A Business at a Glance
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Overview of the Company Priority is a payments and banking fintech that streamlines collecting, storing, lending and sending money through its innovative commerce engine (the “Priority Commerce Engine” or “PCE”) to unlock revenue opportunities and generate operational success for businesses. Our mission is to provide a personalized financial toolset to accelerate cashflow and optimize working capital for our customers by providing merchant services, payables and banking & treasury solutions. Priority operates at scale across three primary business segments: SMB Acquiring, B2B Payables and Enterprise Payments and is presently serving approximately 1.2 million customer accounts processing over $130.0 billion in annual transaction activity while administering approximately $1.2 billion dollars in account balances. The Priority Commerce Engine serves enterprise grade independent software vendors (ISV's), as well as discrete institutional and SMB customers across all major sectors of the U.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 933M | 880M | 756M | 664M | 515M | 404M |
| Net Income | 0 | -24M | -49M | -39M | -25M | 26M |
| EPS | $0.53 | $-0.31 | $-0.63 | $-0.50 | $-0.34 | $0.38 |
| Free Cash Flow | 63M | 64M | 60M | 52M | -342K | 4.7M |
| ROIC | 12.5% | 21.3% | 16.6% | 11.2% | 6.1% | - |
| Gross Margin | - | 37.3% | 36.4% | 34.2% | 30.1% | 31.4% |
| Debt/Equity | 0.00 | -5.52 | -4.28 | -5.76 | -9.40 | - |
| Dividends/Share | $0.00 | $0.31 | $0.32 | $0.15 | $0.10 | - |
| Operating Income | 142M | 133M | 82M | 56M | 33M | 21M |
| Operating Margin | 15.2% | 15.2% | 10.8% | 8.5% | 6.4% | 5.2% |
| ROE | 0.0% | - | - | - | - | - |
| Shares Outstanding | 82M | 77M | 78M | 78M | 72M | 68M |
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 426M | 376M | 372M | 404M | 515M | 664M | 756M | 880M | 933M |
| Gross Margin | 92.4% | 28.3% | 32.1% | 31.4% | 30.1% | 34.2% | 36.4% | 37.3% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 35M | 16M | 7.2M | 21M | 33M | 56M | 82M | 133M | 142M |
| Op. Margin | 8.3% | 4.4% | 1.9% | 5.2% | 6.4% | 8.5% | 10.8% | 15.2% | 15.2% |
| Net Income | 4.6M | -18M | -34M | 26M | -25M | -39M | -49M | -24M | 0 |
| Net Margin | 1.1% | -4.7% | -9.0% | 6.3% | -4.8% | -5.9% | -6.5% | -2.7% | 0.0% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||
| ROIC | 19.0% | 5.3% | 2.0% | N/A | 6.1% | 11.2% | 16.6% | 21.3% | 12.5% |
| ROE | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| ROA | 1.7% | -4.7% | -7.2% | 6.1% | -1.8% | -2.8% | -3.0% | -1.4% | 0.0% |
| Cash Flow | |||||||||
| Op. Cash Flow | 37M | 31M | 39M | 12M | 9.4M | 71M | 81M | 86M | 87M |
| Free Cash Flow | 30M | 21M | 28M | 4.7M | -342K | 52M | 60M | 64M | 63M |
| Owner Earnings | 21M | 10.0M | -3.4M | -31M | -44M | -6.4M | 6.1M | 21M | 23M |
| CapEx | 6.6M | 11M | 11M | 7.5M | 9.7M | 19M | 21M | 22M | 24M |
| Maint. CapEx | 15M | 20M | 39M | 41M | 50M | 71M | 68M | 58M | 58M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 15M | 20M | 39M | 41M | 50M | 71M | 68M | 58M | 58M |
| CapEx/OCF | 17.8% | 33.7% | 28.2% | 61.1% | 103.6% | 26.8% | 26.2% | 25.3% | 27.2% |
| Capital Allocation | |||||||||
| Dividends Paid | 3.4M | 7.1M | 0 | 0 | 7.5M | 11M | 25M | 24M | 0 |
| Dividend Yield | 0.4% | 1.1% | N/A | N/A | 1.5% | 2.9% | 8.4% | 6.0% | N/A |
| Share Buybacks | 0 | 0 | 2.4M | 0 | 1.7M | 7.5M | 1.3M | 1.5M | 1.5M |
| Buyback Yield | N/A | N/A | 1.4% | N/A | 0.3% | 1.8% | 0.4% | 0.2% | 0.4% |
| Stock-Based Comp | 1.0M | 1.6M | 3.7M | 2.4M | 3.2M | 6.2M | 6.8M | 6.1M | 6.1M |
| Debt Repayment | 91M | 2.8M | 3.8M | 111M | 361M | 6.2M | 6.3M | 659M | 659M |
| Balance Sheet | |||||||||
| Net Debt | 276M | 405M | 490M | 377M | 610M | 605M | 639M | 930M | 1.0B |
| Cash & Equiv. | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | 268M | 402M | 486M | 358M | 604M | 599M | 632M | 921M | 921M |
| Debt/Equity | -2.97 | -4.28 | -3.84 | N/A | -9.40 | -5.76 | -4.28 | -5.52 | 0.00 |
| Interest Coverage | 1.4 | 0.5 | 0.2 | 0.5 | 0.9 | 1.0 | 1.1 | 1.5 | 1.5 |
| Equity | -90M | -94M | -126M | N/A | -64M | -104M | -148M | -167M | -110M |
