Westpay AB (WPAY) AI Stock Analysis

• Market Cap: kr120.92M
• Dividend Yield: N/A
• Average Volume (3M): 44.49K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.56
• Revenue Growth: 12.09%
• EPS Growth: N/A
• Country: SE
• Employees: 46
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.02
• Shares Outstanding: 101,614,760
• 10 Day Avg. Volume: 34,870
• 30 Day Avg. Volume: 44,486
• PEG Ratio: -0.19
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 20.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr1.50 ▲(11.94% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by improving financial performance (profitability returning, stronger equity, and positive operating cash flow) and supportive technical momentum (price above key moving averages with positive MACD). These positives are tempered by a high P/E valuation and a history of volatile earnings and free cash flow.

Positive Factors

Stronger capitalization

The material rise in equity and reduction in debt materially lowers historical leverage and insolvency risk. Stronger capitalization gives management durable flexibility to fund product development, service expansion and partner integrations without immediate external financing, supporting long-term stability.

Improved cash generation

Return to consistent operating cash flow and positive free cash flow in 2025 indicates the business can internally fund operations and selective reinvestment. Durable cash generation reduces reliance on external capital, enables device lifecycle support and recurring service delivery, and improves financial resilience.

Recurring revenue business model

A hybrid model of terminal sales plus recurring software, support and managed services creates predictable, higher‑visibility revenue and stronger customer stickiness. Recurring streams improve lifetime value per merchant and provide a foundation for margin improvement and steady cash conversion over time.

Negative Factors

Earnings and FCF volatility

The firm's history of large year‑to‑year swings in earnings and free cash flow weakens predictability of results. Volatility increases the risk of future capital needs, complicates long‑range planning and makes sustained margin improvement contingent on consistent execution across sales, deployment and working‑capital cycles.

Unclear margin durability

Reported return to net income lacks disclosed margin breakdowns and shows large swings in gross profit and EBIT. Without clear, stable margin profiles, profits can reverse quickly from cost or pricing pressure, limiting confidence that 2025 results indicate durable operational leverage.

Recent elevated leverage history

Although capitalization improved in 2025, the recent history of debt exceeding equity suggests the balance sheet recovery is recent and potentially fragile. Residual leverage can constrain capital allocation, increase interest exposure and limit the firm's ability to pursue larger customer or partner investments during downturns.

Westpay AB Business Overview & Revenue Model

Company Description

Westpay AB provides smart transaction and payment solutions in Europe, Africa, South Asia, Southeast Asia, and Nordic countries. The company offers counter-top, mobile devices, and unattended terminals for in-store and card-present transactions; online payment solutions that provide payment infrastructure for physical environments; and self-service solutions. It sells its solutions to retail, hotels and restaurants, and the retail banking sector. Westpay AB was incorporated in 1988 and is headquartered in Upplands Väsby, Sweden.

How the Company Makes Money

Westpay generates revenue primarily by selling and/or leasing payment hardware (e.g., payment terminals and related POS devices) and by providing software and services connected to those devices. A typical revenue model includes: (1) one-time revenues from terminal/device sales and installation; (2) recurring revenues from software licenses, support, maintenance, and managed services tied to deployed devices; and (3) service revenues related to configuration, integration, and lifecycle management (e.g., provisioning, updates, and replacements) for merchant estates. To the extent Westpay’s terminals are delivered as part of broader acquiring/processing setups, its earnings can also be influenced by collaborations with payment processors/acquirers, POS vendors, and other ecosystem partners that bundle Westpay’s devices and software into merchant payment solutions; however, specific partnership terms, transaction-based revenue shares, or exact pricing structures are not publicly available in the provided context and are therefore null.

Westpay AB Financial Statement Overview

Summary

Fundamentals are improving, with a return to profitability in 2025, stronger equity capitalization, and positive operating cash flow in 2024–2025. However, the multi-year history of losses and sharp volatility in earnings and free cash flow (including a large FCF deficit in 2024) keeps the score in the mid-range.

Income Statement

Annual results show a meaningful turnaround: 2025 returned to profitability (net income of 4.2m) after losses in 2024–2020, and revenue continues to grow (about +10.6% in 2024 and +4.8% in 2025). That said, profitability quality is hard to judge in 2025 because key margin details are not provided, and the large year-to-year swing in gross profit/EBIT between 2024 and 2025 suggests earnings may be volatile. Longer-term history includes several years of deep operating losses, which keeps the score in the mid-range despite the recent improvement.

Balance Sheet

The balance sheet has strengthened materially: stockholders’ equity rose to 21.0m in 2025 from 7.9m in 2024 and 1.5m in 2023, while total debt declined modestly (13.6m in 2025 vs. 18.2m in 2023). This indicates improved capitalization and reduced leverage risk versus the stressed 2023 position. Offsetting positives, leverage was elevated as recently as 2024 (debt notably larger than equity), and the historical volatility in equity and returns highlights that balance sheet stability has only recently improved.

Cash Flow

Cash generation improved significantly: operating cash flow was positive in both 2024 (8.6m) and 2025 (10.1m), and 2025 delivered positive free cash flow (6.2m) after a large free-cash-flow deficit in 2024 (-9.5m) and very weak cash burn in 2023. The main concern is consistency—free cash flow has swung sharply year to year, and earlier periods show negative operating cash flow (notably 2022–2023), implying execution and working-capital dynamics can materially impact cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	73.96M	67.61M	61.11M	70.42M	53.71M
Gross Profit	2.96M	30.52M	58.94M	21.27M	38.07M
EBITDA	12.59M	5.67M	-15.61M	653.00K	-11.45M
Net Income	4.20M	-6.16M	-27.59M	-8.79M	-17.10M
Balance Sheet
Total Assets	58.27M	56.24M	54.50M	61.67M	47.34M
Cash, Cash Equivalents and Short-Term Investments	323.00K	356.00K	856.00K	4.67M	12.48M
Total Debt	14.11M	13.92M	18.23M	18.66M	7.50M
Total Liabilities	37.23M	48.37M	53.02M	55.80M	32.48M
Stockholders Equity	21.04M	7.87M	1.48M	5.88M	14.65M
Cash Flow
Free Cash Flow	6.17M	-9.51M	-38.44M	-18.98M	-4.99M
Operating Cash Flow	10.09M	8.63M	-20.66M	-2.35M	2.13M
Investing Cash Flow	-14.49M	-18.15M	-17.78M	-16.62M	-7.12M
Financing Cash Flow	4.37M	9.01M	34.63M	11.16M	16.52M

Westpay AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:WPAY, the sentiment is Negative. The current price of 1.34 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.32, and below the 200-day MA of 1.39, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 9.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:WPAY.

Westpay AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WPAY	62 Neutral	kr120.92M	18.58	―	―	12.09%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADVE	55 Neutral	kr614.04M	52.29	22.29%	0.48%	27.82%	305.33%
CLAV	50 Neutral	kr1.64B	174.76	―	―	20.43%	61.67%
FREJA	50 Neutral	kr408.42M	-26.07	―	―	19.18%	48.44%
CYB1	40 Underperform	€969.90K	-3.26	277.20%	―	―	―