Corpay, Inc.
Corpay, Inc. Fundamental Analysis
Corpay, Inc. (CPAY) shows strong financial fundamentals with a PE ratio of 22.77, profit margin of 23.62%, and ROE of 27.89%. The company generates $4.6B in annual revenue with moderate year-over-year growth of 5.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CPAY's fundamental strength across five key dimensions:
Efficiency Score
WeakCPAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateCPAY shows balanced valuation metrics.
Growth Score
ModerateCPAY shows steady but slowing expansion.
Financial Health Score
WeakCPAY carries high financial risk with limited liquidity.
Profitability Score
ExcellentCPAY achieves industry-leading margins.
Key Financial Metrics
Is CPAY Expensive or Cheap?
P/E Ratio
CPAY trades at 22.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CPAY's PEG of 11.75 indicates potential overvaluation.
Price to Book
The market values Corpay, Inc. at 6.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.08 times EBITDA. This is generally considered low.
How Well Does CPAY Make Money?
Net Profit Margin
For every $100 in sales, Corpay, Inc. keeps $23.62 as profit after all expenses.
Operating Margin
Core operations generate 42.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.89 in profit for every $100 of shareholder equity.
ROA
Corpay, Inc. generates $4.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Corpay, Inc. generates strong operating cash flow of $1.51B, reflecting robust business health.
Free Cash Flow
Corpay, Inc. generates strong free cash flow of $1.31B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.73 in free cash annually.
FCF Yield
CPAY converts 5.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How CPAY Stacks Against Its Sector Peers
| Metric | CPAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.77 | 35.19 | Better (Cheaper) |
| ROE | 27.89% | 1155.00% | Weak |
| Net Margin | 23.62% | -127067.00% (disorted) | Strong |
| Debt/Equity | 2.11 | 0.41 | Weak (High Leverage) |
| Current Ratio | 0.98 | 4.71 | Weak Liquidity |
| ROA | 4.05% | -314918.00% (disorted) | Weak |
CPAY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Corpay, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
84.33%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
37.76%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
105.15%
Industry Style: Growth, Innovation, High Beta
High Growth