Repay Holdings Corp (NASDAQ: RPAY)

Sector: Technology Industry: Software - Infrastructure CIK: 0001720592
Market Cap 337.33 Mn
P/B 0.55
P/E -2.79
P/S 1.09
ROIC (Qtr) -8.00
Div Yield % 0.00
Rev 1y % (Qtr) -1.79
Total Debt (Qtr) 436.56 Mn
Debt/Equity (Qtr) 0.71

About

Price action

Investment thesis

Bull case

  • Tangible assets of 374.70M provide robust 7.29x coverage of other current liabilities 51.42M, indicating strong asset backing.
  • Strong cash position of 130.29M provides 2.53x coverage of other current liabilities 51.42M, indicating excellent liquidity.
  • Operating cash flow of 102.05M exceeds receivables of 33.22M by 3.07x, demonstrating excellent collection efficiency.
  • Cash position of 130.29M fully covers payables of 22.99M by 5.67x, showing strong vendor relationship management.
  • Free cash flow of 58.81M fully covers payables of 22.99M by 2.56x, indicating strong vendor payment capability.

Bear case

  • Operating cash flow of 102.05M barely covers its investment activities of (43.24M), with a coverage ratio of -2.36, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 102.05M provides thin coverage of dividend payments of (2.35M) with a -43.44 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 102.05M provides minimal -25.62x coverage of tax expenses of (3.98M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (107.94M) show weak coverage of depreciation charges of 100.80M, with a -1.07 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of (132.16M) relative to working capital of (42.08M), which is 3.14x suggests concerning dependence on external funding for operational needs.

Consolidation Items Breakdown of Revenue (2024)

Contract with Customer, Sales Channel 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 0.49 2.69
EV to Cash from Ops. EV/CFO 6.37 28.91
EV to Debt EV to Debt 1.49 19.83
EV to EBIT EV/EBIT -6.03 -9.95
EV to EBITDA EV/EBITDA -54.63 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 11.06 26.09
EV to Market Cap EV to Market Cap 1.93 0.36
EV to Revenue EV/Rev 2.11 -9.34
Price to Book Value [P/B] P/B 0.55 3.88
Price to Earnings [P/E] P/E -2.79 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -51.40 -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) -6.43 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 8.27 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -22.78 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -44.24 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -162.75 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) -42.58 20.13
EBT Growth (1y) % EBT 1y % (Qtr) -50.44 14.16
EPS Growth (1y) % EPS 1y % (Qtr) -54.55 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -43.22 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.92 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.23 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.02 0.01
Cash Ratio Cash Ratio (Qtr) 0.59 1.22
Current Ratio Curr Ratio (Qtr) 0.81 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.71 -0.96
Interest Cover Ratio Int Coverage (Qtr) -6.43 -14.20
Times Interest Earned Times Interest Earned (Qtr) -6.43 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.30 -548.16
EBIT Margin % EBIT Margin % (Qtr) -34.94 -199.84
EBT Margin % EBT Margin % (Qtr) -40.37 -607.20
Gross Margin % Gross Margin % (Qtr) 75.50 51.88
Net Profit Margin % Net Margin % (Qtr) -39.10 -610.00