Flywire Corp (NASDAQ: FLYW)

Sector: Technology Industry: Software - Infrastructure CIK: 0001580560
Market Cap 1.78 Bn
P/B 2.15
P/E -731.00
P/S 3.05
ROIC (Qtr) 0.73
Div Yield % 0.00
Rev 1y % (Qtr) 27.63
Total Debt (Qtr) 15.00 Mn
Debt/Equity (Qtr) 0.02

About

Flywire Corp, known by its stock symbol FLYW, is a prominent global payments enablement and software company. The company specializes in delivering complex payments solutions across various industries, with a focus on providing a seamless and secure payment experience for its clients. Flywire's operations span a variety of industries, including education, healthcare, travel, and B2B. The company's offerings include next-gen payments platforms, proprietary global payment networks, and vertical-specific software solutions. These solutions cater to...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 53.83M provides robust 3.59x coverage of total debt 15M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 53.83M provides exceptional 17.25x coverage of interest expenses 3.12M, showing strong debt service capability.
  • Strong tangible asset base of 659.52M provides 43.97x coverage of total debt 15M, indicating robust asset backing and low credit risk.
  • Tangible assets of 659.52M provide exceptional 30.74x coverage of deferred revenue 21.45M, showing strong service capability backing.
  • Robust free cash flow of 46.22M exceeds capital expenditure of 7.61M by 6.07x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 53.83M barely covers its investment activities of (201.38M), with a coverage ratio of -0.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (201.38M) provide weak support for R&D spending of 69.04M, which is -2.92x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 354.91M provide limited coverage of acquisition spending of (324.71M), which is -1.09x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 53.83M shows concerning coverage of stock compensation expenses of 70.01M, with a 0.77 ratio indicating potential earnings quality issues.
  • Operating earnings of 9.35M show weak coverage of depreciation charges of 23.69M, with a 0.39 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.26 2.69
EV to Cash from Ops. EV/CFO 29.54 28.91
EV to Debt EV to Debt 106.02 19.83
EV to EBIT EV/EBIT 170.16 -9.95
EV to EBITDA EV/EBITDA 52.70 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 34.41 26.09
EV to Market Cap EV to Market Cap 0.89 0.36
EV to Revenue EV/Rev 2.73 -9.34
Price to Book Value [P/B] P/B 2.15 3.88
Price to Earnings [P/E] P/E -731.00 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 2.99 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -20.30 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -37.19 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -117.76 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 481.31 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) -54.37 20.13
EBT Growth (1y) % EBT 1y % (Qtr) -68.86 14.16
EPS Growth (1y) % EPS 1y % (Qtr) -111.76 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -74.41 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 20.72 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.90 1.22
Current Ratio Curr Ratio (Qtr) 1.53 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -0.96
Interest Cover Ratio Int Coverage (Qtr) 2.99 -14.20
Times Interest Earned Times Interest Earned (Qtr) 2.99 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.70 -548.16
EBIT Margin % EBIT Margin % (Qtr) 1.60 -199.84
EBT Margin % EBT Margin % (Qtr) 1.07 -607.20
Gross Margin % Gross Margin % (Qtr) 62.60 51.88
Net Profit Margin % Net Margin % (Qtr) -0.40 -610.00