One-glance verdict
Undervalued
$19.62 our estimate vs market $10.42
Wall Street consensus: $17.48 (-10.9% lower than our fair-value estimate)
47% below our estimate, below the bear case
Fundamentals snapshot
Adyen N.V.
ADYEY · PNK · Technology · Software - Infrastructure
Current price
$10.42
52-week range
$8.93 - $18.34
Market cap
$32.89B
Balance sheet
Healthy
55.65x Strong cushion
Net cash $13.76B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 18.9% last year.
- Reward Returns 21.3% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Insider ownership is only 0.0% (peer median: 0.9%).
What this company does
Adyen N.V.
Adyen provides a single technology platform that allows businesses like Uber, Spotify, and McDonald's to accept payments from customers, whether online, in an app, or in a physical store. The company makes money by charging a small fee on every transaction it processes, which matters because its own revenue (the total money it brings in) grows as its clients sell more products and services. This single, unified system simplifies a complex process for global companies, helping them manage payments and reduce fraud across different countries and payment methods.
How the company got here
Adyen was started in the Netherlands in 2006 by a team of entrepreneurs who saw that existing payment technology was a messy patchwork of old systems. Their goal was to build a single, modern platform to help businesses grow by making it easy to accept payments from all over the world. The company grew by building its own technology from the ground up, rather than buying other companies. This approach attracted large global businesses, and Adyen went public on the Euronext Amsterdam stock exchange in 2018.
What it actually does
Adyen provides a single system for businesses to accept and manage payments from customers, whether that's online, in an app, or in a physical store. Think of it as the financial plumbing that works behind the scenes when you buy something from a major brand. Instead of a business needing separate partners for processing online credit cards, in-store terminals, and fraud detection, Adyen combines all of that into one platform. This helps companies see all their sales data in one place and makes it simpler to expand into new countries.
Unified Commerce
This is Adyen's core business and represents the majority of its revenue. It combines online, mobile, and in-store payment processing into a single, connected system. When a business uses this service, they pay Adyen a small fee for each transaction they process, whether it's a credit card swipe in a store or a digital wallet payment on a website. This unified view allows businesses to offer seamless customer experiences, like buying online and returning in-store, because all the payment information is in one place.
Platforms
This part of the business serves online marketplaces and software companies that connect buyers with sellers, like eBay or an app for booking services. Adyen provides the tools for these platforms to easily sign up new sellers, split payments between the seller and the platform, and send payouts (the money sellers earn). The platform pays Adyen for managing these complex money flows and ensuring everything is secure and compliant. This is a significant and growing part of Adyen's business.
Embedded Financial Products
This is a newer and smaller, but growing, part of Adyen's business that goes beyond just processing payments. It includes services like Issuing, which lets a business create its own physical or virtual payment cards for employees or customers. It also offers Capital, which provides short-term business loans to its customers, and Accounts, which are business bank accounts. Adyen earns revenue from fees associated with these financial services.
What management is betting on now
Adyen's leadership is focused on expanding its "Unified Commerce" solution to more large retail and hospitality businesses, getting them to use Adyen for both their online and physical store payments. They are also heavily investing in their Platforms business to support the growth of online marketplaces. A key priority is growing in North America, which they see as a major opportunity. Finally, they are moving beyond just payments to become a broader financial technology platform, offering more services like business loans and card issuing to become more essential to their customers.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $19.62 vs current price $10.42
Wall Street consensus is the average analyst price target: $17.48 (-10.9% lower than our fair-value estimate).
Our most-likely fair value is $19.62 a share — about 88.3% above today's price of $10.42, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $13.8B - more cash than debt. Interest coverage 55.6x.
Net debt
$-13.76B
Interest coverage
55.65x
Adyen N.V.'s profit covers its interest bill about 55.6 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
ADYEY
BASELINE
Adyen N.V.
Total debt $469.61M Interest coverage 55.65x This is the baseline the peer rows are being compared against.
Total debt $14.22B Interest coverage 14.50x -74% vs ADYEY Carries about 3.8x less debt cushion than ADYEY.
Total debt — Interest coverage 3.72x -93% vs ADYEY Carries about 15.0x less debt cushion than ADYEY.
Total debt $23.56B Interest coverage 2.27x -96% vs ADYEY Carries about 24.6x less debt cushion than ADYEY.
Total debt $0.00 Interest coverage 25.33x -54% vs ADYEY Carries about 2.2x less debt cushion than ADYEY.
What you should know
The case for and against ADYEY
3 Rewards
1 Risk
Rewards
-
Revenue grew 18.9% last year.
-
Returns 21.3% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 0.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.05x
Forward P/E
18.65x
P/B
4.82x
P/S
12.73x
EV/EBITDA
16.22x
PEG ratio
0.96x
Profitability
How much profit each dollar creates
Gross margin
68.5%
Operating margin
43.6%
Net margin
43.6%
ROE
21.3%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.07x
Current ratio
1.65x
Quick ratio
1.56x
Total debt
$469.61M
Total cash
$14.23B
Growth
How the business has been compounding
Revenue TTM
$2.96B
Revenue 5Y CAGR
-33.3%
EPS TTM
0.40
EPS 5Y CAGR
22.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.18B
Free CF TTM
$1.04B
FCF margin
35.0%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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