Paya Holdings Inc. Stock Analysis:
Credit Suisse Downgrades Paya Holdings to a Neutral rating with a target price of $9.75.
Canaccord Capital Downgrades Paya Holdings to a Hold with a target of $9.75.
Morgan Stanley maintains Paya Holdings with an Equal-Weight rating and raises the target price to $9.75 from $7 on the company’s stock.
BTIG Research Downgrades Paya Holdings to a Neutral rating and a target price of $10.
Based on 9 analysts’ estimates, the average analyst target price for Paya Holdings Inc over the next 12 months is USD 9.22. The average analyst rating for Paya Holdings Inc. is Buy. Paya Holdings Inc.’s stock analysis by Stock Target Advisor is Slightly Bearish and is based on 5 positive and 8 negative indications. The stock price of Paya Holdings Inc. was 9.69 USD at the most recent close. The stock price of Paya Holdings Inc has changed by +1.82% over the previous week, +1.48% over the previous month, and +56.80% over the previous year.
Paya Holdings News:
Canadian payments firm Nuvei has agreed to acquire Paya Holdings for $1.3 billion, paying $9.75 per share in cash. The acquisition will boost Nuvei’s operations in the United States, as Paya is an Atlanta-based payments processor. The deal values Paya at a 25% premium to its last closing share price, but it is around the same value as when it went public through a merger with a special purpose acquisition company.
Fundamental Stock Analysis:
Positive Fundamentals:
Minimal volatility:
For a hold duration of at least 12 months, the stock’s yearly returns have been stable and constant when compared to peers in its industry, and they are in the top quartile. Although stability is desirable, it can also restrict returns.
Superior capital efficiency:
In the last four quarters, firm management outperformed its counterparts in terms of return on invested capital, putting it in the top quartile.
Excellent return on assets:
The management of the company has outperformed its counterparts in terms of return on assets over the last four quarters, putting it in the top quartile.
A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.
A favourable free cash flow:
The last four quarters saw the company generate positive total free cash flow.
Negative fundamentals:
Subpar risk-adjusted returns:
In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming in terms of returns. Be careful as you go.
Lower than average dividend returns:
In comparison to its competitors, the company’s average income yield during the past five years has been low. If you are not seeking for work, it is not an issue.
Excessive in comparison to wages:
The stock is trading above the sector median and at a premium to its peers in terms of price to earnings.
Compared to book value, it is overpriced:
On a price to book value basis, the stock is selling at a premium to the median of its peer group.
Overpriced based on cash flow:
On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Extremely leveraged:
In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow quickly.
Priced excessively based on free cash flow:
On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Low Growth in Revenue:
Compared to its sector, this stock’s five-year median revenue growth was lower than average.
About Paya Holdings Inc.:
Paya Holdings Inc. is a payments platform that processes payments via credit and debit card, automated clearing house, and check payments. It operates through two main segments: Integrated Solutions and Payment Services. The company primarily serves customers through distribution partners that focus on specific industries such as B2B goods and services, healthcare, faith-based and non-profit organizations, government and utilities, and the education market. The company is based in Atlanta, Georgia, and has additional offices in various cities across the United States, including Reston, Virginia; Fort Walton Beach, Florida; Dayton, Ohio; Mt. Vernon, Ohio; Dallas, Texas, and Tempe, Arizona.
