PaySign (PAYS) AI Stock Analysis

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PaySign

(NASDAQ:PAYS)

69Neutral

PaySign's overall stock score reflects a balance of strong financial performance, particularly in revenue growth and cash flow, against technical indicators suggesting potential near-term weakness. The high P/E ratio indicates market expectations for growth, supported by positive earnings call insights about strategic expansions and revenue projections. However, challenges in the plasma segment and increased operating expenses present risks that investors should consider.

Positive Factors

Financial Performance

Paysign reported better than expected Q4/24 financial results with a revenue increase of 14% to $15.6 million and an adjusted EBITDA increase of 14% to $2.86 million.

Market Position

Paysign is seen as offering value to investors as a growing market share leader in a niche payment industry with potential catalysts for growth.

Pipeline and Growth

The Patient Affordability business was Paysign’s primary growth driver in 2024 with a revenue increase of 212% YOY to $12.7 million, and Paysign expects this segment to at least double in revenue in 2025.

Negative Factors

Plasma Revenue Decline

Plasma revenue declined by 6.2% to $10.8 million due to a decrease in plasma donations and dollars loaded to cards, as plasma inventory levels have normalized.

Valuation Concerns

Shares trading at a lower revenue multiple compared to the comp group median suggest catalytic growth potential is not fully reflected in the current valuation.

PaySign (PAYS) vs. S&P 500 (SPY)

Market Cap

$111.26M

Dividend YieldN/A

Average Volume (3M)263.63K

Price to Earnings (P/E)29.1

Beta (1Y)1.32

Revenue Growth23.50%

EPS Growth-41.63%

CountryUS

Employees173

SectorTechnology

Sector Strength40

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.07

Shares Outstanding53,747,673

10 Day Avg. Volume330,357

30 Day Avg. Volume263,635

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)N/A

Price to Sales (P/S)2.22

Price to Cash Flow (P/CF)-1.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.00

Price Target Upside201.51% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

PaySign Business Overview & Revenue Model

Company DescriptionPaySign, Inc. is a payments and financial technology company that operates in the United States. The company specializes in providing prepaid card products and processing services for corporate, consumer, and government applications. PaySign offers a comprehensive suite of services including card issuance, transaction processing, and program management tailored to industries such as healthcare, pharmaceuticals, and general compensation.

How the Company Makes MoneyPaySign generates revenue primarily through fees associated with its prepaid card programs. The company charges clients for card issuance, transaction processing, and program management services. Additionally, PaySign earns income from interchange fees, which are collected from merchants when cardholders use their prepaid cards for purchases. The company also benefits from interest and service fees related to funds loaded onto prepaid cards. Key partnerships with pharmaceutical companies, healthcare providers, and corporate clients contribute significantly to PaySign's earnings by expanding its customer base and enhancing its service offerings.

PaySign Financial Statement Overview

Summary

PaySign demonstrates strong revenue growth and improving operational efficiency. Despite some pressure on net profitability, the company maintains a healthy balance sheet with low leverage and strong cash flows, positioning it well for future growth and stability. However, the relatively low net profit margin and stockholders' equity warrant careful monitoring to ensure long-term financial health.

Income Statement

Positive

PaySign showed a strong revenue growth of 23.5% over the past year, indicating a positive trajectory. The gross profit margin stands at 55.1%, which is solid for the industry. However, the net profit margin has decreased to 6.5% from 13.7% last year, indicating some profitability pressure. The EBIT margin has improved to 1.7%, recovering from negative figures in prior years, showing signs of operational improvement.

Balance Sheet

Positive

The debt-to-equity ratio is low at 0.1, indicating minimal leverage, which is beneficial for financial stability. Return on equity is 12.5%, showing reasonable profitability relative to shareholder equity. The equity ratio is 17%, which is moderate and suggests a balanced capital structure. However, the stockholders' equity is relatively low compared to total liabilities, indicating potential risk if liabilities increase.

Cash Flow

Positive

Operating cash flow increased to $22.9 million, showcasing robust cash generation capabilities. Free cash flow also showed growth, which is a positive sign for future investments and debt servicing. The operating cash flow to net income ratio is high at 6.0, indicating strong cash conversion efficiency. The free cash flow to net income ratio is 5.9, reinforcing the company's strong cash position relative to earnings.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
56.47M	58.38M	47.27M	38.03M	29.46M	24.12M
	Gross Profit
26.23M	32.20M	24.14M	20.95M	14.71M	9.30M
	EBIT
1.19M	1.02M	-167.25K	344.33K	-2.74M	-7.91M
	EBITDA
7.46M	10.13M	3.86M	3.25M	-213.22K	-5.79M
	Net Income Common Stockholders
8.07M	3.82M	6.46M	1.03M	-2.72M	-9.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.77K	10.77M	16.99M	9.71M	7.39M	7.83M
	Total Assets
6.20M	179.03M	146.60M	108.24M	84.05M	67.83M
	Total Debt
2.50M	2.93M	3.31M	3.67M	4.01M	4.33M
	Net Debt
2.45M	-7.84M	-13.68M	-6.04M	-3.37M	-3.50M
	Total Liabilities
9.33B	148.59M	122.11M	91.95M	71.06M	54.60M
	Stockholders Equity
-3.18M	30.44M	24.49M	16.29M	12.99M	13.24M
Cash Flow		Free Cash Flow
22.94M	22.51M	20.57M	21.23M	12.55M	10.43M
	Operating Cash Flow
32.07M	22.95M	27.62M	25.32M	15.23M	13.78M
	Investing Cash Flow
-9.14M	-9.49M	-7.05M	-4.09M	-2.68M	-3.34M
	Financing Cash Flow
-331.69K	-466.25K	-1.12M	0.00	192.14K	-72.86K

