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Par Technology Corp (PAR)
NYSE:PAR
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Par Technology
(NYSE:PAR)
52Neutral
Positive Factors
Financial Performance
PAR results beat on total revenue and EBITDA, indicating a strong financial performance.
Growth Prospects
Management expects the BK rollout to significantly accelerate, enhancing future growth prospects.
Negative Factors
Contract Delays
The deceleration in organic ARR growth was largely due to the Burger King rollout being set back by the contract expansion.
Revenue Growth Challenges
Organic ARR growth fell short of expectations, indicating some challenges in achieving projected targets.
Par Technology (PAR) vs. S&P 500 (SPY)
Market Cap
$2.11B
Dividend YieldN/A
Average Volume (3M)444.73K
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth-7.31%
EPS Growth89.53%
CountryUS
Employees1,581
SectorTechnology
Sector Strength40
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.27
Shares Outstanding40,213,078
10 Day Avg. Volume372,016
30 Day Avg. Volume444,728
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.40
Price to Cash Flow (P/CF)70.50
P/FCF Ratio52.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$85.33Price Target Upside62.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Par Technology Business Overview & Revenue Model
Company DescriptionPAR Technology Corporation (PAR) is a leading provider of software, systems, and service solutions to the restaurant and retail industries. With a focus on delivering cutting-edge technology to streamline operations, PAR offers a variety of products including point-of-sale (POS) systems, back-office software, and cloud-based solutions that enhance customer engagement and operational efficiency. The company's offerings are designed to serve both large enterprise clients and independent operators, ensuring flexibility and scalability across different business models.
How the Company Makes MoneyPAR Technology makes money primarily through the sale and licensing of its software and hardware solutions to restaurant and retail businesses. Key revenue streams include the recurring subscription fees from its cloud-based services, which offer tools for inventory management, customer loyalty programs, and analytics. Additionally, PAR generates income from the sale and maintenance of its POS hardware systems. The company also benefits from significant partnerships with major restaurant chains, providing tailored solutions that integrate seamlessly with existing operations. Service contracts and support agreements further contribute to PAR's earnings, ensuring ongoing customer engagement and satisfaction.
Par Technology Financial Statement Overview
Summary
Par Technology's financial performance is mixed. While revenue is growing, consistent net losses and negative margins indicate profitability challenges. The balance sheet shows a strong equity base but high leverage, and cash flow from operations remains negative, suggesting operational difficulties.Income Statement
Par Technology has shown revenue growth over the years, which is a positive indicator. However, consistent net losses and negative EBIT and EBITDA margins highlight ongoing profitability challenges. The gross profit margin has improved slightly, but the net profit margin remains negative, indicating inefficiencies in cost management.55
Neutral
Balance Sheet
The company has a relatively strong equity position with an equity ratio of approximately 63% as of the latest report. However, the debt-to-equity ratio is somewhat high, suggesting a reliance on debt financing which could pose risks in a rising interest rate environment. Despite this, improvements in stockholders' equity over the years show a positive trajectory.60
Neutral
Cash Flow
Par Technology's cash flow from operations is negative, which is concerning as it indicates challenges in generating cash from core activities. However, the company has managed to maintain cash flow through financing activities. The lack of positive free cash flow growth and low operating cash flow to net income ratio are notable weaknesses.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 349.98M | 415.82M | 355.80M | 282.88M | 213.79M | Gross Profit |
| 146.12M | 98.31M | 89.29M | 62.12M | 39.33M | EBIT |
| -79.10M | -59.71M | -62.43M | -58.28M | -27.29M | EBITDA |
| -46.60M | -33.35M | -32.05M | -45.66M | -21.16M | Net Income Common Stockholders |
| -4.99M | -69.75M | -69.32M | -75.80M | -36.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 108.64M | 74.56M | 110.62M | 188.42M | 180.69M | Total Assets |
| 1.38B | 802.61M | 854.86M | 888.15M | 343.75M | Total Debt |
| 376.66M | 381.83M | 393.37M | 311.26M | 109.17M | Net Debt |
| 268.55M | 344.46M | 323.04M | 122.84M | -71.51M | Total Liabilities |
| 509.02M | 469.54M | 479.66M | 383.80M | 155.34M | Stockholders Equity |
| 871.71M | 333.06M | 375.19M | 504.35M | 188.41M |
| Cash Flow | Free Cash Flow | |||
| -32.03M | -27.94M | -50.69M | -61.44M | -29.47M | Operating Cash Flow |
| -25.25M | -17.07M | -43.07M | -53.16M | -20.24M | Investing Cash Flow |
| -180.11M | -7.78M | -66.71M | -382.99M | -9.04M | Financing Cash Flow |
| 278.51M | -1.62M | -2.57M | 443.61M | 180.69M |
Par Technology Technical Analysis
Negative
52.43
Price Trends
65.04
Negative
70.00
Negative
61.60
Negative
Market Momentum
-1.04
Negative
45.10
Neutral
47.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAR, the sentiment is Negative. The current price of 52.43 is below the 20-day moving average (MA) of 60.86, below the 50-day MA of 65.04, and below the 200-day MA of 61.60, indicating a bearish trend. The MACD of -1.04 indicates Negative momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 47.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAR.
