USA Technologies Stock Analysis, Valuation (NASDAQ:USAT)

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$11.7 $0.3 (2.5%) USAT stock closing price May 18, 2018 (Closing)
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USA Technologies
Updated on : May 18, 2018
previous close
USAT 11.7 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Integrated Systems
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
30.3%
Operating Profit
Operating Margin:
-3%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
37.4M
Debt/Equity Ratio:
 0.32
Compared to the industry
Cash Flow
Operating cash flow:
$4.6M
Net Income:
$1.2M
PROS      CONS
Recent Growth
Long Term Growth
FCF Margin
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
USAT PS :
4.9
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-2.7%
Return on Equity:
-12.1%
Free Cash Flow Margin:
9.5%
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USA Technologies Stock Analysis

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View the USA Technologies stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for USAT stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

USA Technologies, Inc. Stock Rating 2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for USAT stock analysis. We compare USA Technologies valuation with its sector peers to gauge relative attractiveness of USAT stock. Based on a company's historical fundamentals we arrive at USA Technologies stock rating which is indicative of the company's financial performance.

Should you buy USAT stock?

  • USA Technologies's revenue growth came in at 35.4% in 2018 Q3.
  • Revenue growth has been tremendous with a compounded annual growth of 30.3% over the last 5 years.
  • The company has a good Free Cash Flow (FCF) margin of 9.5%.

Should you sell USAT stock?

  • USA Technologies reported an average operating margin of -3% over the Last Twelve Months (LTM).
  • USA Technologies registered an average TTM Net loss of -8.8%.
  • With a debt/equity ratio of  0.32, USA Technologies is highly leveraged in comparison to Computer and Technology peers.
  • USAT stock is trading at a PE ratio of 167.1, which is worse than the industry average multiple of 25.1.
  • The company is trading at a price to sales multiple of 4.9, which is overvalued in comparison to the Computer-Integrated Systems industry average multiple of 2.9.
  • The company has a negative Return on Invested Capital of -2.7%, which is a red flag.
  • USA Technologies has a negative return on equity of -12.1%. This indicates that the firm is inefficient at generating profits.

Comments on this video and USA Technologies stock

Investors can make use of the Amigobulls USA Technologies stock analysis to ascertain how USAT stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

USA Technologies revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of USAT technical analysis to check whether the fundamental story is reflected in the market sentiment.