Corpay Inc (CPAY) AI Stock Analysis

• Market Cap: $21.96B
• Dividend Yield: N/A
• Average Volume (3M): 599.25K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.08
• Revenue Growth: 11.27%
• EPS Growth: 4.47%
• Country: US
• Employees: 11,200
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 5.13
• Shares Outstanding: 69,958,050
• 10 Day Avg. Volume: 648,012
• 30 Day Avg. Volume: 599,248
• PEG Ratio: 3.74
• Price to Book (P/B): 7.62
• Price to Sales (P/S): 5.99
• P/FCF Ratio: 13.48
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 5.71
• Enterprise Value/Gross Profit: 7.50
• Enterprise Value/Ebitda: 10.78
• 1Y Price Target: $354.11
• Price Target Upside: 14.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 21.27
• Revenue Forecast (FY): $4.51B

• Rating: 75 Outperform
• Price Target: $349.00 ▲(12.66% Upside)

Corpay Inc's overall stock score of 75 reflects strong financial performance and a positive outlook from recent earnings calls. The company's strategic acquisitions and growth in the Corporate Payments segment are significant strengths. However, high leverage and declining free cash flow growth are notable risks. The technical indicators suggest positive momentum, but valuation concerns and the absence of a dividend yield slightly offset the positives.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Corpay's services, enhancing its market position and long-term financial stability.

Strategic Acquisitions

Strategic acquisitions like Alpha Group enhance Corpay's service offerings and market reach, driving future growth and competitive advantage.

Corporate Payments Segment

The Corporate Payments segment's growth potential underscores Corpay's strategic focus on high-demand areas, supporting long-term revenue expansion.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Corpay's ability to invest in growth opportunities.

Declining Free Cash Flow

Declining free cash flow growth may strain Corpay's ability to fund operations and strategic initiatives, affecting long-term sustainability.

Float Revenue Compression

Float revenue compression due to lower interest rates could reduce profitability in the Corporate Payments segment, impacting earnings.

Corpay Inc Business Overview & Revenue Model

Company Description

Corpay Inc (CPAY) is a financial technology company that specializes in providing comprehensive payment solutions for businesses. Operating in the financial services sector, Corpay focuses on streamlining payment processes and enhancing cash flow management for organizations of various sizes. The company offers a range of products and services, including accounts payable automation, cross-border payments, and foreign exchange services, aimed at improving operational efficiency and reducing transaction costs for its clients.

How the Company Makes Money

Corpay generates revenue through a variety of channels, primarily by charging fees for its payment processing services, which include transaction fees for processing payments and subscription fees for its software solutions. Key revenue streams include fees from accounts payable automation, foreign exchange transactions, and cross-border payment solutions. The company may also benefit from partnerships with financial institutions and other service providers, which can enhance its service offerings and expand its customer base. Additionally, Corpay's focus on providing value-added services helps to drive customer retention and loyalty, further contributing to its earnings.

Corpay Inc Financial Statement Overview

Summary

Corpay Inc demonstrates strong revenue growth and profitability with efficient operational margins. However, high leverage and declining free cash flow growth present potential risks. The company should focus on improving cash flow generation and managing debt levels to enhance financial stability.

Income Statement

Corpay Inc has demonstrated consistent revenue growth with a TTM growth rate of 3.44%. The company maintains strong profitability with a gross profit margin of 76.10% and a net profit margin of 24.37% in the TTM. EBIT and EBITDA margins are robust at 44.39% and 52.94%, respectively, indicating efficient operations. However, the slight decline in gross profit margin from previous periods suggests potential cost pressures.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.56 in the TTM, which is an improvement from previous years but still indicates significant leverage. Return on equity is strong at 28.84%, reflecting effective use of shareholder funds. The equity ratio stands at 20.64%, suggesting moderate reliance on equity financing.

Cash Flow

Corpay Inc's cash flow performance shows a decline in free cash flow growth by 40.70% in the TTM, highlighting potential challenges in cash generation. The operating cash flow to net income ratio is 1.27, indicating adequate cash flow relative to net income. The free cash flow to net income ratio of 0.86 suggests that most of the net income is converted into free cash flow, although the decline in growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.31B	3.97B	3.76B	3.43B	2.83B	2.39B
Gross Profit	3.28B	3.11B	2.94B	2.66B	2.27B	1.79B
EBITDA	2.28B	2.12B	2.01B	1.76B	1.51B	1.27B
Net Income	1.05B	1.00B	981.89M	954.33M	839.50M	704.22M
Balance Sheet
Total Assets	19.74B	17.96B	15.48B	14.09B	13.40B	11.19B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.55B	1.39B	1.44B	1.52B	934.90M
Total Debt	8.12B	8.00B	6.72B	7.04B	5.98B	4.30B
Total Liabilities	15.63B	14.81B	12.19B	11.55B	10.54B	7.84B
Stockholders Equity	4.08B	3.12B	3.28B	2.54B	2.87B	3.36B
Cash Flow
Free Cash Flow	1.14B	1.77B	1.95B	603.37M	1.09B	1.39B
Operating Cash Flow	1.34B	1.94B	2.10B	754.80M	1.20B	1.47B
Investing Cash Flow	-712.16M	-807.48M	-380.72M	-368.35M	-715.93M	-106.25M
Financing Cash Flow	126.47M	404.99M	-898.21M	-311.23M	343.93M	-1.42B

Corpay Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 309.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 309.77 is above the 20-day moving average (MA) of 303.92, above the 50-day MA of 288.62, and below the 200-day MA of 314.38, indicating a neutral trend. The MACD of 6.97 indicates Negative momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 50.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPAY.

Corpay Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAY	75 Outperform	$21.96B	21.03	29.35%	―	11.27%	4.47%
TOST	73 Outperform	$21.92B	84.13	15.96%	―	25.76%	―
WEX	72 Outperform	$5.27B	19.76	20.30%	―	-1.15%	-2.52%
FOUR	69 Neutral	$5.76B	30.41	15.52%	―	23.16%	27.38%
PAYO	69 Neutral	$2.06B	29.31	9.79%	―	10.58%	-45.52%
EEFT	66 Neutral	$3.29B	11.44	23.10%	―	7.25%	-1.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Corpay Inc Corporate Events

Corpay Inc Completes Acquisition of Alpha Group

On November 5, 2025, Corpay, Inc. announced the completion of its acquisition of Alpha Group International plc, finalized on October 31, 2025, for approximately £1.8 billion in cash. This acquisition was funded through an amendment to Corpay’s Credit Facility, which increased commitments and introduced a new Term Loan B. Corpay also reported strong financial results for the third quarter of 2025, with a 14% increase in revenue and adjusted EPS growth, driven by a 17% growth in its Corporate Payments segment. The company raised its fiscal year 2025 outlook, reflecting confidence in continued performance and recent strategic acquisitions.

Corpay Inc Reaffirms Q3 and Full-Year 2025 Guidance

On September 29, 2025, Corpay Inc. presented to institutional credit investors and reaffirmed its third quarter and full-year 2025 financial guidance. The company highlighted various risks and uncertainties that could impact its performance, including macroeconomic conditions, regulatory challenges, and market trends. These factors could affect Corpay’s strategic execution, credit risks, and financial operations, potentially influencing its market positioning and stakeholder interests.