PaySign Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.99

Price Trends

50DMA

2.47

Negative

100DMA

2.80

Negative

200DMA

3.54

Negative

Market Momentum

MACD

-0.13

Positive

RSI

32.87

Neutral

STOCH

11.69

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAYS, the sentiment is Negative. The current price of 1.99 is below the 20-day moving average (MA) of 2.22, below the 50-day MA of 2.47, and below the 200-day MA of 3.54, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 32.87 is Neutral, neither overbought nor oversold. The STOCH value of 11.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAYS.

PaySign Risk Analysis

PaySign disclosed 28 risk factors in its most recent earnings report. PaySign 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

PaySign Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PYPL	74 Outperform	$63.26B	15.15	20.00%	―	7.10%	4.45%
XYZ	73 Outperform	$34.68B	11.63	14.50%	―	10.06%	38060.98%
GPN	73 Outperform	$22.19B	14.65	6.94%	1.11%	4.68%	63.39%
PAYS	69 Neutral	$111.26M	29.05	13.89%	―	23.50%	-41.63%
EVRI	62 Neutral	$1.17B	79.30	6.23%	―	-6.97%	-81.42%
GDOT	61 Neutral	$418.65M	―	-3.08%	―	14.82%	-461.78%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%

* Technology Sector Average

Performance Comparison

PAYS

PaySign

1.99

-2.47

-55.38%

EVRI

Everi Holdings

13.52

4.13

43.98%

GPN

Global Payments

83.24

-40.08

-32.50%

GDOT

Green Dot

7.24

-0.94

-11.49%

PYPL

PayPal Holdings

60.56

-5.24

-7.96%

XYZ

Block

52.91

-27.15

-33.91%

PaySign Earnings Call Summary

Earnings Call Date: Mar 25, 2025 | % Change Since: -19.76% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Neutral

The earnings call indicated strong growth in the patient affordability business and strategic expansion through acquisitions, which were partly offset by challenges in the plasma business and increased operating expenses. The overall sentiment is balanced with significant achievements in revenue growth and strategic initiatives, but also notable challenges in specific segments.

Highlights

Strong Revenue Growth

For the full year 2024, revenue increased by 23.5% to $58.4 million, and adjusted EBITDA increased 43.3% to $9.6 million. Adjusted EBITDA margins improved by 230 basis points to 16.5%.

Patient Affordability Business Success

The patient affordability segment grew 212% year-over-year, reaching $12.7 million in revenue compared to $4.1 million in 2023. Claims processed increased by 272%, and 33 net programs were added, representing a 77% increase over the previous year.

Strategic Acquisition

Paysign announced the acquisition of Gamma Innovation LLC, enhancing their capability to offer integrated solutions for plasma donor and pharmaceutical patient engagement, and marking their entry into the high-margin software-as-a-service market.

Strong Financial Position

Paysign exited the year with $10.8 million in unrestricted cash and zero debt.

Lowlights

Plasma Business Challenges

Plasma revenue for the fourth quarter was down 6.2%, driven by fractionators working through an oversupply of source plasma and increased donation yields leading to reduced donor compensation payments.

Increase in Operating Expenses

SG&A for the quarter increased 36.7% to $6.3 million, and total operating expenses increased 34.2% to $8.7 million, attributed to investments in IT and personnel.

Decline in Net Income

Net income for the fourth quarter was $1.4 million or $0.02 per fully diluted share, compared to $5.6 million or $0.05 per share in the same period last year.

Company Guidance

In the Paysign, Inc. earnings call for the fourth quarter and full year 2024, significant guidance was provided, emphasizing several key financial metrics and projections. The company reported an impressive 23.5% increase in full-year revenue, reaching $58.4 million, alongside a 43.3% rise in adjusted EBITDA to $9.6 million, with adjusted EBITDA margins improving by 230 basis points to 16.5%. The patient affordability segment emerged as a primary growth driver, boasting a 212% increase in annual revenue to $12.7 million, a 272% rise in claims processed, and a 77% growth in net programs added. For 2025, Paysign anticipates a continuation of this momentum, projecting a doubling of revenue in the patient affordability business. However, the plasma donor compensation business experienced a modest 4.6% revenue increase, with challenges expected to persist due to oversupply issues. Paysign plans to add 10 to 15 new plasma centers in 2025. The company's initial guidance for 2025 projects total revenues between $68.5 million and $70 million, with plasma revenue comprising approximately 57.5% of the total. Gross profit margins are anticipated to be between 62% and 64%, and adjusted EBITDA is forecasted to range from $12.5 million to $13.5 million. The strategic acquisition of Gamma Innovation LLC is also expected to enhance Paysign's capabilities and expand its total addressable market, although its revenue contributions are not yet fully incorporated into the 2025 guidance.

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.