deterioration versus 2024’s modestly positive cash flow. Cash flow has been inconsistent across years (negative in 2022–2023, positive in 2024, sharply negative in 2025), which raises questions about the reliability of earnings translating into cash and increases funding risk if the pattern persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	56.62M	43.05M	38.52M	23.87M	7.85M
Gross Profit	48.71M	43.05M	38.52M	21.18M	7.42M
EBITDA	26.97M	22.60M	21.37M	10.56M	-83.00K
Net Income	18.19M	13.29M	10.30M	8.81M	-769.00K
Balance Sheet
Total Assets	215.58M	166.56M	186.34M	163.88M	32.94M
Cash, Cash Equivalents and Short-Term Investments	5.94M	10.92M	16.92M	31.41M	20.95M
Total Debt	123.22M	88.48M	119.50M	105.82M	9.14M
Total Liabilities	133.38M	98.48M	124.77M	107.69M	10.78M
Stockholders Equity	82.20M	68.08M	61.57M	56.19M	22.16M
Cash Flow
Free Cash Flow	-28.64M	3.78M	-5.41M	-7.96M	-1.17M
Operating Cash Flow	-28.06M	3.91M	-5.30M	-7.57M	-1.11M
Investing Cash Flow	-1.75M	-2.34M	-2.90M	-2.72M	-804.00K
Financing Cash Flow	24.83M	-7.57M	-6.29M	23.27M	19.55M

Payment Fina Technical Analysis

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

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 below the 20-day moving average (MA) of 721.79, below the 50-day MA of 655.42, and above the 200-day MA of 490.90, indicating a bullish trend. The MACD of 40.33 indicates Negative momentum. The RSI at 72.19 is Negative, neither overbought nor oversold. The STOCH value of 65.86 is Neutral, 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	75 Outperform	₪13.85B	88.76	―	0.58%	24.95%	61.05%
NYAX	69 Neutral	₪5.84B	67.79	―	―	20.86%	―
PMNT	62 Neutral	―	16.66	―	4.28%	38.85%	89.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%