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Corpay Inc (CPAY)
NYSE:CPAY
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Corpay Inc
(NYSE:CPAY)
75Outperform
Positive Factors
Market Positioning
CPAY is well-positioned among non-banks with scale as a key differentiator.
Revenue Model
CPAY's revenue model is highly recurring and profitable, indicating a long runway of growth ahead.
Negative Factors
External Factors
The impact on 4Q from fuel prices, FX & spreads led to a ~$45mn headwind to overall revenue per the presentation.
Financial Performance
The knee-jerk reaction to missing 4Q revenue & EBITDA, guiding FY25 revenue below consensus and seeing lower than expected organic growth in 4Q (+12% vs. +13%) is likely to weigh on the stock today.
Corpay Inc (CPAY) vs. S&P 500 (SPY)
Market Cap
$24.35B
Dividend YieldN/A
Average Volume (3M)504.00K
Price to Earnings (P/E)24.8
Beta (1Y)1.04
Revenue Growth5.77%
EPS Growth6.37%
CountryUS
Employees11,200
SectorTechnology
Sector Strength51
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)13.98
Shares Outstanding70,249,920
10 Day Avg. Volume464,332
30 Day Avg. Volume504,005
Financial Highlights & Ratios
PEG Ratio3.89
Price to Book (P/B)N/A
Price to Sales (P/S)6.13
Price to Cash Flow (P/CF)16.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$416.42Price Target Upside16.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Corpay Inc Business Overview & Revenue Model
Company DescriptionCorpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyCorpay Inc earns revenue through a variety of streams centered around its financial services. Key revenue sources include transaction fees from payment processing services, subscription fees for access to its currency risk management platforms, and service fees for bespoke financial solutions. The company leverages significant partnerships with banks and financial institutions to enhance its service offerings, contributing to its revenue growth. Additionally, Corpay may generate earnings from foreign exchange spreads on currency transactions, further diversifying its income sources.
Corpay Inc Financial Statement Overview
Summary
Corpay Inc exhibits strong financial performance with consistent revenue growth, high profitability margins, and solid cash flow generation. Despite the high leverage, the company maintains a healthy equity position and strong Return on Equity. Overall, Corpay Inc demonstrates a stable financial position with promising growth prospects.Income Statement
Corpay Inc has demonstrated robust revenue growth with a 5.77% increase in 2024. The company maintains a high gross profit margin, reaching 100% in 2024, indicating strong pricing power and cost management. The net profit margin improved to 25.26%, reflecting efficient operations and cost controls. EBIT and EBITDA margins are also strong, at 44.97% and 53.31% respectively, showcasing operational efficiency and profitability.85
Very Positive
Balance Sheet
The debt-to-equity ratio is relatively high at 2.14, suggesting significant leverage, which may pose risk in volatile markets. However, the equity ratio is 17.39%, indicating a reasonable level of equity financing. Return on Equity (ROE) is healthy at 32.15%, reflecting strong profitability relative to shareholder equity.78
Positive
Cash Flow
Corpay Inc's cash flow statement shows a slight decline in operating cash flow to net income ratio, at 1.93. The free cash flow to net income ratio is robust at 1.76, indicating strong cash generation capabilities. The free cash flow has slightly decreased compared to the previous year, suggesting stable cash flow management.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.97B | 3.76B | 3.43B | 2.83B | 2.39B | Gross Profit |
| 3.11B | 2.94B | 2.66B | 2.27B | 1.79B | EBIT |
| 1.79B | 1.66B | 1.45B | 1.24B | 972.26M | EBITDA |
| 2.12B | 2.01B | 1.77B | 1.51B | 1.27B | Net Income Common Stockholders |
| 1.00B | 981.89M | 954.33M | 839.50M | 704.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.55B | 1.41B | 1.44B | 1.52B | 934.90M | Total Assets |
| 17.96B | 15.48B | 14.09B | 13.40B | 11.19B | Total Debt |
| 8.00B | 6.72B | 7.04B | 5.98B | 4.30B | Net Debt |
| 6.44B | 5.33B | 5.60B | 4.46B | 3.37B | Total Liabilities |
| 14.81B | 12.19B | 11.55B | 10.54B | 7.84B | Stockholders Equity |
| 3.12B | 3.28B | 2.54B | 2.87B | 3.36B |
| Cash Flow | Free Cash Flow | |||
| 1.77B | 1.95B | 603.37M | 1.09B | 1.39B | Operating Cash Flow |
| 1.94B | 2.10B | 754.80M | 1.20B | 1.47B | Investing Cash Flow |
| -807.48M | -380.72M | -368.35M | -715.93M | -106.25M | Financing Cash Flow |
| 404.99M | -898.21M | -311.23M | 343.93M | -1.42B |
Corpay Inc Technical Analysis
Positive
357.95
Price Trends
363.65
Negative
359.79
Negative
328.17
Positive
Market Momentum
-4.20
Negative
53.31
Neutral
88.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPAY, the sentiment is Positive. The current price of 357.95 is above the 20-day moving average (MA) of 348.88, below the 50-day MA of 363.65, and above the 200-day MA of 328.17, indicating a neutral trend. The MACD of -4.20 indicates Negative momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 88.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPAY.
