PaySign (PAYS) AI Stock Analysis

• Market Cap: $159.67M
• Dividend Yield: N/A
• Average Volume (3M): 197.48K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.21
• Revenue Growth: 26.77%
• EPS Growth: -13.24%
• Country: US
• Employees: 173
• Sector: Technology
• Sector Strength: 69
• Industry: Software - Infrastructure
• EPS (TTM): 0.05
• Shares Outstanding: 54,217,674
• 10 Day Avg. Volume: 195,423
• 30 Day Avg. Volume: 197,481
• PEG Ratio: -0.70
• Price to Book (P/B): 4.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.98
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 4.75
• Enterprise Value/Ebitda: 5.36
• 1Y Price Target: $6.33
• Price Target Upside: 109.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

PaySign's strong revenue growth and operational improvements underpin its solid financial performance, supported by healthy cash flows and low leverage. Positive technical momentum suggests potential short-term gains, although valuation concerns and the lack of a dividend may weigh on investor sentiment. The recent earnings call highlighted significant growth in key areas but also revealed challenges in the plasma segment. Overall, the stock presents a promising outlook with some risks to monitor.

Positive Factors

Financial Performance

Paysign reported better than expected financial results with a revenue increase of 14% to $15.6 million and an adjusted EBITDA increase of 14% to $2.86 million.

Growth Potential

The company has a strong pipeline of new pharma patient affordability programs, which are expected to drive further growth.

Stock Valuation

Shares trading at a lower revenue multiple compared to the comp group median suggest catalytic growth potential is not fully reflected in the current valuation.

Negative Factors

Market Perception

Investors are perceived to be missing the growth potential in both segments and the pipeline of pharma program growth.

Plasma Revenue Decline

Plasma revenue declined by 6.2% to $10.8 million due to a decrease in plasma donations and dollars loaded to cards, as plasma inventory levels have normalized.

PaySign Business Overview & Revenue Model

Company Description

PaySign, Inc. provides prepaid card products and processing services under the PaySign brand for corporate, consumer, and government applications. It offers various services, such as transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through PaySign, a proprietary card-processing platform. The company also develops prepaid card programs for corporate incentive and rewards, including consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments, and pharmaceutical payment assistance; and payroll or general purpose reloadable cards, as well as gift or incentive cards. In addition, it offers and Per Diem/Corporate Expense Payments that allows businesses, and non–profits and government agencies the ability to control employee spending while reducing administration costs by eliminating the need for traditional expense reports. Further, the company provides payment claims processing and other administrative services; pharmacy-based voucher and copay, and medical claims and debit-based affordability programs; PaySign Premier, a demand deposit account debit card; and payment solution for source plasma collection centers, as well as customer service center and PaySign Communications Suite services. Its principal target markets for processing services comprise prepaid card issuers, retail and private-label issuers, small third-party processors, and small and mid-size financial institutions in the United States and Mexico. The company was formerly known as 3PEA International, Inc. and changed its name to PaySign, Inc. in April 2019. PaySign, Inc. was incorporated in 1995 and is based in Henderson, Nevada.

How the Company Makes Money

PaySign generates revenue primarily through fees associated with its prepaid card programs. The company charges clients for card issuance, transaction processing, and program management services. Additionally, PaySign earns income from interchange fees, which are collected from merchants when cardholders use their prepaid cards for purchases. The company also benefits from interest and service fees related to funds loaded onto prepaid cards. Key partnerships with pharmaceutical companies, healthcare providers, and corporate clients contribute significantly to PaySign's earnings by expanding its customer base and enhancing its service offerings.

PaySign Financial Statement Overview

Summary

PaySign demonstrates strong revenue growth and improving operational efficiency. Despite some pressure on net profitability, the company maintains a healthy balance sheet with low leverage and strong cash flows, positioning it well for future growth and stability. However, the relatively low net profit margin and stockholders' equity warrant careful monitoring to ensure long-term financial health.

Income Statement

PaySign showed a strong revenue growth of 23.5% over the past year, indicating a positive trajectory. The gross profit margin stands at 55.1%, which is solid for the industry. However, the net profit margin has decreased to 6.5% from 13.7% last year, indicating some profitability pressure. The EBIT margin has improved to 1.7%, recovering from negative figures in prior years, showing signs of operational improvement.

