Stock Price & Analysis

Sell FLYW as it faces significant headwinds in its Education segment and restructuring challenges, with mixed analyst sentiment and technical indicators suggesting caution.

Price Prediction for FLYW Stock in 2025

The price target for FLYW stock in 2025 is expected to range between $10 and $15.
This prediction is based on the company's recent earnings miss, restructuring efforts, and headwinds in the education sector, which have led to a 40% stock price drop.
Analysts have lowered their price targets, citing challenges in the education market and reduced growth estimates for 2025.

The S1 support level for FLYW Stock is $9.12 ,The R1 resistant level for FLYW Stock is $11.43.

As of the end of day on 2025-03-12, the price of FLYW Stock was $10.01.

The target price for FLYW Stock according to analyst rating is 18.33, with the highest price target at 29.00 and the lowest at 15.00. Analysts have a Moderate Buy rating on FLYW Stock overall.

The market cap of FLYW is $1.2B.

Analysis and Insights

FLYW appears overvalued based on its current financials and market sentiment. Here's the specific analysis:

1. High Valuation Metrics:

   • EV/EBITDA of 103.5 indicates a premium valuation compared to industry peers.
   • PS Ratio of 4.3 suggests investors are paying a high price per revenue dollar.
   • PB Ratio of 5.25 reflects a significant premium to book value.

2. Revenue and Profitability Concerns:

   • Q4 Revenue fell to $117.55M, down from $156.81M in Q3, signaling slowing growth.
   • Net Income turned negative in Q4 (-$15.89M) after a positive $38.89M in Q3, raising profitability concerns.

3. Analyst Sentiment:
   Multiple analysts have downgraded FLYW, with price targets reduced significantly (e.g., from $26 to $15). This reflects weakening confidence in the stock's growth prospects.

4. Stock Price Reaction:
   The stock dropped 40% to $10.67 after Q4 earnings, indicating investor concern over missed estimates and reduced 2025 guidance.

5. Restructuring and Headwinds:
   FLYW announced a 10% workforce reduction and faces challenges in its Education sector due to immigration policy changes, further clouding its growth outlook.

Conclusion

FLYW's high valuation, inconsistent profitability, and negative analyst sentiment suggest it is overvalued at current levels. Investors should exercise caution.

Flywire Corporation is a global payments enablement and software company. The Company's payments platform, global payment network and vertical-specific software help its clients get paid and help their customers pay. The Company uses its vertical-specific software and payments technology to retail and e-commerce industries including education, healthcare, travel, and business-to-business (B2B) payments. Its customers integrate its platform into their existing apps and workflows once and have access to a full suite of solutions, including tailored invoicing, settlement, and reconciliation tools, single sign-on and checkout, recurring payments, and split payouts. The Company's platform automates and manages the process from initial invoice delivery through payment settlement and core system reconciliation. The Company serves more than 2,800 institutions. In healthcare, it serves more than 90 healthcare systems.

Price Prediction for FLYW Stock by 2030

1. Bullish Case: FLYW stock could reach $25 by 2030 if the company successfully pivots its business strategy, stabilizes its Education sector, and sees significant growth in its Travel segment following the Sertifi acquisition.
2. Base Case: The stock is expected to trade around $15 by 2030, aligning with current analyst price targets and considering ongoing challenges in the Education market and restructuring efforts.
3. Bearish Case: FLYW could drop to $8 if the company fails to recover from its current downturn, faces prolonged headwinds in its core markets, and struggles with profitability amid legal and operational challenges.

Reasons:

• Bullish Case: Growth in the Travel segment and recovery in international education markets.
• Base Case: Analyst consensus and current restructuring efforts.
• Bearish Case: Ongoing visa policy headwinds, legal investigations, and potential underperformance in key markets.

FLYW has a total of 1200 employees.