CORPAY INC (CPAY) Stock Fundamental Analysis
NYSE:CPAY - New York Stock Exchange, Inc. - US2199481068 - Common Stock - Currency: USD
CPAY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. CPAY scores excellent on profitability, but there are some minor concerns on its financial health. CPAY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CPAY was profitable.
CPAY had a positive operating cash flow in the past year.
CPAY had positive earnings in each of the past 5 years.
Each year in the past 5 years CPAY had a positive operating cash flow.
1.2 Ratios
CPAY's Return On Assets of 5.48% is fine compared to the rest of the industry. CPAY outperforms 77.00% of its industry peers.
CPAY has a better Return On Equity (29.45%) than 91.00% of its industry peers.
With an excellent Return On Invested Capital value of 11.11%, CPAY belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
CPAY had an Average Return On Invested Capital over the past 3 years of 12.51%. This is in line with the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 29.45% | ||
| ROIC | 11.11% |
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 better Profit Margin (25.15%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of CPAY has declined.
The Operating Margin of CPAY (44.14%) is better than 81.00% of its industry peers.
In the last couple of years the Operating Margin of CPAY has remained more or less at the same level.
The Gross Margin of CPAY (78.16%) is better than 86.00% of its industry peers.
CPAY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.14% | ||
| PM (TTM) | 25.15% | ||
| GM | 78.16% |
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%
2. Health
2.1 Basic Checks
CPAY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CPAY has less shares outstanding
Compared to 5 years ago, CPAY has less shares outstanding
Compared to 1 year ago, CPAY has a worse debt to assets ratio.
2.2 Solvency
CPAY has an Altman-Z score of 2.21. 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 2.21 is fine compared to the rest of the industry. CPAY outperforms 76.00% of its industry peers.
CPAY has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as CPAY would need 6.11 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.11, CPAY is doing good in the industry, outperforming 61.00% of the companies in the same industry.
A Debt/Equity ratio of 2.14 is on the high side and indicates that CPAY has dependencies on debt financing.
CPAY's Debt to Equity ratio of 2.14 is on the low side compared to the rest of the industry. CPAY is outperformed by 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.34
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.10 indicates that CPAY should not have too much problems paying its short term obligations.
CPAY has a Current ratio of 1.10. This is comparable to the rest of the industry: CPAY outperforms 53.00% of its industry peers.
A Quick Ratio of 1.10 indicates that CPAY should not have too much problems paying its short term obligations.
CPAY has a Quick ratio (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.78% 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 been growing slightly by 6.68% in the past year.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
EPS 1Y (TTM)12.78%
EPS 3Y12.9%
EPS 5Y10.03%
EPS Q2Q%10%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y11.94%
Revenue growth 5Y8.45%
Sales Q2Q%7.53%
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 Y12.61%
EPS Next 2Y14.4%
EPS Next 3Y14.93%
EPS Next 5Y15.01%
Revenue Next Year10.69%
Revenue Next 2Y10.5%
Revenue Next 3Y10.18%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.70, the valuation of CPAY can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as CPAY.
CPAY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 13.04 indicates a correct valuation of CPAY.
CPAY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CPAY to the average of the S&P500 Index (35.19), we can say CPAY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPAY is valued a bit cheaper than the industry average as 61.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CPAY is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.1 | ||
| EV/EBITDA | 13.07 |
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 14.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)1.67
EPS Next 2Y14.4%
EPS Next 3Y14.93%
5. Dividend
5.1 Amount
CPAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
324.39
-11.29 (-3.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.81%
Inst Owner Change0%
Ins Owners3.52%
Ins Owner Change4.82%
Market Cap22.87B
Analysts81.67
Price Target400.59 (23.49%)
Short Float %2.46%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.9%
Min EPS beat(2)-2.03%
Max EPS beat(2)-1.78%
EPS beat(4)0
Avg EPS beat(4)-1.58%
Min EPS beat(4)-2.03%
Max EPS beat(4)-1.06%
EPS beat(8)0
Avg EPS beat(8)-1.81%
EPS beat(12)3
Avg EPS beat(12)-0.55%
EPS beat(16)6
Avg EPS beat(16)0.02%
Revenue beat(2)0
Avg Revenue beat(2)-3.22%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-2.93%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-3.5%
Max Revenue beat(4)-1.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.74%
Revenue beat(12)2
Avg Revenue beat(12)-1.68%
Revenue beat(16)6
Avg Revenue beat(16)-0.78%
PT rev (1m)0%
PT rev (3m)-5.34%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.46%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 13.04 | ||
| P/S | 5.65 | ||
| P/FCF | 17.1 | ||
| P/OCF | 15.08 | ||
| P/B | 6.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.07 |
EPS(TTM)19.42
EY5.99%
EPS(NY)24.88
Fwd EY7.67%
FCF(TTM)18.97
FCFY5.85%
OCF(TTM)21.51
OCFY6.63%
SpS57.38
BVpS49
TBVpS-72.99
PEG (NY)1.32
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 29.45% | ||
| ROCE | 17.32% | ||
| ROIC | 11.11% | ||
| ROICexc | 12.8% | ||
| ROICexgc | 80.48% | ||
| OM | 44.14% | ||
| PM (TTM) | 25.15% | ||
| GM | 78.16% | ||
| FCFM | 33.06% |
ROA(3y)6.24%
ROA(5y)6.25%
ROE(3y)33.21%
ROE(5y)29.98%
ROIC(3y)12.51%
ROIC(5y)11.72%
ROICexc(3y)14.83%
ROICexc(5y)13.92%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.71%
ROCE(5y)16.98%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y1.1%
ROICexc growth 5Y0.59%
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%
F-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 49.86% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 3.58 | ||
| Cash Conversion | 70.71% | ||
| Profit Quality | 131.49% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.21 |
F-Score6
WACC8.27%
ROIC/WACC1.34
Cap/Depr(3y)47.52%
Cap/Depr(5y)42.51%
Cap/Sales(3y)4.31%
Cap/Sales(5y)4.03%
Profit Quality(3y)145.81%
Profit Quality(5y)152.95%
High Growth Momentum
Growth
EPS 1Y (TTM)12.78%
EPS 3Y12.9%
EPS 5Y10.03%
EPS Q2Q%10%
EPS Next Y12.61%
EPS Next 2Y14.4%
EPS Next 3Y14.93%
EPS Next 5Y15.01%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y11.94%
Revenue growth 5Y8.45%
Sales Q2Q%7.53%
Revenue Next Year10.69%
Revenue Next 2Y10.5%
Revenue Next 3Y10.18%
Revenue Next 5Y10.09%
EBIT growth 1Y6.35%
EBIT growth 3Y12.22%
EBIT growth 5Y7.35%
EBIT Next Year31.45%
EBIT Next 3Y18.08%
EBIT Next 5Y15.62%
FCF growth 1Y28.84%
FCF growth 3Y17.6%
FCF growth 5Y10.19%
OCF growth 1Y26.9%
OCF growth 3Y17.47%
OCF growth 5Y10.8%