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

Balance-sheet strength

The material increase in equity alongside declining debt represents a durable improvement in capitalization that reduces leverage risk. Over a 2–6 month horizon this strengthens financial flexibility for working-capital cycles, lowers refinancing pressure, and gives management room to invest in product and service deployments.

Improved cash generation

Sustained positive operating cash flow and the return to free-cash-flow generation in 2025 indicate the company can convert revenue into liquidity. This durable cash generation lowers dependence on external financing, supports reinvestment in terminals, software and services, and improves resilience to seasonal or cyclical swings.

Recurring revenue mix

A meaningful recurring-revenue component from software, support and managed services creates visibility and higher lifetime value per customer. Structurally this smooths revenue volatility from one-time terminal sales, supports margin durability over time, and makes growth more predictable for strategic planning.

Negative Factors

Earnings and FCF volatility

A multi-year pattern of losses and sharp swings in earnings and free cash flow undermines predictability of results. This persistent volatility complicates capital allocation, hiring and R&D decisions, and raises the probability of funding stress during downturns, limiting ability to pursue steady, organic expansion.

Recent elevated leverage

Although balance-sheet metrics improved in 2025, leverage remained elevated in 2024 when debt exceeded equity. That recent history increases refinancing and covenant risk and constrains strategic optionality—making the company more sensitive to any reversal in cash generation or margins over the medium term.

Partner and scale dependence

The business relies on collaborations and bundling with acquirers, processors and POS vendors, and specific terms are undisclosed. This reduces pricing and distribution control, exposing margins to partner negotiation. Coupled with a small employee base and limited scale, it constrains execution bandwidth and growth capture.

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%	―	―	―