One-glance verdict
Undervalued
$43.79 our estimate vs market $14.80
Wall Street consensus: $14.10 (-67.8% lower than our fair-value estimate)
66% below our estimate, below the bear case
Fundamentals snapshot
Paysign, Inc.
PAYS · NCM · Technology · Software - Infrastructure
Current price
$14.80
52-week range
$3.08 - $15.80
Market cap
$835.64M
Balance sheet
Healthy
2.76x Stretched
Net cash $21.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 22.7% last year.
- Reward Returns 30.8% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
Paysign, Inc.
Paysign helps other companies, like those paying plasma donors or participants in medical studies, give out money using special prepaid debit cards. The company makes its money by charging a small fee every time someone uses one of these cards, which is how it pays its own bills and makes a profit. This business model creates recurring revenue (income that is predictable and likely to continue in the future) because Paysign earns money as long as the cards are actively being used.
How the company got here
Paysign started in 2001 and has become a trusted provider of prepaid debit card solutions. Initially known as 3PEA International, the company built its business by creating and managing customized payment programs for various clients. A key area of focus has been serving healthcare-related industries, which has become a significant part of their business. Over the years, they have expanded their services to include digital banking and other payment processing technologies for businesses, consumers, and government bodies.
What it actually does
Paysign helps other companies give out money to people using prepaid debit cards. Think of it like a gift card, but instead of being for a specific store, it can be used almost anywhere. Businesses, and even government agencies, use Paysign to handle payments for things like employee rewards, customer rebates, or financial assistance for patients. Paysign sets up and manages these card programs, earning money from fees each time a card is loaded or used. They provide the technology and support to make these payment systems work smoothly.
Plasma Donor Compensation
A large and historically important part of Paysign's business involves providing prepaid cards to people who donate plasma. When someone donates plasma, the collection center pays them for their time using a Paysign debit card. Paysign makes money by charging fees for transactions like loading money onto the cards or when donors use them at ATMs. This has traditionally been a steady source of income for the company and represents a significant portion of their business.
Pharmaceutical Patient Affordability
This is a fast-growing and increasingly important part of Paysign's business. Pharmaceutical companies (companies that make medicines) hire Paysign to help patients afford their medications. Paysign provides prepaid cards that patients can use to help cover the co-pay (the portion of a prescription's cost that insurance doesn't cover). The drug companies pay Paysign fees to set up and manage these programs, as well as for processing the claims. This segment is becoming a major driver of the company's growth and has higher margins (the profit made on each dollar of sales) than the plasma business.
Other Prepaid Programs
Beyond plasma and pharmaceuticals, Paysign also creates prepaid card programs for other needs. This includes corporate rewards, where a company might give its employees a bonus on a prepaid card. They also handle programs for consumer rebates and other types of business-to-person payments. While smaller than their main healthcare-focused businesses, this area allows them to serve a wider variety of clients who need to distribute funds to people.
What management is betting on now
The company's leadership is heavily focused on expanding its Patient Affordability business. They see a large opportunity to work with more pharmaceutical companies and believe their technology gives them an advantage over competitors. By growing this higher-margin (more profitable per dollar of revenue) segment, they aim to increase overall profitability. The strategy is to continue being a key player in specialized payment areas, particularly within the life sciences and healthcare industries, rather than competing with broad consumer payment companies.
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
$-20.28M
FY2024 Q4
$14.20M
FY2025 Q1
$-6.11M
FY2025 Q2
$3.55M
FY2025 Q3
$6.30M
FY2025 Q4
$47.50M
FY2026 Q1
$18.52M
FY2026 Q2
$1.19M
Revenue
$28.25M
Net income
$6.76M
Diluted EPS
0.11
Operating cash flow
$1.30M
Free cash flow
$1.19M
Fetching…
Sources
Revenue
$28.04M
Net income
$5.44M
Diluted EPS
0.09
Operating cash flow
$18.79M
Free cash flow
$18.52M
Fetching…
Sources
Revenue
$22.76M
Net income
$1.36M
Diluted EPS
0.02
Operating cash flow
$48.09M
Free cash flow
$47.50M
Fetching…
Sources
Revenue
$21.60M
Net income
$2.22M
Diluted EPS
0.04
Operating cash flow
$6.75M
Free cash flow
$6.30M
Fetching…
Sources
Revenue
$19.08M
Net income
$1.39M
Diluted EPS
0.02
Operating cash flow
$3.64M
Free cash flow
$3.55M
Fetching…
Sources
Revenue
$18.60M
Net income
$2.59M
Diluted EPS
0.05
Operating cash flow
$-6.03M
Free cash flow
$-6.11M
Fetching…
Sources
Revenue
$15.61M
Net income
$1.37M
Diluted EPS
0.02
Operating cash flow
$14.31M
Free cash flow
$14.20M
Fetching…
Sources
Revenue
$15.26M
Net income
$1.44M
Diluted EPS
0.03
Operating cash flow
$-20.16M
Free cash flow
$-20.28M
Fetching…
Sources
Is it cheap or expensive?
Fair value $43.79 vs current price $14.80
Wall Street consensus is the average analyst price target: $14.10 (-67.8% lower than our fair-value estimate).
Our most-likely fair value is $43.79 a share — about 195.8% above today's price of $14.80, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $21.7M - more cash than debt. Interest coverage 2.8x.
Net debt
$-21.66M
Interest coverage
2.76x
Paysign, Inc.'s profit covers its interest bill about 2.8 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PAYS
BASELINE
Paysign, Inc.
Total debt $5.71M Interest coverage 2.76x This is the baseline the peer rows are being compared against.
Total debt $65.51M Interest coverage 116.20x +4,115% vs PAYS Carries about 42.1x more debt cushion than PAYS.
Total debt $772.84M Interest coverage -0.86x -100% vs PAYS This peer has almost no interest-payment cushion compared with PAYS.
Total debt $10.39M Interest coverage 12,590.00x +456,524% vs PAYS Carries about 4566.2x more debt cushion than PAYS.
What you should know
The case for and against PAYS
3 Rewards
0 Risks
Rewards
-
Revenue grew 22.7% last year.
-
Returns 30.8% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
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)
54.81x
Forward P/E
24.07x
P/B
13.88x
P/S
8.30x
EV/EBITDA
30.03x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
61.0%
Operating margin
28.3%
Net margin
15.7%
ROE
30.8%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
1.14x
Quick ratio
0.53x
Total debt
$5.71M
Total cash
$27.37M
Growth
How the business has been compounding
Revenue TTM
$100.64M
Revenue 5Y CAGR
29.2%
EPS TTM
0.27
EPS 5Y CAGR
86.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$74.92M
Free CF TTM
$51.24M
FCF margin
50.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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