Priority Technology Holdings
Organization
Priority Technology Holdings, Inc., operating as Priority Commerce, is a publicly traded financial technology company that provides integrated payments, banking, and capital solutions. Its platform helps businesses collect, store, lend, and send money to improve cash flow and unlock revenue opportunities.
What experts have said about Priority Technology Holdings
21 statements · 20 positive · 1 negative
Over 90% of Priority’s business is recurring or reoccurring, making revenue highly predictable.
“Over 90% of the company's business is either recurring or reoccurring, providing a very high level of predictability.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 4:21
Priority’s treasury segment has over 80% EBITDA margins and tripled EBITDA over four years.
“60% of its business comes from the high-quality treasury segment, which is effectively an 80%+ EBITDA margin recurring revenue software business that has tripled EBITDA in the last 4 years.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 4:29
Priority trades at four-to-five times free cash flow while free cash flow per share grows above 10%.
“Priority today is trading between 4 and 5 times free cash flow for a business that's consistently growing free cash flow per share at 10% plus.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 4:44
Treasury Solutions represents most of Priority’s current value.
“treasury is really the majority of the value today.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 5:45
Applying Payoneer’s valuation implies Priority is worth about $12 per share.
“if you just use that valuation, which I think undervalues Priority, you would still get $12 a share, and Priority trades around $5.50 today.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 9:33
AI will not displace Priority’s Treasury Solutions business.
“Treasury Solutions isn't going anywhere, like AI is not displacing that.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 12:11
Priority’s valuation implies business failure despite substantial cash generation.
“it's priced for a business that's going out of business, when in reality, it's actually generating a ton of cash.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 14:26
Priority’s business is performing well despite its environment and valuation.
“I think the business is doing quite well, especially given sort of the overall environment and valuation today.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 14:39
Priority currently has its lowest leverage in years and is safer than previously.
“This is actually the lowest leverage that it's had since, like, in years. And so if anything, I would say it's safer today than it was in the past.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 15:35
Zack estimates Priority’s intrinsic value at roughly $17–$19 per share.
“sum of the parts around $17 a share, like a more simplistic multiple analysis gets me to around $19 a share”
Open the episode · Zack Buckley on $PRTH's take privateListen at 17:27
The special committee process is likely to realize fair value for Priority.
“I think fair value is likely to be realized.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 19:50
Priority deserves a valuation premium over Payoneer.
“Priority deserves a premium to Payoneer.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 21:43
The take-private offer provides roughly 10% downside protection from the current price.
“in the very worst-case scenario, theoretically, you're looking at $6 to $6.15 a share, which is roughly 10% upside from here.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 25:41
Priority’s fair value is more than double its current price.
“fair value is certainly well north of 100% from here.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 25:52
The lengthy process does not imply that Priority’s transaction will fail.
“I can't say with absolute certainty that a transaction will occur here, but certainly I don't think the amount of time that's transpired means that a transaction won't occur.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 28:26
Priority’s Treasury Solutions business is exceptionally attractive.
“that Treasury Solutions business is a gem. Like, that is an incredible business.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 28:49
Priority’s transaction valuation should have an eight-to-nine-times EBITDA floor.
“I think 8 to 9 times is probably the floor of where a transaction should occur for this.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 30:18
An eight-to-nine-times EBITDA transaction implies Priority shares at $12 or more.
“8 to 9 times is a $12 stock or higher.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 30:28
Priority uniquely combines recurring revenue, barriers, growth, and sub-five-times free cash flow valuation.
“I just don't think there's any business out there I can point to where you have high recurring revenue, high barriers to entry, strong growth, and it's trading at less than 5 times free cash flow”
Open the episode · Zack Buckley on $PRTH's take privateListen at 36:58
Priority’s undervaluation will be realized through a transaction or continued public ownership.
“I think that will get realized one way or the other, whether it's through a private transaction or whether it's the stock staying public.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 37:22
Priority offers limited long-term downside and significant upside.
“I think very limited downside over a long period of time and a really significant upside.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 38:59
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
