# PayPoint plc (PAY.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / IT Services. Price 610p, market value 360 millionp.

## Valuation
- **P/E (trailing): 10.5×** (5-yr avg 1343.5×, 3-yr avg 1543.9×). PayPoint plc trades at 10.5× trailing earnings, well below its own five-year average of 1343.5×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 6.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.05**. A PEG of 0.05 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.6×**. Each dollar of revenue is priced at 0.6×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 5.0×**. The shares trade at 5.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 2.6×**. Enterprise value is 2.6× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 2.2%** (5-yr avg 0.1%). Free cash flow equals 2.2% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 9.5%**. The inverse of the P/E: 9.5% of the price is earned each year.

## Profitability
- **Gross margin: 42.5%**. PayPoint plc keeps 42.5% of revenue after the direct cost of what it sells.
- **Operating margin: 16.0%**. 16.0% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 11.7%**. 11.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 53.1%**. A 53.1% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 102.5%**. Return on all capital, debt included, is 102.5%: comfortably above what that capital costs.
- **Return on assets: 9.9%**. Each dollar of assets produces 9.9% of profit.

## Growth
- **Revenue growth (1 yr): 8.5%** (3-yr 26.2%/yr, 5-yr 21.4%/yr). Revenue grew 8.5% over the last year, against 21.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 123.1%** (3-yr 5.1%/yr, 5-yr 12.6%/yr). Earnings per share rose 123.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -22.7%/yr**. Free cash flow has compounded at -22.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.92**. Debt is 1.92 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: net cash**. PayPoint plc holds more cash than debt.
- **Interest coverage: 5.2×**. Operating profit covers interest 5.2× over, a safe margin.
- **Current ratio: 0.96** (quick 0.94). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.83**. A Z-score of 1.83 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 6.49%** (0p per share, trailing). PayPoint plc yields 6.49%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 154%**. The dividend exceeds earnings (154% payout), which is rarely sustainable outside REITs and one-off years.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 14.8%/yr** (1-yr 130.3%). The dividend has compounded at 14.8% a year over five years, doubling roughly every 5 years at that pace.
- **Shareholder yield: 18.4%**. Dividends plus net buybacks return 18.4% of the market value a year.

## Price and momentum
- **Total return (1 yr): -16.8%** (YTD 31.1%, 3-mo 13.6%). The shares are down 16.8% over twelve months including dividends.
- **From 52-week high: -26.9%** (39.1% above the low). Trading 27% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.49** (volatility 42%). Beta of 0.49 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PAY.L · Page: https://foliofundamentals.com/stocks/pay.l

Not investment advice.