We assign a fundamental rating of 5 out of 10 to CPAY. 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.
CPAY had a positive operating cash flow in the past year.
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

With a decent Return On Assets value of 5.32%, CPAY is doing good in the industry, outperforming 76.29% of the companies in the same industry.
With an excellent Return On Equity value of 25.79%, CPAY belongs to the best of the industry, outperforming 91.75% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.98%, CPAY belongs to the best 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 8.51%.

		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

CPAY has a Profit Margin of 24.37%. This is amongst the best in the industry. CPAY outperforms 82.47% of its industry peers.
In the last couple of years the Profit Margin of CPAY has declined.
The Operating Margin of CPAY (43.73%) is better than 81.44% of its industry peers.
CPAY's Operating Margin has been stable in the last couple of years.
CPAY has a better Gross Margin (78.26%) 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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CPAY is still creating some value.
CPAY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CPAY has less shares outstanding
CPAY has a worse debt/assets ratio than last year.

2.2 Solvency

CPAY has an Altman-Z score of 2.16. 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.
The Altman-Z score of CPAY (2.16) is better than 77.32% of its industry peers.
CPAY has a debt to FCF ratio of 7.10. This is a slightly negative value and a sign of low solvency as CPAY would need 7.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.10, CPAY is in line with its industry, outperforming 51.55% of the companies in the same industry.
CPAY has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
CPAY has a Debt to Equity ratio of 1.86. This is in the lower half of the industry: CPAY underperforms 64.95% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.86
Debt/FCF	7.1
Altman-Z	2.16

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.
CPAY's Current ratio of 1.13 is in line compared to the rest of the industry. CPAY outperforms 56.70% of its industry peers.
A Quick Ratio of 1.13 indicates that CPAY should not have too much problems paying its short term obligations.
CPAY's Quick ratio of 1.13 is in line compared 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

The Earnings Per Share has grown by an nice 14.43% over the past year.
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.
CPAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.45% yearly.

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

Based on estimates for the next years, CPAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.01% on average per year.
Based on estimates for the next years, CPAY will show a quite strong growth in Revenue. The Revenue will grow by 10.09% on average per year.

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

A Price/Earnings ratio of 15.20 indicates a correct valuation of CPAY.
The rest of the industry has a similar Price/Earnings ratio as CPAY.
The average S&P500 Price/Earnings ratio is at 28.32. CPAY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.46 indicates a correct valuation of CPAY.
CPAY's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CPAY is valued rather cheaply.

		Industry Rank	Sector Rank
PE	15.2
Fwd PE	12.46

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as CPAY.
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	19.25
EV/EBITDA	11.69

4.3 Compensation for Growth

CPAY's 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.
CPAY's earnings are expected to grow with 15.45% in the coming years. This may justify a more expensive valuation.