POLAND – 2025/06/21: In this photo illustration, a Remitly company logo is seen displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
We believe Remitly Global (RELY) stock is worthy of consideration: It is growing, generating cash, and offered at a considerable valuation discount. Companies with such profiles can utilize cash to drive further revenue growth, or simply return it to shareholders via dividends or buybacks. Both strategies enhance their appeal in the market.
What Is Happening With RELY
RELY has decreased by 44% this year and is currently trading at a notable discount compared to its 3-month, 1-year, and 2-year peaks. Macroeconomic challenges, competitive pricing pressures, and uncertainties related to new digital offerings have dampened market sentiment.
The stock might not reflect this yet, but here’s what is going positively: Remitly Global saw a 21% increase in active customers (8.9 million) and a 35% growth in send volume to $19.5 billion in Q3 2025, driven by expansion in the UK/Canada and new products like Flex (100k users). Management also revised its full-year revenue forecast upward to more than $1.6 billion (28% growth), expecting a positive net income, with a low 0.04 debt-to-equity ratio and robust cash generation indicating solid financial health.
RELY Has Strong Fundamentals
- Cash Yield: Remitly Global provides an impressive cash flow yield of 7.4%.
- Growing: Revenue growth of 31.3% over the past twelve months suggests that the cash reserves will continue to expand.
- Valuation Discount: RELY stock is presently trading at 38% below its 3-month peak, 54% below its 1-year peak, and 54% below its 2-year peak.
Below is a brief comparison of RELY fundamentals against S&P medians.
*LTM: Last Twelve Months
But What About The Risk Involved?
Although RELY stock may represent an enticing investment opportunity, it is essential to be cognizant of its historical drawdown patterns. RELY fell approximately 86% during the Inflation Shock. That’s a substantial decline, particularly given some positive attributes surrounding the stock. This illustrates that even solid companies can undergo significant strain when market conditions become volatile. Hence, while fundamentals are crucial, RELY’s past underscores its potential vulnerability during a complete market sell-off. Risk is tangible, regardless of the anticipated outlook. However, the risk extends beyond significant market downturns. Stocks can decline even during favorable market conditions—consider events such as earnings reports, business updates, and changes in outlook. Check out RELY Dip Buyer Analyses to examine how the stock has bounced back from significant declines in the past.
If you’re interested in more detailed information, read Buy or Sell RELY Stock.
Other Stocks Like RELY
Not quite ready to invest in RELY? You might want to explore these alternatives:
We selected these stocks based on the following criteria:
- Market capitalization exceeding $2 billion
- Positive revenue growth
- High free cash flow yield
- Significant discount compared to 3M, 1Y, and 2Y peaks
A portfolio established starting 12/31/2016 with stocks meeting the above criteria would have performed as follows:
- Average forward returns of 25.7% and 57.9% over 6-month and 12-month periods, respectively
- A win rate (percentage of selections yielding positive returns) exceeding 70% for both the 6-month and 12-month timeframes
Smart Investing Begins With Portfolios
Stocks can rise and fall—what’s important is to remain invested. A diversified portfolio keeps you engaged in the market, enhances gains, and mitigates the risks associated with individual stocks.
The Trefis High Quality (HQ) Portfolio, comprising 30 stocks, boasts a proven history of effectively outperforming its benchmark, which includes all three indices—the S&P 500, S&P mid-cap, and Russell 2000. What accounts for this? Collectively, HQ Portfolio stocks delivered superior returns with reduced risk compared to the benchmark index; providing less volatile performance, as demonstrated in the HQ Portfolio performance metrics.
