Nayax Ltd. (NASDAQ: NYAX)

Sector: Technology Industry: Software - Infrastructure CIK: 0001901279
Market Cap 2.04 Bn
P/B 9.80
P/E 85.02
P/S 5.51
ROIC (Qtr) 3.80
Div Yield % 0.00
Rev 1y % (Qtr) 25.63
Total Debt (Qtr) 161.59 Mn
Debt/Equity (Qtr) 0.78

About

Nayax Ltd. (NYAX) operates in the retail technology industry, providing end-to-end retail technology platforms for unattended commerce. The company's mission is to simplify commerce and payments for retailers while driving growth, optimizing operations, and enhancing consumer engagement. Nayax's business activities revolve around offering a comprehensive, end-to-end platform for unattended commerce. This platform empowers retailers to provide consumers with digital, cashless payments, connected commerce experiences, and enhances consumer conversion...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 258.70M provide 44.28x coverage of short-term debt 5.84M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 468.33M provides 2.90x coverage of total debt 161.59M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 36.43M exceeds capital expenditure of 5.27M by 6.91x, indicating strong organic growth funding capability.
  • Tangible assets of 468.33M provide robust 86.60x coverage of other current liabilities 5.41M, indicating strong asset backing.
  • Operating cash flow of 41.70M fully covers other non-current liabilities 17.10M by 2.44x, showing strong long-term stability.

Bear case

  • Operating cash flow of 41.70M barely covers its investment activities of (34.69M), with a coverage ratio of -1.20, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (34.69M) provide weak support for R&D spending of 29.45M, which is -1.18x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 258.70M provide limited coverage of acquisition spending of (26.45M), which is -9.78x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 127.98M relative to inventory of 24.01M (5.33 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 41.84M show weak coverage of depreciation charges of 24.44M, with a 1.71 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 3,563.59 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 3.06 2.69
EV to Cash from Ops. EV/CFO 46.71 28.91
EV to Debt EV to Debt 12.06 19.83
EV to EBIT EV/EBIT 46.57 -9.95
EV to EBITDA EV/EBITDA 45.94 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 53.48 26.09
EV to Market Cap EV to Market Cap 0.96 0.36
EV to Revenue EV/Rev 5.27 -9.34
Price to Book Value [P/B] P/B 9.80 3.88
Price to Earnings [P/E] P/E 85.02 -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) 2.70 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -156.59 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 104.13 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,472.20 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 132.50 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,778.54 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 371.20 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 311.65 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 28.19 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 40.34 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.58 0.67
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.01 1.22
Current Ratio Curr Ratio (Qtr) 1.71 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.78 -0.96
Interest Cover Ratio Int Coverage (Qtr) 2.70 -14.20
Times Interest Earned Times Interest Earned (Qtr) 2.70 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.90 -548.16
EBIT Margin % EBIT Margin % (Qtr) 11.31 -199.84
EBT Margin % EBT Margin % (Qtr) 7.12 -607.20
Gross Margin % Gross Margin % (Qtr) 48.20 51.88
Net Profit Margin % Net Margin % (Qtr) 6.50 -610.00