Is Paysafe Stock a Good Investment?

Paysafe Investment Advice

PSFE

To provide specific investment advice or recommendations on Paysafe stock, we recommend investors consider the following general factors when evaluating Paysafe. This will help you to make an informed decision on whether to include Paysafe in one of your diversified portfolios:

Examine Paysafe's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Paysafe's leadership team and their track record. Good management can help Paysafe navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Internet Services & Infrastructure space and any emerging trends that could impact Paysafe's business and its evolving consumer preferences.
Compare Paysafe's performance and market position to its competitors. Analyze how Paysafe is positioned in terms of product offerings, innovation, and market share.
Check if Paysafe pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Paysafe's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Paysafe stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Paysafe is a good investment.

Sell

Buy

Strong Hold

Our trade recommendations tool can cross-verify current analyst consensus on Paysafe and to analyze the firm potential to grow in the current economic cycle. To make sure Paysafe is not overpriced, please check all Paysafe fundamentals, including its net income, short ratio, working capital, as well as the relationship between the debt to equity and beta . Given that Paysafe has a number of shares shorted of 1.13 M, we recommend you to check out Paysafe market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Not too volatile	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Average	Details
Economic Sensitivity	Actively responds to the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Hold	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Paysafe Stock

Researching Paysafe's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 24.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.22. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Paysafe recorded a loss per share of 0.38. The entity had not issued any dividends in recent years. The firm had 1:12 split on the 13th of December 2022.

To determine if Paysafe is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Paysafe's research are outlined below:

	Paysafe generated a negative expected return over the last 90 days
	Paysafe has high historical volatility and very poor performance
	The company reported the previous year's revenue of 1.6 B. Net Loss for the year was (20.25 M) with profit before overhead, payroll, taxes, and interest of 882.11 M.
	About 55.0% of the company shares are owned by institutional investors
	Latest headline from simplywall.st: Paysafe Third Quarter 2024 Earnings EPS Misses Expectations

Paysafe Quarterly Cost Of Revenue

252.46 Million

Paysafe uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Paysafe. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Paysafe's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	14th of March 2024 Upcoming Quarterly Report	View
	21st of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	14th of March 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Paysafe's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Paysafe's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2023-05-16	2023-03-31	-0.05	-0.06	-0.01	20
2022-11-10	2022-09-30	0.05	0.04	-0.01	20
2024-05-13	2024-03-31	0.1	0.05	-0.05	50
2024-08-13	2024-06-30	0.07	-0.02	-0.09	128
2023-11-14	2023-09-30	0.05	-0.04	-0.09	180
2024-09-30	2024-09-30	0.6056	0.51	-0.0956	15
2023-08-15	2023-06-30	0.13	-0.03	-0.16	123
2021-08-16	2021-06-30	-0.07	0.12	0.19	271

Know Paysafe's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Paysafe is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Paysafe backward and forwards among themselves. Paysafe's institutional investor refers to the entity that pools money to purchase Paysafe's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Geode Capital Management, Llc	2024-06-30	391.7 K
Two Sigma Investments Llc	2024-06-30	333.5 K
Adage Capital Partners Gp Llc	2024-06-30	316.3 K
Castleknight Management Lp	2024-06-30	300.5 K
Two Sigma Advisers, Llc	2024-06-30	261.6 K
Ancora Advisors Llc	2024-06-30	261 K
Renaissance Technologies Corp	2024-09-30	254.5 K
Voloridge Investment Management, Llc	2024-06-30	244.4 K
Foundry Partners, Llc	2024-09-30	243 K
Blackstone Inc	2024-06-30	10.9 M
Fidelity National Title Group, Inc.	2024-09-30	3.8 M

Note, although Paysafe's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Paysafe's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.07 B.

Market Cap

746.46 Million

Paysafe's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.01)	(0.01)
Return On Capital Employed	0.05	0.03
Return On Equity	(0.02)	(0.02)

The company has Profit Margin (PM) of (0.01) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of 0.08 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.08.

Determining Paysafe's profitability involves analyzing its financial statements and using various financial metrics to determine if Paysafe is a good buy. For example, gross profit margin measures Paysafe's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Paysafe's profitability and make more informed investment decisions.

Please note, the presentation of Paysafe's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Paysafe's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Paysafe's management manipulating its earnings.

