Sezzle Inc.
Sezzle Inc. Fundamental Analysis
Sezzle Inc. (SEZL) shows strong financial fundamentals with a PE ratio of 24.58, profit margin of 30.83%, and ROE of 90.93%. The company generates $0.5B in annual revenue with strong year-over-year growth of 66.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 88.2/100 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 SEZL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSEZL demonstrates superior asset utilization.
Valuation Score
ExcellentSEZL trades at attractive valuation levels.
Growth Score
ExcellentSEZL delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSEZL maintains a strong and stable balance sheet.
Profitability Score
ExcellentSEZL achieves industry-leading margins.
Key Financial Metrics
Is SEZL Expensive or Cheap?
P/E Ratio
SEZL trades at 24.58 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SEZL's PEG of 0.66 indicates potential undervaluation.
Price to Book
The market values Sezzle Inc. at 18.52 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.66 times EBITDA. This signals the market has high growth expectations.
How Well Does SEZL Make Money?
Net Profit Margin
For every $100 in sales, Sezzle Inc. keeps $30.83 as profit after all expenses.
Operating Margin
Core operations generate 40.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $90.93 in profit for every $100 of shareholder equity.
ROA
Sezzle Inc. generates $32.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sezzle Inc. generates strong operating cash flow of $239.07M, reflecting robust business health.
Free Cash Flow
Sezzle Inc. generates strong free cash flow of $237.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.06 in free cash annually.
FCF Yield
SEZL converts 6.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.91
vs 25 benchmark
ROA
Return on assets percentage
0.33
vs 25 benchmark
ROCE
Return on capital employed
0.57
vs 25 benchmark
How SEZL Stacks Against Its Sector Peers
| Metric | SEZL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.58 | 18.88 | Worse (Expensive) |
| ROE | 90.93% | 801.00% | Weak |
| Net Margin | 30.83% | 2213.00% | Weak |
| Debt/Equity | 0.74 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 3.65 | 615.97 | Strong Liquidity |
| ROA | 32.64% | -19854.00% (disorted) | Strong |
SEZL outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sezzle Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
566.36%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
457.56%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
836.10%
Industry Style: Value, Dividend, Cyclical
High Growth