Paymentus Holdings (PAY) AI Stock Analysis

• Market Cap: $3.61B
• Dividend Yield: N/A
• Average Volume (3M): 616.07K
• Price to Earnings (P/E): 72.3
• Beta (1Y): 1.09
• Revenue Growth: 47.78%
• EPS Growth: 74.61%
• Country: US
• Employees: 1,307
• Sector: Technology
• Sector Strength: 90
• Industry: Information Technology Services
• EPS (TTM): 0.14
• Shares Outstanding: 35,178,074
• 10 Day Avg. Volume: 511,690
• 30 Day Avg. Volume: 616,068
• PEG Ratio: 4.44
• Price to Book (P/B): 7.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.63
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 14.02
• Enterprise Value/Ebitda: 11.47
• 1Y Price Target: $36.83
• Price Target Upside: 27.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $31.00 ▲(7.45%Upside)

The overall score reflects strong financial performance and positive earnings call outcomes, tempered by bearish technical indicators and high valuation concerns. The stock's current technical weakness and high valuation relative to earnings suggest potential risks, despite the company's solid financial foundation and optimistic growth outlook.

Positive Factors

Growth Potential

The company's growth potential is underappreciated, with a credible path for significant EBITDA growth, implying the stock is undervalued despite 30% growth.

Stock Valuation

The recent stock drawdown is seen as a compelling buying opportunity, not fundamentally driven but due to share distributions by Accel-KKR.

Negative Factors

Guidance

The 1Q & '25 CP guide came in below the Street, both 3% below.

Market Expectations

Management has been consistent in their approach to guiding conservatively for all of '24.

Paymentus Holdings Business Overview & Revenue Model

Company Description

Paymentus Holdings, Inc. is a leading provider of cloud-based bill payment technology and solutions. Operating primarily in the financial technology sector, Paymentus offers a comprehensive platform that facilitates electronic bill presentment and payments. The company's solutions cater to a diverse range of industries, including utilities, financial services, insurance, and healthcare, enabling clients to improve their billing and payment processes, enhance customer engagement, and increase operational efficiency.

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 shows strong financial health, with significant revenue and profit growth, solid equity positioning, and improving cash flows. The company's low leverage and increasing profitability indicate a stable financial trajectory, although careful management of liabilities is essential to maintain this stability.

Income Statement

Paymentus Holdings displays robust revenue growth, with Total Revenue increasing from $301.8 million in 2020 to $962.1 million TTM. Gross Profit Margin remains healthy at 26.1% TTM. The company's Net Profit Margin improved to 5.3% TTM from a negative margin in 2022, indicating better profitability management. EBIT and EBITDA margins have also shown positive trends, suggesting operational efficiency improvements.

Balance Sheet

The company maintains a strong equity position, with a Debt-to-Equity ratio of 0.02 TTM, indicating low leverage. Stockholders' Equity has been consistently growing, reflecting a solid financial base. The Equity Ratio is robust at 84.7% TTM, emphasizing financial stability. However, a slight increase in liabilities could pose future risks if not managed well.

Cash Flow

Paymentus Holdings has shown significant growth in Operating Cash Flow, reaching $103.1 million TTM, and a strong Free Cash Flow of $93.6 million TTM. The Free Cash Flow to Net Income Ratio is favorable, indicating good cash flow management relative to earnings. Despite past fluctuations, the positive trajectory in cash flow metrics suggests improving liquidity and financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	962.11M	871.75M	614.49M	497.00M	395.52M	301.77M
Gross Profit	251.47M	238.17M	182.34M	149.68M	121.38M	92.63M
EBITDA	82.24M	81.34M	27.39M	6.39M	23.67M	26.50M
Net Income	50.76M	44.17M	22.32M	-513.00K	9.30M	13.71M
Balance Sheet
Total Assets	590.89M	576.25M	504.86M	461.54M	472.94M	124.87M
Cash, Cash Equivalents and Short-Term Investments	249.65M	209.41M	179.36M	147.33M	168.39M	46.67M
Total Debt	7.91M	8.41M	10.51M	12.63M	11.18M	10.03M
Total Liabilities	90.49M	90.65M	75.25M	64.36M	86.81M	40.50M
Stockholders Equity	500.39M	485.60M	429.62M	397.18M	386.13M	84.38M
Cash Flow
Free Cash Flow	102.72M	63.18M	34.53M	-11.43M	-916.00K	20.77M
Operating Cash Flow	103.12M	63.63M	68.83M	19.87M	19.49M	35.62M
Investing Cash Flow	-35.53M	-36.76M	-34.30M	-34.56M	-77.81M	-15.14M
Financing Cash Flow	-1.69M	-207.00K	-1.20M	-37.28M	213.49M	-1.36M

Paymentus Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 28.85 is below the 20-day moving average (MA) of 30.11, below the 50-day MA of 33.81, and below the 200-day MA of 31.05, indicating a bearish trend. The MACD of -1.24 indicates Negative momentum. The RSI at 34.01 is Neutral, neither overbought nor oversold. The STOCH value of 20.13 is Neutral, 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
WNS	78 Outperform	$3.21B	19.25	21.24%	―	1.94%	26.19%
CNXC	76 Outperform	$3.83B	16.69	5.59%	2.20%	11.31%	-16.02%
FLYW	70 Outperform	$1.44B	414.54	0.63%	―	20.97%	―
PAY	67 Neutral	$3.61B	72.25	10.80%	―	47.78%	74.61%
AI	60 Neutral	$3.49B	―	-33.73%	―	25.27%	4.68%
PSFE	56 Neutral	$803.37M	39.11	-0.04%	―	3.50%	95.90%
Sector *	51 Neutral	AU$1.67B	2.34	-31.66%	3.52%	16.55%	-7.79%

Paymentus Holdings Corporate Events

Paymentus Holdings Grants CEO 1.1 Million RSUs

On July 2, 2025, Paymentus Holdings, Inc.’s Board of Directors approved a grant of 1,100,000 time-based restricted stock units (RSUs) to CEO Dushyant Sharma under the 2021 Equity Incentive Plan. This decision, made after consulting with compensation experts and reviewing market standards, aims to recognize Sharma’s contributions, align his compensation with industry peers, and retain his services by aligning his financial interests with those of the company’s stockholders. The RSUs will vest over four years, with specific conditions for immediate vesting in certain circumstances.

The most recent analyst rating on (PAY) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Paymentus Holdings stock, see the PAY Stock Forecast page.

Paymentus Holdings Holds 2025 Annual Stockholders Meeting

On June 6, 2025, Paymentus Holdings, Inc. held its 2025 Annual Meeting of Stockholders, where two Class I Directors were elected to the Board of Directors until 2028, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The meeting saw participation from approximately 98% of the combined voting power of the company’s Class A and Class B common stock, reflecting strong shareholder engagement and support for the company’s governance and financial oversight strategies.

The most recent analyst rating on (PAY) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Paymentus Holdings stock, see the PAY Stock Forecast page.