Planet Payment, Inc.: Price momentum supported by strong fundamentals

Planet Payment, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 64.

Our analysis is based on comparing Planet Payment, Inc. with the following peers – Mastercard Incorporated Class A, Total System Services, Inc. and Visa Inc. Class A (MA-US, TSS-US and V-US).

Planet Payment, Inc. has shown overwhelming performance overall, both over the last one year (at 36.28%) as well as over the last month (at 2.05%). While Planet Payment, Inc.’s share price has grown more over the last year than it has over the last month, the stock has done worse than its overall peer group over the last month.

Company Snapshot

  • Compared to peers, relative underperformance last month is down from a median performance last year.
  • It’s current Price/Book of 5.36 is about median in its peer group.
  • We classify PLPM-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • PLPM-US’s median net profit margins and relatively high asset efficiency give it some operating leverage.
  • Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
  • Over the last five years, PLPM-US’s return on assets has improved from median to better than the median among its peers, suggesting the company has found relative operating advantages.
  • PLPM-US’s revenues have grown more slowly than the peer median over the last few years, which combined with the stock price’s relatively low P/E ratio suggests substandard growth expectations relative to peers.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • PLPM-US has the financial and operating capacity to borrow quickly.
  • Our analysis rates Planet Payment, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

Compared to peers, relative underperformance last month is down from a median performance last year.

While PLPM-US’s change in share price of 36.28% for the last 12 months is in line with its peer median, its more recent 30-day share price performance of 2.05% is below peer median. This suggests that the company’s performance has deteriorated more recently relative to peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Planet Payment, Inc.’s price of USD 4.47 is lower than CapitalCube’s implied price of USD 6.19. CapitalCube believes that at these levels, Planet Payment, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 2.75 and USD 4.64.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Planet Payment, Inc. provides international payment, transaction and multi-currency processing services. The company offers banks and their merchants with innovative services to accept, process and reconcile electronic payments and its point of sale multi-currency payment processing services are designed for merchants in retail, restaurant and hospitality environments. It operates its business through the following segments: Multi-currency processing services and Payment processing services. The Multi-currency processing services segment comprise solutions designed to enable acquiring banks, processors and merchants to respond to these challenges by integrating its secure and reliable processing platform into their existing systems. The Payment processing services segment provides services for merchants in the retail, restaurant, and hospitality environments. Planet Payment was founded by Philip D. Beck on October 12, 1999 and is headquartered in Long Beach, NY.

Disclaimer

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