Tyro Payments (TYR)
Noted Tyro is sitting around 52 week low at .76, has 7sb, 1mb and 3h on comsec, just wondering your view and whether this looks a cheap entry point. Thanks Rob
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Answer
Hi Rob,
Without wanting to sound facetious it does look cheap, but for a reason. However when we look at the FY24 numbers they were okay:
- Revenue of $471 million dropped down to EBITDA of $55.7 million.
- Free cash flow increased 5x YoY to $30.4 million, underscored by the growth in net profit.
Unfortunately following its result in August the stocks fallen over 25%, making fresh 2-year lows. There are a couple of factors which steer us away from TYR, even at these depressed prices:
- Labors debit surcharge ban i.e. merchants potentially forced to bear the cost of a transaction as a business expense – markets hate uncertainty and increased regulation.
- Rival Cuscal’s, which is owned by Mastercard, Bendigo and Adelaide Bank, looming $500mn IPO will likely hurt over time.
