One-glance verdict
Undervalued
$85.28 our estimate vs market $24.16
Wall Street consensus: $32.11 (-62.3% lower than our fair-value estimate)
72% below our estimate, below the bear case
Fundamentals snapshot
Remitly Global, Inc.
RELY · NMS · Technology · Software - Infrastructure
Current price
$24.16
52-week range
$12.08 - $27.48
Market cap
$5.11B
Balance sheet
Healthy
10.18x Adequate
Net cash $638.13M. 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 10.7% last year.
- Reward Returns 32.2% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 4/10 years.
What this company does
Remitly Global, Inc.
Remitly Global runs a service on your phone or computer that lets you send money to family and friends in other countries. The company makes its money by charging a fee for each transfer and from currency exchange (the process of converting one country's money to another). This is important because Remitly serves a large and growing number of immigrants and workers who need a simple, digital way to send money back home.
How the company got here
Remitly was founded in 2011 by Matthew Oppenheimer, Josh Hug, and Shivaas Gulati after Oppenheimer saw firsthand in Kenya how difficult and expensive it was to send money internationally. The company started with a focus on making these transfers, known as remittances, cheaper and easier for immigrants and their families by using digital technology like smartphone apps instead of physical locations. Initially focused on transfers to the Philippines, Remitly gradually expanded its service to cover more countries and went public on the Nasdaq stock exchange in 2021. The company's goal is to become the most trusted financial services provider for immigrants and their families around the world.
What it actually does
Remitly provides a digital service that lets people send money to friends and family in other countries. Instead of going to a physical agent, a customer uses Remitly's app or website to send funds from their bank account or card. The person receiving the money can get it in several ways, such as a direct deposit into their bank account, credited to a mobile wallet, or as cash they can pick up at a partner location. The service is designed to be a faster, more secure, and lower-cost alternative to traditional money transfer companies.
Consumer Remittances
This is Remitly's main business and generates almost all of its revenue (the money a company brings in from sales). Customers, typically immigrants working in developed countries, pay Remitly to send money to their families in over 170 countries. Remitly makes money in two ways on these transactions: a small transaction fee and a foreign exchange spread (the difference between the exchange rate they offer customers and the rate they get). This core service focuses on smaller, regular payments that people send for family support.
Remitly for Business
A newer and smaller part of the company, this service allows small businesses in the United States and a few other countries to send payments to international contractors, freelancers, and suppliers. Instead of complex international wire transfers, businesses can use the familiar Remitly platform to pay people in over 175 countries. This service is designed for simplicity, allowing businesses to use their existing bank accounts without setting up new systems. It represents a growing area for the company, leveraging its existing global payment network to serve business customers.
What management is betting on now
Remitly's leadership is focused on growing its core remittance business by offering competitive pricing and fast, reliable service to attract more customers. They are also working to expand into new areas, such as serving customers who send larger amounts of money and growing their 'Remitly for Business' service. The company is investing in technology, like artificial intelligence (AI), to improve customer service and make its operations more efficient. A key part of their strategy is to build a long-term, trusted relationship with customers, hoping to one day offer them a wider range of financial services beyond just money transfers.
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
$145.64M
FY2024 Q4
$52.83M
FY2025 Q1
$118.94M
FY2025 Q2
$28.60M
FY2025 Q3
$-2.11M
FY2025 Q4
$143.26M
FY2026 Q1
$75.91M
FY2026 Q2
$133.44M
Revenue
$495.16M
Net income
$205.91M
Diluted EPS
0.93
Operating cash flow
$134.62M
Free cash flow
$133.44M
Fetching…
Sources
Revenue
$452.80M
Net income
$49.05M
Diluted EPS
0.23
Operating cash flow
$81.89M
Free cash flow
$75.91M
Fetching…
Sources
Revenue
$442.18M
Net income
$41.22M
Diluted EPS
0.19
Operating cash flow
$149.62M
Free cash flow
$143.26M
Fetching…
Sources
Revenue
$419.49M
Net income
$8.83M
Diluted EPS
0.04
Operating cash flow
$1.37M
Free cash flow
$-2.11M
Fetching…
Sources
Revenue
$411.85M
Net income
$6.54M
Diluted EPS
0.03
Operating cash flow
$41.19M
Free cash flow
$28.60M
Fetching…
Sources
Revenue
$361.62M
Net income
$11.35M
Diluted EPS
0.05
Operating cash flow
$132.90M
Free cash flow
$118.94M
Fetching…
Sources
Revenue
$351.89M
Net income
$-5.72M
Diluted EPS
-0.03
Operating cash flow
$55.63M
Free cash flow
$52.83M
Fetching…
Sources
Revenue
$336.53M
Net income
$1.92M
Diluted EPS
0.01
Operating cash flow
$146.76M
Free cash flow
$145.64M
Fetching…
Sources
Is it cheap or expensive?
Fair value $85.28 vs current price $24.16
Wall Street consensus is the average analyst price target: $32.11 (-62.3% lower than our fair-value estimate).
Our most-likely fair value is $85.28 a share — about 253.0% above today's price of $24.16, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $638.1M - more cash than debt. Interest coverage 10.2x.
Net debt
$-638.13M
Interest coverage
10.18x
Remitly Global, Inc.'s profit covers its interest bill about 10.2 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
RELY
BASELINE
Remitly Global, Inc.
Total debt $38.26M Interest coverage 10.18x This is the baseline the peer rows are being compared against.
Total debt $14.22B Interest coverage 14.50x +43% vs RELY Carries about 1.4x more debt cushion than RELY.
Total debt $2.70B Interest coverage 5.30x -48% vs RELY Carries about 1.9x less debt cushion than RELY.
Total debt $2.81B Interest coverage 6.27x -38% vs RELY Carries about 1.6x less debt cushion than RELY.
Total debt $135.42M Interest coverage 5.75x -43% vs RELY Carries about 1.8x less debt cushion than RELY.
What you should know
The case for and against RELY
3 Rewards
0 Risks
Rewards
-
Revenue grew 10.7% last year.
-
Returns 32.2% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 4/10 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)
17.51x
Forward P/E
15.12x
P/B
4.54x
P/S
2.83x
EV/EBITDA
22.47x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
61.5%
Operating margin
14.3%
Net margin
16.9%
ROE
32.2%
ROA
8.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
3.18x
Quick ratio
2.52x
Total debt
$38.26M
Total cash
$676.39M
Growth
How the business has been compounding
Revenue TTM
$1.81B
Revenue 5Y CAGR
37.4%
EPS TTM
1.38
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$367.50M
Free CF TTM
$295.65M
FCF margin
16.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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