One-glance verdict
Undervalued
$28.36 our estimate vs market $7.12
Wall Street consensus: $7.40 (-73.9% lower than our fair-value estimate)
75% below our estimate, below the bear case
Fundamentals snapshot
Payoneer Global Inc.
PAYO · NGM · Technology · Software - Infrastructure
Current price
$7.12
52-week range
$4.08 - $7.19
Market cap
$2.41B
Balance sheet
Healthy
-11.78x Concerning
Net cash $260.16M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.7% last year.
- Reward Returns 7.1% on equity, ahead of 33% of its peers.
- Risk Stock trades 82.3% above its 5-year average P/E.
- Risk Insider ownership is only 3.2% (peer median: 5.3%).
What this company does
Payoneer Global Inc.
Payoneer is a financial technology company that gives small and medium-sized businesses a way to easily send and receive money across different countries. The company makes money by charging a small fee on these international payments, similar to how a bank charges for wire transfers. This is important because it provides a simpler way for online sellers and freelancers around the world to do business globally without needing complex international bank accounts.
How the company got here
Founded in 2005, Payoneer started with a simple goal: to make it easier for businesses to pay freelancers and contractors around the world. At the time, sending small international payments was slow and expensive. The company's big break came when it partnered with large digital marketplaces like Upwork, Fiverr, and Amazon, becoming a preferred way for sellers and freelancers on those platforms to get paid. This strategy helped Payoneer grow rapidly, and it eventually went public on the Nasdaq stock exchange in 2021.
What it actually does
Think of Payoneer as a financial toolkit for businesses that operate globally. It provides a single account where a small business in one country can receive payments from clients in another country, almost as if they had a local bank account there. Businesses can then hold money in different currencies, pay their own suppliers or contractors, and withdraw funds to their local bank account. The company also offers a debit card for spending, and services to help online stores accept payments from customers worldwide.
Transaction Fees
This is the company's main source of income, making up the majority of its revenue. Payoneer charges small fees on the various transactions its customers make, such as when they receive a payment, withdraw money to a local bank account, or use their Payoneer card. A key part of this is the currency exchange fee (a markup added to the exchange rate when converting from one currency to another), which is common in the industry.
Interest on Customer Funds
Payoneer also earns money on the cash balances that its customers hold in their accounts. The company pools these funds and earns interest on them. While this is a significant source of revenue, it can change depending on prevailing interest rates, so the company often emphasizes its growth from transaction fees as a better measure of its core business health.
Other Value-Added Services
This is a smaller but growing part of the business. Payoneer offers other financial products to its customers, such as working capital (short-term loans to help businesses manage their cash flow) and services for merchants to accept payments directly on their websites, called Payoneer Checkout. They also provide automated tax form services and other tools to help businesses manage their international operations.
What management is betting on now
Payoneer's main focus is to become the go-to financial platform for small and medium-sized businesses (SMBs) that trade globally. They are concentrating on attracting larger, higher-value business customers and encouraging all customers to use more of their services, like paying suppliers and managing expenses, not just receiving payments. The company is also investing in technology, including artificial intelligence (AI), to improve its services and expand into new markets, particularly in emerging economies where traditional banking can be complex.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$48.48M
FY2024 Q4
$42.15M
FY2025 Q1
$48.99M
FY2025 Q2
$68.11M
FY2025 Q3
$49.20M
FY2025 Q4
$40.32M
FY2026 Q1
$41.68M
FY2026 Q2
$50.21M
Revenue
$274.26M
Net income
$-2.44M
Diluted EPS
-0.01
Operating cash flow
$61.18M
Free cash flow
$50.21M
Fetching…
Sources
Revenue
$261.60M
Net income
$19.57M
Diluted EPS
0.06
Operating cash flow
$51.83M
Free cash flow
$41.68M
Fetching…
Sources
Revenue
$274.69M
Net income
$19.01M
Diluted EPS
0.05
Operating cash flow
$54.91M
Free cash flow
$40.32M
Fetching…
Sources
Revenue
$270.85M
Net income
$14.12M
Diluted EPS
0.04
Operating cash flow
$54.18M
Free cash flow
$49.20M
Fetching…
Sources
Revenue
$260.61M
Net income
$19.48M
Diluted EPS
0.05
Operating cash flow
$70.69M
Free cash flow
$68.11M
Fetching…
Sources
Revenue
$246.62M
Net income
$20.58M
Diluted EPS
0.05
Operating cash flow
$53.72M
Free cash flow
$48.99M
Fetching…
Sources
Revenue
$261.74M
Net income
$18.19M
Diluted EPS
0.03
Operating cash flow
$45.89M
Free cash flow
$42.15M
Fetching…
Sources
Revenue
$248.27M
Net income
$41.57M
Diluted EPS
0.11
Operating cash flow
$50.12M
Free cash flow
$48.48M
Fetching…
Sources
Is it cheap or expensive?
Fair value $28.36 vs current price $7.12
Wall Street consensus is the average analyst price target: $7.40 (-73.9% lower than our fair-value estimate).
Our most-likely fair value is $28.36 a share — about 298.3% above today's price of $7.12, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $260.2M - more cash than debt. Interest coverage -11.8x.
Net debt
$-260.16M
Interest coverage
-11.78x
Payoneer Global Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
PAYO
BASELINE
Payoneer Global Inc.
Total debt $86.16M Interest coverage -11.78x This is the baseline the peer rows are being compared against.
Total debt $38.26M Interest coverage 10.18x This peer still has a real interest-payment cushion, while PAYO does not.
Total debt $67.37M Interest coverage 874.43x This peer still has a real interest-payment cushion, while PAYO does not.
Total debt $2.81B Interest coverage 6.27x This peer still has a real interest-payment cushion, while PAYO does not.
Total debt $1.47M Interest coverage 5.67x This peer still has a real interest-payment cushion, while PAYO does not.
What you should know
The case for and against PAYO
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.7% last year.
-
Returns 7.1% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Stock trades 82.3% above its 5-year average P/E.
-
Insider ownership is only 3.2% (peer median: 5.3%).
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)
50.86x
Forward P/E
15.47x
P/B
3.69x
P/S
2.23x
EV/EBITDA
10.99x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
85.4%
Operating margin
6.2%
Net margin
4.6%
ROE
7.1%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.13x
Current ratio
1.00x
Quick ratio
0.99x
Total debt
$86.16M
Total cash
$346.32M
Growth
How the business has been compounding
Revenue TTM
$1.08B
Revenue 5Y CAGR
22.1%
EPS TTM
0.14
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$222.10M
Free CF TTM
$206.62M
FCF margin
19.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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