Payoneer (PAYO) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: N/A
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 29.2
• Beta (1Y): 1.57
• Revenue Growth: 10.58%
• EPS Growth: -45.52%
• Country: US
• Employees: 2,407
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.04
• Shares Outstanding: 356,440,300
• 10 Day Avg. Volume: 2,916,303
• 30 Day Avg. Volume: 2,785,601
• PEG Ratio: 0.97
• Price to Book (P/B): 4.96
• Price to Sales (P/S): 3.68
• P/FCF Ratio: 21.32
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 10.97
• 1Y Price Target: $9.00
• Price Target Upside: 62.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $6.00 ▲(8.30% Upside)

Payoneer's strong financial performance and positive earnings call are significant strengths, supported by robust revenue growth and strategic initiatives. However, technical indicators suggest bearish momentum, and valuation metrics indicate limited upside potential. Macroeconomic challenges and interest rate sensitivity are notable risks.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, enhancing long-term financial stability.

B2B Segment Expansion

Expansion in the B2B segment indicates successful penetration into high-value markets, supporting sustained revenue diversification.

Strategic Partnerships

Strategic partnerships enhance liquidity management and innovation, strengthening competitive positioning and future growth potential.

Negative Factors

Profitability Margins

Declining profitability margins may hinder long-term earnings potential and indicate challenges in cost management or pricing power.

Interest Income Sensitivity

Sensitivity to interest income fluctuations can affect earnings stability, especially in varying economic conditions.

Macro Challenges

Macroeconomic challenges and tariff impacts could lead to revenue volatility, affecting long-term growth and market confidence.

Payoneer Business Overview & Revenue Model

Company Description

Payoneer (PAYO) is a financial technology company that provides online money transfer and digital payment services. It primarily serves businesses, freelancers, and online sellers, facilitating cross-border payments and currency conversions. Payoneer's core products include multi-currency accounts, payment processing solutions, and working capital services, enabling users to send and receive funds globally with ease and efficiency.

How the Company Makes Money

Payoneer generates revenue through several key streams. Primarily, it charges transaction fees for incoming and outgoing payments, which vary based on the payment method and currency conversion rates. Additionally, the company earns revenue from foreign exchange spreads when users convert currencies within their accounts. Payoneer also offers premium services, such as working capital loans, for which it charges interest and fees. Significant partnerships with major e-commerce platforms and marketplaces, such as Amazon and Upwork, enhance its user base and transaction volume, further contributing to its earnings.

Payoneer Financial Statement Overview

Summary

Payoneer shows strong revenue growth and effective cost management, with a solid balance sheet and low leverage. However, there are challenges in operational efficiency and profitability margins, as indicated by declining net profit and EBIT margins.

Income Statement

Payoneer has shown consistent revenue growth with a TTM revenue growth rate of 2.36%. The gross profit margin is strong at 62.12%, indicating effective cost management. However, the net profit margin has decreased to 10.11% in the TTM, reflecting some pressure on profitability. The EBIT and EBITDA margins have also shown a decline compared to previous years, suggesting potential challenges in operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity is healthy at 14.03%, showcasing effective use of shareholder funds. The equity ratio is strong, reflecting a stable financial position with significant equity backing the assets.

Cash Flow

Payoneer has demonstrated positive free cash flow growth of 6.67% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is relatively low, suggesting that a significant portion of earnings is not being converted into cash. However, the free cash flow to net income ratio is high at 92.86%, showing efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	977.72M	831.10M	627.62M	473.40M	345.59M
Gross Profit	874.30M	825.61M	708.81M	517.46M	371.93M	248.55M
EBITDA	168.70M	148.17M	140.62M	20.03M	-18.00M	-8.58M
Net Income	72.37M	121.16M	93.33M	-11.97M	-33.99M	-23.75M
Balance Sheet
Total Assets	8.21B	7.93B	7.28B	6.59B	5.08B	3.67B
Cash, Cash Equivalents and Short-Term Investments	479.45M	497.47M	617.02M	543.30M	465.93M	102.99M
Total Debt	54.43M	21.38M	43.42M	31.01M	22.95M	40.02M
Total Liabilities	7.45B	7.21B	6.62B	6.05B	4.59B	3.65B
Stockholders Equity	750.49M	724.79M	664.27M	545.26M	487.07M	24.30M
Cash Flow
Free Cash Flow	165.94M	116.53M	111.70M	55.13M	-884.00K	-4.51M
Operating Cash Flow	224.46M	176.93M	159.49M	83.96M	20.02M	9.53M
Investing Cash Flow	-316.54M	-1.96B	-44.25M	5.73M	10.16M	-66.85M
Financing Cash Flow	901.72M	427.77M	511.95M	1.46B	1.40B	1.67B

Payoneer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAYO, the sentiment is Negative. The current price of 5.54 is below the 20-day moving average (MA) of 5.63, below the 50-day MA of 5.97, and below the 200-day MA of 6.89, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAYO.

Payoneer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAGS	75 Outperform	$3.19B	7.49	14.28%	1.41%	0.58%	5.76%
DLO	73 Outperform	$3.78B	24.90	32.78%	―	22.02%	12.42%
PAYS	69 Neutral	$282.37M	39.01	20.36%	―	32.61%	-8.26%
PAYO	69 Neutral	$1.97B	29.20	9.79%	―	10.58%	-45.52%
RELY	66 Neutral	$2.61B	133.30	2.94%	―	31.27%	―
MQ	64 Neutral	$2.09B	―	-4.10%	―	20.11%	-391.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Payoneer Corporate Events

Payoneer Inc. Reports Strong Q3 Growth Amid Challenges

During Payoneer’s latest earnings call, the sentiment was largely positive, underscored by strong revenue growth and strategic expansions. The company showcased its success in the B2B sector and highlighted increased Average Revenue Per User (ARPU), although it acknowledged some macroeconomic challenges and interest income sensitivity that could impact future performance.

Payoneer Inc. Reports Record Revenue and Raises 2025 Guidance

Payoneer Inc., a global financial technology company, specializes in providing cross-border payment solutions and financial services to businesses, particularly small and medium-sized enterprises (SMBs), enabling them to grow and transact globally with ease and confidence.