Evaluate Paysafe's management efficiency

Paysafe has return on total asset (ROA) of 0.0188 % which means that it generated a profit of $0.0188 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0268) %, meaning that it created substantial loss on money invested by shareholders. Paysafe's management efficiency ratios could be used to measure how well Paysafe manages its routine affairs as well as how well it operates its assets and liabilities. As of November 19, 2024, Return On Tangible Assets is expected to decline to -0.01. In addition to that, Return On Capital Employed is expected to decline to 0.03. At present, Paysafe's Non Current Assets Total are projected to decrease significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 1.4 B, whereas Non Currrent Assets Other are forecasted to decline to about 6.5 M.

	Last Reported	Projected for Next Year
Book Value Per Share	14.38	13.66
Tangible Book Value Per Share	(37.50)	(39.38)
Enterprise Value Over EBITDA	7.14	6.78
Price Book Value Ratio	0.89	0.85
Enterprise Value Multiple	7.14	6.78
Price Fair Value	0.89	0.85
Enterprise Value	3.1 B	4.3 B

The strategic decisions made by Paysafe management significantly impact its financial stability and market performance. Evaluating these factors helps determine whether the stock is a worthwhile investment.

Beta

1.924

Basic technical analysis of Paysafe Stock

As of the 19th of November, Paysafe holds the Risk Adjusted Performance of (0.04), coefficient of variation of (1,505), and Variance of 14.46. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Paysafe, as well as the relationship between them. Please check Paysafe standard deviation, as well as the relationship between the maximum drawdown and kurtosis to decide if Paysafe is priced some-what accurately, providing market reflects its current price of 17.46 per share. Given that Paysafe has information ratio of (0.09), we recommend you to check out Paysafe's recent market performance to make sure the company can sustain itself at a future point.

Paysafe's Outstanding Corporate Bonds

Paysafe issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Paysafe uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Paysafe bonds can be classified according to their maturity, which is the date when Paysafe has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	MPLX LP 52 Corp Bond US55336VAL45	View
	Valero Energy Partners Corp Bond US91914JAA07	View

View All Paysafe Corporate Bonds

Understand Paysafe's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Paysafe's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.04)
	Market Risk Adjusted Performance	(0.14)
	Mean Deviation	1.95
	Coefficient Of Variation	(1,505)
	Standard Deviation	3.8
	Variance	14.46
	Information Ratio	(0.09)
	Jensen Alpha	(0.42)
	Total Risk Alpha	(0.72)
	Treynor Ratio	(0.15)
	Maximum Drawdown	31.72
	Value At Risk	(3.12)
	Potential Upside	5.19
	Skewness	(4.33)
	Kurtosis	29.24

	Risk Adjusted Performance	(0.04)
	Market Risk Adjusted Performance	(0.14)
	Mean Deviation	1.95
	Coefficient Of Variation	(1,505)
	Standard Deviation	3.8
	Variance	14.46
	Information Ratio	(0.09)
	Jensen Alpha	(0.42)
	Total Risk Alpha	(0.72)
	Treynor Ratio	(0.15)
	Maximum Drawdown	31.72
	Value At Risk	(3.12)
	Potential Upside	5.19
	Skewness	(4.33)
	Kurtosis	29.24

Consider Paysafe's intraday indicators

Paysafe intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Paysafe stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	31306.01
	Daily Balance Of Power	0.4651
	Rate Of Daily Change	1.02
	Day Median Price	17.1
	Day Typical Price	17.22
	Price Action Indicator	0.56
	Period Momentum Indicator	0.4

Paysafe Corporate Filings

6K	13th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	20th of March 2024 Other Reports	View Verify
F3	30th of January 2024 An amendment to the original Schedule 13D filing	View Verify

Paysafe time-series forecasting models is one of many Paysafe's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Paysafe's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Paysafe Stock media impact

Far too much social signal, news, headlines, and media speculation about Paysafe that are available to investors today. That information is available publicly through Paysafe media outlets and privately through word of mouth or via Paysafe internal channels. However, regardless of the origin, that massive amount of Paysafe data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Paysafe news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Paysafe relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Paysafe's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Paysafe alpha.

Paysafe Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Paysafe can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Paysafe Corporate Management

Chi Lee	Executive Vice President Chief of Staff	Profile
Robert Gatto	Chief Officer	Profile
Elliott Wiseman	Chief Compliance Officer, General Counsel	Profile
Hilary StewartJones	Independent Director	Profile

When determining whether Paysafe is a strong investment it is important to analyze Paysafe's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Paysafe's future performance. For an informed investment choice regarding Paysafe Stock, refer to the following important reports: