Paysign, Inc.

Paysign, Inc. (NASDAQ: PAYS) is a payment solutions provider that offers prepaid card programs and processing services to businesses, consumers, and government agencies. PAYS sells prepaid debit cards under the PaySign name and has created a card processing infrastructure with proprietary technologies and software applications to meet the needs of its customers.

Key Highlights

• The company reported YoY growth of 71% in net revenues to USD 20.70 million in 9MFY21 (ended September 30, 2021) compared to USD 16.87 million in 9MFY20.
• PAYS' net loss reduced to USD 2.83 million during 9MFY21 vs. USD 4.83 million in 9MFY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 6.93 million and no outstanding debt.
• Its ROE was -2.2% in Q3FY21 vs. the industry median of 2.9%.
• PAYS' EBITDA margin for Q3FY21 was 4.5%, significantly lower than the industry median of 19.5%.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 1.37 to USD 5.69.
• PAYS' stock price decreased 56.06% and 61.13% in the past nine and twelve months, respectively.

Technical Price Chart (as of January 06, 2022). Analysis by Kalkine

Conclusion: Considering the topline growth, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 1.85, up 2.78%, as of January 06, 2022.

*The reference data in this report has been partly sourced from REFINITIV.