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Lesaka Technologies (LSAK)
NASDAQ:LSAK
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Lesaka Technologies
(NASDAQ:LSAK)
50Neutral
Lesaka Technologies (LSAK) vs. S&P 500 (SPY)
Market Cap
$401.16M
Dividend YieldN/A
Average Volume (3M)25.05K
Price to Earnings (P/E)―
Beta (1Y)0.35
Revenue Growth5.39%
EPS Growth-53.40%
CountryUS
Employees2,531
SectorTechnology
Sector Strength44
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.61
Shares Outstanding79,124,596
10 Day Avg. Volume40,039
30 Day Avg. Volume25,049
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.65
Price to Cash Flow (P/CF)-10.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Lesaka Technologies Business Overview & Revenue Model
Company DescriptionLesaka Technologies (LSAK) is a South Africa-based financial technology company that operates in the payment solutions sector. The company specializes in providing secure transaction processing, point-of-sale systems, and financial services tailored to the needs of underbanked and underserved communities. Lesaka Technologies focuses on leveraging advanced technology to facilitate financial inclusion and provide accessible financial services to consumers and businesses.
How the Company Makes MoneyLesaka Technologies generates revenue through a diverse range of financial services and technology solutions. The company's primary revenue streams include transaction fees from payment processing services, sales of point-of-sale systems, and fees from financial products and services tailored to underserved markets. Lesaka also partners with various financial institutions and retailers to expand its reach and service offerings, enhancing its revenue potential through collaborative ventures. These partnerships and its focus on leveraging technology to provide cost-effective and inclusive financial services are significant contributors to its earnings.
Lesaka Technologies Financial Statement Overview
Summary
Lesaka Technologies shows revenue growth but struggles with profitability, cost management, and high leverage. The balance sheet is moderately stable, but negative returns on equity and high debt levels remain concerns.Income Statement
Lesaka Technologies has experienced revenue growth over the years, indicating positive trajectory. However, the company struggles with profitability as evidenced by negative net profit margins and fluctuating EBIT and EBITDA margins. This suggests challenges in cost management and operational efficiency.45
Neutral
Balance Sheet
The balance sheet reflects moderate stability with a decent equity ratio. However, the company's debt-to-equity ratio has increased, indicating rising leverage which may pose potential risks. The return on equity remains negative, reflecting ongoing unprofitability and inefficient use of equity.50
Neutral
Cash Flow
Lesaka Technologies shows improvement in operating cash flow but struggles with free cash flow due to high capital expenditures. The free cash flow remains volatile, leading to concerns about liquidity and sustainability in cash generation.35
Negative
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 576.60M | 564.22M | 527.97M | 222.61M | 130.79M | 151.00M | Gross Profit |
| 137.71M | 121.55M | 110.43M | 54.29M | 34.54M | 41.99M | EBIT |
| 2.45M | 3.59M | -15.35M | -28.28M | -53.87M | -37.91M | EBITDA |
| -1.76M | 29.80M | 9.99M | -26.50M | 1.71M | -52.73M | Net Income Common Stockholders |
| -45.58M | -17.44M | -35.07M | -40.23M | -13.18M | -67.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 184.34M | 59.06M | 35.50M | 43.94M | 198.57M | 217.67M | Total Assets |
| 476.51M | 558.45M | 542.23M | 656.57M | 428.33M | 453.68M | Total Debt |
| 5.27M | 166.70M | 170.05M | 215.19M | 18.96M | 20.38M | Net Debt |
| -179.07M | 107.64M | 134.55M | 171.25M | -179.62M | -197.29M | Total Liabilities |
| 157.95M | 303.16M | 283.33M | 342.22M | 67.37M | 78.49M | Stockholders Equity |
| 316.38M | 255.29M | 258.91M | 314.35M | 360.96M | 375.19M |
| Cash Flow | Free Cash Flow | ||||
| -7.06M | 15.83M | -16.16M | -41.76M | -62.66M | -51.98M | Operating Cash Flow |
| 11.37M | 28.79M | 410.00K | -37.20M | -58.37M | -46.05M | Investing Cash Flow |
| -15.54M | -16.41M | -16.46M | -193.69M | 47.77M | 223.12M | Financing Cash Flow |
| -1.33M | -7.11M | -19.12M | 122.26M | -13.08M | -48.84M |
Lesaka Technologies Technical Analysis
Positive
4.77
Price Trends
4.87
Positive
5.06
Negative
4.95
Positive
Market Momentum
0.03
Negative
56.02
Neutral
78.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSAK, the sentiment is Positive. The current price of 4.77 is below the 20-day moving average (MA) of 4.78, below the 50-day MA of 4.87, and below the 200-day MA of 4.95, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSAK.
