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PayPoint

LSE:PAY
Snowflake Description

Good value with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PAY
LSE
£649M
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

PayPoint plc provides specialist consumer payment, transaction processing, settlement, and other services and products in the United Kingdom, Ireland, Romania, North America, and France. The last earnings update was 12 days ago. More info.


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PAY Share Price and Events
7 Day Returns
-3.7%
LSE:PAY
0.5%
GB Commercial Services
0.1%
GB Market
1 Year Returns
19.3%
LSE:PAY
27.7%
GB Commercial Services
9.8%
GB Market
PAY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PayPoint (PAY) -3.7% 5.5% 5.8% 19.3% 9.8% 10.3%
GB Commercial Services 0.5% 2.8% 4.7% 27.7% 16.5% 18%
GB Market 0.1% -0.2% 2% 9.8% 4.8% 11.5%
1 Year Return vs Industry and Market
  • PAY underperformed the Commercial Services industry which returned 27.7% over the past year.
  • PAY outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 9.8% over the past year.
Price Volatility
PAY
Industry
5yr Volatility vs Market

PAY Value

 Is PayPoint undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PayPoint to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PayPoint.

LSE:PAY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:PAY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.667 (1 + (1- 19%) (2.94%))
0.787
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.8 * 6.07%)
5.39%

Discounted Cash Flow Calculation for LSE:PAY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PayPoint is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

LSE:PAY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 5.39%)
2020 42.17 Analyst x4 40.02
2021 46.30 Analyst x4 41.69
2022 49.64 Analyst x4 42.41
2023 50.80 Analyst x1 41.18
2024 54.40 Analyst x1 41.85
2025 56.41 Est @ 3.7% 41.18
2026 57.97 Est @ 2.75% 40.15
2027 59.17 Est @ 2.08% 38.89
2028 60.13 Est @ 1.62% 37.50
2029 60.91 Est @ 1.29% 36.05
Present value of next 10 years cash flows £400.00
LSE:PAY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £60.91 × (1 + 0.53%) ÷ (5.39% – 0.53%)
£1,260.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,260.94 ÷ (1 + 5.39%)10
£746.22
LSE:PAY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £400.00 + £746.22
£1,146.22
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,146.22 / 67.57
£16.96
LSE:PAY Discount to Share Price
Calculation Result
Value per share (GBP) From above. £16.96
Current discount Discount to share price of £9.60
= -1 x (£9.60 - £16.96) / £16.96
43.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PayPoint is available for.
Intrinsic value
43%
Share price is £9.6 vs Future cash flow value of £16.96
Current Discount Checks
For PayPoint to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PayPoint's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • PayPoint's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PayPoint's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PayPoint's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PAY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.64
LSE:PAY Share Price ** LSE (2019-12-10) in GBP £9.6
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PE Ratio Median Figure of 25 Publicly-Listed Commercial Services Companies 18.75x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 17.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PayPoint.

LSE:PAY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:PAY Share Price ÷ EPS (both in GBP)

= 9.6 ÷ 0.64

15.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PayPoint is good value based on earnings compared to the GB Commercial Services industry average.
  • PayPoint is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does PayPoint's expected growth come at a high price?
Raw Data
LSE:PAY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
6.3%per year
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Commercial Services Companies 1.34x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 560 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:PAY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.08x ÷ 6.3%

2.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PayPoint is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PayPoint's assets?
Raw Data
LSE:PAY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £0.61
LSE:PAY Share Price * LSE (2019-12-10) in GBP £9.6
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PB Ratio Median Figure of 32 Publicly-Listed Commercial Services Companies 2.26x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,312 Publicly-Listed Companies 1.54x
LSE:PAY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:PAY Share Price ÷ Book Value per Share (both in GBP)

= 9.6 ÷ 0.61

15.83x

* Primary Listing of PayPoint.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PayPoint is overvalued based on assets compared to the GB Commercial Services industry average.
X
Value checks
We assess PayPoint's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. PayPoint has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PAY Future Performance

 How is PayPoint expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PayPoint expected to grow at an attractive rate?
  • PayPoint's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • PayPoint's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • PayPoint's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:PAY Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PAY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 6.3%
LSE:PAY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -0.8%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 15%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:PAY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PAY Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 139 2
2023-03-31 135 2
2022-03-31 130 64 50 4
2021-03-31 125 61 47 4
2020-03-31 121 56 44 4
2019-12-10
LSE:PAY Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 209 49 43
2019-06-30 210 54 44
2019-03-31 212 60 44
2018-12-31 217 66 44
2018-09-30 222 72 44
2018-06-30 218 67 43
2018-03-31 214 63 43
2017-12-31 211 58 51
2017-09-30 208 53 60
2017-06-30 210 47 60
2017-03-31 212 42 60
2016-12-31 212 43 39

