Adyen Stock Analysis (September 2023)

Join 10,000 investors: https://www.overlookedalpha.com Adyen is one of the largest payment processors in the world. But the stock has dropped over 70% taking the share price to 674 euros a share. That gives the company a market cap of 21 billion. With 2 billion of cash on the balance sheet, the enterprise value is 19 billion. Adyen recently changed the way it reports revenue, so net revenue for the last 12 months was just under 1.5 billion euros. Meanwhile, net income was 564 million, with 692 million of ebitda and 849 million of free cash flow. That means Adyen is now valued at 13 times net revenue, 37 times earnings and 27 times ebitda. That figure is below the recent average. In 2021, the stock was trading at over 150 times ebitda. That valuation was clearly unsustainable. Even so, it’s worth looking at why Adyen stock has fallen so sharply. The main reason is slowing growth. Volume growth has fallen by roughly half in Adyen’s Digital, Unified commerce and platforms segments. Platform growth is particularly concerning, it grew only 3% and this could indicate pricing pressure from rivals like Paypal and Stripe. #adyenstock #stockstobuy #stockstobuynow