Paymentus Holdings (PAY) AI Stock Analysis

• Market Cap: $4.41B
• Dividend Yield: N/A
• Average Volume (3M): 642.16K
• Price to Earnings (P/E): 87.0
• Beta (1Y): 1.14
• Revenue Growth: 47.78%
• EPS Growth: 74.61%
• Country: US
• Employees: 1,307
• Sector: Technology
• Sector Strength: 79
• Industry: Information Technology Services
• EPS (TTM): 0.14
• Shares Outstanding: 35,178,074
• 10 Day Avg. Volume: 756,274
• 30 Day Avg. Volume: 642,156
• PEG Ratio: 17.79
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -85.54
• Enterprise Value/Market Cap: 0.19
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 2.74
• 1Y Price Target: $36.80
• Price Target Upside: 6.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $39.00 ▲(13.14%Upside)

Paymentus Holdings shows a strong financial position with impressive revenue and profit growth, supported by low leverage and improving cash flows. Technical analysis indicates positive price momentum, though caution is advised due to overbought conditions. The high P/E ratio suggests potential overvaluation, and the earnings call reflects strong performance but notes some concerns about future margins and revenue guidance. Overall, the stock is promising but requires careful monitoring of valuation and market conditions.

Positive Factors

Financial Performance

Q1 results again outstanding and 2025 guidance raised.

Revenue Growth

Q1 gross revenue increased by 49%, driven largely by increased billers and transactions.

Negative Factors

Guidance

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

Paymentus Holdings Business Overview & Revenue Model

Company Description

Paymentus Holdings, Inc. is a leading provider of cloud-based billing and payment solutions, primarily serving the utilities, insurance, healthcare, and government sectors. The company offers an integrated platform that enables businesses to present bills, collect payments, and engage with customers in a seamless and secure environment. Paymentus aims to simplify and enhance the customer payment experience while providing its clients with efficient and effective billing and payment services.

How the Company Makes Money

Paymentus Holdings generates revenue primarily through transaction fees charged for each payment processed on its platform. This includes fees from billers who utilize its services to facilitate payments from their customers. Additionally, the company earns money from subscription fees for access to its platform, which provides a suite of billing and payment management tools. Key revenue streams also include value-added services such as analytics and reporting, customer communication tools, and payment optimization features. Paymentus maintains strategic partnerships with financial institutions, technology companies, and payment processors, which enhance its service offerings and broaden its market reach.

Paymentus Holdings Financial Statement Overview

Summary

Overall, Paymentus Holdings demonstrates 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. The positive trends across all financial statement verticals highlight a promising outlook in the Information Technology Services industry.

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
	EBIT
52.20M	44.86M	18.09M	-2.98M	10.37M	18.43M
	EBITDA
82.24M	81.34M	27.39M	6.39M	23.67M	26.50M
	Net Income Common Stockholders
50.76M	44.17M	22.32M	-513.00K	9.30M	13.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
249.65M	209.41M	179.36M	147.33M	168.39M	46.67M
	Total Assets
590.89M	576.25M	504.86M	461.54M	472.94M	124.87M
	Total Debt
7.91M	8.41M	10.51M	12.63M	11.18M	10.03M
	Net Debt
-241.74M	-201.00M	-168.85M	-134.70M	-157.20M	-36.64M
	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: Neutral
• Last Price: 34.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 34.47 is below the 20-day moving average (MA) of 37.29, above the 50-day MA of 33.80, and above the 200-day MA of 29.68, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 34.84 is Neutral, neither overbought nor oversold. The STOCH value of 6.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PAY.

Paymentus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNXC	76 Outperform	$3.66B	14.35	6.34%	2.33%	21.67%	-17.91%
WNS	75 Outperform	$2.81B	15.61	21.21%	―	-0.64%	30.96%
PAY	73 Outperform	$4.41B	87.02	10.80%	―	47.78%	74.61%
FLYW	71 Outperform	$1.31B	379.43	0.63%	―	20.97%	―
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
AI	60 Neutral	$3.27B	―	-33.73%	―	25.27%	4.68%
PSFE	57 Neutral	$763.03M	39.11	-0.04%	―	3.50%	95.90%

Paymentus Holdings Corporate Events

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.

Paymentus Holdings Unveils 2025 Executive Compensation Plan

On March 13, 2025, Paymentus Holdings, Inc. announced the adoption of its 2025 Executive Incentive Compensation Plan, following a review by the board of directors and insights from an independent compensation consultant. The plan outlines the base salary and target bonus percentages for key executives, including a 3% salary increase from 2024. The performance metrics for the plan are equally weighted and include gross revenue, non-GAAP contribution profit, Adjusted EBITDA, Adjusted EBITDA less capitalized software, and individual performance.