This is a step-by-step stock review to answer the question, is Adyen N.V. (ADYEN) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Adyen N.V. (ADYEN) stock a good buy?
- Adyen N.V. Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Adyen N.V. (ADYEN) stock a good buy?
1. Adyen N.V. Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded: 2006 by Pieter van der Does and Arnout Schuijff in Amsterdam, Netherlands
- Inspiration: Created to simplify global payments for businesses
- Launch: Developed a single, unified platform for various payment methods
- Growth: Expanded services to include major credit cards, mobile wallets, and local payment methods
- Milestone: Went public in 2018, listed on Euronext Amsterdam under ADYEN
- Innovations: Introduced real-time data insights and fraud prevention tools
- Acquisitions: Acquired several companies to enhance technology and market reach, including payments company Seqr (2021)
- Rebranding: Continued to enhance branding by focusing on seamless, cross-channel payment experiences
- Current Reach: Supports businesses in over 200 countries, with customers like Uber, Spotify, and Microsoft
- Impact: Revolutionized the payment industry by providing a scalable, efficient, and transparent payment solution for global businesses
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 50/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Adyen N.V. (ADYEN) makes money:
- Transaction Fees: Charges fees for processing payments for businesses.
- Subscription Fees: Offers subscription-based services for advanced payment features and analytics.
- Payment Terminal Sales: Sells payment terminals and related hardware to businesses.
- Currency Conversion Fees: Earns money by converting currencies during international transactions.
- Fraud Prevention: Provides fraud detection and prevention services for a fee.
- Platform Integration: Charges for integrating its payment platform with various e-commerce and point-of-sale systems.
- Marketplace Solutions: Offers payment solutions for online marketplaces, taking a commission on transactions.
- Data Analytics: Provides businesses with payment data insights for a fee, helping them optimize their operations.
Adyen N.V. uses these various streams to maximize their earnings and provide diverse services to moviegoers.
Here are a few of the other companies that Adyen N.V. has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- PayLane
- Simility
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Adyen N.V. (ADYEN) stacks up against other companies.
- Payfare Inc. (PYFRF) – 78
- Cielo S.A. (CIOXY) – 72
- Exodus Movement, Inc.(EXOD) – 62
- Global Compliance Applications Corp.(FUAPF) – 61
- Visium Technologies, Inc.(VISM) – 56
- Adyen N.V.(ADYEY) – 50
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founding and Vision: Pieter van der Does Co-founded Adyen in 2006 with a vision to simplify and innovate payment processing globally.
- Global Expansion: Led Adyen’s expansion into over 200 countries and territories, establishing a strong international presence.
- Technological Innovation: Pioneered advanced payment technologies and solutions, including a unified payment platform that supports a wide range of payment methods and currencies.
- Strategic Partnerships: Fostered strategic partnerships with major global brands and platforms, enhancing Adyen’s market reach and credibility.
- Financial Performance: Achieved significant revenue growth and profitability, positioning Adyen as a top performer in the fintech industry.
- Public Listing: Successfully listed Adyen on Euronext Amsterdam in 2018, marking a milestone in the company’s growth and visibility.
Under Pieter van der Does’ leadership, Adyen has transformed the payment industry by focusing on innovation, global expansion, and strategic partnerships, making it a trusted partner for businesses worldwide.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Adyen N.V. (ADYEN) is 74/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Adyen N.V. (ADYEN) stock a good buy?
Some of the top questions investors can have is Adyen N.V (ADYEN) stock a good buy or should I buy Adyen N.V. (ADYEN) stock?
Adyen N.V. is widely considered a strong investment opportunity in the fintech sector. As a leading global payments technology company, Adyen has distinguished itself with a robust and scalable payment platform that supports a wide range of payment methods and currencies. The company’s innovative approach to payment processing, including advanced fraud prevention and real-time data analytics, attracts global businesses seeking reliable and efficient payment solutions. Adyen’s impressive client portfolio, which includes major brands like Uber and Spotify, underscores its reputation and market leadership. However, potential investors should be mindful of competitive pressures and regulatory changes in the payment industry. Overall, Adyen’s strong financial performance, strategic expansions, and technological advancements position it as a compelling choice for investors looking to capitalize on the growth of digital payments worldwide.
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To truly know if Adyen N.V. is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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