Paysign, Inc. Fundamental Analysis (NASDAQ: PAYS)
Paysign, Inc. (NASDAQ: PAYS) shows moderate financial fundamentals with a PE ratio of 46.02, profit margin of 15.67%, and ROE of 30.13%. The company generates $0.1B in annual revenue with strong year-over-year growth of 40.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PAYS's fundamental strength across five key dimensions:
Efficiency Score
WeakPAYS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePAYS shows balanced valuation metrics.
Growth Score
ExcellentPAYS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPAYS maintains a strong and stable balance sheet.
Profitability Score
ExcellentPAYS achieves industry-leading margins.
Key Financial Metrics
Is PAYS Expensive or Cheap?
P/E Ratio
PAYS trades at 46.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PAYS's PEG of 0.37 indicates potential undervaluation.
Price to Book
The market values Paysign, Inc. at 12.19 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.89 times EBITDA. This signals the market has high growth expectations.
How Well Does PAYS Make Money?
Net Profit Margin
For every $100 in sales, Paysign, Inc. keeps $15.67 as profit after all expenses.
Operating Margin
Core operations generate 17.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.13 in profit for every $100 of shareholder equity.
ROA
Paysign, Inc. generates $4.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Paysign, Inc. generates strong operating cash flow of $71.37M, reflecting robust business health.
Free Cash Flow
Paysign, Inc. generates strong free cash flow of $67.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.20 in free cash annually.
FCF Yield
PAYS converts 9.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How PAYS Stacks Against Its Sector Peers
| Metric | PAYS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.02 | 30.97 | Worse (Expensive) |
| ROE | 30.13% | 1108.00% | Weak |
| Net Margin | 15.67% | -21241.00% (disorted) | Strong |
| Debt/Equity | 0.09 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.14 | 21.73 | Neutral |
| ROA | 4.98% | -1325740.00% (disorted) | Weak |
PAYS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Paysign, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
207.87%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
174.78%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
244.69%
Industry Style: Cyclical, Value, Infrastructure
High Growth