PaySign (PAYS) AI Stock Analysis

• Market Cap: $264.21M
• Dividend Yield: N/A
• Average Volume (3M): 257.03K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 1.78
• Revenue Growth: 32.61%
• EPS Growth: -8.26%
• Country: US
• Employees: 173
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.04
• Shares Outstanding: 55,042,890
• 10 Day Avg. Volume: 235,278
• 30 Day Avg. Volume: 257,031
• PEG Ratio: -1.05
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 2.75
• P/FCF Ratio: 11.94
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 4.58
• Enterprise Value/Gross Profit: 7.66
• Enterprise Value/Ebitda: 23.87
• 1Y Price Target: $9.00
• Price Target Upside: 86.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $5.00 ▲(3.73% Upside)

The score is driven primarily by improved fundamentals and a strong, guidance-raising earnings call, tempered by deteriorating TTM free cash flow and weak technical momentum. Valuation is also a headwind given the elevated P/E and lack of dividend yield data.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, positioning PaySign for continued success in its industry.

Operational Efficiency

Improved operational efficiency enhances profitability and supports sustainable growth, allowing PaySign to better manage costs and resources.

Cash Generation

Strong cash generation provides financial flexibility for investments and debt servicing, contributing to long-term stability and growth potential.

Negative Factors

Net Profit Margin Decline

A declining net profit margin indicates pressure on profitability, which could impact PaySign's ability to reinvest in growth and maintain competitive positioning.

Increased Operating Expenses

Rising operating expenses can strain margins and reduce profitability, potentially limiting PaySign's ability to invest in strategic initiatives.

Regulatory Delays

Regulatory delays hinder new product launches, impacting revenue diversification and growth opportunities in the long term for PaySign.

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 by charging fees for its prepaid card programs and transaction processing services. The company's revenue model includes card issuance fees, transaction fees for point-of-sale purchases, and monthly service fees for ongoing account management. Additionally, PaySign benefits from interchange fees received from card transactions. The company has established strategic partnerships with various organizations, including healthcare providers and payment processors, which contribute to its earnings by expanding its customer base and enhancing its service offerings. These partnerships enable PaySign to deliver tailored solutions that meet the specific needs of its clients, thereby driving additional revenue growth.

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	74.88M	58.38M	47.27M	38.03M	29.46M	24.12M
Gross Profit	44.80M	32.20M	24.14M	20.95M	14.71M	9.30M
EBITDA	14.38M	7.02M	3.86M	2.79M	-1.12M	-5.79M
Net Income	7.56M	3.82M	6.46M	1.03M	-2.72M	-9.14M
Balance Sheet
Total Assets	209.51M	179.03M	146.60M	108.24M	84.05M	67.83M
Cash, Cash Equivalents and Short-Term Investments	7.53M	10.77M	16.99M	9.71M	7.39M	7.83M
Total Debt	6.08M	2.93M	3.31M	3.67M	4.01M	4.33M
Total Liabilities	163.75M	148.59M	122.11M	91.95M	71.06M	54.60M
Stockholders Equity	45.76M	30.44M	24.49M	16.29M	12.99M	13.24M
Cash Flow
Free Cash Flow	9.84M	13.46M	20.57M	21.23M	12.55M	10.43M
Operating Cash Flow	18.67M	22.95M	27.62M	25.32M	15.23M	13.78M
Investing Cash Flow	-10.84M	-9.49M	-7.05M	-4.09M	-2.68M	-3.34M
Financing Cash Flow	150.32K	-466.25K	-1.12M	0.00	192.14K	-72.86K

PaySign Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.82 is below the 20-day moving average (MA) of 5.12, below the 50-day MA of 5.17, and below the 200-day MA of 5.11, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 37.07 is Neutral, neither overbought nor oversold. The STOCH value of 27.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAYS.

PaySign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	69 Neutral	$1.89B	27.94	9.79%	―	10.58%	-45.52%
IMXI	68 Neutral	$460.64M	12.14	26.84%	―	-6.57%	-29.62%
AVPT	65 Neutral	$2.81B	-1,429.67	0.58%	―	24.71%	99.52%
PAYS	64 Neutral	$264.21M	36.50	20.36%	―	32.61%	-8.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BKKT	53 Neutral	$655.79M	-4.14	-48.63%	―	101.97%	58.61%
RPAY	51 Neutral	$582.46M	-2.61	-17.60%	―	-0.58%	-57.43%