PAR Technology (PAR) Valuation After Wasatch Exit and Ongoing Cash Burn Concerns

PAR Technology (PAR) is back in the spotlight after Wasatch Global Investors exited its position, citing weaker than expected organic growth, just as the company leans on new products like Smart Passes to reset its story. See our latest analysis for PAR Technology. That backdrop helps explain why, even with a recent 1 month share price return of about 8 percent and a 1 day gain of nearly 3 percent to 36.83 dollars, PAR’s year to date share price return is still deep in the red. Its 1 year total shareholder return of roughly negative 52 percent contrasts sharply with a still solid 3 year total shareholder return above 50 percent, suggesting long term believers are now questioning whether momentum is fading or only pausing. If you like PAR’s restaurant tech angle but want more options, this could be a good moment to scan high growth tech and AI stocks for other potential growth stories. With the shares now trading at a steep discount to analyst targets but still wrestling with cash burn and heavy leverage, is PAR quietly setting up as a contrarian value play, or is the market correctly pricing in its growth risks? Most Popular Narrative: 37.9% Undervalued With PAR Technology’s fair value pegged near 59.33 dollars versus a 36.83 dollar close, the prevailing narrative leans firmly toward upside potential from here. Significant improvement in gross margin and adjusted EBITDA, driven by the ongoing shift toward high margin SaaS and subscription revenues (now 64% of total revenue) and company execution on cost discipline, is creating a path to positive cash flow and profitability. This is expected to lead to multiple expansion as financials strengthen and growth is recognized in future earnings. Read the complete narrative. Curious how a still unprofitable software player can warrant a rich future earnings multiple and a sharply higher fair value? The narrative’s math might surprise you. Result: Fair Value of $59.33 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, persistent rollout delays or failed large enterprise deals could derail ARR momentum, extend cash burn, and challenge the bullish multiple expansion story. Find out about the key risks to this PAR Technology narrative. Build Your Own PAR Technology Narrative If this storyline does not quite fit your view and you prefer hands on research, you can build a personalized narrative in just minutes, Do it your way. A great starting point for your PAR Technology research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Ready for more high conviction ideas? Before the market makes its next big move, use the Simply Wall St Screener to uncover fresh opportunities that match your strategy and strengthen your portfolio. Target long term wealth building by focusing on reliable income through these 13 dividend stocks with yields > 3% that can help support returns in choppy markets. Ride structural growth trends by zeroing in on innovation leaders using these 24 AI penny stocks shaping the future of intelligent software and automation. Capitalize on valuation gaps by scanning these 919 undervalued stocks based on cash flows where strong cash flows may not yet be fully reflected in current share prices. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech