ADYEY - Adyen: Cheap Cash Cow

2024-07-13 07:54:07 ET

Summary

• Adyen is a financial technology platform offering end-to-end payment capabilities to large groups.
• Among other features, the company's technology is expected to offer in-store, digital, and in-app payments in a single solution.
• The new expansion could bring economies of scale that management promised in their corporate reports, and may drive costs lower and unleveled FCF growth up.
• I expect the support of governments all over the world, as well as new initiatives like the Better Than Cash Alliance, to accelerate the demand for the company's solutions.

Investment Thesis

Adyen (ADYEY) works not only for established and large merchants. The company is also operating in target markets that could grow at 21.1% from 2024 to 2030 and receive the support of Governments worldwide. In my opinion, the company could use the growing cash in hand not only to receive finance income but also to finance new hiring and finance the new company's tech hubs announced in 2024....

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