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PayPoint's earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
  • PayPoint's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:PAY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from PayPoint Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PAY Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 0.74 0.75 0.73 2.00
2021-03-31 0.69 0.70 0.68 2.00
2020-03-31 0.65 0.65 0.65 2.00
2019-12-10
LSE:PAY Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.64
2019-06-30 0.64
2019-03-31 0.65
2018-12-31 0.65
2018-09-30 0.64
2018-06-30 0.64
2018-03-31 0.63
2017-12-31 0.75
2017-09-30 0.88
2017-06-30 0.88
2017-03-31 0.88
2016-12-31 0.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if PayPoint will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess PayPoint's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PayPoint has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PAY Past Performance

  How has PayPoint performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PayPoint's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PayPoint's year on year earnings growth rate has been positive over the past 5 years.
  • PayPoint's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • PayPoint's 1-year earnings growth is negative, it can't be compared to the GB Commercial Services industry average.
Earnings and Revenue History
PayPoint's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PayPoint Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PAY Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 209.18 43.43 48.20
2019-06-30 210.38 43.93 46.26
2019-03-31 211.58 44.43 44.32
2018-12-31 216.82 44.05 44.44
2018-09-30 222.06 43.67 44.56
2018-06-30 217.79 43.30 45.52
2018-03-31 213.52 42.94 46.49
2017-12-31 210.66 51.31 48.67
2017-09-30 207.80 59.68 50.85
2017-06-30 209.86 59.65 52.24
2017-03-31 211.92 59.62 53.64
2016-12-31 211.69 39.27 53.24
2016-09-30 211.45 18.92 52.84
2016-06-30 212.01 8.40 54.27
2016-03-31 212.56 -2.11 55.69
2015-12-31 214.80 9.00 56.69
2015-09-30 217.04 20.10 57.70
2015-06-30 217.77 29.63 57.29
2015-03-31 218.50 39.15 56.89
2014-12-31 216.37 38.24 56.16
2014-09-30 214.25 37.33 55.43
2014-06-30 213.21 36.63 54.06
2014-03-31 212.16 35.94 52.70
2013-12-31 210.57 34.78 51.19
2013-09-30 208.98 33.62 49.69
2013-06-30 208.75 32.30 48.68
2013-03-31 208.53 30.98 47.67
2012-12-31 207.18 30.18 45.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PayPoint made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • PayPoint used its assets more efficiently than the GB Commercial Services industry average last year based on Return on Assets.
  • PayPoint has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PayPoint's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PayPoint has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PAY Health

 How is PayPoint's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PayPoint's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PayPoint's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • PayPoint's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PayPoint's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 9.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PayPoint Company Filings, last reported 2 months ago.

LSE:PAY Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 41.39 18.00 40.52
2019-06-30 41.39 18.00 40.52
2019-03-31 50.15 0.00 37.49
2018-12-31 50.15 0.00 37.49
2018-09-30 45.66 6.00 39.36
2018-06-30 45.66 6.00 39.36
2018-03-31 61.29 0.00 46.04
2017-12-31 61.29 0.00 46.04
2017-09-30 56.61 0.00 27.57
2017-06-30 56.61 0.00 27.57
2017-03-31 73.15 0.00 53.08
2016-12-31 73.15 0.00 53.08
2016-09-30 75.69 0.00 49.65
2016-06-30 75.69 0.00 49.65
2016-03-31 87.86 0.00 80.83
2015-12-31 87.86 0.00 80.83
2015-09-30 95.66 0.00 46.06
2015-06-30 95.66 0.00 46.06
2015-03-31 115.34 0.00 43.91
2014-12-31 115.34 0.00 43.91
2014-09-30 103.11 0.00 28.68
2014-06-30 103.11 0.00 28.68
2014-03-31 103.57 0.00 41.60
2013-12-31 103.57 0.00 41.60
2013-09-30 92.96 0.00 23.50
2013-06-30 92.96 0.00 23.50
2013-03-31 105.88 0.00 46.62
2012-12-31 105.88 0.00 46.62
  • PayPoint's level of debt (43.5%) compared to net worth is high (greater than 40%).
  • Unable to establish if PayPoint's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (271.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 553.5x coverage).
X
Financial health checks
We assess PayPoint's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PayPoint has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PAY Dividends

