Paymentus Holdings (PAY) AI Stock Analysis

• Market Cap: $3.97B
• Dividend Yield: N/A
• Average Volume (3M): 864.77K
• Price to Earnings (P/E): 71.0
• Beta (1Y): 1.16
• Revenue Growth: 49.35%
• EPS Growth: 72.05%
• Country: US
• Employees: 1,307
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.15
• Shares Outstanding: 45,348,953
• 10 Day Avg. Volume: 1,083,718
• 30 Day Avg. Volume: 864,770
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 15.00
• Enterprise Value/Ebitda: 51.57
• 1Y Price Target: $39.00
• Price Target Upside: 25.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $38.00 ▲(22.54% Upside)

Paymentus Holdings demonstrates strong financial performance and positive earnings call outcomes, driving a high overall score. However, technical indicators suggest short-term bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of corporate events and dividend yield further tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Paymentus's services, enhancing its market position and supporting long-term expansion.

Cash Position

A strong cash position with no debt provides Paymentus with financial flexibility to invest in growth opportunities and weather economic fluctuations.

Diverse Client Base

A diverse client base across multiple sectors reduces dependency on any single industry, enhancing revenue stability and growth potential.

Negative Factors

Contribution Margin Decline

A declining contribution margin could pressure profitability, especially if costs continue to rise faster than revenue in the long term.

Bad Debt Expense Increase

Rising bad debt expenses can erode profitability and indicate potential issues with credit risk management, affecting financial health.

Flat Revenue Growth Guidance

Flat revenue growth guidance suggests potential challenges in sustaining momentum, possibly impacting investor confidence and future growth.

Paymentus Holdings Business Overview & Revenue Model

Company Description

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. The company serves utility, financial service, insurance, government, telecommunication, and healthcare industries. The company was founded in 2004 and is based in Redmond, Washington.

How the Company Makes Money

Paymentus generates revenue through a combination of transaction fees, subscription fees, and service charges. The company earns transaction fees each time a payment is processed through its platform, which constitutes a significant portion of its income. Additionally, Paymentus offers subscription-based services to clients who use its software for billing and payment management, providing a steady stream of recurring revenue. The company also benefits from strategic partnerships with banks, financial institutions, and other service providers, which help expand its market reach and customer base. These partnerships often involve revenue-sharing arrangements that contribute to Paymentus's overall earnings.

Paymentus Holdings Financial Statement Overview

Summary

Paymentus Holdings exhibits strong financial health across all statements. The company shows impressive revenue and profit growth, supported by a solid balance sheet with low leverage. Cash flow generation is robust, ensuring liquidity and operational flexibility. The overall financial position is stable, with a positive outlook for continued growth and profitability.

Income Statement

Paymentus Holdings demonstrates strong revenue growth with an 8.59% increase in TTM, indicating robust demand for its services. The gross profit margin is healthy at 25.29%, although slightly lower than previous periods, suggesting some cost pressures. The net profit margin of 5.37% reflects solid profitability, supported by an improving EBIT margin of 5.78%. Overall, the income statement reflects a positive growth trajectory and stable profitability.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial risk. Return on equity is commendable at 11.38%, showcasing efficient use of equity to generate profits. The equity ratio stands at 84.79%, highlighting a solid capital structure with significant equity backing. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flow performance is robust, with a 13.16% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.40 suggests efficient conversion of income into cash. The free cash flow to net income ratio is nearly 1, reflecting effective cash management. Overall, the cash flow statement indicates healthy liquidity and cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	871.75M	614.49M	497.00M	395.52M	301.77M
Gross Profit	264.19M	238.17M	182.34M	149.68M	121.38M	92.63M
EBITDA	76.87M	81.34M	27.39M	6.39M	23.67M	26.50M
Net Income	56.10M	44.17M	22.32M	-513.00K	9.30M	13.71M
Balance Sheet
Total Assets	609.52M	576.25M	504.86M	461.54M	472.94M	124.87M
Cash, Cash Equivalents and Short-Term Investments	266.42M	209.41M	179.36M	147.33M	168.39M	46.67M
Total Debt	8.04M	8.41M	10.51M	12.63M	11.18M	10.03M
Total Liabilities	92.82M	90.65M	75.25M	64.36M	86.81M	40.50M
Stockholders Equity	516.70M	485.60M	429.62M	397.18M	386.13M	84.38M
Cash Flow
Free Cash Flow	116.24M	63.18M	34.53M	-11.43M	-916.00K	20.77M
Operating Cash Flow	116.57M	63.63M	68.83M	19.87M	19.49M	35.62M
Investing Cash Flow	-35.68M	-36.76M	-34.30M	-34.56M	-77.81M	-15.14M
Financing Cash Flow	-3.51M	-207.00K	-1.20M	-37.28M	213.49M	-1.36M

Paymentus Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAY, the sentiment is Negative. The current price of 31.01 is below the 20-day moving average (MA) of 34.89, below the 50-day MA of 33.80, and below the 200-day MA of 32.25, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 5.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAY.

Paymentus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	73 Outperform	$3.97B	71.04	11.59%	―	49.35%	72.05%
FLYW	73 Outperform	1.61B	323.60	0.86%	―	22.20%	―
CTLP	69 Neutral	774.77M	12.30	25.43%	―	12.64%	457.40%
TSSI	68 Neutral	495.52M	49.23	83.72%	―	328.80%	339.87%
PSFE	57 Neutral	779.13M	-15.07	2.52%	―	0.47%	-292.07%
CNDT	53 Neutral	431.27M	90.26	2.18%	―	-14.36%	-73.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%