PaySign (PAYS) AI Stock Analysis

• Market Cap: $384.95M
• Dividend Yield: N/A
• Average Volume (3M): 619.45K
• Price to Earnings (P/E): 64.7
• Beta (1Y): 1.81
• Revenue Growth: 26.77%
• EPS Growth: -13.24%
• Country: US
• Employees: 173
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.05
• Shares Outstanding: 54,217,674
• 10 Day Avg. Volume: 989,636
• 30 Day Avg. Volume: 619,449
• PEG Ratio: -0.95
• Price to Book (P/B): 8.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.33
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 3.87
• 1Y Price Target: $8.15
• Price Target Upside: 13.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $7.00 ▼(-2.78%Downside)

The most significant factor contributing to PaySign's stock score is its strong financial performance, characterized by robust cash flows and revenue growth. The positive sentiment from the recent earnings call further supports the score. However, high valuation and potential risks in the plasma segment moderate the overall score.

Positive Factors

Business Expansion

Paysign's growth outlook remains very positive driven by its Pharma Patient Affordability business segment and a recent large new business award within the Plasma segment.

Financial Performance

Paysign reported Q1/25 financial results that included a revenue increase of 41% to $18.6 million with a 193.3% increase in adjusted EBITDA to $4.96 million, results were better than consensus expectations.

Market Position

With the addition of new centers, Paysign will be providing donor compensation programs to more than 615 plasma centers across 18 plasma collection companies, increasing the number of centers the company supports by 27% and bringing its U.S. market share to approximately 50%.

Negative Factors

Revenue Decline

Plasma revenue declined 9.2% to $9.4 million due to reduced revenue per plasma center, reduced plasma donations and lower dollars loaded to cards, due to an industry-wide oversupply in plasma inventories.

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 primarily through fees associated with its prepaid card programs and payment processing services. Key revenue streams include transaction fees, card maintenance fees, and program management fees charged to clients utilizing their card services. Additionally, the company earns revenue from interchange fees, which are collected from merchants when cardholders use their PaySign cards for purchases. Significant partnerships with healthcare companies, corporate clients, and financial institutions also contribute to its earnings, enabling the company to expand its market presence and client base.

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	63.79M	58.38M	47.27M	38.03M	29.46M	24.12M
Gross Profit	35.51M	32.20M	24.14M	20.95M	14.71M	9.30M
EBITDA	11.84M	7.02M	3.86M	3.25M	-213.22K	-5.79M
Net Income	6.09M	3.82M	6.46M	1.03M	-2.72M	-9.14M
Balance Sheet
Total Assets	205.12M	179.03M	146.60M	108.24M	84.05M	67.83M
Cash, Cash Equivalents and Short-Term Investments	6.85M	10.77M	16.99M	9.71M	7.39M	7.83M
Total Debt	2.83M	2.93M	3.31M	3.67M	4.01M	4.33M
Total Liabilities	165.84M	148.59M	122.11M	91.95M	71.06M	54.60M
Stockholders Equity	39.27M	30.44M	24.49M	16.29M	12.99M	13.24M
Cash Flow
Free Cash Flow	1.38M	13.46M	20.57M	21.23M	12.55M	10.43M
Operating Cash Flow	8.67M	22.95M	27.62M	25.32M	15.23M	13.78M
Investing Cash Flow	-11.66M	-9.49M	-7.05M	-4.09M	-2.68M	-3.34M
Financing Cash Flow	-842.03K	-466.25K	-1.12M	0.00	192.14K	-72.86K

PaySign Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 7.2 is above the 20-day moving average (MA) of 5.40, above the 50-day MA of 3.95, and above the 200-day MA of 3.33, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 88.98 is Negative, neither overbought nor oversold. The STOCH value of 94.49 is Negative, 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
PAYS	71 Outperform	$384.95M	64.72	18.82%	―	26.77%	-13.24%
PAYO	69 Neutral	$2.40B	22.91	15.97%	―	14.86%	-0.94%
IMXI	61 Neutral	$297.67M	5.95	39.27%	―	-1.90%	0.05%
PRTH	59 Neutral	$614.10M	―	57.39%	―	15.76%	82.78%
Sector *	56 Neutral	$3.16B	4.94	-5.68%	5.75%	8.05%	-41.83%
BKKT	50 Neutral	$180.79M	―	-60.94%	―	128.83%	73.67%
KPLT	41 Neutral	$33.92M	―	86.76%	―	9.71%	-1.97%

PaySign Corporate Events

PaySign Stockholders Approve Key Proposals at Annual Meeting

On May 7, 2025, PaySign held its annual meeting of stockholders to vote on several key proposals. The stockholders elected seven directors to the board, approved executive compensation on a non-binding advisory basis, and decided to hold advisory votes on executive compensation every three years. Additionally, Moss Adams LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (PAYS) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on PaySign stock, see the PAYS Stock Forecast page.