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Nervous markets await NvidiaThis summary was created by AI, based on 8 opinions in the last 12 months.
Payfare (PAY-T) has received mixed reviews from various experts, highlighting both challenges and opportunities for the company. The stock has suffered recently, largely losing its biggest customer, which historically contributed to around 60% of its revenue, resulting in a significant sell-off. Despite this downturn, there are indications of recovery potential, especially as it operates in the growing gig economy, supported by partnerships with major platforms like Uber and Lyft. Experts appreciate the company's strong fundamentals, with a focus on network interchange fees and user banking fees, and some believe the current valuation may not reflect its growth potential. However, concerns about customer concentration and the competitive fintech space remain pertinent, suggesting cautious optimism about its future.
PAY earns approximately 70-80% of total revenue from network interchange fees from payment networks and 20-30% from user banking fees such as ATM withdrawls, money transfers, and foreign exchange. So no, they do not take a percentage of the workers paycheck, rather they operate similar to a credit card or transaction processing company like Paypal, Mastercard, or Visa. We like it because it's funamamentals are strong, it has a cheap valuation, a large growing target market, and is integrated with the largest companies (Uber, Lyft, Doordash). Downside risks being a fintech is that another bigger player comes out with a similar platform and the space gets very fragemented. Fintech companies can be very economically attractive, but are typically quite replicable, so PAY will need to ensure that it is able to continue to grow and sustain its user base. This is in addition to the general small cap volatility it will face. Overall we think it is a strong small cap name and looks good at 11x forward earnings.
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We have quite a few comments posted on PAY; it was halted for a period to clear up an issue (discussed in the Q&A) and appears very much back on track now. It is very cheap at under 10X earnings and it has a very strong balance sheet. Very good earnings growth is expected in the next 18 months at least. Insiders own 11% and cash flow is growing. Overall, it has some good qualities for a small cap stock.
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It is one of his favourites with a fantastic business model, a very good core business and ROC, and trading at 8 or 9 times earnings. It is good for Uber drivers and others in the gig market since they can access their money quickly. The gig market is growing at 30% per year. It is not well known but there are lots of catalysts coming. It may move outside the gig space. For example it may start to provide fast access to capital in the fast food industry meaning that workers can access their money right after a shift. It is a capital light business.
A Canadian Fintech company that allows Canadian gig workers to have instant access to their money. It has contracts with Uber, Lyft and DoorDash, the three biggest players in that space. Using their credit card system, Payfare takes a piece of the merchant fee, not Uber, etc., or the worker. They are planning to take their technology and apply it outside the gig space. There is super high growth in a very fast growing space. it has a decent valuation and very high ROE. Buy 6 Hold 0 Sell 0
(Analysts’ price target is $10.42)A fintech that allows shift-workers like Uber Eats deliverers to get paid as soon as they complete their shift so the could spend that money. PAY makes money on interaction fees. They have enough cash flow to meet their growth plans. They have 1.2 million out of 70 million gig workers out there, so there's lots of room to grow.
(Analysts’ price target is $10.50)Payfare is a Canadian stock, trading under the symbol PAY-T on the Toronto Stock Exchange (PAY-CT). It is usually referred to as TSX:PAY or PAY-T
In the last year, 7 stock analysts published opinions about PAY-T. 4 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Payfare.
Payfare was recommended as a Top Pick by on . Read the latest stock experts ratings for Payfare.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
7 stock analysts on Stockchase covered Payfare In the last year. It is a trending stock that is worth watching.
On 2020-02-04, Payfare (PAY-T) stock closed at a price of $0.12.
Probably his worst pick ever on the show :( Big disappointment. Lost biggest customer, which made up ~60% of revenue, and he'd underestimated the likelihood of that happening. Company sold at a good price to FISV.