Education
About Us
Working with TipRanks
Follow Us
Usio (USIO)
:USIO
Top Page
Usio
(NASDAQ:USIO)
68Neutral
Positive Factors
Price Target
Analyst's price target represents 100.0% upside from recent trading levels.
Revenue Growth
The company now expects revenue growth of 14.0% to 16.0% versus 2024 levels, representing a meaningful acceleration from flat revenue in 2024.
Stock Repurchase
The company's Board reauthorized a new repurchase agreement of $4.0M, highlighting confidence in the business and perceived undervalue of USIO shares.
Negative Factors
Customer Loss
Shares of Usio, Inc. declined 12.2% in trading following a release that the business had lost a large ERP ISV customer to a business sale.
Implementation Delays
Management guided to 4Q24 results similar to 3Q24 results due to continued implementation delays, putting both revenue and adjusted EBITDA below the low end of previous guidance ranges.
Revenue Decline
Revenues for prepaid declined 14% due to the wind-down of COVID incentive programs.
Usio (USIO) vs. S&P 500 (SPY)
Market Cap
$38.98M
Dividend YieldN/A
Average Volume (3M)116.45K
Price to Earnings (P/E)12.1
Beta (1Y)0.13
Revenue Growth-0.37%
EPS GrowthN/A
CountryUS
Employees107
SectorTechnology
Sector Strength44
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding26,514,357
10 Day Avg. Volume116,955
30 Day Avg. Volume116,446
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.51
Price to Cash Flow (P/CF)-2.30
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 Target
$5.00Price Target Upside240.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Usio Business Overview & Revenue Model
Company DescriptionUsio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check, a consumer non-sufficient funds check that is presented for payment electronically rather than through the paper check collection system; and Accounts Receivable Check Conversion, a consumer paper check payment that is converted into an e-check. The company also offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. In addition, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Further, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.
How the Company Makes MoneyUsio generates revenue through a multi-faceted business model centered around transaction fees, subscription services, and value-added services. Key revenue streams include payment processing fees, which are charged per transaction to merchants utilizing Usio's electronic payment solutions. Additionally, the company earns money from its card issuance services, where fees are collected for card activation and usage. Usio also partners with various software vendors to integrate its payment solutions, expanding its reach and enhancing its service offerings. These partnerships and its diversified service portfolio significantly contribute to its earnings.
Usio Financial Statement Overview
Summary
Usio demonstrates a strong growth trajectory in revenue and improved margins, yet continues to face profitability challenges. The balance sheet is stable with moderate leverage and improved equity returns, though limited by a low equity base. Cash flow generation is strong, albeit with some volatility, reflecting effective cash management improvements.Income Statement
Usio has shown a solid revenue growth rate of 18.8% in 2022 and a modest growth of 0.4% in 2023. The gross profit margin has improved to 23.6% in 2023 from 21.0% the previous year. However, the company is still facing challenges with profitability, marked by a negative EBIT margin and fluctuating net income, though it managed a net profit in 2024.65
Positive
Balance Sheet
The company's balance sheet shows a stable equity ratio of 17.9% in 2023, reflecting moderate reliance on leverage with a manageable debt-to-equity ratio of 0.16. Return on equity improved significantly to 17.3% in 2024, indicating better usage of equity to generate profit. However, Usio maintains a relatively low equity base, which may limit financial flexibility.70
Positive
Cash Flow
Usio's free cash flow has shown significant growth from 2022 to 2023, indicating strong operational cash generation. However, the operating cash flow to net income ratio has been volatile, highlighting inconsistency in converting earnings to cash. The free cash flow to net income ratio suggests improvement in cash efficiency over time.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 82.93M | 82.59M | 69.43M | 61.94M | 32.25M | Gross Profit |
| 19.61M | 18.60M | 14.59M | 15.63M | 7.38M | EBIT |
| -1.47M | -1.92M | -5.21M | -147.46K | -3.76M | EBITDA |
| 3.00M | 1.90M | -2.46M | 2.50M | -2.24M | Net Income Common Stockholders |
| 3.31M | -475.10K | -5.48M | -321.63K | -2.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.06M | 7.16M | 5.71M | 7.26M | 5.01M | Total Assets |
| 107.21M | 106.93M | 97.91M | 133.68M | 82.67M | Total Debt |
| 3.15M | 3.38M | 3.03M | 3.11M | 2.84M | Net Debt |
| -4.91M | -3.78M | -2.68M | -4.15M | -2.17M | Total Liabilities |
| 88.05M | 91.87M | 83.98M | 115.01M | 65.96M | Stockholders Equity |
| 19.16M | 15.07M | 13.93M | 18.67M | 16.70M |
| Cash Flow | Free Cash Flow | |||
| 1.90M | 14.08M | -17.85M | 28.51M | 5.44M | Operating Cash Flow |
| 2.90M | 14.92M | -17.04M | 29.78M | 6.29M | Investing Cash Flow |
| -944.38K | -834.96K | -812.24K | -1.27M | -6.76M | Financing Cash Flow |
| -5.14M | -513.95K | -1.40M | 887.46K | 9.98M |
Usio Technical Analysis
Negative
1.47
Price Trends
1.76
Negative
1.66
Negative
1.57
Negative
Market Momentum
-0.04
Negative
42.82
Neutral
43.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USIO, the sentiment is Negative. The current price of 1.47 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 1.76, and below the 200-day MA of 1.57, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 43.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USIO.
