Tyro Payments Limited. Should You Buy This Newly Listed ASX Stock?

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ASX TYR - Tyro Payments Limited Share Price
Tyro Payments Limited (ASX:TYR) - Should You Buy This Newly Listed ASX Stock?

Have you heard? Some are saying Tyro Payments is the hottest ASX stock to be listed all year.

The company is due to list on the stock market on Friday, after its Initial Public Offering (IPO).

It’s raised $268 million at $2.75 a share.

You may be wondering if you should jump on the Tyro Payments Limited band wagon?

Well, let’s find out a thing or two first…

Who are Tyro Payments Limited?

Tyro Payments Limited is Australia’s largest EFTPOS provider.

You’ve probably scanned your card on one of these terminals before.

But not only are they the biggest EFTPOS provider. They also offer business loans and banking solutions.

Currently, the company supports over 29,000 businesses.

The company’s a fairly big operation, too. They have over 450 staff members across Australia.

In 2019, they’ve helped process over $17.5 billion in transactions, which generated Tyro $189.8 million in revenue.

Back in October, Morgan Stanley said Tyro should be valued between $1.5 and $2.1 billion.

Today, we know the company’s value is around $1.36 billion.

Now that you know more about Tyro…

Should you buy Tyro Payments Limited next week?

Here’s something you might like to know…

The Chairman of the Board is David Thodey. That could be a good omen.

Telstra rallied 86.13% under David Thodey during May 2009 and April 2015.

The company hasn’t turned a profit yet.

The company reported an $18.67 million loss, after tax, in 2019.

So, there’s still room for improvement…

The company has indicated that the purpose of the IPO was to raise funds to provide support for its growth strategy and increase brand awareness.

As usual, this includes things like growing the company’s merchant list and upselling to current customers.

What could be interesting, though, is the launch of Tyro Connect. The service will integrate customer loyalty programs into the Point of Sales (POS).

If successful, they say this will improve customer retention in businesses. That would also increase Tyro’s overall revenue.

So, should you buy Tryo Payments Limited next week?

Well that really depends on you.

I prefer to hold off and wait for the market to settle after listing. But in doing that you risk the share price rallying hard after it comes to the market.

I’d say it’s one for your watchlist — but that’s it for now.

As always, this is not a recommendation to buy or sell Tryo. It is an update only. I hope you found it useful.

Until next time,

Jonathan Evans Signature

Jonathan Evans,
Analyst, Profit Watch

PS: Stay up to date with upcoming IPO’s like Tyro Payments, we bring you the latest information so you can make informed investment decisions, Click here to find out what Profit Watch is all about.