📊 CPAY Key Takeaways
Investment Thesis
CORPAY demonstrates exceptional operational profitability with a 44% operating margin and converts 23.6% of revenue to net income, while generating robust free cash flow of $1.3B (28.7% FCF margin). Revenue growth of 13.9% combined with 7.6% EPS growth and a stellar 27.5% ROE indicate a high-quality, efficiently-run business generating superior returns on shareholder capital.
CPAY Strengths
- Exceptional operating margin of 44% demonstrates significant pricing power and operational efficiency
- Strong free cash flow generation ($1.3B) and FCF margin (28.7%) with minimal capex requirements ($200.8M)
- Outstanding return on equity of 27.5% indicates superior capital allocation and profitability
- Solid interest coverage ratio of 181.9x provides substantial debt service capacity despite 2.58x leverage
- Revenue growth of 13.9% YoY with positive EPS momentum (+7.6%) shows profitable expansion
CPAY Risks
- Current ratio of 0.98x indicates potential short-term liquidity constraints requiring monitoring
- Elevated debt-to-equity ratio of 2.58x means the business is leveraged despite strong coverage metrics
- Compressed gross margin of only 4.4% suggests thin product margins with heavy reliance on operational leverage
- ROA of 4.1% is relatively modest given the $26.4B asset base, indicating inefficient asset deployment
- Net income growth deceleration to 0.1% YoY despite 13.9% revenue growth suggests margin compression pressures
Key Metrics to Watch
- Operating margin sustainability as the company scales
- Free cash flow generation and capital allocation decisions
- Gross margin trends and pricing power maintenance
- Debt levels and leverage ratios in relation to operating cash flow
- Revenue growth acceleration and operating leverage expansion
CPAY Financial Metrics
💡 AI Analyst Insight
The 28.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CPAY Profitability Ratios
CPAY vs Default Sector
How CORPAY, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CPAY Balance Sheet & Liquidity
CPAY 5-Year Financial Trend
5-Year Trend Summary: CORPAY, INC.'s revenue has grown significantly by 60% over the 5-year period, indicating strong business expansion. The most recent EPS of $13.20 reflects profitable operations.
CPAY Growth Metrics (YoY)
CPAY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.0B | $276.4M | $3.90 |
| Q2 2025 | $975.7M | $251.6M | $3.52 |
| Q1 2025 | $935.3M | $229.8M | $3.12 |
| Q3 2024 | $970.9M | $214.8M | $3.64 |
| Q2 2024 | $948.2M | $214.8M | $3.20 |
| Q1 2024 | $901.3M | $214.8M | $2.88 |
| Q3 2023 | $893.0M | $214.8M | $3.29 |
| Q2 2023 | $861.3M | $214.8M | $3.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CPAY Capital Allocation
CPAY SEC Filings
Access official SEC EDGAR filings for CORPAY, INC. (CIK: 0001175454)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPAY
What is the AI rating for CPAY?
CORPAY, INC. (CPAY) has an AI rating of STRONG BUY with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPAY's key strengths?
Exceptional operating margin of 44% demonstrates significant pricing power and operational efficiency. Strong free cash flow generation ($1.3B) and FCF margin (28.7%) with minimal capex requirements ($200.8M).
What are the risks of investing in CPAY?
Current ratio of 0.98x indicates potential short-term liquidity constraints requiring monitoring. Elevated debt-to-equity ratio of 2.58x means the business is leveraged despite strong coverage metrics.
What is CPAY's revenue and growth?
CORPAY, INC. reported revenue of $4.5B.
Does CPAY pay dividends?
CORPAY, INC. does not currently pay dividends.
Where can I find CPAY SEC filings?
Official SEC filings for CORPAY, INC. (CIK: 0001175454) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPAY's EPS?
CORPAY, INC. has a diluted EPS of $15.03.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.