Paymentus Holdings (PAY) AI Stock Analysis

• Market Cap: $3.65B
• Dividend Yield: N/A
• Average Volume (3M): 709.04K
• Price to Earnings (P/E): 63.2
• Beta (1Y): 1.10
• 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: 542,927
• 30 Day Avg. Volume: 709,042
• 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: 1.01
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 13.19
• Enterprise Value/Ebitda: 37.15
• 1Y Price Target: $39.33
• Price Target Upside: 35.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $33.00 ▲(13.40% 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

Recurring transaction-driven revenue model

A fee-per-transaction model ties revenue to bill volume across utilities, telecom, healthcare and government, creating scalable, usage-linked revenue. Diversified biller verticals and integrated presentment/processing increase stickiness and predictability over months.

Strong cash generation and conversion

Robust FCF growth and near-1:1 cash conversion provide durable funding for investments, product development, and working capital. High cash conversion supports margin reinvestment, potential M&A, and resilience across business cycles over the next 2-6 months.

Conservative leverage / strong balance sheet

Very low leverage gives the company flexibility to invest in onboarding, absorb working-capital swings, and pursue strategic opportunities without material refinancing risk. A strong equity ratio supports resilience through near-term cyclicality.

Negative Factors

Contribution margin decline from large enterprise onboarding

Onboarding large, high-volume clients has diluted contribution margin; this structural trade-off can persist as the firm prioritizes scale and market share. Lower per-transaction economics may pressure long-term profitability unless offset by efficiency gains.

Pressure from volume discounting

Enterprise pricing leverage shifts bargaining power to large billers who can secure discounts; sustained enterprise mix growth risks compressing margins. If negotiated discounts persist across contracts, margin recovery will require structural cost or pricing changes.

Modest TTM revenue growth and slight gross margin decline

TTM revenue growth appears moderate versus recent quarterly spikes, and a declining gross margin signals margin pressure. Together these suggest potential deceleration or margin compression risk over the medium term unless elevated onboarding and pricing mix sustain higher economics.

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	98.81M	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: Negative
• Last Price: 29.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 29.1 is below the 20-day moving average (MA) of 30.39, below the 50-day MA of 32.99, and below the 200-day MA of 32.89, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 29.62 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
CTLP	74 Outperform	$800.35M	13.63	27.08%	―	12.94%	356.32%
PAY	74 Outperform	$3.65B	63.16	11.81%	―	44.34%	45.96%
FLYW	69 Neutral	$1.68B	-492.50	-0.29%	―	22.71%	-111.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNDT	47 Neutral	$308.84M	-2.03	-15.87%	―	-12.45%	-142.77%
PSFE	47 Neutral	$411.43M	-3.33	-15.59%	―	-0.95%	-456.64%
TSSI	46 Neutral	$347.58M	61.29	13.73%	―	91.66%	7.52%