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LSK at R79 is still trading at a reasonable multiple for a fintech play with recurring revenue streams across payments and lending, though the real question is whether management can maintain double-digit growth while keeping margins intact as competition intensifies. The dividen
Took a nibble on LSK at 79.75 after that 3.22% dump, reckoning the fintech exposure and payment processing growth story hasn't changed just because of one bad day.
LSK popped 6.33% to R84 today, probably catching some relief after the recent tech selloff. Volume and momentum looking decent but need to see if this holds above the 200-day or if it's just a bounce.
LSK's been solid at R84 lately and the payments space is only getting bigger with all the digital stuff happening. Their merchant acquiring and bill pay services are actually useful unlike half the junk out there, so if they can grow those segments properly they could run hard. Comparing to some of the other fintech plays, they're not overvalued which is nice. Worth holding for the next few years imo.
been going through the latest MD&A and lesaka's merchant acquiring segment is actually printing cash now, margins are way better than they were two years ago. the rand weakness helps on the international side too. at R84 you're not paying a crazy multiple for fintech exposure in SA when payfast and similar are private. biggest risk is still how much they're dependent on the local market, but the diversification into bill payments and lending is starting to matter.
LSK holding up pretty well at R79.99 given the rand noise lately. Payment processing plays like this usually boring but the fintech angle into bill pay and merchant stuff is solid long term, especially if load-shedding forces more digital. Not glamorous but boring can print money in fintech if you give it time.
The payment processing side is actually doing decent work on margins, key thing is whether they can keep the merchant book growing without bleeding into operating leverage. At R79.99 the market's pricing in some execution risk on the newer fintech plays they've been bolting on, which seems fair given the rand headwinds eating into their dollar earnings.
LSK sitting at R79.99 is reasonable value if management can land a proper deal with one of the big retailers or banks. Payment processing margins are thin but scale changes everything. Once they've got a contract locked, revenue becomes predictable and the stock reprices. Until then it's just treading water, makes sense to me.
LSK down 2.1% today but the fintech play still trades at a decent multiple given the payment processing tailwinds in Africa. Anyone else holding through this chop or are you getting nervous about the US exposure given the dollar weakness we're seeing?
LSK sitting at R81.25 and I'm still not convinced the fintech story is there anymore. Payments are getting commoditised, competitors are cheaper, and that rand weakness hasn't helped either. Unless management can show real revenue growth outside the usual channels, this looks like a slow bleed to me.
Lesaka sitting at R81.25 and the payments space is getting crowded, but their merchant acquiring book is still solid. Question is whether they can grow earnings faster than the rand gets smashed. Worth keeping an eye on the next set of numbers.
been digging through the h1 numbers, lesaka's transaction volumes are actually holding up better than i expected given the rand weakness, but the margin compression on the merchant side is real. comparing to like payfast or similar regional plays, they're not quite at the same unit economics yet. long term if they can crack the cross-border stuff without getting hammered on fx hedging costs then there's something there, but right now the earnings trajectory doesn't justify the multiple imo.
lsk sitting at R81.25 but payments division margins got squeezed last quarter, tougher than expected. merchant acquiring competitive as hell right now, fintechs everywhere. if they can't grow revenue faster than their costs are climbing they're gonna struggle to justify the price, feel like we're waiting for a catalyst that isn't coming.
LSK sitting at R81.00 and people still crying about no revenue, we are a pre-revenue company, look what happened to PayPal and Square before they scaled. Fintech infrastructure plays take time but the payments backbone they're building across SA is solid long term. Can't fix stupid but those who are patient will see the upside.
lol payments stack still bleeding out. r81 on what exactly, merchant volumes are soft. paygate doing the heavy lifting but for how long with competition like that. weak fundamentals, strong stock price never ends well
LSK sitting at R81.00 and the payments space is heating up locally. Their merchant acquiring segment keeps grinding through load-shedding chaos while everyone else bleeds, and the bill payment services are sticky revenue. If they can keep margins tight through this rand weakness, reckon there's proper value here long term. GLTA
Do you think the payment processing margins can hold if competition keeps getting tighter. LSK at R81.00 but revenue growth looks thin compared to what Payfast or similar are doing. Not sure the fintech story sticks without better top line momentum.
Current R 79,00 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.