| Total Assets | 267M | 379M | 465M | 418M | 1.4B | 1.4B | 1.6B | 1.8B | 2.2B |
| Total Liabilities | 357M | 473M | 591M | N/A | 1.2B | 1.2B | 1.5B | 2.0B | 2.3B |
| Intangibles | 144M | 234M | 292M | 205M | 706M | 658M | 649M | 617M | 617M |
| Retained Earnings | -90M | -94M | -128M | -102M | -100M | -102M | -135M | -147M | -147M |
| Working Capital | 40M | 12M | 1.2M | -13M | 20M | 22M | 29M | 53M | 53M |
| Current Assets | 106M | 75M | 94M | 136M | 603M | 652M | 881M | 1.1B | 1.1B |
| Current Liabilities | 66M | 63M | 93M | 149M | 584M | 630M | 852M | 1.1B | 1.1B |
| Per Share Data | |||||||||
| EPS | 0.06 | -0.29 | -0.50 | 0.38 | -0.34 | -0.50 | -0.63 | -0.31 | 0.53 |
| Owner EPS | 0.28 | 0.16 | -0.05 | -0.46 | -0.60 | -0.08 | 0.08 | 0.28 | 0.28 |
| Book Value | -1.18 | -1.53 | -1.88 | N/A | -0.89 | -1.33 | -1.90 | -2.16 | -1.35 |
| Cash Flow/Share | 0.48 | 0.51 | 0.59 | 0.18 | 0.13 | 0.90 | 1.04 | 1.11 | 0.71 |
| Dividends/Share | 0.04 | 0.12 | N/A | N/A | 0.10 | 0.15 | 0.32 | 0.31 | 0.00 |
| Shares Out. | 76.6M | 61.5M | 67.2M | 67.5M | 72.5M | 78.1M | 77.9M | 77.3M | 81.9M |
| Valuation | |||||||||
| P/E Ratio | 169.7 | N/A | N/A | 19.2 | N/A | N/A | N/A | N/A | 9.3 |
| P/FCF | 25.7 | 22.1 | 6.2 | 104.1 | N/A | 7.8 | 4.7 | 13.3 | 6.4 |
| EV/EBIT | 29.9 | 52.8 | 92.5 | 41.8 | 34.4 | 18.0 | 11.3 | 13.4 | 9.9 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 1.8 | 1.7 | 1.0 | 0.5 | 1.0 | 0.6 | 0.4 | 0.4 | 0.4 |
| FCF Yield | 3.9% | 4.5% | 16.2% | 1.0% | -0.1% | 12.7% | 21.2% | 7.5% | 15.7% |
| Market Cap | 779M | 459M | 175M | 494M | 529M | 405M | 283M | 852M | 404M |
| Avg. Price | 10.09 | 10.14 | 5.77 | 2.73 | 6.83 | 5.04 | 3.77 | 5.11 | 4.93 |
| Year-End Price | 10.18 | 7.47 | 2.60 | 7.31 | 7.30 | 5.19 | 3.64 | 11.02 | 4.93 |
Priority Technology Holdings, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Priority Technology Holdings, Inc. trades at 9.3x trailing earnings, compared to its 15-year median P/E of 19.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 6.4x vs a median of 10.6x. The company's 5-year average ROIC is 13.8% with a gross margin of 33.9%. Total shareholder yield (dividends + buybacks) is 6.6%. At current prices, the estimated annualized return to fair value is +21.3%.
Priority Technology Holdings, Inc. (PRTH) has a current P/E ratio of 9.3, compared to its historical median P/E of 19.2. The stock is currently considered Cheap based on its historical valuation range.
Priority Technology Holdings, Inc. (PRTH) has a 5-year average return on invested capital (ROIC) of 13.8%. This indicates solid capital allocation.
Priority Technology Holdings, Inc. (PRTH) has a market capitalization of $404M. It is classified as a small-cap stock.
Yes, Priority Technology Holdings, Inc. (PRTH) pays a dividend with a trailing twelve-month yield of 6.21%. The company also returns capital through share buybacks, with a buyback yield of 0.38%.
Based on historical P/E analysis, Priority Technology Holdings, Inc. (PRTH) appears cheap. The current P/E of 9.3 is 52% below its historical median of 19.2. The estimated fair value CAGR (P/E method) is 17.3%.
Priority Technology Holdings, Inc. (PRTH) operates in the Services-Business Services, Nec industry, within the Industrials sector.
Priority Technology Holdings, Inc. (PRTH) reported annual revenue of $880 million in its most recent fiscal year, based on SEC EDGAR filings.
Priority Technology Holdings, Inc. (PRTH) has a net profit margin of -2.7%. The company is currently unprofitable.
Priority Technology Holdings, Inc. (PRTH) generated $64 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Priority Technology Holdings, Inc. (PRTH) reported earnings per share (EPS) of $-0.31 in its most recent fiscal year.
Priority Technology Holdings, Inc. (PRTH) has a 5-year average gross margin of 33.9%. This indicates decent pricing power.
The Ledger Terminal provides 8 years of financial data for Priority Technology Holdings, Inc. (PRTH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Priority Technology Holdings, Inc. (PRTH) has a book value per share of $-2.16, based on its most recent annual SEC filing.