Sezzle Inc. (SEZL)
Valuation Overview•Is Sezzle Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
High-quality fundamentals with a strong composite quality score of 92/100, backed by robust profitability and solvency.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Elite compounder with fortress-level fundamentals across every core pillar.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
SEZL exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 52.7% ROIC). This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 40.7% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $135.5M | +66.1% | — | — | — | |
| EBITDA | $69.0M | — | — | — | — | |
| Net Income | $51.3M | +69.5% | — | — | — | |
| EPS (Diluted) | $1.47 | +69.9% | — | — | — | |
| Free Cash Flow | $88.6M | +428.3% | +202.8% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 88.7% | 64.5% | 56.4% | 45.9% |
| Operating Margin | 40.7% | 27.8% | 0.2% | -383.3% |
| Net Margin | 30.8% | 21.0% | -6.6% | -796.8% |
| FCF Margin | 49.6% | 14.6% | -2.7% | -444.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.24 | $1.43 | +15.3% | ||
| Q1'26 | $0.96 | $1.21 | +26.0% | ||
| Q4'25 | $0.65 | $0.71 | +9.2% | ||
| Q3'25 | $0.58 | $0.69 | +19.0% | ||
| Q2'25 | $0.32 | $1.00 | +212.5% | ||
| Q1'25 | $0.51 | $0.73 | +42.2% | ||
| Q4'24 | $0.15 | $0.49 | +226.7% | ||
| Q3'24 | $0.14 | $0.36 | +157.1% |
Total return is +14.2% (1Y), lagging the benchmark by -10.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +150.6% | +141.3% | — |
| 1Y | +14.2% | -10.8% | — |
| 3YCAGR | +1151.5% | +1088.2% | — |
| 5YCAGR | +30.9% | +15.7% | — |
| 10YCAGR | +29.1% | +14.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Sezzle Inc. (SEZL) valuation, health, and returns.
Sezzle Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -78.8% downside from DCF intrinsic value of $34.62)
Sezzle Inc. has multiple valuation anchors: DCF Intrinsic Value: $34.62 | Peer Relative Fair Value: $150.05 | Wall Street Analyst Target: $134.00 (implying -17.9% upside). A convergence of these signals offers higher conviction.
Sezzle Inc. displays excellent financial health with a composite quality score of 92/100, supported by a Piotroski F-Score of 9/9, Return on Invested Capital (ROIC) of 52.7%.
Sezzle Inc. returns capital via buybacks instead of dividends, carrying a 1.2% buyback yield and reducing outstanding shares by -0.4% in the last 12 months.
Sezzle Inc.'s current growth trajectory is Stable. The company achieved +66.1% 1Y revenue growth and +69.9% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 6 analysts, beating EPS expectations in 100% of recent quarters with a 14-quarter streak. The consensus price target represents a -17.9% change from current levels.
Investment risks for Sezzle Inc. include: -72.0% 1-year max drawdown, high beta (2.40x market volatility). Volatility risk is characterized by a beta of 2.40x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.