PaySign (PAYS) AI Stock Analysis

• Market Cap: $313.64M
• Dividend Yield: N/A
• Average Volume (3M): 713.76K
• Price to Earnings (P/E): 46.6
• Beta (1Y): 1.85
• Revenue Growth: 27.84%
• EPS Growth: -13.78%
• Country: US
• Employees: 173
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.02
• Shares Outstanding: 54,451,890
• 10 Day Avg. Volume: 679,084
• 30 Day Avg. Volume: 713,765
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.46
• Enterprise Value/Gross Profit: 7.83
• Enterprise Value/Ebitda: 23.73
• 1Y Price Target: $8.40
• Price Target Upside: 48.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: $6.00 ▲(6.38% Upside)

PaySign's strong financial performance and positive earnings call sentiment are significant strengths, driving the overall score. However, the high P/E ratio and mixed technical indicators present some risks. The company's strategic expansion and revenue growth in key segments are promising, but challenges in the plasma compensation business and valuation concerns temper the outlook.

Positive Factors

Revenue Growth

The significant revenue growth reflects strong demand for PaySign's services, indicating robust market positioning and potential for continued expansion.

Cash Generation

Strong cash generation supports future investments and debt servicing, enhancing financial stability and strategic flexibility.

Product Innovation

New product offerings enhance PaySign's competitive edge and customer engagement, potentially driving long-term growth and market differentiation.

Negative Factors

Profitability Pressure

Declining net profit margins indicate pressure on profitability, which could impact long-term financial health if not addressed.

Plasma Business Challenges

Challenges in the plasma business, including declining revenues, may hinder overall growth and require strategic adjustments.

Industry Headwinds

Industry-specific challenges could limit growth in the plasma segment, necessitating strategic pivots or diversification to mitigate risks.

PaySign Business Overview & Revenue Model

Company Description

PaySign, Inc. provides prepaid card products and processing services under the PaySign brand for corporate, consumer, and government applications. It offers various services, such as transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through PaySign, a proprietary card-processing platform. The company also develops prepaid card programs for corporate incentive and rewards, including consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments, and pharmaceutical payment assistance; and payroll or general purpose reloadable cards, as well as gift or incentive cards. In addition, it offers and Per Diem/Corporate Expense Payments that allows businesses, and non–profits and government agencies the ability to control employee spending while reducing administration costs by eliminating the need for traditional expense reports. Further, the company provides payment claims processing and other administrative services; pharmacy-based voucher and copay, and medical claims and debit-based affordability programs; PaySign Premier, a demand deposit account debit card; and payment solution for source plasma collection centers, as well as customer service center and PaySign Communications Suite services. Its principal target markets for processing services comprise prepaid card issuers, retail and private-label issuers, small third-party processors, and small and mid-size financial institutions in the United States and Mexico. The company was formerly known as 3PEA International, Inc. and changed its name to PaySign, Inc. in April 2019. PaySign, Inc. was incorporated in 1995 and is based in Henderson, Nevada.

How the Company Makes Money

PaySign generates revenue through multiple streams, primarily from transaction fees associated with the use of its prepaid card programs and payment processing services. The company earns a percentage of each transaction processed, which varies based on the type of service provided. Additionally, PaySign charges fees for card issuance, monthly maintenance, and other ancillary services related to its prepaid card offerings. Strategic partnerships with healthcare providers, businesses, and financial institutions significantly contribute to its earnings by expanding its customer base and enhancing service offerings. Furthermore, the company may also generate revenue from interest earned on stored funds and other financial services related to its payment solutions.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.54M	58.38M	47.27M	38.03M	29.46M	24.12M
Gross Profit	39.00M	32.20M	24.14M	20.95M	14.71M	9.30M
EBITDA	12.88M	7.02M	3.86M	3.25M	-213.22K	-5.79M
Net Income	6.78M	3.82M	6.46M	1.03M	-2.72M	-9.14M
Balance Sheet
Total Assets	193.90M	179.03M	146.60M	108.24M	84.05M	67.83M
Cash, Cash Equivalents and Short-Term Investments	113.91M	10.77M	16.99M	9.71M	7.39M	7.83M
Total Debt	2.72M	2.93M	3.31M	3.67M	4.01M	4.33M
Total Liabilities	151.69M	148.59M	122.11M	91.95M	71.06M	54.60M
Stockholders Equity	42.21M	30.44M	24.49M	16.29M	12.99M	13.24M
Cash Flow
Free Cash Flow	-14.97M	13.46M	20.57M	21.23M	12.55M	10.43M
Operating Cash Flow	-8.24M	22.95M	27.62M	25.32M	15.23M	13.78M
Investing Cash Flow	-11.10M	-9.49M	-7.05M	-4.09M	-2.68M	-3.34M
Financing Cash Flow	-274.50K	-466.25K	-1.12M	0.00	192.14K	-72.86K

PaySign Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.64
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAYS, the sentiment is Positive. The current price of 5.64 is above the 20-day moving average (MA) of 5.46, below the 50-day MA of 6.13, and above the 200-day MA of 4.12, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAYS.

PaySign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	75 Outperform	2.33B	24.57	12.95%	―	13.02%	-2.57%
IMXI	69 Neutral	423.29M	8.70	36.17%	―	-4.19%	-3.52%
PAYS	67 Neutral	$313.64M	46.62	19.65%	―	27.84%	-13.78%
PRTH	57 Neutral	571.41M	27.48	-25.74%	―	12.86%	―
KPLT	53 Neutral	83.17M	-2.59	59.15%	―	13.23%	-1.78%
BKKT	43 Neutral	462.22M	-4.56	-137.66%	―	111.83%	73.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%