Flywire Corp (FLYW) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001580560

P/B 2.14

P/E -729.00

P/S 3.04

Market Cap 1.78 Bn

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...

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 the unique needs of each industry, providing tailored invoicing, flexible payment options, and highly personalized omni-channel experiences.

In the education sector, Flywire serves over 2,800 institutions, including four of the top 10 healthcare systems in the United States. The company's education payments platform simplifies the student recruitment process, enabling seamless and secure payment experiences for universities and colleges across the globe.

Flywire's healthcare segment serves over 90 healthcare systems, including some of the largest and most recognized healthcare providers in the world. The company's healthcare payments platform streamlines payment processes, providing patients with flexible payment options and automating accounts receivable reconciliation.

In the travel sector, Flywire serves over 900 travel providers, including travel agencies, tour operators, and travel companies. The company's travel payments platform simplifies the payment process for travelers, enabling them to pay in their local currency and with their preferred payment method.

Flywire's B2B segment serves over 900 clients, including large corporations and small businesses. The company's B2B payments platform streamlines payment processes, providing businesses with flexible payment options and automating accounts receivable reconciliation.

Flywire's competitive advantage lies in its next-gen payments platform, proprietary global payment network, and vertical-specific software solutions. The company's expertise in each industry it serves sets it apart from its competitors, offering a comprehensive payments solution that meets the unique needs of its clients.

Flywire's customers include financial institutions, payment providers, software companies, and other organizations that rely on the company's solutions to streamline their accounts receivable processes. These clients benefit from Flywire's industry expertise and its ability to provide a seamless and secure payment experience.

In terms of its brand names and trade names, Flywire Corp has a range of offerings. These include its education payments platform, healthcare payments platform, travel payments platform, and B2B payments platform. The company's focus on delivering complex payments solutions has established it as a trusted partner for organizations seeking to streamline their accounts receivable processes.

Flywire Corp's growth strategy includes expanding its client reach, pursuing strategic and value-enhancing acquisitions, and expanding its ecosystem through channel partnerships. The company's technology and architecture are designed for speed, resilience, and reliability, with a dedicated compliance and risk management function to ensure the security and integrity of its payments platform.

In addition to its core business activities, Flywire Corp has made significant investments in environmental, social, and governance (ESG) initiatives. The company's ESG report highlights its commitments to affordability and accessibility, diversity, equity, and inclusion, career development and training, social impact and community engagement, data privacy, security, and compliance, and environmental sustainability. Flywire's ESG initiatives are guided by its values of global collaboration, authenticity, fulfillment, execution, ambitious innovation, and evolved learning.

Overall, Flywire Corp is a leading provider of complex payments solutions that is well-positioned for continued growth and success in the digital payments space.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.26	2.56
EV to Cash from Ops.	29.45	38.32
EV to Debt	105.70	-11.37
EV to EBIT	169.64	-12.79
EV to EBITDA	52.54	7.72
EV to Free Cash Flow [EV/FCF]	34.30	24.22
EV to Market Cap	0.89	0.58
EV to Revenue	2.72	-35.00
Price to Book Value [P/B]	2.14	3.74
Price to Earnings [P/E]	-729.00	-18.61

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	2.99	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-20.30	-404.11
Cash and Equivalents Growth (1y) %	-37.19	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	-117.76	31.15
EBITDA Growth (1y) %	481.31	49.02
EBIT Growth (1y) %	-54.37	25.85
EBT Growth (1y) %	-68.86	17.82
EPS Growth (1y) %	-111.76	70.69
FCF Growth (1y) %	-74.41	295.45
Gross Profit Growth (1y) %	20.72	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.46	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.90	1.21
Current Ratio	1.53	2.57
Debt to Equity Ratio	0.02	-0.93
Interest Cover Ratio	2.99	-13.15
Times Interest Earned	2.99	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	5.70	-544.82
EBIT Margin %	1.60	-197.78
EBT Margin %	1.07	-602.74
Gross Margin %	62.60	52.06
Net Profit Margin %	-0.40	-605.52

Flywire Corp (NASDAQ: FLYW)