Taking everything into account, CPAY scores 5 out of 10 in our fundamental rating. CPAY was compared to 97 industry peers in the Financial Services industry. While CPAY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CPAY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CPAY had positive earnings in the past year.
In the past year CPAY had a positive cash flow from operations.
Each year in the past 5 years CPAY has been profitable.
CPAY had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 5.32%, CPAY is in the better half of the industry, outperforming 76.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.79%, CPAY belongs to the top of the industry, outperforming 91.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.98%, CPAY belongs to the top of the industry, outperforming 84.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CPAY is above the industry average of 8.46%.

		Industry Rank	Sector Rank
ROA	5.32%
ROE	25.79%
ROIC	10.98%

ROA(3y)6.24%

ROA(5y)6.25%

ROE(3y)33.21%

ROE(5y)29.98%

ROIC(3y)12.51%

ROIC(5y)11.72%

1.3 Margins

Looking at the Profit Margin, with a value of 24.37%, CPAY belongs to the top of the industry, outperforming 82.47% of the companies in the same industry.
CPAY's Profit Margin has declined in the last couple of years.
CPAY's Operating Margin of 43.73% is amongst the best of the industry. CPAY outperforms 81.44% of its industry peers.
CPAY's Operating Margin has been stable in the last couple of years.
The Gross Margin of CPAY (78.26%) is better than 82.47% of its industry peers.
CPAY's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	43.73%
PM (TTM)	24.37%
GM	78.26%

OM growth 3Y0.25%

OM growth 5Y-1.02%

PM growth 3Y-5.18%

PM growth 5Y-5.66%

GM growth 3YN/A

GM growth 5Y-4.82%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CPAY is creating some value.
Compared to 1 year ago, CPAY has less shares outstanding
Compared to 5 years ago, CPAY has less shares outstanding
The debt/assets ratio for CPAY is higher compared to a year ago.

2.2 Solvency

CPAY has an Altman-Z score of 2.17. This is not the best score and indicates that CPAY is in the grey zone with still only limited risk for bankruptcy at the moment.
CPAY has a Altman-Z score of 2.17. This is in the better half of the industry: CPAY outperforms 77.32% of its industry peers.
The Debt to FCF ratio of CPAY is 7.10, which is on the high side as it means it would take CPAY, 7.10 years of fcf income to pay off all of its debts.
CPAY has a Debt to FCF ratio of 7.10. This is comparable to the rest of the industry: CPAY outperforms 51.55% of its industry peers.
A Debt/Equity ratio of 1.86 is on the high side and indicates that CPAY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.86, CPAY is doing worse than 65.98% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.86
Debt/FCF	7.1
Altman-Z	2.17

ROIC/WACC1.34

WACC8.18%

2.3 Liquidity

CPAY has a Current Ratio of 1.13. This is a normal value and indicates that CPAY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.13, CPAY is in line with its industry, outperforming 56.70% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that CPAY should not have too much problems paying its short term obligations.
CPAY has a Quick ratio of 1.13. This is comparable to the rest of the industry: CPAY outperforms 58.76% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.13
Quick Ratio	1.13

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CPAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.43%, which is quite good.
The Earnings Per Share has been growing by 10.03% on average over the past years. This is quite good.
The Revenue has grown by 11.27% in the past year. This is quite good.
Measured over the past years, CPAY shows a quite strong growth in Revenue. The Revenue has been growing by 8.45% on average per year.

EPS 1Y (TTM)14.43%

EPS 3Y12.9%

EPS 5Y10.03%

EPS Q2Q%14%

Revenue 1Y (TTM)11.27%

Revenue growth 3Y11.94%

Revenue growth 5Y8.45%

Sales Q2Q%13.92%

3.2 Future

The Earnings Per Share is expected to grow by 15.01% on average over the next years. This is quite good.
CPAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.09% yearly.

EPS Next Y14.09%

EPS Next 2Y15.23%

EPS Next 3Y15.45%

EPS Next 5Y15.01%

Revenue Next Year13.12%

Revenue Next 2Y14.4%

Revenue Next 3Y13.09%

Revenue Next 5Y10.09%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.65, the valuation of CPAY can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as CPAY.
CPAY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.84, CPAY is valued correctly.
CPAY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.98. CPAY is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	15.65
Fwd PE	12.84

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPAY is on the same level as its industry peers.
60.82% of the companies in the same industry are more expensive than CPAY, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	19.82
EV/EBITDA	11.87

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CPAY may justify a higher PE ratio.
A more expensive valuation may be justified as CPAY's earnings are expected to grow with 15.45% in the coming years.