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Adyen NV (NL:ADYEN)
:ADYEN
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Adyen
(OTC:ADYEN)
Rating:73Outperform
Price Target:
€1,780.00
▲(12.46%Upside)
Positive Factors
Business Growth
Adyen added 32k business customers serviced in Q1, which appears to be a strong start after a total of +58k in FY24.
Financial Performance
A stronger take rate was achieved, reaching 17.0 basis points compared to 14.6 basis points.
Market Opportunity
Confidence in mid-term ambition further supports a positive sentiment.
Negative Factors
Consumer Spending
Acceleration in net revenue growth could be challenged if there is a decline in consumer spending.
Macroeconomic Uncertainty
Macro uncertainty will remain an overhang for the foreseeable future, especially after Q4 being the toughest comp.
Revenue Growth
Adyen delivered a miss on revenue/volume as ramp down of Block impacted digital.
Adyen (ADYEN) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
$49.85B
Dividend YieldN/A
Average Volume (3M)76.52K
Price to Earnings (P/E)53.2
Beta (1Y)2.38
Revenue Growth17.05%
EPS Growth32.05%
CountryNL
Employees4,345
SectorTechnology
Sector Strength89
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)16.49
Shares Outstanding31,494,158
10 Day Avg. Volume91,071
30 Day Avg. Volume76,516
Financial Highlights & Ratios
PEG Ratio3.88
Price to Book (P/B)16.55
Price to Sales (P/S)0.00
P/FCF Ratio20.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1,958.28Price Target Upside23.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
Adyen Business Overview & Revenue Model
Company DescriptionAdyen N.V. operates a payments platform in Europe, the Middle East, Africa, North America, the Asia Pacific, Latin America. The company's platform integrates payments stack that include gateway, risk management, processing, issuing, acquiring, and settlement services. It offers a back-end infrastructure for authorizing payments across merchants' sales channels, as well as online, mobile, in-store, and APIs; and data insights. The company's platform services a range of merchants across various verticals, connecting them directly to Visa, Mastercard, and other payment methods. Adyen N.V. was incorporated in 2006 and is headquartered in Amsterdam, the Netherlands.
How the Company Makes MoneyAdyen makes money primarily through transaction fees charged to merchants for processing payments. These fees are typically a percentage of the transaction value plus a fixed fee per transaction. The company also earns revenue by providing additional services such as fraud prevention, data analytics, and currency conversion. Adyen's significant partnerships with major global companies, such as Uber, Spotify, and eBay, contribute to its earnings by driving high transaction volumes through its platform. Additionally, Adyen benefits from a subscription-based model for certain value-added services, enhancing its revenue streams.
Adyen Earnings Call Summary
Earnings Call Date:Feb 13, 2025
(Q4-2024)
| % Change Since: 0.29%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment, with significant achievements in revenue growth, margin expansion, and product innovation. Despite some challenges with specific customer volume declines and regional currency impacts, the company's strategic investments and customer satisfaction indicators are strong.Q4-2024 Updates
Positive Updates
Strong Revenue Growth
Net revenues grew to approximately €1.1 billion, marking a 22% growth for the period, primarily driven by the existing customer base and increased share of wallet.
EBITDA Margin Expansion
EBITDA margins expanded to 53% in the second half of the year and just under 50% for the full year, attributed to strong net revenue growth and reduced hiring.
Product Innovation Success
New products like Intelligent Payment Routing and Uplift have shown success, with a 26% cost reduction and 22 basis points increase in conversion, doubling merchant adoption.
Regional Growth and Investment
EMEA was the fastest-growing region, with significant growth and market share gains in North America. Investments are being made in key APAC markets like Japan and India.
Record Transaction Volumes
Processed over €1 trillion in volume over the past year, with 160,000 transactions per minute during peak periods like Black Friday and Cyber Monday.
Net Promoter Score
Achieved an all-time high Net Promoter Score of 66, indicating strong customer satisfaction and appreciation.
Negative Updates
Impact of Large Customer Volume Decline
Volumes from a large digital customer declined throughout the second half, with no remaining volumes by year-end, impacting growth comparisons.
LATAM Growth Challenges
LATAM growth was affected by currency impacts, although constant currency growth was positive at 12%.
