ADYEN Due Diligence Report

Oto Suvari
3 min readOct 5, 2019

Hatchworks has conducted due diligence on Adyen, a global payment company that allows businesses to accept e-commerce, mobile, and point-of-sale payments. It is currently listed on Euronext, a European stock exchange with registered office in Amsterdam and corporate headquarters at La Défense in Greater Paris, under the symbol ‘’ADYEN’’.

Financials — ADYEN

ADYEN’s current valuation is €19B and stock price is around €590.

Revenue for 2020E is forecast to be close to €679M, indicating an EV/Sales ratio of 24.1x.

With a predicted net income growth of 41.4% for 2020E and 2021E, and a net income estimate for 2020E in excess of €287M, this points to a P/E ratio of 64.4x. This compares to 280x for competitor Square(SQ), and 147% net income growth for 2020E and 2021E. In contrast, however, competitor PayPal (PYPL) is expected to achieve just 26% net income growth for 2020E and 2021E with a lower P/E ratio of 40.6x for 2020E.

In terms of profitability, an operating margin of 53.6% is predicted for 2020E. This compares to a very small 4.44% operating margin for Square(SQ). Another thing to note is that Adyen is not a yielding equity, whereas a competitor like Fidelity Information Service (FIS) is a yielding equity, but has a modest debt position.

It has been announced recently that Adyen has partnered with Australian retail giant BrandBank, owner of fashion brand Seed Heritage. However, despite this, Adyen’s share prices has been dropping in the last couple of months after they reported their latest financial results which were down on expectations.

Due to the saturated market and high, unattractive valuations, Hatchworks will not be investing at this time.

The Hatchscore is 5.6 out of 10. Full details can be found on Hatchnet:

What is ADYEN?

Adyen is a technology company offering a single integrated platform that facilitates frictionless payments for merchants across channels and geographies. Built to simplify and accelerate global payments, the platform enables merchants to accept electronic payments by credit or debit card, bank transfer (including real-time bank transfer) and local payments across their point of sale channels.

Big Investors:

  • Index Ventures SA.
  • Stichting Administratiekantoor Adyen.
  • General Atlantic LLC.
  • Temasek Holdings Pte Ltd. (Investment Management)

Advisors and Bookrunners:

  • J.P. Morgan.
  • Morgan Stanley.
  • BofA Merril Lynch.
  • Citigroup.

What are the risks?

  • Adyen’s growth may not be sustainable and depends on its ability to retain existing merchants, attract new merchants, and increase processed volumes.
  • Adyen has a single platform. If they are therefore not able to implement successful enhancements and new features, their business could be adversely affected.
  • The global payments industry is hugely competitive worldwide.


  • Square. (SQ)
  • Paypal. (PYPL)
  • Fidelity Information Services. (FIS)

Management team:

  • Pieter van der Does, CEO
  • Arnout Schuijff, CTO
  • Ingo Uytdehaage, CFO

The Hatchwork Team

The forecast figures are based on the data of Marketscreener and not from Hatchworks:

Legal Disclaimer — This report summary has been generated as a result of Hatchworks’ proprietary company vetting and filtering system. The level of due diligence conducted on investible assets conducted ranges from mediocre to significant, the latter being the case where Hatchworks has explicitly taken strategic positions in. By no means is the information in this file to be relied on as investment advice; this includes Hatchworks’ algorithmic composite score known as ‘Hatchscore’. Hatchworks has not received any compensation for this research. For more information you can reach us at This report is not for distribution in the United States of America. It is closed to U.S citizens. If you are a U.S. citizen, you should delete this report or return to sender.



Oto Suvari

Heading up the group’s R&D activities for Hatchworks.