Shares of cost expertise firm Payfare (TSX:PAY) have been doing fairly nicely for the reason that market backside final 12 months. In that point, Payfare inventory has seen shares rise a whopping 47%! However has evened out just lately, remaining in need of its 52-week highs.

Ought to buyers maintain out for extra from this inventory? Or is now the time to purchase Payfare inventory earlier than it climbs larger?

About Payfare inventory

First off, let’s discuss Payfare inventory. Payfare is a monetary expertise firm based mostly in Toronto that makes a speciality of offering cell banking and cost options for gig financial system employees. Its main focus is on offering monetary providers tailor-made to the wants of rideshare and supply drivers in addition to different impartial contractors who depend on gig work for earnings.

Payfare inventory provides a cell banking app and pay as you go card particularly designed to assist gig employees handle their funds extra successfully. This consists of options similar to immediate entry to earnings, expense monitoring, and instruments to assist drivers maximize their earnings.

With the gig financial system surging through the years, Payfare inventory climbed to all-time highs again in 2021 at round $12.50 per share. But since that point, it’s come right down to be simply half of that share value.

The latest previous

To contemplate whether or not or to not decide up Payfare inventory as soon as extra, let’s contemplate the latest previous. By that, I imply wanting on the firm’s earnings efficiency over the previous few quarters. This could inform us whether or not it’s been seeing some momentum. And whether or not that’s been optimistic or adverse.

Through the second quarter, Payfare inventory achieved a document $46.5 million in income. It additionally outlined the objective of attaining full-year 2023 steering of between $185 and $195 million. By the third quarter, it climbed larger to $47.2 million and offered steering of $50 million for the fourth quarter. This could put it nicely inside the steering the corporate hoped to attain for the 12 months.

Now buyers are awaiting Payfare inventory’s fourth-quarter and annual steering after a delay introduced earlier this month. Nevertheless, it additionally comes after the corporate introduced a buyback program.

All considered, evidently Payfare inventory may need some hiccoughs however has been seeing optimistic momentum. And that doesn’t appear to be slowing down.

Backside line

Payfare inventory, due to this fact, has seen shares come down, it’s true. However it’s additionally been climbing considerably within the final six months. Up 47% in that point, shares nonetheless could possibly be purchase on the TSX in the present day — particularly because it trades at 25.71 occasions earnings, marking a decrease share value in comparison with how a lot the corporate is  incomes. And it appears analysts imagine that may rise sooner or later, with a ahead ratio buying and selling at 101 occasions earnings.

In the meantime, its revenue margin stays sturdy for a brand new firm at 6.37%, with a market-beating return on fairness of 19.58%. Subsequently, Payfare inventory doesn’t solely appear like a deal. It seems prefer it’s simply getting began.