We assign a fundamental rating of 5 out of 10 to CPAY. CPAY was compared to 97 industry peers in the Financial Services industry. CPAY scores excellent on profitability, but there are some minor concerns on its financial health. CPAY is not overvalued while it is showing excellent growth. This is an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CPAY was profitable.
CPAY had a positive operating cash flow in the past year.
In the past 5 years CPAY has always been profitable.
Each year in the past 5 years CPAY had a positive operating cash flow.

1.2 Ratios

CPAY has a Return On Assets of 5.32%. This is in the better half of the industry: CPAY outperforms 76.29% of its industry peers.
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.
CPAY has a Return On Invested Capital of 10.98%. This is amongst the best in the industry. CPAY outperforms 84.54% of its industry peers.
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

With an excellent Profit Margin value of 24.37%, CPAY belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.
In the last couple of years the Profit Margin of CPAY has declined.
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.
CPAY's Gross Margin of 78.26% is amongst the best of the industry. CPAY outperforms 82.47% of its industry peers.
In the last couple of years the Gross Margin of CPAY has declined.

		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.
The number of shares outstanding for CPAY has been reduced compared to 1 year ago.
The number of shares outstanding for CPAY has been reduced compared to 5 years ago.
Compared to 1 year ago, CPAY has a worse debt to assets ratio.

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's Altman-Z score of 2.17 is fine compared to the rest 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.
The Debt to FCF ratio of CPAY (7.10) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.86 is on the high side and indicates that CPAY has dependencies on debt financing.
The Debt to Equity ratio of CPAY (1.86) is worse than 65.98% of its industry peers.

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

ROIC/WACC1.34

WACC8.17%

2.3 Liquidity

A Current Ratio of 1.13 indicates that CPAY should not have too much problems paying 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.
CPAY has a Quick 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 Quick ratio, with a value of 1.13, CPAY is in line with its industry, outperforming 58.76% of the companies in the same industry.

		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.
CPAY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.03% yearly.
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

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

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

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4. Valuation

4.1 Price/Earnings Ratio

CPAY is valuated correctly with a Price/Earnings ratio of 15.34.
CPAY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.60, CPAY is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.58, CPAY is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPAY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 25.83. CPAY is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	15.34
Fwd PE	12.58

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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPAY indicates a somewhat cheap valuation: CPAY is cheaper than 60.82% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.43
EV/EBITDA	11.79

4.3 Compensation for Growth

CPAY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CPAY has a very decent profitability rating, which 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.