Lesaka Technologies Risk Analysis
Lesaka Technologies disclosed 41 risk factors in its most recent earnings report. Lesaka Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lesaka Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $64.45B | 16.32 | 20.00% | ― | 7.10% | 4.45% | |
73 Outperform | $34.28B | 11.94 | 14.50% | ― | 10.06% | 38060.98% | |
73 Outperform | $23.98B | 15.83 | 6.94% | 1.02% | 4.68% | 63.39% | |
69 Neutral | $3.54B | 3.83 | 129.04% | 8.97% | -3.38% | 63.33% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% | |
51 Neutral | $39.56B | 52.67 | 4.65% | 1.96% | -17.38% | ― | |
50 Neutral | $401.16M | ― | -16.27% | ― | 5.39% | -53.40% |
* Technology Sector Average
Performance Comparison
LSAK
Lesaka Technologies
5.00
1.00
25.00%
FIS
Fidelity National Info
74.68
2.36
3.26%
GPN
Global Payments
97.92
-29.18
-22.96%
WU
Western Union
10.58
-2.07
-16.36%
PYPL
PayPal Holdings
65.25
0.59
0.91%
XYZ
Block
54.33
-24.88
-31.41%
Lesaka Technologies Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -1.65% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong growth trajectory for Lesaka Technologies, Inc., driven by strategic acquisitions and expansion in the merchant and consumer divisions. However, challenges like the MobiKwik investment write-down and enterprise division losses are noted. The guidance for FY2026 indicates confidence in continued growth.Highlights
Strong Market Position and Growth Potential
Lesaka Technologies, Inc. estimates its addressable market in South Africa at over $4 billion, expecting it to grow to more than $12 billion in five years, with a projected market growth rate of 10% to 15%. The company aims to increase its market share by targeting more than 10% in the medium term.
Record-High Quarterly Financial Performance
Group net revenue increased by 42% year-on-year, with the merchant segment's net revenue up 68% mainly due to the Adumo acquisition. Group adjusted EBITDA grew by 26% to 212 million Rand, exceeding the upper end of guidance.
Consumer Division Growth
The consumer division saw revenue increase by 31% year-on-year, with segment adjusted EBITDA growing 61%. The active EPE customer base increased by 11% to 1.6 million, with loan originations and insurance policy sales also setting records.
Positive Outlook with Robust EBITDA Guidance
Lesaka Technologies, Inc. provided guidance for FY2026, with group adjusted EBITDA expected to range between 1.25 billion Rand to 1.45 billion Rand, indicating a year-on-year growth of 42% in EBITDA.
Lowlights
MobiKwik Investment Write-Down
The company recorded a pre-tax write-down of 615 million Rand on its MobiKwik investment, leading to a net loss attributable to shareholders of 584 million Rand for the period.
Enterprise Division Losses
The enterprise division reported a loss of 0.5 million Rand, down from a 17 million Rand profit last year, attributed to investment in technology and the termination of unprofitable contracts.
High Interest Expense and Debt Levels
Net interest expense increased to 98 million Rand due to higher borrowing levels, primarily from the Adumo acquisition. Gross debt at the end of the quarter was 3.8 billion Rand.
Company Guidance
During the second quarter of fiscal 2025, Lesaka Technologies provided guidance that highlighted significant growth prospects and strategic positioning. The company anticipates an addressable market net revenue pool in South Africa of over $4 billion, expanding to more than $12 billion in five years, with the market growing by 10% to 15% annually. Lesaka aims to capture over 10% market share in the medium term, driven by differentiation as a customer-led company. The company achieved a 42% year-on-year increase in group net revenue and a 26% growth in group adjusted EBITDA to 212 million Rand. For FY2025, Lesaka reaffirmed its revenue guidance of 10 to 11 billion Rand and group adjusted EBITDA of 900 million to 1 billion Rand. The outlook for FY2026 includes an expected group adjusted EBITDA of 1.25 to 1.45 billion Rand, reflecting a 42% year-on-year growth. The company plans to leverage regulatory changes and digitization trends to enhance its market position and financial performance.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.