Par Technology Risk Analysis
Par Technology disclosed 30 risk factors in its most recent earnings report. Par Technology reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Par Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.12B | 23.24 | 35.90% | ― | 27.20% | 70.25% | |
71 Outperform | $2.23B | 19.30 | 17.45% | ― | 17.64% | 30.75% | |
63 Neutral | $2.30B | 29.10 | 3.49% | 0.44% | 106.83% | 10.27% | |
60 Neutral | $2.05B | ― | 16.58% | ― | 8.99% | 63.84% | |
57 Neutral | $18.57B | 9.42 | -13.42% | 2.72% | 5.01% | -23.43% | |
52 Neutral | $2.11B | ― | -14.58% | ― | -7.31% | 89.53% | |
46 Neutral | $1.78B | ― | -20.89% | ― | 25.78% | 32.95% |
* Technology Sector Average
Performance Comparison
PAR
Par Technology
52.43
7.71
17.24%
AMBA
Ambarella
41.94
-6.46
-13.35%
RNG
RingCentral
22.61
-10.36
-31.42%
PAYO
Payoneer
6.21
1.33
27.25%
RLX
RLX Technology
1.81
0.02
1.12%
ODD
ODDITY Tech Ltd. Class A
37.97
-0.03
-0.08%
Par Technology Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -13.64% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and successful acquisition integrations, alongside improved financial metrics like ARR and adjusted EBITDA. However, the call also acknowledged net losses and challenges in specific dining segments. Overall, the positive achievements and strategic advancements outweigh the negatives.Highlights
Significant Revenue Growth
PAR Technology Corporation reported $105 million in revenues in Q4, marking an increase of more than 50% year over year.
Subscription Services ARR Doubling
Subscription services ARR more than doubled to $276 million from last year, with 21% organic growth compared to Q4 2023.
Operator Cloud ARR Growth
Operator Cloud ARR grew organically by 26% in Q4 compared to the same period last year, totaling approximately $117 million.
New Customer Wins
PAR POS signed eight new customer logos in the fourth quarter, with all new customers selecting multiple products.
Successful Acquisition of Delegate
The acquisition of Delegate was completed, and integration has shown strong customer interest, expanding entry into more than 25,000 sites.
Engagement Cloud Performance
Engagement Cloud ARR reported 15% organic growth in Q4, reaching approximately $159 million.
Hardware Revenue Increase
Hardware revenues increased by 7% in Q4 compared to the same quarter last year.
Improved Adjusted EBITDA
Adjusted EBITDA for Q4 improved by $13.1 million compared to Q4 prior year, showing significant progress in financial performance.
Lowlights
Net Loss from Continuing Operations
Net loss from continuing operations for Q4 2024 was $25 million, compared to a net loss of $22 million for the same period in 2023.
Challenges in Full-Service Dining
A slowdown in the full-service dining space was noted, although it has driven loyalty program investments.
Hardware Margin Decline
Hardware margin for the quarter was 26%, down from 29% in the prior year due to one-time inventory adjustments in the previous year.
Company Guidance
During the PAR Technology Corporation's 2024 Fourth Quarter and Year-End Financial Results Conference Call, the company provided guidance for continued robust growth in 2025, confidently projecting a 20%+ annual growth rate in revenue. Key metrics included a reported $105 million in Q4 revenues, marking over a 50% increase year-over-year. Subscription services annual recurring revenue (ARR) more than doubled to $276 million, with 21% organic growth compared to Q4 2023. Adjusted EBITDA was $5.8 million, more than doubling sequentially from the previous quarter. The company highlighted significant contributions from its Operator and Engagement Cloud services, with Operator Cloud ARR growing organically by 26% year-over-year, reaching approximately $117 million. Additionally, PAR reported an increase in hardware revenues by 7% compared to the same quarter last year. The acquisition of Delegate was expected to boost its back-office initiatives, while ongoing partnerships with major customers like Burger King are anticipated to drive accelerated implementations starting from Q2 2025. The company also noted a strong pipeline for its payment services, with notable customer onboarding in Q4.Par Technology Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
PAR Technology Reports Strong 2024 Financial Growth
Positive
Feb 28, 2025
PAR Technology Corporation announced its financial results for the fourth quarter and full year 2024, highlighting a significant growth in Annual Recurring Revenue (ARR) to $276 million, a 102% increase from the previous year, with organic growth contributing 21%. The company also reported a 95% year-over-year increase in quarterly subscription service revenues, and its acquisition of Delaget, LLC, a provider of restaurant analytics and business intelligence solutions, further strengthens its market position. The results reflect PAR’s strategic focus on organic execution and the integration of accretive modules, setting the stage for continued long-term growth and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.