Paymentus Holdings (PAY) AI Stock Analysis

• Market Cap: $4.53B
• Dividend Yield: N/A
• Average Volume (3M): 830.23K
• Price to Earnings (P/E): 81.3
• Beta (1Y): 1.01
• Revenue Growth: 44.34%
• EPS Growth: 45.96%
• Country: US
• Employees: 1,307
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.20
• Shares Outstanding: 55,578,760
• 10 Day Avg. Volume: 922,062
• 30 Day Avg. Volume: 830,232
• PEG Ratio: 0.92
• Price to Book (P/B): 8.37
• Price to Sales (P/S): 4.66
• P/FCF Ratio: 64.32
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 13.19
• Enterprise Value/Ebitda: 38.21
• 1Y Price Target: $38.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.61
• Revenue Forecast (FY): $1.13B

• Rating: 74 Outperform
• Price Target: $40.00 ▲(10.80% Upside)

Paymentus Holdings' strong financial performance and positive earnings call are the primary drivers of the stock score. The technical analysis suggests a bullish trend, but caution is advised due to potential overvaluation and high P/E ratio. The absence of dividend yield also affects the valuation negatively.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Paymentus' services, enhancing its market position and supporting future expansion.

Cash Flow Generation

Robust cash flow generation provides financial stability and the ability to reinvest in growth opportunities, supporting long-term sustainability.

Client Onboarding and Expansion

Effective client onboarding and vertical expansion enhance market reach and diversify revenue streams, strengthening competitive advantage.

Negative Factors

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

Contribution Margin Pressure

Decreased contribution margin due to high-volume clients can affect profitability, necessitating strategic adjustments to maintain margins.

Volume Discounts Impact

Volume discounts requested by large clients may erode margins, requiring careful management to balance growth with profitability.

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 primarily through transaction fees charged to clients for each payment processed on its platform. The company operates on a subscription-based model as well, where clients pay a recurring fee for access to its services and technology. Additionally, Paymentus earns revenue from value-added services, such as analytics and reporting tools that help clients optimize their billing operations. Strategic partnerships with financial institutions and technology providers also bolster its revenue streams, enabling Paymentus to expand its offerings and reach a broader customer base.

Paymentus Holdings Financial Statement Overview

Summary

Paymentus Holdings shows strong revenue growth and improving profitability, supported by a solid balance sheet with low leverage. Cash flow generation is robust, providing a strong foundation for future investments and growth. Minor areas to monitor include a slight decrease in gross profit margin and an increase in debt.

Income Statement

Paymentus Holdings demonstrates strong revenue growth and improving profitability. The TTM data shows a revenue growth rate of 7.58%, indicating a positive trajectory. The gross profit margin is healthy at 25.29%, and the net profit margin has improved to 5.37%. EBIT and EBITDA margins are also on an upward trend, reflecting operational efficiency. However, the gross profit margin has slightly decreased from the previous year, which is a point to monitor.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial stability. Return on equity has improved to 11.38%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a robust capital structure. However, the slight increase in total debt over the years should be watched.

Cash Flow

Cash flow metrics are impressive, with a significant free cash flow growth rate of 24.35% in the TTM period. The operating cash flow to net income ratio is strong at 1.40, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is nearly 1, reflecting excellent cash conversion. This strong cash flow position supports future growth and stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	871.75M	614.49M	497.00M	395.52M	301.77M
Gross Profit	278.38M	238.17M	182.34M	149.68M	121.38M	92.63M
EBITDA	96.07M	81.34M	48.69M	6.39M	23.67M	26.50M
Net Income	59.41M	44.17M	22.32M	-513.00K	9.30M	13.71M
Balance Sheet
Total Assets	644.41M	576.25M	504.86M	461.54M	472.94M	124.87M
Cash, Cash Equivalents and Short-Term Investments	287.91M	205.90M	179.36M	147.33M	168.39M	46.67M
Total Debt	7.36M	8.41M	10.51M	12.63M	11.18M	10.03M
Total Liabilities	107.01M	90.65M	75.25M	64.36M	86.81M	40.50M
Stockholders Equity	537.40M	485.60M	429.62M	397.18M	386.13M	84.38M
Cash Flow
Free Cash Flow	126.39M	63.18M	34.53M	-11.43M	-916.00K	20.77M
Operating Cash Flow	144.91M	63.63M	68.83M	19.87M	19.49M	35.62M
Investing Cash Flow	-36.92M	-36.76M	-34.30M	-34.56M	-77.81M	-15.14M
Financing Cash Flow	-6.90M	-207.00K	-1.20M	-37.28M	213.49M	-1.36M

Paymentus Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAY, the sentiment is Positive. The current price of 36.1 is above the 20-day moving average (MA) of 31.02, above the 50-day MA of 32.52, and above the 200-day MA of 32.01, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 70.22 is Negative, neither overbought nor oversold. The STOCH value of 94.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAY.

Paymentus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	74 Outperform	$4.53B	81.31	11.81%	―	44.34%	45.96%
FLYW	69 Neutral	$1.66B	―	-0.29%	―	22.71%	-111.24%
CTLP	67 Neutral	$778.18M	12.30	29.45%	―	12.64%	457.40%
TSSI	65 Neutral	$463.19M	46.70	122.80%	―	328.80%	339.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PSFE	49 Neutral	$604.94M	―	-5.88%	―	0.47%	-292.07%
CNDT	44 Neutral	$350.70M	57.79	2.21%	―	-14.36%	-73.74%

Paymentus Holdings Corporate Events

Paymentus Reports Record Growth in Earnings Call

The recent earnings call for Paymentus Holdings, Inc. was marked by a strong positive sentiment, highlighting record revenue and adjusted EBITDA growth. The company demonstrated successful client onboarding and expansion into new verticals, despite facing some challenges with contribution margin and volume discounts.

Paymentus Holdings Reports Strong Q3 2025 Growth

Paymentus Holdings, Inc. is a leading provider of cloud-based bill payment technology and solutions, serving over 2,500 billers and financial institutions across North America with its omni-channel platform.

Paymentus Holdings: Strong Growth and Raised Guidance

Paymentus Holdings, Inc. has delivered a largely positive earnings call, showcasing strong revenue growth and significant bookings, despite some concerns about seasonal revenue fluctuations and contribution margin decline. The company has raised its guidance for the year, reflecting confidence in its future performance.

Paymentus Holdings Reports Strong Q2 2025 Results

Paymentus Holdings, Inc. is a prominent provider of cloud-based bill payment technology, serving over 2,500 billers and financial institutions across North America with its omni-channel platform.