Paysign Inc: Fintech Stock Up 340% in 2019 Is Just Getting Started

PAYS Stock Extremely Bullish on Record Results

Paysign Inc (NASDAQ:PAYS) should change its name to “Dollarsign Inc.” Shares of the prepaid debit card payment provider have been on a meteoric tear over the last three years, with PAYS stock soaring 5,100% and showing no sign of slowing down.

With a market cap of just $745.0 million, Paysign is significantly smaller than its competitors—Square, Inc. (NASDAQ:SQ) has a market cap of $33.0 billion—Paysign continues to post strong numbers.

First-quarter revenue was up 55.2%, net income 111%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of 121.5%. It also has a strong cash flow and no debt. This all helps explain why PAYS stock has advanced 340% in 2019.

Thanks to growth with its existing programs and the addition of new card programs, Paysign Inc could continue to reward buy-and-hold investors for a long, long time.

Paysign Inc Overview 

Paysign Inc is a financial technology (fintech) company that designs and develops payment solutions, prepaid debit card programs, and customized payment services. It’s customers include a large number of Fortune 500 companies, major healthcare and pharmaceutical companies, multinational brands, prestigious universities, and social media companies. (Source: “Investor Presentation, June 2019,” Paysign Inc, last accessed July 11, 2019.)

The Henderson, Nevada-based company has over 2.5 million cardholders in its portfolio. And their customers seem to like what they’re getting; over the last eight years, Paysign Inc has maintained a 100% client retention rate.

(Source: “PAYS Key Statistics,” Yahoo! Finance, last accessed July 11, 2019.)

PAYS stock has been on a growth trajectory over the last few years that is arguably second to none. The company entered 2017 as (some would erroneously claim) a lowly penny stock, trading at $0.30; it ended the year up 140% at $0.72. In 2018, PAYS stock soared an additional 375%, and so far, in 2019, the company’s share price is up 340%.

It only broke out of penny stock territory (here defined as any stock trading under $10.00 per share) in mid-May, fueled in part by record first quarter revenue and net income. Since then, Paysign Inc’s share price has trended steadily higher. In fact, on July 10, it hit a new 52-week intra-day high of $16.30.

In addition to strong financials, there is another reason why investor interest in Paysign has picked up over the last year: in August 2018, the company graduated to the Nasdaq from the OTC Markets.

Chart courtesy of StockCharts.com

Record First-Quarter Revenue, Net Income

On May 7, Paysign Inc announced its financial results for the first quarter ended March 31, 2019.

First-quarter revenue was up 55.2% year-over-year at a record $7.25 million. Gross profit was up 68.3% at $3.8 million, or 52% of revenue. In the first quarter of 2018, gross profit was $2.2 million, or 48% of revenue. (Source: “PaySign, Inc. Reports Record First Quarter 2019 Revenue and Net Income,” Paysign Inc, May 7, 2019.)

Net income for the first quarter of 2018 was up 11.3% year-over-year at a record $871,671, or $0.02 per share. Adjusted EBITDA increased 121.5% to $1.71 million, or $0.04 per share.

The company ended the quarter with $5.2 million in cash and no long-term debt.

Looking ahead, for 2019, Paysign expects revenue to be in a range of $38.0 million to $40.0 million, representing year-over-year growth of 62% to 71%. Adjusted EBITDA is projected to be in a range of $10.0 million to $12.0 million, representing year-over-year growth of 104% to 145%.

Since 2016, Paysign Inc’s revenue has grown at a compound annual growth rate of 55%.

Analyst Take

Paysign Inc is a fast-growing fintech company, operating a high-margin, profitable business that provides it with a predictable recurring revenue stream.

Over a short period of time, Paysign Inc has carved out a strong niche in the prepaid debit card market and has an enviable portfolio of customers. It also continues to attract new business, especially with its new pharma business. All of which should help PAYS stock continue to reward investors over the coming quarters and years.