 What is PayPoint's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.75%
Current annual income from PayPoint dividends. Estimated to be 7.89% next year.
If you bought £2,000 of PayPoint shares you are expected to receive £175 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PayPoint's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • PayPoint's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Upcoming dividend payment

Purchase PayPoint before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:PAY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 678 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:PAY Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 0.59 4.00
2021-03-31 0.85 4.00
2020-03-31 0.83 4.00
2019-12-10
LSE:PAY Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-11-28 0.840 8.444
2019-06-19 0.698 7.550
2019-05-23 0.698 6.520
2018-11-29 0.829 9.442
2018-05-24 0.826 9.056
2017-12-01 0.820 9.537
2017-05-25 0.450 4.928
2016-11-24 0.432 4.359
2016-05-26 0.424 4.225
2015-05-28 0.385 4.235
2014-05-29 0.353 3.745
2013-11-21 0.316 2.862
2013-05-28 0.304 2.859
2012-11-29 0.280 3.252
2012-05-24 0.265 3.624
2011-11-24 0.243 4.193
2011-05-26 0.234 4.633
2010-11-25 0.222 5.787
2010-05-27 0.218 7.273
2009-11-19 0.190 5.200
2009-05-28 0.176 3.599

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of PayPoint's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess PayPoint's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PayPoint afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PayPoint has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PAY Management

 What is the CEO of PayPoint's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Patrick Headon
AGE 54
TENURE AS CEO 0.7 years
CEO Bio

Mr. Patrick Vincent Headon serves as the Chief Executive Officer and Director at PayPoint Plc since April 1, 2019 and is its Head of Executive Board. He is currently on leave of absence. Mr. Patrick Headon was the Managing Director of UK at Ferguson plc (also known as Wolseley PLC) since March 30, 2015. Mr. Headon was responsible for the growth and profitability of the UK business. He serves as Managing Director of UK at Wolseley plc. He joined Wolseley in 2012 and served as its Managing Director/Chief Executive Officer of Central Europe in 2013. He served as Chief Executive Officer at Switcher SA. From 2005 to 2009, he was Business Development Director at eBay International. He spent many years in the beverage industry in general management positions for Diageo plc. Mr. Headon served as Managing Director of Diageo Central and Eastern Europe. He served as the Chief Executive Officer of Central Europe at Wolseley plc since August 1, 2014. He has considerable operational management experience in international consumer goods, retail and textiles and Plus deep e-commerce experience. Mr. Headon served as a Member of the Supervisory Board of Zwack Unicum Likôripari és Kereskedelmi Nyilvánosan Mûködô Részvénytársaság (Zwack Unicum Plc) from April 22, 2004 to April 21, 2005.

CEO Compensation
  • Insufficient data for Patrick to compare compensation growth.
  • Insufficient data for Patrick to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the PayPoint management team in years:

0.7
Average Tenure
56
Average Age
  • The average tenure for the PayPoint management team is less than 2 years, this suggests a new team.
Management Team

Nick Wiles

TITLE
Executive Chairman
COMPENSATION
£165K
AGE
57
TENURE
0.3 yrs

Tim Watkin-Rees

TITLE
Founder & Members of the Executive Board
COMPENSATION
£732K
AGE
56

Rachel Kentleton

TITLE
Finance Director
COMPENSATION
£581K
AGE
50
TENURE
2.8 yrs

Dominic Taylor

TITLE
Executive
COMPENSATION
£1M
AGE
60
TENURE
0.7 yrs

Patrick Headon

TITLE
CEO, Head of Executive Board & Director (Leave of Absence)
AGE
54
TENURE
0.7 yrs

Susan Court

TITLE
Head of Legal

Jon Marchant

TITLE
Chief Information Officer & Member of Executive Board

Katy Wilde

TITLE
Human Resources Director & Member of Executive Board

Lewis Alcraft

TITLE
Chief Commercial Officer & Member of Executive Board

Andy Parnis

TITLE
Investor Relations
Board of Directors Tenure

Average tenure and age of the PayPoint board of directors in years:

2.8
Average Tenure
57
Average Age
  • The average tenure for the PayPoint board of directors is less than 3 years, this suggests a new board.
Board of Directors

Nick Wiles

TITLE
Executive Chairman
COMPENSATION
£165K
AGE
57
TENURE
4.6 yrs

Rachel Kentleton

TITLE
Finance Director
COMPENSATION
£581K
AGE
50
TENURE
2.9 yrs

Patrick Headon

TITLE
CEO, Head of Executive Board & Director (Leave of Absence)
AGE
54
TENURE
0.7 yrs

