A brief analysis of adyen stock ( adyey )

Published: 03 April 2022 by Tela equity research analyst - telaadvisor

​1.  BUSINESS

• Adyen N.V. operates a payments platform in Europe, the Middle East, Africa, North America, the Asia Pacific, Latin America. The company's platform integrates payments stack that include gateway,
• Risk management, processing,
• Issuing, acquiring, and
• Settlement services.

It offers a back-end infrastructure for authorizing payments across merchants' sales channels, as well as online, mobile, in-store, and APIs; and data insights. The company's platform services a range of merchants across various verticals, connecting them directly to Visa, Mastercard, and other payment methods. Adyen N.V. was incorporated in 2006 and is headquartered in Amsterdam, the Netherlands.

2. Adyen's key data

The following tables provide a summary of
Adyen  Income Statements
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What do they offer?

Sales per region

3. Adyen's historical stock price

Adyen's quarterly historical stock prices

4. VALUATION

Profit margin: 7.84 %
Operating margin: 10.14 %
ROA: 7.65 %
​ROE:31 %

SWOT

Strengths
- Diversity in customer portfolio lending it a financial cushion.
- Integration with multiple international and local payment methods.

Weaknesses
- High dependence on European market 
- Low presence in emerging markets
Opportunities
- Growth of e-commerce boosting growth of payment gateways

ADYEN
COMPETITORS

​The global market for payment processing is massive, with US$1.6 trillion in total addressable market revenues. Payment revenue is expected to grow at a CAGR of 7% through to 2021. Adyen has plenty of room to grow, as growth of 1% in Adyen’s market share will lead to an additional US$1.6 billion dollars of revenue. These massive payments industry has traditionally supported many intermediaries, which Adyen has disrupted.

Adyen’s primary competitors include the likes of PayPal, Worldpay, and Stripe. Adyen caters to big, international operations while Stripe targets the startup app developer community, making up for lower volume by charging a slightly higher margin. Adyen’s transaction volume last year in 2021 was $516 billion, while net revenue grew to $469 million. The company grosses less than 1% of every dollar processed, far below the 2% to 3% that Worldpay, PayPal and Stripe make.

Adyen is a multi-sided platform that exclusively charges merchants. The value to merchants is derived from the partnerships they have formed with card schemes, as well as the technology platforms. Adyen has partnered with popular Ecommerce, Billing, and POS platforms to ensure their ‘plug-and-play’ solution will integrate seamlessly into the technology stack of their merchant customers.

​How Will Adyen Continue to be Successful?

​Adyen is focused on providing their merchants with the best payment experience by constantly innovating. Adyen continuously improves its products with regular software updates every four weeks to ensure that they stay competitive with the competition and extend their product offering. With their existing scalable business model, Adyen should focus on developing partnerships with merchants in countries like China and India where the growth of E-commerce is highest. While the outlook within the B2C payments space is positive, Adyen should consider adjacent industries moving forward. A key differentiator in the market is their relationships with card schemes around the world.

5. ADYEN'S
FINANCIAL
HEALTH

6. MANAGEMENT

​Pieter van der Does (52 yo)
16.17yrs
€628,685: Compensation
Mr. Pieter Willem van der Does is a Co-founder, Chief Executive Officer of Adyen B.V. and has been its Member of Management Board since July 6, 2007. He served as President at Adyen N.V. until January 2020. Prior to co-founded Adyen in 2006, Mr. van der Does was a board member of the International Merchant Services division of the Royal Bank of Scotland (RBS).
The companies managed under this division were WorldPay, Bibit, the International acquiring business of Streamline and Trustmarque. He has been active in the PSP world since 1999 when he joined Bibit board. In this position, he was responsible for Sales and Marketing, Legal and the international expansion of the business.

ADYEN'S
​OWNERSHIP STRUCTURE

- Institutions: 0.16 %
- General Public: NA
- Individual Insiders: 0.0 %

TOP
​ADYEN SHAREHOLDERS

7.CONCLUSSION

1. Do you understand the product or service offered by the company?
2. Will society still be using this product in 15 years?
3. Does the company have a MOAT?