Latest news with #KaspiPaySuperApp
Yahoo
03-04-2025
- Business
- Yahoo
Joint Stock Company Kaspi.kz (KSPI): A Bull Case Theory
We came across a bullish thesis on Joint Stock Company (KSPI) on Substack by Easy Trader. In this article, we will summarize the bulls' thesis on KSPI. Joint Stock Company (KSPI)'s share was trading at $94.54 as of April 2nd. KSPI's trailing P/E was 8.82 according to Yahoo Finance. People using the Cash App paying for goods and services, highlighting the impact the of the company's payment tools. has emerged as Kazakhstan's dominant fintech powerhouse, integrating digital payments, e-commerce, and financial services into a single super app. With $5.3 billion in revenue in 2024—growing 28% year-over-year—and a net margin of 42%, the company remains highly profitable and undervalued at a $20 billion market cap. Kaspi's dual-platform model, consisting of the Super App for consumers and the Kaspi Pay Super App for merchants, creates a seamless financial ecosystem embedded into Kazakhstan's daily economic activity. Its payments segment processes billions in transactions, its marketplace is the fastest-growing revenue driver, and its fintech arm leads consumer lending, making it an indispensable part of the country's financial infrastructure. Kaspi's journey began when Vyacheslav Kim transitioned his electronics retail business into banking with the acquisition of Kaspiskiy Bank in 2002. The company's transformation accelerated under CEO Mikhail Lomtadze, brought in by Baring Vostok in 2007. Kaspi shifted from traditional banking to a tech-driven platform, launching digital payments in 2012, an e-commerce marketplace in 2014, and a mobile super app in 2017. This evolution fueled rapid expansion, leading to its London IPO in 2020 and subsequent Nasdaq listing in 2024, increasing its visibility among global investors. Financially, Kaspi continues to deliver outstanding performance. In 2024, it processed $166 billion in transactions—seven times its 2019 volume—and returned $750 million to shareholders through dividends, demonstrating strong cash flow generation. With operating costs below 10% of revenue, Kaspi operates far more efficiently than global fintech peers. While dominating the Kazakhstani market, the company is actively expanding into new territories. Its planned acquisition of Uzbekistan's Humo, a state-backed payment system with 10 million users, signals its intent to replicate success beyond Kazakhstan. The recent purchase of Turkey's Hepsiburada positions Kaspi in a $172 billion retail market, four times larger than Kazakhstan's. Partnerships with Alipay+ and potential multi-language support further enhance cross-border expansion potential. However, Kaspi faces challenges. In September 2024, short-seller Culper Research accused the company of misleading investors about its Russian ties, triggering a 20% stock drop. Although Kazakhstan's regulator dismissed the claims, geopolitical uncertainty lingers. Market saturation is another concern, with rising loan rates and competition from local rivals like ForteBank. Additionally, Kazakhstan's economy remains closely linked to Russia, introducing macroeconomic risks. Despite these headwinds, Kaspi's brand loyalty, technological edge, and entrenched market position create formidable barriers to competition. The company's innovation has earned it two Harvard Business School case studies, emphasizing its trust-building efforts after a 2014 bank run. Its asset-light model, driven by a 1,200-person tech team, enables exceptional cash generation without the burden of physical banking infrastructure. As the first Kazakhstani company to list on Nasdaq, Kaspi stands as a pioneer in the global fintech space. A discounted cash flow (DCF) valuation suggests Kaspi is deeply undervalued. With projected 2024 free cash flow (FCF) of $2.05 billion, growing at 20% annually for five years, Kaspi is on track to generate $5.35 billion in FCF by 2029. Applying a conservative 3% terminal growth rate and discounting at 12% to account for emerging market risks, Kaspi's enterprise value reaches $48 billion. Adding its $1.2 billion in cash and negligible debt results in an equity value of $49.2 billion, or $246 per share—more than double its current price of around $100. A peer comparison further supports this undervaluation. Kaspi trades at just 8.5x 2024 earnings, significantly lower than fintech peers like PayPal (18x), MercadoLibre (57x), and Sea Limited (114x). Adjusting for growth, Kaspi's PEG ratio is just 0.34, implying a fair value range of $215 to $535 per share based on fintech industry multiples. Despite its stellar financials, the market discounts Kaspi due to geopolitical risks, liquidity concerns following its U.S. listing, and its 6% dividend yield, which some perceive as a signal of maturity rather than high growth. However, MercadoLibre once faced similar skepticism before its stock was rerated as execution proved successful. If Kaspi's international expansion, particularly its Hepsiburada acquisition, gains traction, its valuation gap could narrow significantly. Even a modest rerating to 40x FCF—similar to MercadoLibre—would imply an $86 billion valuation, or $430 per share. Kaspi presents a compelling investment opportunity. With strong growth, superior margins, and substantial free cash flow generation, the stock remains deeply undervalued despite its industry-leading position. For investors willing to look past short-term geopolitical concerns, Kaspi offers the rare chance to buy a high-quality, high-growth fintech at a fraction of its intrinsic value. If sentiment shifts and its expansion strategy succeeds, the stock could more than double, making it one of the most attractive investment opportunities in the fintech sector today. Joint Stock Company (KSPI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held KSPI at the end of the fourth quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of KSPI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KSPI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Associated Press
