Good afternoon traders,
Early profile -Full report coming Monday
This week's feature profile is Payment Data Systems Inc. (NASDAQ: PYDS)
Seeking Acquisitions, operating at a net positive cash flow, float under 6M shares and current RSI around 33.
PR June 15th, 2016 - PYDS has recently announced that it has engaged Preston Todd Advisors to target and identify accretive acquisitions in the payments space as well as card processing portfolios.
Louis Hoch, President and COO of Payment Data Systems said, “We are focused on creating growth and generating value for our shareholders. Consistent with our strategy to grow both organically and through acquisition and given our healthy balance sheet, we have begun to actively interview potential companies that will accelerate our growth. We are focused on accretive acquisitions and we have charged Preston Todd Advisors with introducing us to quality companies with complementary products or access to new customers. We may also evaluate accretive card and merchant portfolio acquisition opportunities.”
Lane Gordon, Managing Director of Preston Todd Advisors stated, “Payment Data Systems has an outstanding reputation and a long operating history. Many of our clients would love the opportunity to become part of the growing Payment Data Systems family of companies. We are confident that we will be able to provide Payment Data Systems with quality options for acquisitions in the immediate future.” Full PR- http://finance.yahoo.com/news/payment-data-systems-engages-preston-200500279.html
Balance Sheet and Highlights
At March 31, 2016, the Company had $4.2 million of cash and cash equivalents and zero debt on the balance sheet.
Market cap- 14.95M
Revenue (TTM)- 13.87M
Share structure- 12.06M outstanding 5.76M public float
Cash on hand- 4.22M
EBITDA- 840K
Debt- zero, zilch, nada
Gross profit (TTM)- 4.96M
Insider ownership- 21.5%
Company website- http://paymentdata.com/
Sources- Yahoo Finance and Finviz
What Makes Payment Data Systems A Potential and Attractive Takeover Target?
Apart from the phenomenal growth being seen in the mobile payments industry, what makes Payment Data Systems an attractive takeover target is the company’s own impressive growth over the past five years and a clean balance sheet.
In 2011, Payment Data Systems processed just 4.3 million transactions. By 2015, the number of transactions processed by the company has grown more than three times. In 2015, the company processed a total of 14.3 million transactions. Between 2011 and 2015, PYDS has registered a CAGR of 35%.
In dollar terms, the growth has been even more impressive. In 2011, PYDS processed $204 million. In 2015, the company processed $3.3 billion. PYDS registered CAGR of 101%.
This growth has been primarily driven by PYDS’ successful partnerships. PYDS’ premier partnerships and clients include Fifth Third Bank, Wells Fargo, Eli Lilly, Merck & Co., Merrick Bank and Pfizer Inc. among others.
Sales Growth
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Full report Monday at market open
The Team |
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