GICS Sector : Technology
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.
Adyen reported a strong set of earnings for the second half of 2025, with net revenue growing 21% on a constant currency basis, driven by growth with existing customers and a strong cohort of new customers. EBITDA grew 23%, with an EBITDA margin of 55% for the second half. Earnings per share (EPS) came in at €18.18, beating analyst estimates of €17.73. The company's three pillars, Digital, Unified Commerce, and Platforms, all showed strength, with Unified Commerce seeing significant growth with customers like Starbucks.
Publication Date: 08:08
The company's growth was driven by its existing merchants, such as Uber, and new customer launches, including Starbucks. Adyen's Platforms pillar continues to be its fastest-growing, with strong traction due to its ability to unify online and in-person payments and offer embedded financial products. The company's Dynamic Identification product suite is also helping merchants improve conversion and manage risk.
For 2026, Adyen expects net revenue growth between 20% and 22% on a constant currency basis, with EBITDA margin expected to be similar to 2025's level. The company's growth potential is driven by its customers' priorities, including expansion into new markets and initiatives like agentic commerce. Analysts estimate next year's revenue growth at 21.5%, which is within the company's guidance range.
Adyen's current valuation metrics are as follows: P/E Ratio at 37.5, P/B Ratio at 6.06, P/S Ratio at 12.35, EV/EBITDA at 14.25, and ROE at 16.98%. These metrics suggest that the company is trading at a premium, but its growth prospects and strong financial performance may justify this valuation. As Ingo Uytdehaage stated, "the company is building for the long term and has confidence in its long-term growth trajectory," which may support the current valuation.
The company's focus on driving growth and investing in its team and automation may lead to continued strong financial performance. With a strong pipeline across its three pillars and a focus on innovation, Adyen is well-positioned for long-term success. The company's guidance philosophy has shifted to sharing the annual view, giving the latest information from customer conversations, typically on a 12-month view.
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Adyen's online payment solutions enable merchants to accept and manage payments, driving growth through increasing e-commerce adoption, digital transformation, and demand for seamless payment experiences.
Adyen's payment gateway enables businesses to accept and process payments online, in-store, and through mobile channels.
Adyen's POS terminals provide businesses with a secure and reliable way to accept in-store payments.
Adyen's mobile payment solutions enable businesses to accept payments through mobile devices, such as Apple Pay and Google Pay.
Adyen's online payment platform provides businesses with a scalable and secure way to accept and process online payments.
Adyen's marketplace payment solutions enable marketplaces to manage payments between buyers and sellers.
Adyen's recurring payment solutions enable businesses to manage recurring payments, such as subscriptions and memberships.
Adyen's risk management and fraud detection solutions help businesses to identify and prevent fraudulent transactions.
Adyen's substitutes are limited, as the company operates in a niche market. However, there is a growing trend towards digital wallets and cryptocurrencies, which could potentially substitute traditional payment systems.
Adyen's customers are mainly large enterprises and merchants, which have limited bargaining power due to their reliance on Adyen's services.
Adyen's suppliers are mainly banks and financial institutions, which have some level of bargaining power due to their importance in the payment processing ecosystem.
The payment processing industry is highly competitive, and new entrants could potentially disrupt Adyen's market share.
The payment processing industry is highly competitive, with several established players, Stripe, PayPal, and new entrants, which leads to a high intensity of rivalry among companies.
| Value | |
|---|---|
| Debt Weight | 5.12% |
| Debt Cost | 14.42% |
| Equity Weight | 94.88% |
| Equity Cost | 13.27% |
| WACC | 13.33% |
| Leverage | 5.39% |
Value: 4.0
Growth: 7.7
Quality: 6.8
Yield: 0.0
Momentum: 6.5
Volatility: 2.0
1-Year Total Return ->
Value: 2.0
Growth: 8.1
Quality: 2.8
Yield: 0.0
Momentum: 9.5
Volatility: 4.0
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Value: 0.4
Growth: 9.3
Quality: 7.2
Yield: 0.0
Momentum: 6.5
Volatility: 2.3
1-Year Total Return ->
Value: 2.0
Growth: 6.0
Quality: 3.0
Yield: 0.0
Momentum: 8.5
Volatility: 3.3
1-Year Total Return ->
Value: 0.7
Growth: 6.7
Quality: 8.6
Yield: 0.0
Momentum: 3.5
Volatility: 3.0
1-Year Total Return ->
Value: 4.2
Growth: 8.9
Quality: 5.7
Yield: 0.0
Momentum: 0.5
Volatility: 1.0
1-Year Total Return ->