Usio (USIO) AI Stock Analysis

• Market Cap: $37.68M
• Dividend Yield: N/A
• Average Volume (3M): 59.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 3.24%
• EPS Growth: -115.15%
• Country: US
• Employees: 107
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.02
• Shares Outstanding: 27,307,838
• 10 Day Avg. Volume: 37,202
• 30 Day Avg. Volume: 59,105
• PEG Ratio: -0.02
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 20.59
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: 15.74
• 1Y Price Target: $4.50
• Price Target Upside: 228.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $1.50 ▲(9.49% Upside)

Usio's overall stock score reflects a solid financial position with strong cash flow and a stable balance sheet. The earnings call provided positive insights into operational growth, although technical indicators suggest caution. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Cash Generation

Strong cash generation enhances Usio's ability to reinvest in growth opportunities and service debt, supporting long-term financial stability.

ACH Revenue Growth

Sustained growth in ACH revenues indicates strong demand for Usio's payment solutions, bolstering its market position and revenue base.

Operational Efficiency

Improved margins reflect operational efficiency, enhancing profitability and providing a buffer against market fluctuations.

Negative Factors

Revenue Decline

Declining revenues in key segments could hinder Usio's growth prospects and affect its ability to maintain market competitiveness.

Implementation Delays

Prolonged implementation delays may impact revenue realization and strain customer relationships, affecting future growth.

Revenue Loss from Key Account

Losing significant accounts can disrupt revenue streams and highlight vulnerabilities in customer retention strategies.

Usio Business Overview & Revenue Model

Company Description

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check, a consumer non-sufficient funds check that is presented for payment electronically rather than through the paper check collection system; and Accounts Receivable Check Conversion, a consumer paper check payment that is converted into an e-check. The company also offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. In addition, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Further, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.

How the Company Makes Money

Usio generates revenue primarily through transaction fees charged to merchants for payment processing services. This includes fees for credit and debit card transactions, ACH (automated clearing house) payments, and other electronic payment methods. Additionally, the company earns income from card issuance services, where it provides branded prepaid and debit cards to businesses and consumers. Usio's revenue model is bolstered by partnerships with banks and financial institutions that allow it to expand its service offerings and reach a broader customer base. The company also benefits from strategic alliances that enhance its technology and service capabilities, contributing to its overall earnings.

Usio Financial Statement Overview

Summary

Usio demonstrates a solid financial position with strengths in cash flow generation and a stable balance sheet. The company has managed to improve profitability margins and maintain low leverage, despite challenges in revenue growth.

Income Statement

Usio's income statement shows a mixed performance. The company has experienced a decline in revenue growth with a negative rate of -16.8% in the TTM period, indicating potential challenges in maintaining sales momentum. However, the gross profit margin remains stable at around 23.2%, suggesting efficient cost management. The net profit margin is slightly positive at 3.4% in the TTM, showing improvement from previous losses, but EBIT and EBITDA margins are low, indicating operational inefficiencies.

Balance Sheet

The balance sheet reflects a relatively healthy financial position with a low debt-to-equity ratio of 0.19, indicating conservative leverage. The return on equity has improved to 15.2% in the TTM, showing better utilization of shareholder funds. The equity ratio stands at 18.8%, suggesting a stable capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Usio's cash flow statement shows strong performance with a significant free cash flow growth rate of 75.64% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 8.1%, reflecting efficient conversion of earnings into cash. The free cash flow to net income ratio is high at 91.36%, suggesting robust cash flow relative to earnings. Overall, the cash flow position is strong, supporting potential reinvestment and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.71M	82.93M	82.59M	69.43M	61.94M	32.25M
Gross Profit	19.42M	19.61M	18.60M	14.59M	15.63M	7.38M
EBITDA	2.16M	3.00M	1.90M	-2.46M	2.50M	-2.24M
Net Income	-387.78K	3.31M	-475.10K	-5.48M	-321.63K	-2.91M
Balance Sheet
Total Assets	99.40M	107.21M	106.93M	97.91M	133.68M	82.67M
Cash, Cash Equivalents and Short-Term Investments	7.75M	8.06M	7.16M	5.71M	7.26M	5.01M
Total Debt	2.68M	3.87M	3.38M	3.03M	3.11M	2.84M
Total Liabilities	80.71M	88.05M	91.87M	83.98M	115.01M	65.96M
Stockholders Equity	18.69M	19.16M	15.07M	13.93M	18.67M	16.70M
Cash Flow
Free Cash Flow	11.35M	1.90M	2.67M	-17.85M	28.51M	5.44M
Operating Cash Flow	11.93M	2.90M	3.51M	-17.04M	29.78M	6.29M
Investing Cash Flow	-1.39M	-944.38K	-834.96K	-812.24K	-1.27M	-6.76M
Financing Cash Flow	-11.24M	-5.14M	6.06M	-1.40M	887.46K	9.98M

Usio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USIO, the sentiment is Negative. The current price of 1.37 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.41, and below the 200-day MA of 1.48, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.31 is Neutral, neither overbought nor oversold. The STOCH value of 44.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USIO.

Usio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	74 Outperform	$3.80B	65.23	11.81%	―	44.34%	45.96%
USIO	67 Neutral	$37.68M	-91.33	-2.06%	―	3.24%	-115.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WYY	59 Neutral	$66.17M	-29.22	-17.37%	―	9.62%	26.59%
PSFE	47 Neutral	$485.56M	-3.86	-15.59%	―	-0.95%	-456.64%
CLPS	43 Neutral	$27.91M	-3.70	-11.94%	―	15.17%	-172.09%
NOTE	41 Neutral	$24.66M	-0.37	-64.09%	―	-17.90%	-67.81%