Westpay AB (WPAY) AI Stock Analysis

• Market Cap: kr139.00M
• Dividend Yield: N/A
• Average Volume (3M): 74.48K
• Price to Earnings (P/E): 49.0
• Beta (1Y): 0.52
• 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: 99,289,180
• 10 Day Avg. Volume: 51,624
• 30 Day Avg. Volume: 74,482
• PEG Ratio: 0.08
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -4.32
• 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: 41 Neutral
• Price Target: kr1.50 ▼(-0.66% 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 suggests short-term stability but potential medium-term weakness. The valuation is unattractive due to a highly negative P/E ratio and lack of dividend yield.

Westpay AB Business Overview & Revenue Model

Company Description

Westpay AB (WPAY) is a Swedish technology company specializing in payment solutions that empower businesses to accept and manage transactions across various platforms. Operating primarily in the fintech sector, Westpay offers a range of products and services, including payment terminals, online payment solutions, and integration services for merchants and enterprises. The company focuses on providing seamless payment experiences that enhance customer engagement and streamline financial operations for its clients.

How the Company Makes Money

Westpay generates revenue through multiple streams, primarily by offering payment processing services to merchants and businesses. The company earns transaction fees for each payment processed through its systems, which can vary based on transaction volume and payment method. Additionally, Westpay provides hardware solutions, such as point-of-sale terminals, which are sold or leased to clients, generating further income. The company may also derive revenues from software licensing and subscription fees for its payment management platforms. Strategic partnerships with banks, financial institutions, and other technology providers enhance Westpay's offerings and contribute to its overall revenue by broadening its customer base and increasing transaction volume.

Westpay AB Financial Statement Overview

Summary

Westpay AB is experiencing modest revenue growth but faces significant profitability challenges. The balance sheet shows manageable leverage but poor returns on equity. Cash flow issues are evident, with negative free cash flow growth and difficulties in converting income into cash. The company needs to focus on improving operational efficiency and cash flow management to enhance financial stability.

Income Statement

Westpay AB shows a modest revenue growth rate of 3.91% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by a negative net profit margin of -0.51% TTM. The gross profit margin is relatively healthy at 47.40% TTM, but the EBIT and EBITDA margins are low at 2.50% and 16.20% TTM, respectively, suggesting challenges in controlling operating expenses.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.44 TTM, indicating manageable leverage. However, the return on equity is negative at -3.66% TTM, highlighting inefficiencies in generating returns for shareholders. The equity ratio stands at 28.23% TTM, suggesting a reasonable level of equity financing but room for improvement in asset utilization.

Cash Flow

Westpay AB's cash flow statement reveals challenges, with a negative free cash flow growth rate of -41.80% TTM. The operating cash flow to net income ratio is 0.52 TTM, indicating some ability to convert income into cash, but the free cash flow to net income ratio is negative at -0.09 TTM, reflecting cash flow difficulties.

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: Negative
• Last Price: 1.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 1.51 is above the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.55, and above the 200-day MA of 1.18, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 9.94 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADVE	60 Neutral	kr619.32M	26.44	22.29%	0.64%	27.82%	305.33%
FREJA	54 Neutral	kr454.12M	―	―	―	19.18%	48.44%
BINERO	46 Neutral	kr283.81M	―	-11.28%	―	77.78%	-1.35%
WPAY	41 Neutral	kr139.00M	48.95	―	―	12.09%	―
CLAV	38 Underperform	kr1.16B	-27.53	―	―	20.43%	61.67%
CYB1	36 Underperform	€3.64M	-2.56	―	―	―	―