Payment Data Systems, Inc. revenue jumped on 71.7% and EBITDA Margin increased on 3.2 pp from -10.8% to -7.6%
03/27/2019 • About Payment Data Systems, Inc. (
$PYDS) • By InTwits
Payment Data Systems, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Payment Data Systems, Inc. is a fast growth stock: 2018 revenue growth was 71.7%, 5 year revenue CAGR was 37.0% at 2018 ROIC -32.9%
- The company operates at negative EBITDA Margin: -7.6%
- EBITDA Margin is quite volatile: -7.6% in 2018, -10.8% in 2017, -3.8% in 2016, 10.0% in 2015, 17.1% in 2014
- Payment Data Systems, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -0.3% for the sames years
- Payment Data Systems, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's in pair with industry average of 5.2%
- CAPEX is quite volatile: $1m in 2018, $1m in 2017, $0m in 2016, $1m in 2015, $0m in 2014
- The company has unprofitable business model: ROIC is -32.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 71.7%. Revenue growth showed slowdown in 18Q4 - it was 14.3% YoY. During 2014-2018 Revenue growth bottomed in 2016 at -16.0% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.2 pp from -10.9% to -18.1% in 2018. EBITDA Margin declined at -7.0 pp per annum in 2014-2018.
Gross Margin decreased on 3.6 pp from 25.9% to 22.3% in 2018. During the last 5 years Gross Margin topped in 2015 at 34.5% and was declining since that time.
Net Income margin increased on 5.6 pp from -20.6% to -15.1% in 2018. Net Income margin declined at -11.5 pp per annum in 2014-2018.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 2.8%. Payment Data Systems, Inc.'s CAPEX/Revenue decreased on 2.7 pp from 5.5% in 2015 to 2.8% in 2018. Average CAPEX/Revenue for the last three years was 4.3%.
Return on investment
The company operates at negative ROIC (-32.9%) and ROE (-33.2%). ROIC decreased on 7.4 pp from -25.5% to -32.9% in 2018. ROE decreased on 6.0 pp from -27.2% to -33.2% in 2018. ROIC declined at -21.6 pp per annum in the last 5 years. ROE declined at -30.7 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash dropped on 43.9%.
Financial and operational results
FY ended 12/31/2018
Payment Data Systems, Inc. ($PYDS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 13.395 | 14.380 | 12.076 | 14.571 | 25.024 | 71.7% |
| Gross Profit | 4.178 | 4.963 | 3.783 | 3.768 | 5.570 | 47.8% |
| EBITDA | 2.286 | 1.443 | -0.459 | -1.579 | -1.899 | |
| Net Income | 3.838 | 1.016 | -1.197 | -3.009 | -3.776 | |
Balance Sheet
|
|---|
| Cash | 2.803 | 4.060 | 4.121 | 4.801 | 2.695 | -43.9% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.037 | 0.786 | 0.156 | 1.272 | 0.703 | -44.7% |
Ratios
|
|---|
| Revenue growth | 158.6% | 7.4% | -16.0% | 20.7% | 71.7% | |
| EBITDA growth | -415.8% | -36.9% | -131.8% | 244.0% | 20.3% | |
|
|---|
| Gross Margin | 31.2% | 34.5% | 31.3% | 25.9% | 22.3% | -3.6% |
| EBITDA Margin | 17.1% | 10.0% | -3.8% | -10.8% | -7.6% | 3.2% |
| Net Income Margin | 28.7% | 7.1% | -9.9% | -20.6% | -15.1% | 5.6% |
| CAPEX, % of revenue | 0.3% | 5.5% | 1.3% | 8.7% | 2.8% | -5.9% |
|
|---|
| ROIC | 56.6% | 11.5% | -14.9% | -25.5% | -32.9% | -7.4% |
| ROE | 100.2% | 12.6% | -13.2% | -27.2% | -33.2% | -6.0% |
| Net Debt/EBITDA | -1.2x | -2.8x | | | |
Payment Data Systems, Inc. ($PYDS) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 6 | 6 | 6 | 6 | | 107.9% | 146.4% | 80.4% | 14.3% |
| EBITDA | -1 | -1 | -0 | -0 | | | | | |
| Net Income | -1 | -1 | -1 | -1 | | | | | |
Balance Sheet
|
|---|