Corpay Inc Risk Analysis
Corpay Inc disclosed 1 risk factors in its most recent earnings report. Corpay Inc reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Corpay Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $51.50B | 30.09 | 46.16% | 2.74% | 4.18% | 5.67% | |
77 Outperform | $120.16B | 30.81 | 83.72% | 1.94% | 7.09% | 11.51% | |
75 Outperform | $24.35B | 24.79 | 31.34% | ― | 5.77% | 6.37% | |
73 Outperform | $38.77B | 13.75 | 14.50% | ― | 10.06% | 38060.98% | |
73 Outperform | $24.34B | 15.75 | 6.94% | 1.03% | 4.68% | 63.39% | |
58 Neutral | $22.11B | 10.47 | -17.86% | 2.40% | 4.75% | -24.81% | |
51 Neutral | $38.85B | 51.73 | 4.65% | 1.96% | -17.38% | ― |
* Technology Sector Average
Performance Comparison
CPAY
Corpay Inc
357.95
53.77
17.68%
ADP
Automatic Data Processing
298.89
58.98
24.58%
FIS
Fidelity National Info
74.29
3.34
4.71%
GPN
Global Payments
99.01
-33.87
-25.49%
PAYX
Paychex
144.83
28.70
24.71%
XYZ
Block
62.58
-21.22
-25.32%
Corpay Inc Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -7.90% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and EPS growth, impressive performance in Corporate Payments, and successful acquisitions. However, macroeconomic headwinds and specific operational challenges like gift card shipment delays and Lodging yield compression were notable concerns. Overall, the company appears well-positioned for continued growth, but faces some external pressures.Highlights
Strong Q4 Revenue and EPS Growth
Reported Q4 revenue of $1,034 million, up 10%, and cash EPS of $5.36, up 21%.
Impressive Corporate Payments Growth
Corporate Payments line of business achieved 26% organic revenue growth in Q4, with sales growth accelerating to 36%.
Successful Full Year 2024 Performance
Cash EPS of $19, up over $2 on a print basis, and up 16% versus last year excluding Russia. Sales growth for the full year was over 20%.
Strong 2025 Guidance
Full year 2025 guidance at the mid-point of $4.4 billion in revenue and $21 of cash EPS, both up 11%.
Acquisition Synergies
Two 2024 Corporate Payment acquisitions, Paymerang and GPS, are expected to deliver $0.50 of cash EPS accretion in 2025.
Lowlights
Macro Headwinds Impacting Revenue
Macro conditions turned unfavorable, compressing print revenue by over $100 million and cash EPS by about $1.20 for 2025.
Gift Card Shipment Delays
Gift card shipments fell short of expectations, impacting Q4 revenue.
Acquisition and Divestiture Impact
Net benefit from December acquisition and divestiture activity was offset by a slight shortfall in gift revenue.
Lodging Business Yield Compression
Q4 Lodging yields decreased due to mix impact from FEMA activation business.
Company Guidance
During the Corpay Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for the year 2025, projecting mid-point revenue of $4.4 billion and cash EPS of $21, both up 11% from the previous year. They anticipate organic revenue growth at a midpoint of 11% and are planning for overall sales or new bookings growth of 20% in 2025. Despite macroeconomic challenges such as weak international currencies and higher tax rates, which are expected to compress print revenue by over $100 million and cash EPS by about $1.20, Corpay remains optimistic about its underlying business fundamentals. The company highlighted key priorities, including expanding its Corporate Payments business, simplifying its portfolio, improving U.S. sales, and extending its Payables business into Europe. The guidance reflects strong business fundamentals and outlines strategic initiatives aimed at sustaining growth through acquisitions, divestitures, and enhanced sales strategies.Corpay Inc Corporate Events
Executive/Board Changes
Corpay Inc Announces CFO Transition in March 2025
Neutral
Mar 17, 2025
Corpay Inc. announced that Tom Panther will resign as Chief Financial Officer effective March 15, 2025, with the search for a new CFO ongoing. Alissa Vickery, who has been with the company since 2011 and previously served as interim CFO, has been appointed as interim CFO effective March 17, 2025, following Mr. Panther’s departure.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Corpay Inc Achieves Record Revenues and Growth in 2024
Positive
Feb 5, 2025
Corpay, Inc. reported record revenues and adjusted net income for the fourth quarter and full year 2024, with organic revenue growth of 12% in the quarter and 20% for the year. Despite a decrease in GAAP net income for the quarter, the company achieved strong growth in its Corporate Payments segment, attributed to two significant acquisitions and improved sales and retention trends, positioning it for continued growth in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.