05-03-2025
- Business
- Associated Press
Kaspi.kz receives investment grade rating from Moody's
ALMATY, Kazakhstan, March 05, 2025 (GLOBE NEWSWIRE) -- has received its second international credit rating. Moody's rates investment grade Baa3 with a stable outlook. The rating follows Fitch's investment BBB- credit rating and stable outlook, received in the second half of 2024. These rating are separate from Kaspi Bank, a component of Fintech Platform, which has been tracked by international rating agencies for many years. According to Moody's, the rating reflects diverse business profile, leading nationwide franchise and sound financials including profitability, capitalisation and liquidity. Among the key ratings drivers are: Diverse business model: Super App business model is unique in its ability to successfully combine leading & diverse franchises across payments, commerce and fintech. This supports good revenue generation and resilience through the economic cycle. Stellar profitability in excess of 40%, reflecting tight cost control and limited risk from loan losses. Low leverage, with almost all debt in the form of Kaspi Bank's deposit liabilities. Mikhail Lomtadze, CEO & co-founder of commented: 'This is the second credit rating received by in the past couple of months. Both Moody's and Fitch have recognised our diverse business model, leading market position, financial results track record and low leverage. As we embark on expansion into Türkiye with Hepsiburada we do this from a position of strength and are firmly on the front foot.' About mission is to improve people's lives by developing innovative mobile products and services. To deliver upon this we operate a unique two-sided Super App model – Super App for consumers and Kaspi Pay Super App for merchants. Through these Super Apps consumers and merchants can access our leading Payments, Marketplace, and Fintech Platforms. All our services are designed to be highly relevant to users' everyday needs and enable consumers and merchants to connect and transact, using our proprietary payments network. The combination of a large, highly engaged consumer and merchant base, best-in-class, highly relevant digital products and a capex lite approach, results in strong top-line growth, a profitable business model and enables us to continue innovating, delighting our users and fulfilling our mission. In January 2025, we acquired a 65.41% stake in Hepsiburada, a leading e-commerce technology platform in Türkiye. Harvard Business School has written two case studies on which it continues to teach to its MBA students. has been listed on Nasdaq since January 2024.
Associated Press
27-01-2025
- Business
- Associated Press
Kaspi.kz to Announce 4th Quarter and Full Year 2024 Financial Results on 24th February
ALMATY, Kazakhstan, Jan. 27, 2025 (GLOBE NEWSWIRE) -- (KSPI US) will report its financial results for the quarter and year ended December 31, 2024, on Monday, 24th February, 2025. On that day, management will hold a conference call and webcast at 8.00am EST (1pm GMT, 6.00pm Astana time) to review and discuss the company's results for the period. 4th Quarter & FY 2024 Financial Results Conference Call To pre-register for this call, please go to the following link: You will receive your access details via email. About mission is to improve people's lives by developing innovative mobile products and services. To deliver upon this we operate a unique two-sided Super App model – Super App for consumers and Kaspi Pay Super App for merchants. The Super App is Kazakhstan's most popular mobile app, with 14 million MAU in 2023, 9.1 million of whom access our services daily. The Kaspi Pay Super App is the digital partner of choice for businesses and entrepreneurs in Kazakhstan, with 581K merchant partners in 2023. Through these Super Apps consumers and merchants can access our leading Payments, Marketplace, and Fintech Platforms. All our services are designed to be highly relevant to users' everyday needs and enable consumers and merchants to connect and transact, using our proprietary payments network. The combination of a large, highly engaged consumer and merchant base, best-in-class, highly relevant digital products and a capex lite approach, results in strong top-line growth, a profitable business model and enables us to continue innovating, delighting our users and fulfilling our mission. Harvard Business School has written two case studies on which it continues to teach to its Masters students. has been listed on NASDAQ since 2024.