| Cash | 3 | 3 | 3 | 3 | | -4.0% | -15.6% | 23.5% | -43.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 21.7% | 21.0% | 22.5% | 23.7% | | -11.8% | -6.3% | -0.4% | 0.5% |
| EBITDA Margin | -10.3% | -9.1% | -5.4% | -5.8% | | -7.0% | 3.5% | 10.7% | 4.6% |
| Net Income Margin | -18.0% | -16.5% | -12.6% | -13.6% | | -7.8% | 4.5% | 12.2% | 9.4% |
Peers in Data Processing & Outsourced S
Below we provide Payment Data Systems, Inc. benchmarking against other companies in Data Processing & Outsourced S industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Verra Mobility Corp ($VRRM) | | | | | 167.8% |
| StoneCo Ltd ($STNE) | | | | 74.3% | 106.0% |
| PagSeguro Digital Ltd. ($PAGS) | | 107.1% | 68.7% | 121.7% | 71.8% |
| StarTek, Inc. ($SRT) | | 12.8% | 8.9% | -4.8% | 66.4% |
| 3PEA International, Inc. ($TPNL) | | -21.2% | 28.5% | 46.2% | 53.8% |
| |
|---|
| Median (55 companies) | | 7.0% | 7.7% | 10.1% | 7.4% |
|---|
| Payment Data Systems, Inc. ($PYDS) | | 7.4% | -16.0% | 20.7% | 71.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Verra Mobility Corp ($VRRM) | | | | 97.4% | 97.5% |
| Everi Holdings Inc. ($EVRI) | 25.8% | 38.3% | 36.1% | 34.5% | 79.9% |
| StoneCo Ltd ($STNE) | | | 69.7% | 70.8% | 79.5% |
| Paychex, Inc. ($PAYX) | 70.9% | 70.5% | 71.0% | 70.8% | 69.9% |
| Global Payments Inc. ($GPN) | 62.7% | 63.2% | 60.4% | 51.5% | 67.5% |
| |
|---|
| Median (44 companies) | 39.3% | 39.6% | 39.5% | 39.5% | 41.0% |
|---|
| Payment Data Systems, Inc. ($PYDS) | 31.2% | 34.5% | 31.3% | 25.9% | 22.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Visa Inc. ($V) | 64.0% | 68.9% | 55.6% | 69.2% | 65.8% |
| FleetCor Technologies, Inc. ($FLT) | 56.1% | 50.4% | 52.0% | 50.8% | 55.9% |
| StoneCo Ltd ($STNE) | | | 31.4% | 26.0% | 53.0% |
| Mastercard Incorporated ($MA) | 57.5% | 56.3% | 56.9% | 56.5% | 51.8% |
| Everi Holdings Inc. ($EVRI) | 9.6% | 14.7% | 3.0% | 20.4% | 45.2% |
| |
|---|
| Median (56 companies) | 20.6% | 21.2% | 21.3% | 21.1% | 19.4% |
|---|
| Payment Data Systems, Inc. ($PYDS) | 17.1% | 10.0% | -3.8% | -10.8% | -7.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Crypto Co/The ($CRCW) | 0.0% | 0.0% | | 1,216.6% | 853.5% |
| Steel Connect, Inc. ($STCN) | 0.6% | 1.5% | 1.7% | 1.1% | 75.6% |
| Everi Holdings Inc. ($EVRI) | 3.0% | 9.3% | 9.4% | 9.9% | 21.9% |
| StoneCo Ltd ($STNE) | | | 7.2% | 18.4% | 8.9% |
| Cardtronics plc ($CATM) | 10.2% | 11.9% | 9.9% | 9.6% | 8.0% |
| |
|---|
| Median (56 companies) | 3.1% | 3.0% | 3.2% | 2.9% | 3.2% |
|---|
| Payment Data Systems, Inc. ($PYDS) | 0.3% | 5.5% | 1.3% | 8.7% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| GreenSky, Inc. ($GSKY) | | | | 156.4% | 93.7% |
| Mastercard Incorporated ($MA) | 63.5% | 57.5% | 57.5% | 60.6% | 64.7% |
| Paychex, Inc. ($PAYX) | 54.5% | 58.7% | 61.9% | 63.9% | 64.5% |
| NIC Inc. ($EGOV) | 64.6% | 61.2% | 63.1% | 52.1% | 39.3% |
| Automatic Data Processing, Inc. ($ADP) | 23.9% | 28.9% | 37.9% | 36.6% | 37.5% |
| |
|---|
| Median (62 companies) | 13.3% | 13.1% | 11.7% | 10.7% | 12.1% |
|---|
| Payment Data Systems, Inc. ($PYDS) | 56.6% | 11.5% | -14.9% | -25.5% | -32.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| StarTek, Inc. ($SRT) | -0.1x | | 2.2x | 2.3x | 18.4x |
| Square, Inc. ($SQ) | | | | | 13.3x |
| Steel Connect, Inc. ($STCN) | -12.5x | | | | 12.6x |
| Exela Technologies Inc ($XELAU) | | | 8.1x | | 9.7x |
| Alliance Data Systems Corporation ($ADS) | 9.3x | 9.1x | 10.7x | 10.1x | 9.0x |
| |
|---|
| Median (55 companies) | 0.6x | 0.7x | 1.4x | 2.3x | 2.1x |
|---|
