Good post. One thing to note about the earnings outlook for this year and next: Pax prices most of their products in USD and EUR, while most of their costs are in RMB. Therefore, a stronger USD vs. RMB, as we've seen this year, helps profit margins.
Nov 7, 2022·edited Nov 7, 2022Liked by Pyramids and Pagodas
For an a mainly r&d based company it's 10 year average r&d margins seem kind of low in the 7-10% region while a company like square has a 15% margin and lightspeed has closer to 30% margin.
The selling and marketing expenses have been higher than R&D over the last 10 year
Is the company spending enough on R&D to maintain its moat?
Nice writeup. I'm significantly more bullish on Pax in my own model than you guys are. Think the obligatory PE cost cuts that we've seen already from Verifone/Ingenico will help Pax gain share. Importantly unlike before, Android POS has very high returns to scale with their app marketplaces(much like smartphones); I suspect Verifone and Ingenico will regret giving up share in the short term.
Nice writeup. I'm significantly more bullish on Pax in my own model than you guys are. Think the obligatory PE cost cuts that we've seen already from Verifone/Ingenico will help Pax gain share. Importantly unlike before, Android POS has very high returns to scale with their app marketplaces(much like smartphones); I suspect Verifone and Ingenico will regret giving up share in the short term.
Good post. One thing to note about the earnings outlook for this year and next: Pax prices most of their products in USD and EUR, while most of their costs are in RMB. Therefore, a stronger USD vs. RMB, as we've seen this year, helps profit margins.
Excellent write-up! I'd be happy to see the model mentioned. Bless :)
Thank you for sharing this investment idea!
I would be interested in the model if possible.
For an a mainly r&d based company it's 10 year average r&d margins seem kind of low in the 7-10% region while a company like square has a 15% margin and lightspeed has closer to 30% margin.
The selling and marketing expenses have been higher than R&D over the last 10 year
Is the company spending enough on R&D to maintain its moat?
any idea what happened with the FBI raid?
thanks for sharing, very good job, I would be interested in the model if you can share it, best regards
I've just discovered your post, found it recently on Tweeter. Is it your model still available? If not, don't worry. Thanks for sharing your thesis.
Just came across this idea and looks very interesting. Could you send the model across? Thanks
Nice writeup. I'm significantly more bullish on Pax in my own model than you guys are. Think the obligatory PE cost cuts that we've seen already from Verifone/Ingenico will help Pax gain share. Importantly unlike before, Android POS has very high returns to scale with their app marketplaces(much like smartphones); I suspect Verifone and Ingenico will regret giving up share in the short term.
Would be interested in seeing your model too.
Nice writeup. I'm significantly more bullish on Pax in my own model than you guys are. Think the obligatory PE cost cuts that we've seen already from Verifone/Ingenico will help Pax gain share. Importantly unlike before, Android POS has very high returns to scale with their app marketplaces(much like smartphones); I suspect Verifone and Ingenico will regret giving up share in the short term.
Would be interested in seeing your model too.
Thanks for sharing this great post. Would be possible to have the model?
May I get this model as well? Thank you so much! I'm also invested in PAX, with a core full position (5%).