Westpay AB (WPAY) AI Stock Analysis

• Market Cap: kr135.15M
• Dividend Yield: N/A
• Average Volume (3M): 44.49K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.57
• 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 equity capitalization

The material increase in equity over three years meaningfully strengthens the company's capitalization. Higher equity lowers leverage risk and improves the ability to absorb merchant payment cycles, finance product development, and pursue strategic initiatives without immediate external financing.

Improved cash generation

Consecutive positive operating cash flows and a return to positive free cash flow indicate the business can convert revenue to cash. This durable cash generation reduces reliance on markets for funding, supports reinvestment in devices and software, and improves resilience to near-term volatility.

Recurring software & services revenue mix

A revenue model that includes recurring software, support, and managed services increases revenue visibility and customer stickiness versus pure hardware sales. Such recurring streams can stabilize margins and provide a base for steady growth as device estates mature.

Negative Factors

Historic earnings & FCF volatility

The company has exhibited multi-year losses and large swings in earnings and free cash flow, including a major FCF deficit in 2024. This inconsistent performance signals execution and working-capital risks that can undermine planning, lender confidence, and the ability to fund growth predictably.

Unclear profitability quality

Although 2025 returned to net income, lack of margin disclosure and big year-to-year swings in gross profit/EBIT suggest profits may be driven by episodic items or sales mix shifts. Without stable, disclosed margins, sustainable profit generation remains uncertain under competitive pricing pressure.

Prior elevated leverage

Debt materially exceeded equity in 2024, indicating the company recently operated with elevated leverage. Even with improvement, that history raises refinancing, covenant, and liquidity risks if cash flows deteriorate, and it may constrain capital allocation until balance sheet strength is sustained.

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 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

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	13.64M	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: Neutral

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 below the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.34, and below the 200-day MA of 1.37, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 27.72 is Neutral, 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	kr135.15M	29.72	―	―	12.09%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADVE	55 Neutral	kr659.79M	-492.50	22.29%	0.48%	27.82%	305.33%
CLAV	50 Neutral	kr1.75B	174.76	―	―	20.43%	61.67%
FREJA	50 Neutral	kr458.40M	-26.07	―	―	19.18%	48.44%
CYB1	40 Underperform	€1.94M	-3.26	―	―	―	―