Balance Sheet

The debt-to-equity ratio is low at 0.1, indicating minimal leverage, which is beneficial for financial stability. Return on equity is 12.5%, showing reasonable profitability relative to shareholder equity. The equity ratio is 17%, which is moderate and suggests a balanced capital structure. However, the stockholders' equity is relatively low compared to total liabilities, indicating potential risk if liabilities increase.

Cash Flow

Operating cash flow increased to $22.9 million, showcasing robust cash generation capabilities. Free cash flow also showed growth, which is a positive sign for future investments and debt servicing. The operating cash flow to net income ratio is high at 6.0, indicating strong cash conversion efficiency. The free cash flow to net income ratio is 5.9, reinforcing the company's strong cash position relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
58.38M	47.27M	38.03M	29.46M	24.12M
	Gross Profit
32.20M	24.14M	20.95M	14.71M	9.30M
	EBIT
1.02M	-167.25K	344.33K	-2.74M	-7.91M
	EBITDA
7.02M	3.86M	3.25M	-213.22K	-5.79M
	Net Income Common Stockholders
3.82M	6.46M	1.03M	-2.72M	-9.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.77M	16.99M	9.71M	7.39M	7.83M
	Total Assets
179.03M	146.60M	108.24M	84.05M	67.83M
	Total Debt
2.93M	3.31M	3.67M	4.01M	4.33M
	Net Debt
-7.84M	-13.68M	-6.04M	-3.37M	-3.50M
	Total Liabilities
148.59M	122.11M	91.95M	71.06M	54.60M
	Stockholders Equity
30.44M	24.49M	16.29M	12.99M	13.24M
Cash Flow		Free Cash Flow
13.46M	20.57M	21.23M	12.55M	10.43M
	Operating Cash Flow
22.95M	27.62M	25.32M	15.23M	13.78M
	Investing Cash Flow
-9.49M	-7.05M	-4.09M	-2.68M	-3.34M
	Financing Cash Flow
-466.25K	-1.12M	0.00	192.14K	-72.86K

PaySign Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAYS, the sentiment is Positive. The current price of 3.02 is above the 20-day moving average (MA) of 2.40, above the 50-day MA of 2.32, and below the 200-day MA of 3.31, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 72.77 is Negative, neither overbought nor oversold. The STOCH value of 91.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAYS.

PaySign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	74 Outperform	$2.60B	24.95	15.97%	―	14.86%	-0.94%
PAYS	74 Outperform	$159.67M	27.53	18.82%	―	26.77%	-13.24%
IMXI	71 Outperform	$333.34M	6.78	39.27%	―	-1.90%	0.05%
Sector *	60 Neutral	$11.39B	10.52	-6.21%	2.95%	7.68%	-11.12%
PRTH	58 Neutral	$580.61M	―	57.39%	―	15.76%	82.78%
BKKT	53 Neutral	$138.53M	―	-60.94%	―	128.83%	73.67%
KPLT	42 Neutral	$30.22M	―	86.76%	―	11.25%	34.57%

PaySign Corporate Events

PaySign Stockholders Approve Key Proposals at Annual Meeting

On May 7, 2025, PaySign held its annual meeting of stockholders to vote on several key proposals. The stockholders elected seven directors to the board, approved executive compensation on a non-binding advisory basis, and decided to hold advisory votes on executive compensation every three years. Additionally, Moss Adams LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (PAYS) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on PaySign stock, see the PAYS Stock Forecast page.

Spark’s Take on PAYS Stock

According to Spark, TipRanks’ AI Analyst, PAYS is a Outperform.

PaySign’s strong revenue growth and operational improvements underpin its solid financial performance, supported by healthy cash flows and low leverage. Positive technical momentum suggests potential short-term gains, although valuation concerns and the lack of a dividend may weigh on investor sentiment. The recent earnings call highlighted significant growth in key areas but also revealed challenges in the plasma segment. Overall, the stock presents a promising outlook with some risks to monitor.

To see Spark’s full report on PAYS stock, click here.