Usio Risk Analysis
Usio disclosed 41 risk factors in its most recent earnings report. Usio 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
Usio Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.53B | 24.53 | 34.88% | 0.69% | 11.19% | 51.03% | |
75 Outperform | $7.54B | 27.63 | 31.22% | ― | 29.86% | 128.19% | |
73 Outperform | $34.28B | 12.16 | 14.50% | ― | 10.06% | 38060.98% | |
73 Outperform | $23.98B | 15.83 | 6.94% | 1.02% | 4.68% | 63.39% | |
68 Neutral | $38.98M | 12.08 | 19.32% | ― | -0.37% | ― | |
58 Neutral | $21.03B | 10.58 | -16.29% | 2.47% | 4.38% | -23.63% | |
51 Neutral | $39.01B | 51.94 | 4.65% | 1.96% | -17.38% | ― |
* Technology Sector Average
Performance Comparison
USIO
Usio
1.46
-0.19
-11.52%
FIS
Fidelity National Info
74.68
3.29
4.61%
GPN
Global Payments
97.92
-30.96
-24.02%
PAYC
Paycom
218.48
21.75
11.06%
XYZ
Block
54.33
-27.13
-33.30%
FOUR
Shift4 Payments
81.71
16.86
26.00%
Usio Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: -7.55% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant growth in processed dollars, successful new initiatives like Usio One, and continued cash flow generation. While there are challenges, such as the loss of COVID program revenue, the company is effectively addressing them through new revenue streams and operational improvements.Highlights
Record Total Dollars Processed
The total dollars processed exceeded $1.9 billion in Q4, a 36% increase from a year ago, and $7.1 billion for the full year 2024, up 33%.
Positive Cash Flow and Stock Repurchase
Generated $2.9 million of operating cash in Q4, repurchased nearly $500,000 of stock in Q4 and $1.5 million for the year, with a cash position rising to over $8 million.
Usio One Initiative
Launch of Usio One to integrate all products and services under one brand, aiming to improve cross-selling and operational efficiency.
PayFac Growth
PayFac dollars processed were up 44% in Q4, with revenue up 29%. PayFac now accounts for 54% of total card activity.
Output Solutions Growth
Electronic documents processed were up 86%, with total pieces mailed exceeding 5.4 million, and electronic-only documents delivered exceeding 20 million in Q4.
Card Issuing Progress
Added nearly 70 new client partner agreements, with prepaid dollars loaded over $100 million for the sixth consecutive quarter, and purchase volume up 26% for the year.
New Share Repurchase Program
Board approved a new share repurchase program, adding another $4 million to the original authorization.
Lowlights
Loss of COVID Incentive Program Revenue
Aggressively pursued new revenue to replace nearly $12.1 million in annualized revenue lost from the expired COVID incentive program.
Impact of ISV Implementation Delays
Variability in performance due to the timing of ISV implementations, though mitigated by a steady flow of new accounts.
Company Guidance
During Usio's fourth quarter and fiscal year-end 2024 earnings call, several key metrics were highlighted, reflecting the company's strong performance and strategic initiatives. Total revenue increased by 3% for the quarter, while GAAP net income reached $600,000 or $0.02 per share, including a $1.5 million Employee Retention Credit benefit. The company processed over $1.9 billion in total dollars for the fourth quarter, marking a 36% increase from the previous year, and achieved a record $7.1 billion for the full year, up 33%. Usio also repurchased nearly $1.5 million of stock throughout the year, including $500,000 in the fourth quarter, and ended the year with over $8 million in cash. The company announced the Usio One initiative aimed at integrating all products and services under one brand to enhance cross-selling opportunities. For 2025, Usio forecasts organic revenue growth of 14% to 16%, supported by ongoing improvements in profitability and operational efficiency.Usio Corporate Events
Executive/Board Changes
Usio Announces Executive Compensation Changes for 2025
Neutral
Mar 5, 2025
On February 20, 2025, Usio announced significant executive compensation changes. Greg Carter was promoted to Executive Vice President, Chief Revenue Officer, with a new base salary of $300,000 effective March 3, 2025. Additionally, the Compensation Committee approved new salaries for Louis Hoch, Chairman of the Board, President, and CEO, at $900,000, and Michael White, Senior Vice President and Chief Accounting Officer, at $230,000, both effective on the same date. These changes reflect the company’s strategic focus on leadership stability and incentivization.
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.