Westpay AB (WPAY) AI Stock Analysis

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Westpay AB

(Nasdaq OMX AB:WPAY)

Select Model

Rating:59.6Neutral

Price Target:SEK 1.00▲(1.83% Upside)

Action:reiterated

Date:11/05/26

The overall score of 60 reflects a company with a strong fundamental turnaround but facing significant market skepticism. The financial performance is the primary strength, driven by explosive revenue growth, restored profitability, and a healthy balance sheet. However, this is heavily offset by weak technicals, as the stock remains in a clear downtrend below all major moving averages. The drastically compressed gross margin is a critical risk that likely contributes to the negative market sentiment. The moderate valuation does little to sway the score in either direction.

Positive Factors

Profitability turnaroundProfitability has returned after losses through 2024, with net margins around 5–6% in annual 2025 and TTM 2026. This improves internal funding capacity and provides a stronger base for sustaining the payment-solutions business, although consistency still matters.

Negative Factors

Gross margin compressionTTM 2026 gross margin is unusually low versus prior years, raising questions about product mix, pricing, or cost classification. If the compression persists, revenue growth may translate less effectively into operating profit and weaken the durability of the recent turnaround.

Westpay AB (WPAY) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 101.21M
Dividend Yield: ―
Average Volume (3M): 33.43K
Price to Earnings (P/E): 29.2
Beta (1Y): 0.22
Revenue Growth: 6.86%
EPS Growth: 19.23%
Country: Sweden
Employees: 44
Sector: General
Sector Strength: 55
Industry: Software - Infrastructure

Westpay AB Business Overview & Revenue Model

Company Description

Westpay AB provides intelligent transaction and payment processing systems across a wide international footprint, covering Europe, Africa, South Asia, Southeast Asia, and the Nordic countries. The company's comprehensive offerings include a variety o...

How the Company Makes Money

Westpay makes money primarily by selling and deploying merchant payment acceptance solutions. Key revenue streams typically include (1) hardware revenue from payment terminal sales to merchants, resellers, or partners; (2) recurring revenue from soft...

Westpay AB Financial Statement Overview

Summary

Westpay's financials show a dramatic turnaround with TTM revenue surging 164.5% and a swing to net profitability. The balance sheet has been deleveraged significantly (debt-to-equity from 12.3x to 0.51x), and free cash flow is now positive at 7.5M. The primary concern is the severe gross margin compression to 7.4% TTM, which tempers the score.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	78.21M	73.96M	67.61M	61.11M	70.42M	53.71M
Gross Profit	5.71M	7.24M	30.52M	58.94M	21.27M	38.07M
EBITDA	15.30M	12.59M	5.67M	-8.77M	653.00K	-11.45M
Net Income	3.47M	4.20M	-6.16M	-27.59M	-8.79M	-17.10M
Balance Sheet
Total Assets	64.91M	58.27M	56.24M	54.50M	61.67M	47.34M
Cash, Cash Equivalents and Short-Term Investments	647.00K	323.00K	356.00K	856.00K	4.67M	12.48M
Total Debt	11.21M	14.11M	13.92M	18.23M	18.66M	7.50M
Total Liabilities	42.03M	37.23M	48.37M	53.02M	55.80M	32.48M
Stockholders Equity	22.88M	21.04M	7.87M	1.48M	5.88M	14.65M
Cash Flow
Free Cash Flow	7.48M	6.17M	-9.51M	-38.44M	-18.98M	-4.99M
Operating Cash Flow	11.63M	10.09M	8.63M	-20.66M	-2.35M	2.13M
Investing Cash Flow	-14.03M	-14.49M	-18.15M	-17.78M	-16.62M	-7.12M
Financing Cash Flow	2.17M	4.37M	9.01M	34.63M	11.16M	16.52M

Westpay AB Technical Analysis

Technical Analysis SentimentPositive

Last Price0.98

Price Trends

50DMA1.00Positive

100DMA1.03Negative

200DMA1.16Negative

Market Momentum

MACD-0.00Negative

RSI54.61Neutral

STOCH70.59Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:WPAY, the sentiment is Positive. The current price of 0.98 is above the 20-day moving average (MA) of 0.97, below the 50-day MA of 1.00, and below the 200-day MA of 1.16, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 70.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:WPAY.

Westpay AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SE:WPAY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:UPSALE	82Outperform	SEK 451.27M	16.85	―	7.97%	11.34%	40.60%
SE:ADTR	67Neutral	SEK 707.46M	-132.50	―	5.19%	13.93%	79.18%
SE:WPAY	60Neutral	SEK 101.41M	29.21	―	―	6.86%	19.23%
SE:CDON	58Neutral	SEK 511.19M	-6.29	―	―	7.12%	8.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SE:ONEF	55Neutral	SEK 490.23M	-25.00	―	―	20.62%	85.64%

* General Sector Average

Performance Comparison

SE:WPAY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:WPAY	Westpay AB	0.98	-0.49	-33.20%
SE:SE0009994445	Seamless Distribution Systems AB	7.00	1.00	16.67%
SE:UPSALE	Upsales Technology AB	27.70	-1.87	-6.33%
SE:ONEF	Oneflow AB	17.75	-9.75	-35.45%
SE:ADTR	Adtraction Group AB	41.50	17.06	69.78%
SE:CDON	CDON AB	43.90	-23.10	-34.48%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 05, 2026

Westpay AB AI Stock Analysis