Jul. 9 at 1:12 AM
Payfare (PAY CN /
$PYFRF) Writeup – Delivering Growing Profits
Payfare Inc (PAY CN) is a Canadian-listed payments company with a C
$290M market cap that has C
$85M of cash and no debt. The business is the dominant player in a niche market, offering instant payouts to gig workers once they complete a delivery or ride. The business has a very impressive long-term track record of growth and has recently inflected to profitability. Despite partnering with the largest delivery companies like Doordash, Uber, and Lyft, the company is little known among US-growth investors. I expect that to change in the coming quarters and years for a number of reasons.
I expect the business will grow revenue at a 20% CAGR to
$600M, EBITDA at a 28% CAGR to
$114M, and EPS at a 25% CAGR to
$1.95 in 2029. Based upon my long-term expectations for profitability, I estimate that the business may be worth over C
$30/share in 2029, providing a +37% CAGR over the next 5 years.
Full writeup coming to Seeking Alpha soon.
