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

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

The Return On Assets of CPAY (5.32%) is better than 76.29% of its industry peers.
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 8.46%.

		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.
The Operating Margin of CPAY (43.73%) is better than 81.44% of its industry peers.
In the last couple of years the Operating Margin of CPAY has remained more or less at the same level.
Looking at the Gross Margin, with a value of 78.26%, CPAY belongs to the top of the industry, outperforming 82.47% of the companies in the same industry.
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

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

2.2 Solvency

An Altman-Z score of 2.18 indicates that CPAY is not a great score, but indicates only limited risk for bankruptcy at the moment.
CPAY's Altman-Z score of 2.18 is fine compared to the rest of the industry. CPAY outperforms 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.
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	2.18

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.
The Current ratio of CPAY (1.13) is comparable to the rest of the 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 (1.13) which is comparable to the rest of the 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

The Earnings Per Share has grown by an nice 14.43% over the past year.
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.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.

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

CPAY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.01% yearly.
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 15.57, the valuation of CPAY can be described as correct.
CPAY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CPAY to the average of the S&P500 Index (28.39), we can say CPAY is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.77, CPAY is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as CPAY.
The average S&P500 Price/Forward Earnings ratio is at 25.72. CPAY is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	15.57
Fwd PE	12.77

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.
CPAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CPAY is cheaper than 60.82% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.72
EV/EBITDA	11.93

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