Paysign Inc: Fintech Stock Up 340% in 2019 Is Just Getting Started
PAYS Stock Extremely Bullish on Record Results
Paysign Inc (NASDAQ:PAYS) should change its name to “Dollarsign Inc.” Shares of the prepaid debit card payment provider have been on a meteoric rise over the last three years, with PAYS stock soaring 5,100% and showing no sign of slowing down.
With a market cap of just $745.0 million, Paysign is significantly smaller than its competitors such as Square, Inc. (NYSE:SQ), which has a market cap of $33.0 billion.
Paysign continues to post strong numbers. Its first-quarter revenue was up 55.2%, its net income was up 111%, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 121.5%. The company also has strong cash flow and no debt.
This all helps explain why Paysign stock has advanced 340% in 2019.
Thanks to growth in its existing programs and the addition of new card programs, Paysign Inc could continue to reward buy-and-hold investors for a long, long time.
Paysign Inc Overview
Paysign is a financial technology (fintech) company that designs and develops payment solutions, prepaid debit card programs, and customized payment services. (Source: “Investor Presentation June 2019,” Paysign Inc, last accessed July 11, 2019.)
Its customers include a large number of Fortune 500 companies, major healthcare and pharmaceutical companies, multinational brands, prestigious universities, and social media companies.
The Henderson, Nevada-based company has over 2.5 million cardholders in its portfolio. And their customers seem to like what they’re getting; over the last eight years, Paysign has maintained a 100% client retention rate.
|
PAYS Stock Information |
|
| Market Cap | $752.4 Million |
| 52-Week Change | 545.6% |
| 52-Week High | $16.61 |
| 52-Week Low | $2.40 |
| Shares Outstanding: | 43.7 Million |
| Float | 25.1 Million |
| 50-Day Moving Average: | $12.14 |
| 200-Day Moving Average: | $8.03 |
(Source: “PaySign, Inc. (PAYS),” Yahoo! Finance, last accessed July 11, 2019.)
Paysign stock has been on a growth trajectory over the last few years that’s arguably second to none. PAYS entered 2017 as (some would erroneously claim) a lowly penny stock trading at $0.30, ending the year up 140%, at $0.72.
In 2018, the stock soared an additional 375% and, so far in 2019, the company’s share price is up 340%.
PAYS only broke out of penny stock territory (defined as any stock trading under $10.00 per share) in mid-May, fueled in part by its record first-quarter revenue and net income. Since then, Paysign’s share price has trended steadily higher. In fact, on July 10, it hit a new 52-week intra-day high of $16.30.
In addition to strong financials, there is another reason why investor interest in Paysign Inc has picked up over the last year: in August 2018, the company graduated to the Nasdaq from the over-the-counter (OTC) markets.
Chart courtesy of StockCharts.com
Record First-Quarter Revenue, Net Income
On May 7, Paysign announced its financial results for the first quarter ended March 31, 2019.
First-quarter revenue was up 55.2% year-over-year, at a record $7.3 million. Gross profit was up 68.3%, at $3.8 million. In the first quarter of 2018, gross profit was $2.2 million. (Source: “PaySign, Inc. Reports Record First Quarter 2019 Revenue and Net Income,” Paysign Inc, May 7, 2019.)
Net income for the first quarter of 2018 was up 11.3% year-over-year, at a record $871,671, or $0.02 per share. Adjusted EBITDA increased 121.5% to $1.7 million, or $0.04 per share.
The company ended the quarter with $5.2 million in cash and no long-term debt.
Looking ahead, Paysign expects its revenue to be in the range of $38.0 to $40.0 million for 2019, representing year-over-year growth of 62% to 71%. Its adjusted EBITDA is projected to be in the range of $10.0 to $12.0 million, representing year-over-year growth of 104% to 145%.
Since 2016, Paysign’s revenue has grown at a compound annual growth rate of 55%.
Analyst Take
Paysign Inc is a fast-growing fintech company operating a high-margin, profitable business that provides it with a predictable recurring revenue stream.
Over a short period, Paysign has carved out a strong niche in the prepaid debit card market and has an enviable portfolio of customers. The company also continues to attract new business, especially with its new pharma division
All of which should help PAYS stock continue to reward investors over the coming quarters and years.
