1. Ryvyl Inc. (NASDAQ:RVYL)
Forward P/E: 3.68
Earnings Growth: 72.90%
Analysts’ Upside Potential: 257.14%
Number of Hedge Fund Holders: 1
Ryvyl Inc. (NASDAQ:RVYL) is an innovative technology company that is focused on revolutionizing payment transactions through innovative blockchain solutions. Founded in 2017 as GreenBox POS in San Diego, California, RYVYL offers a comprehensive suite of blockchain-secure payment processing and point-of-sale technology solutions to manage and track payments for both consumers and businesses. By leveraging its proprietary blockchain ledger and electronic token technology, RYVYL ensures enhanced security, rapid settlement, and data privacy in financial transactions. The company provides various services to merchants and consumers around the globe, including customizable payment solutions backed with blockchain technology.
The company is advancing its position in the payments industry by successfully integrating Visa Direct, which is now operational in five countries and set to expand to 80. Ryvyl Inc. (NASDAQ:RVYL) is processing transactions in 150 countries and plans further integrations in the third quarter of 2024. This initiative enhances RYVYL’s customers’ access to Visa Direct’s network. The company is also implementing the Visa payment enabler network, which will provide the necessary infrastructure for secure electronic payments. This platform allows banks, merchants, and consumers to conduct efficient transactions globally.
In the second quarter of 2024, Ryvyl Inc. (NASDAQ:RVYL) reported that processing volumes reached 1.055 billion, a 55% increase from the previous year. Revenue of $11.9 million in Q2 2024 was down from $14.8 million in the same quarter last year, when the company’s EU operations contributed only $3.8 million. RYVYL EU’s revenue surged by 134% year-over-year to reach $8.9 million in Q2 2024, driven mainly by growth in its Banking-as-a-Service offerings in Europe. The significant growth in European revenue indicates strong demand for the company’s products and services in that market. North American revenue was down due to regulatory impacts on a niche customer base.
In the Q2 2024 earnings call, management shared that Coyni, the company’s payment software supported by blockchain technology, is being deployed across Europe in partnership with First Data. This initiative is aimed at allowing Ryvyl Inc. (NASDAQ:RVYL) to operate as a payment facilitator, enhancing transaction processing capabilities and driving growth in the EU market.
In the US, Ryvyl Inc. (NASDAQ:RVYL) is strategically repositioning its operations to adapt to recent regulatory changes that impacted revenue. By rightsizing its US operations and hiring fintech experts, the company aims to tap into new verticals and expand its customer base.
On August 8, the company announced a licensing agreement for its payment-platform-as-a-service (PPaaS) with a US-based licensee, that will deploy services nationwide for Card Present (CP) and Card Not Present (CNP) transactions. This partnership is expected to create a new revenue stream, allowing RYVYL to earn transaction fees while reducing operational costs and improving gross margins. The PPaaS solution will enhance the payment experience for businesses and consumers by facilitating touchless payments and QR code transactions, positioning both RYVYL and its licensee for increased profitability and market reach.
Ryvyl Inc. (NASDAQ:RVYL) has positioned itself well to capitalize on the evolving financial sector through its strategic partnerships and innovative blockchain solutions.
RVYL is trading at only 3.68 times its forward earnings. Its cheap valuation presents a compelling case for investors. As of October 4, RVYL’s stock is trading at $1.40. Analysts are bullish on Ryvyl Inc. (NASDAQ:RVYL) and the 12-month median price target set by analysts indicates a potential upside of 257.14% from the current stock price.
While we acknowledge the potential of RYVL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RYVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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