Nevada-based Paysign Inc. (PAYS) is a prepaid card payment solution and integrated payment processor. The fintech company offers integrated payment processing and digital banking services for consumers, businesses, and government corporations. It serves various sectors such as healthcare, pharmaceutical, hospitality, and retail. Established in 1995, it changed its name to Paysign, Inc. in April 2019 from 3PEA International Inc.
Valued at just $265 million by market cap, PAYS is a member of the small-cap focused Russell 2000 Index (RUT). However, PAYS has been outperforming its parent index by a wide margin.
In fact, Paysign stock has been on an incredible rally this year, up more than 79% on a YTD basis. Just yesterday, PAYS set a new multi-year high of $5.09 - and Wall Street analysts see more upside in store.
Paysign Beats on Q1 Earnings
Paysign reported its Q1 results earlier this month, where revenue rose 30% YoY to $13.2 million, beating the analyst consensus of $12.39 million. Adjusted EBITDA more than doubled to $1.7 million, with EPS of $0.03 arriving in line with expectations.
The company's patient affordability business was a key driver of growth during the quarter, with revenue surging 305% as Paysign added 10 new programs under that umbrella, taking its total to 53 active patient affordability programs. Revenue from its plasma donor compensation business increased by 11% to $10.4 million, with plans to add 15-25 new plasma centers in 2024.
Management anticipates Q2 revenue growth of 27.5% year-over-year, with adjusted EBITDA rising 65-70% from 2023 levels, and an adjusted EBITDA margin between 13.5% and 14.0%. Pharma revenue is projected to account for 18% of Q2 revenue.
Paysign also backed its full-year guidance for 2024 revenue of $54.5 million to $56.7 million, and adjusted EBITDA in the range of $8.0 million to $9.0 million.
For the full fiscal year 2024, analysts are targeting EPS growth of 58% to $0.19, followed by 47% growth in fiscal 2025 to $0.28 per share.
Analysts See More Upside Ahead
Four analysts are covering PAYS stock, with a unanimous “Strong Buy” rating from this relatively small group.
The mean price target for PAYS is $6.12, which suggests expected upside of 21.9% from current levels. The Street-high price target of $7 is more than 39% overhead.
For investors looking to scoop up this low-priced fintech stock in anticipation of additional upside, it's worth pointing out that PAYS still looks reasonably valued after its breakout rally. The current price/sales ratio of 4.68 is a roughly 23% discount to the stock's historical average valuation.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
