Westpay AB (WPAY) AI Stock Analysis

• Market Cap: kr158.86M
• Dividend Yield: N/A
• Average Volume (3M): 44.49K
• Price to Earnings (P/E): 55.9
• Beta (1Y): 0.54
• 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: 34,870
• 30 Day Avg. Volume: 44,486
• 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: 51 Neutral
• Price Target: kr1.50 ▲(4.90% Upside)

Westpay AB's overall stock score is primarily influenced by its mixed financial performance and moderately positive technical indicators. The high P/E ratio suggests potential overvaluation, and the lack of dividend yield reduces its appeal for income investors. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Revenue Growth

Despite challenges, Westpay's revenue growth indicates a positive trend in market demand for its payment solutions, supporting long-term business expansion.

Manageable Leverage

The company's manageable leverage suggests financial stability and the ability to invest in growth opportunities without excessive risk.

Strategic Partnerships

Strategic alliances expand Westpay's market reach and customer base, fostering sustainable revenue growth and competitive positioning in the fintech sector.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight inefficiencies in cost management, which could hinder long-term financial health and shareholder returns.

Cash Flow Difficulties

Persistent cash flow challenges limit Westpay's ability to reinvest in operations and may impact its capacity to sustain growth and innovation.

Low Return on Equity

Negative ROE indicates inefficiencies in generating returns from shareholder investments, potentially affecting investor confidence and capital raising.

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	73.19M	67.61M	61.11M	70.42M	53.71M	52.81M
Gross Profit	28.48M	30.52M	58.94M	21.27M	38.07M	40.06M
EBITDA	14.48M	5.67M	-15.61M	653.00K	-11.45M	-10.96M
Net Income	2.66M	-6.16M	-27.59M	-8.79M	-17.10M	-13.85M
Balance Sheet
Total Assets	60.07M	56.24M	54.50M	61.67M	47.34M	45.42M
Cash, Cash Equivalents and Short-Term Investments	907.00K	356.00K	856.00K	4.67M	12.48M	952.00K
Total Debt	7.35M	13.92M	18.23M	18.66M	7.50M	5.03M
Total Liabilities	40.77M	48.37M	53.02M	55.80M	32.48M	25.78M
Stockholders Equity	19.29M	7.87M	1.48M	5.88M	14.65M	19.64M
Cash Flow
Free Cash Flow	-334.00K	-9.51M	-38.44M	-18.98M	-4.99M	-10.47M
Operating Cash Flow	12.51M	8.63M	-20.66M	-2.35M	2.13M	-3.95M
Investing Cash Flow	-15.07M	-18.15M	-17.78M	-16.62M	-7.12M	-6.52M
Financing Cash Flow	3.00M	9.01M	34.63M	11.16M	16.52M	5.03M

Westpay AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.43
• 50DMA: Negative
• 100DMA: Negative
• 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 1.43 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.53, and above the 200-day MA of 1.23, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 77.33 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	62 Neutral	€650.99M	27.79	22.29%	0.62%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WPAY	51 Neutral	kr158.86M	55.94	―	―	12.09%	―
BINERO	46 Neutral	€283.81M	―	-11.28%	―	77.78%	-1.35%
FREJA	46 Neutral	kr456.98M	―	―	―	19.18%	48.44%
CLAV	37 Underperform	kr1.16B	-27.53	―	―	20.43%	61.67%
CYB1	36 Underperform	€3.64M	-2.56	―	―	―	―