Company Guidance
During Adyen's H2 2024 earnings call, the company provided detailed guidance on its financial performance and strategic initiatives. Adyen reported net revenue growth of 22% for the period, reaching nearly €1.1 billion, driven primarily by increased share of wallet from existing customers. The EBITDA margin expanded to 53% in H2 and just under 50% for the full year, attributed to robust revenue growth and a strategic slowdown in hiring. In terms of product innovation, Adyen highlighted the successful launch of products like Intelligent Payment Routing, which resulted in a 26% cost reduction and a 22 basis point increase in conversion for pilot customers. The company processed over €1 trillion in volume last year, with a net promoter score reaching an all-time high of 66. Regional performance was strong, particularly in EMEA, which was the fastest-growing market, and North America, where Adyen continued to gain market share. The outlook for 2025 includes expected net revenue growth in the low-20s to high-20s, with slight acceleration compared to 2024, alongside continued EBITDA margin expansion, albeit at a slower pace. Adyen plans to increase hiring in 2025, with a focus on North America, while maintaining margin expansion. The company also discussed the regulatory environment as an opportunity to innovate and highlighted advancements in its embedded finance solutions.Adyen Financial Statement Overview
Summary
Adyen exhibits strong financial health with robust revenue growth and profitability. The balance sheet is stable with low leverage, and cash flows are strong despite recent cost increases. These factors position the company well for continued growth and stability.Income Statement
Adyen has shown strong revenue growth with a consistent upward trend over the years. The gross profit margin is impressive, indicating efficient cost management. Net profit and EBITDA margins are robust, reflecting high profitability. Recent decline in EBIT margin suggests some operational challenges, but overall financial performance remains strong.85
Very Positive
Balance Sheet
The company's balance sheet is solid, with a strong equity ratio indicating financial stability. The low debt-to-equity ratio suggests prudent financial management and low financial risk. Return on equity is healthy, demonstrating good returns to shareholders. However, maintaining high cash reserves may suggest conservative capital deployment.80
Positive
Cash Flow
Adyen's cash flow statements indicate strong free cash flow generation, supporting its financial flexibility. However, the free cash flow has seen a slight decline recently, signaling potential investment or operational cost increases. The operating cash flow to net income ratio is strong, ensuring liquidity to support operations.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.23B | 1.86B | 1.33B | 1.00B | 684.20M |
| Gross Profit | 1.99B | 1.63B | 948.92M | 759.80M | 503.63M |
| EBITDA | 1.36B | 1.03B | 755.81M | 653.29M | 414.33M |
| Net Income | 925.16M | 698.32M | 564.14M | 469.72M | 261.02M |
Balance Sheet | |||||
| Total Assets | 11.43B | 9.57B | 7.62B | 5.78B | 4.16B |
| Cash, Cash Equivalents and Short-Term Investments | 9.99B | 8.22B | 6.45B | 4.60B | 2.75B |
| Total Debt | 228.26M | 223.06M | 203.07M | 142.96M | 131.49M |
| Total Liabilities | 7.19B | 6.42B | 5.20B | 3.97B | 2.94B |
| Stockholders Equity | 4.23B | 3.15B | 2.42B | 1.81B | 1.22B |
Cash Flow | |||||
| Free Cash Flow | 1.60B | 1.80B | 1.93B | 1.77B | 999.55M |
| Operating Cash Flow | 1.70B | 1.87B | 2.02B | 1.82B | 1.02B |
| Investing Cash Flow | -118.62M | -69.74M | -87.69M | -42.13M | -22.16M |
| Financing Cash Flow | 70.60M | -20.61M | -12.22M | 96.24M | 3.39M |
Adyen Technical Analysis
Neutral
1582.80
Price Trends
1584.93
Negative
1576.22
Positive
1492.89
Positive
Market Momentum
-8.86
Positive
45.04
Neutral
27.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:ADYEN, the sentiment is Neutral. The current price of 1582.8 is below the 20-day moving average (MA) of 1655.66, below the 50-day MA of 1584.93, and above the 200-day MA of 1492.89, indicating a neutral trend. The MACD of -8.86 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:ADYEN.
Adyen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Performance Comparison
NL:ADYEN
Adyen
1,582.80
458.00
40.72%
DE:2DS
CM.com N.V.
6.75
0.10
1.50%
NL:THEON
Theon International Plc
30.95
18.54
149.40%
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.