Giles F. Kerr

TITLE
Senior Independent Director
COMPENSATION
£60K
AGE
60

Rakesh Sharma

TITLE
Independent Non-Executive Director
COMPENSATION
£48K
AGE
58
TENURE
2.6 yrs

Gill Barr

TITLE
Independent non-executive director
COMPENSATION
£47K
AGE
61
TENURE
4.5 yrs

Ben Wishart

TITLE
Independent Non-Executive Director
AGE
57
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
12. Aug 19 Buy Rakesh Sharma Individual 12. Aug 19 12. Aug 19 2,038 £9.32 £18,991
X
Management checks
We assess PayPoint's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PayPoint has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PAY News

Simply Wall St News

If You Had Bought PayPoint (LON:PAY) Stock Five Years Ago, You'd Be Sitting On A 22% Loss, Today

While it may not be enough for some shareholders, we think it is good to see the PayPoint plc (LON:PAY) share price up 15% in a single quarter. … During the unfortunate half decade during which the share price slipped, PayPoint actually saw its earnings per share (EPS) improve by 5.3% per year. … Generally speaking we'd expect to see stronger share price increases on the back of sustained EPS growth, but other metrics may hold a clue to why the share price performance is relatively modest.

Simply Wall St -

Understanding Your Return On Investment In PayPoint plc (LON:PAY)

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently PayPoint is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Is PayPoint plc's (LON:PAY) 70% ROE Strong Compared To Its Industry?

PayPoint has a ROE of 70%, based on the last twelve months. … That means that for every £1 worth of shareholders' equity, it generated £0.70 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

PayPoint plc (LON:PAY): A Fundamentally Attractive Investment

I've been keeping an eye on PayPoint plc (LON:PAY) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe PAY has a lot to offer. … , dividend-paying company with a

Simply Wall St -

Are You An Income Investor? Don't Miss Out On PayPoint plc (LON:PAY)

The stock currently pays out a dividend yield of 8.87%, and has a market cap of UK£637.24m. … Does PayPoint tick all the boxes of a great dividend stock? … 5 questions to ask before buying a dividend stock

Simply Wall St -

Estimating The Intrinsic Value Of PayPoint plc (LON:PAY)

I am going to run you through how I calculated the intrinsic value of PayPoint plc (LON:PAY). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Does PayPoint plc's (LON:PAY) CEO Salary Compare Well With Others?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Will PayPoint plc's (LON:PAY) Earnings Grow In The Next Couple Of Years?

PayPoint plc's (LON:PAY) latest earnings announcement in March 2018a … suggested … company

Simply Wall St -

Does PayPoint plc's (LON:PAY) PE Ratio Warrant A Buy?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in PayPoint plc (LON:PAY). … PayPoint plc (LON:PAY) is trading with a trailing P/E of 15.6x, which is lower than the industry average of 20.3x.

Simply Wall St -

PayPoint plc (LON:PAY) Delivered A Better ROE Than The Industry, Here’s Why

View our latest analysis for PayPoint Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) is a measure of PayPoint’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity LSE:PAY Last Perf Mar 19th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

PAY Company Info

Description

PayPoint plc provides specialist consumer payment, transaction processing, settlement, and other services and products in the United Kingdom, Ireland, Romania, North America, and France. The company offers bill and general services, such as prepaid energy, bills, and cash out services; top-ups, including mobiles and prepaid debit card top-ups, eMoney vouchers, prepaid debit cards, and lottery tickets; and retail services comprising ATM, card payments, parcels, money transfer, SIMs, EPoS, broadband, and receipt advertising. It also provides MultiPay, a multi-channel payment solution; and PayPoint One retail terminal. The company serves utility companies, retailers and transport firms, mobile phone providers, and local and national governments. PayPoint plc was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.

Details
Name: PayPoint plc
PAY
Exchange: LSE
Founded: 1996
£648,687,331
67,571,597
Website: http://www.paypoint.com
Address: PayPoint plc
1 The Boulevard,
Shire Park,
Welwyn Garden City,
Hertfordshire, AL7 1EL,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE PAY Ordinary Shares London Stock Exchange GB GBP 21. Sep 2004
OTCPK PYPT.F Ordinary Shares Pink Sheets LLC US USD 21. Sep 2004
BATS-CHIXE PAYL Ordinary Shares BATS 'Chi-X Europe' GB GBP 21. Sep 2004
Number of employees
Current staff
Staff numbers
675
PayPoint employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/10 20:32
End of day share price update: 2019/12/10 00:00
Last estimates confirmation: 2019/11/29
Last earnings filing: 2019/11/28
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.