Hopper58 schreef op 13 februari 2026 09:52:
Adyen's discounted price
Another stock in the midst of a temporary drawdown is Adyen, which is down nearly 31% from its 52-week-high.
The company is a global payments processor, focused on enterprise customers and online capabilities. For example, it works with companies such as Uber Technologies that have vast and complicated payment needs.
Right now, payment stocks are down, providing investors with an opportunity to buy Adyen at a lower price.
The company has stolen a lot of market share in payment processing, mainly because it has lower transaction-failure rates, easy-to-use systems built from scratch, and a wide breadth of capabilities. Last quarter, revenue grew 23% year over year in constant currency, with guidance for at least 20% revenue growth through 2026.
In the long term, Adyen expects to achieve a margin of over 50% as measured by earnings before interest, taxes, depreciation, and amortization (EBITDA), making it one of the most profitable businesses in the world. With revenue approaching $3 billion, that would turn into at least $1.5 billion in bottom-line earnings for the business, a lot of which is converted into cash flow.
Today, Adyen has a market cap of $42 billion, or an earnings multiple of 28 based on this EBITDA estimate. That may not seem dirt cheap, but for a business that keeps growing revenue by an impressive 20% or higher, investors should do fine buying today and holding for the next five years.
www.fool.com/investing/2026/02/12/pre...