Westpay AB (WPAY) AI Stock Analysis

• Market Cap: kr157.87M
• Dividend Yield: N/A
• Average Volume (3M): 62.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: 17.33%
• EPS Growth: 98.59%
• Country: SE
• Employees: 46
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.00
• Shares Outstanding: 99,289,180
• 10 Day Avg. Volume: 55,369
• 30 Day Avg. Volume: 62,085
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr1.50
• Price Target Upside: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: kr1.50 ▼(-5.66% Downside)

Westpay AB's overall stock score is primarily impacted by its financial performance, which shows modest revenue growth but significant profitability and cash flow challenges. Technical analysis provides a more positive outlook with strong price momentum, but the valuation is poor due to a negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events limits additional insights.

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 AB generates revenue primarily through the sale and leasing of its payment terminals and POS systems. The company also earns income from service and maintenance contracts, which provide ongoing support and updates for its hardware and software solutions. Additionally, Westpay benefits from partnerships with banks and other financial institutions, which help to expand its market reach and customer base. Transaction fees from processed payments and integration services for third-party applications further contribute to its revenue streams.

Westpay AB Financial Statement Overview

Summary

Westpay AB shows signs of operational improvement with better gross and EBITDA margins, yet struggles with profitability and leverage. While cash flow dynamics are improving, the high debt load and negative net income remain key concerns.

Income Statement

Westpay AB has demonstrated fluctuating revenue with a TTM revenue growth of 2.45%, indicating a struggle to maintain consistent sales growth. Gross profit margin improved to 60.17% in TTM from 45.14% annually, reflecting improved cost management. However, net profit margins are negative due to persistent net losses, although the net loss has decreased in TTM. The company has a negative EBIT margin, showing operational inefficiencies, but a positive EBITDA margin, indicating improving operational cash flow.

Balance Sheet

The debt-to-equity ratio is high at 1.30, indicating significant leverage, which poses financial risk. Return on equity remains negative due to consistent net losses, reflecting poor shareholder returns. The equity ratio is low at 16.93%, showing limited equity buffer against liabilities. Improvements in stockholders' equity in the TTM period suggest some recovery efforts.

Cash Flow

Operating cash flow improved significantly in TTM, turning positive at 1.92 times net income, indicating better cash efficiency. Free cash flow remains negative, although showing improvement from previous periods. The free cash flow to net income ratio is improving, suggesting potential for future cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.98M	67.61M	61.11M	70.42M	53.71M	52.81M
Gross Profit	34.12M	30.52M	58.94M	21.27M	38.07M	40.06M
EBITDA	11.66M	5.67M	-15.61M	653.00K	-11.45M	-10.96M
Net Income	-365.00K	-6.16M	-27.59M	-8.79M	-17.10M	-13.85M
Balance Sheet
Total Assets	55.91M	56.24M	54.50M	61.67M	47.34M	45.42M
Cash, Cash Equivalents and Short-Term Investments	662.00K	356.00K	856.00K	4.67M	12.48M	952.00K
Total Debt	6.88M	13.92M	18.23M	18.66M	7.50M	5.03M
Total Liabilities	40.13M	48.37M	53.02M	55.80M	32.48M	25.78M
Stockholders Equity	15.78M	7.87M	1.48M	5.88M	14.65M	19.64M
Cash Flow
Free Cash Flow	-1.44M	-9.51M	-38.44M	-18.98M	-4.99M	-10.47M
Operating Cash Flow	16.85M	8.63M	-20.66M	-2.35M	2.13M	-3.95M
Investing Cash Flow	-15.95M	-18.15M	-17.78M	-16.62M	-7.12M	-6.52M
Financing Cash Flow	-524.00K	9.01M	34.63M	11.16M	16.52M	5.03M

Westpay AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.59
• 50DMA: Positive
• 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 SE:WPAY, the sentiment is Positive. The current price of 1.59 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.55, and above the 200-day MA of 1.00, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 36.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:WPAY.

Westpay AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADVE	60 Neutral	843.65M	35.47	20.17%	0.47%	30.59%	2990.29%
BINERO	56 Neutral	303.73M	-21.59	10.93%	―	77.78%	0.00%
WPAY	47 Neutral	kr157.87M	―		―	17.33%	98.59%
FREJA	44 Neutral	324.32M	-19.32	-70.54%	―	23.24%	55.65%
CLAV	40 Underperform	1.43B	-33.85	89.17%	―	20.75%	61.27%
CYB1	36 Underperform	3.86M	-2.56	0.00%	―	0.00%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%