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Investor Insights

This summary was created by AI, based on 10 opinions in the last 12 months.

Payfare (PAY-T) is a Canadian fintech company that provides instant access to gig worker economy. It earns most of its revenue from network interchange fees and user banking fees. The company is integrated with major players like Uber, Lyft, and Doordash. The stock has seen a significant sell-off due to losing its biggest customer, but experts believe it has good growth potential and strong fundamentals.

Consensus
Buy
Valuation
Undervalued
SELL
Payfare

Has owned shares in the past, but has since sold. Company lost biggest customer, so is suffering. Stock has sold off ~75%. Trading at cash value right now - but the company needs cash for business (not much liquidation value). Good management team, but has sold. 

Financial Services
PAST TOP PICK
Payfare
(A Top Pick Jan 02/24, Up 39%)

Targets the gig economy. Great adoption in Canada and US.

Financial Services
BUY
Payfare
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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Financial Services
TOP PICK
Payfare

Canadian fin tech business that provides instant access to gig worker economy. Trading at low multiple, with high profit margins. Unsure on why valuation is so low. Believes market will soon recognize value and re rate the stock. Recent announcement with Lift very good for long term profits. 

Financial Services
SELL
Payfare
Hold or sell?

Great service, but whole murkiness with last set of earnings. Stock was halted at one point. Leaves a bit of a blemish on the name until they can prove financial controls are running as they should. You won't miss a lot by selling. Valuation's a bit full.

Financial Services
BUY
Payfare
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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Financial Services
HOLD
Payfare

Large position, great future. Lets people such as Uber drivers get paid at the end of the night, instead of waiting 2 weeks for a paycheque. They skim a fee off the top. Biggest risk is customer concentration, working to expand.

Financial Services
BUY
Payfare

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.

Financial Services
TOP PICK
Payfare

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)
Financial Services
TOP PICK
Payfare

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)
Financial Services
WATCH
Payfare

IPO'd in 2021, but became profitable last year, tripling their revenue and became profitable in Q4 2022. Can they expand beyond Uber, Lyft and Doordash? That's what he's watching.

Financial Services
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Payfare(PAY-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 7

Stockchase rating for Payfare is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Payfare(PAY-T) Frequently Asked Questions

What is Payfare stock symbol?

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

Is Payfare a buy or a sell?

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.

Is Payfare a good investment or a top pick?

Payfare was recommended as a Top Pick by on . Read the latest stock experts ratings for Payfare.

Why is Payfare stock dropping?

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.

Is Payfare worth watching?

7 stock analysts on Stockchase covered Payfare In the last year. It is a trending stock that is worth watching.

What is Payfare stock price?

On 2020-02-04, Payfare (PAY-T) stock closed at a price of $0.12.