📊 CPAY Key Takeaways
Is Corpay, Inc.. (CPAY) a Good Investment?
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.
CORPAY shows strong fundamental quality through double-digit revenue growth, very high operating margins, and robust free cash flow generation. The business appears scalable and cash generative, but flat net income growth, elevated leverage, and some data inconsistencies in reported margin components temper conviction.
Why Buy Corpay, Inc.. Stock? CPAY 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)
- 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
- Revenue growth remains solid at 13.9% YoY with EPS growth of 7.6%, indicating continued operating expansion
- Operating margin of 44.0% and free cash flow margin of 28.7% point to a highly efficient, cash-generative business model
- ROE of 27.5%, $2.41B in cash, and very strong interest coverage of 181.9x support financial flexibility despite debt
CPAY Stock Risks: Corpay, Inc.. Investment 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
- Long-term debt of $10.00B and debt-to-equity of 2.58x create meaningful balance sheet leverage
- Net income growth was only 0.1% YoY, suggesting weaker bottom-line conversion than revenue growth would imply
- Reported gross profit and gross margin appear inconsistent with operating income, raising some caution around data interpretation or classification
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
- Net income growth relative to revenue growth
- Debt reduction and debt-to-equity trend
Corpay, Inc.. (CPAY) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
CPAY vs Services Sector: How Corpay, Inc.. Compares
How Corpay, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Corpay, Inc.. Stock Overvalued? CPAY Valuation Analysis 2026
Based on fundamental analysis, Corpay, Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Corpay, Inc.. Balance Sheet: CPAY Debt, Cash & Liquidity
CPAY Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CPAY Quarterly Earnings & 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.
Corpay, Inc.. Dividends, Buybacks & Capital Allocation
CPAY SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPAY's key strengths?
Claude: 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). ChatGPT: Revenue growth remains solid at 13.9% YoY with EPS growth of 7.6%, indicating continued operating expansion. Operating margin of 44.0% and free cash flow margin of 28.7% point to a highly efficient, cash-generative business model.
What are the risks of investing in CPAY?
Claude: 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. ChatGPT: Long-term debt of $10.00B and debt-to-equity of 2.58x create meaningful balance sheet leverage. Net income growth was only 0.1% YoY, suggesting weaker bottom-line conversion than revenue growth would imply.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CPAY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Corpay, Inc.. has a BUY rating with 86% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CPAY stock overvalued or undervalued?
Valuation metrics for CPAY: ROE of 27.5% (sector avg: 16%), net margin of 23.6% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy CPAY stock in 2026?
Our dual AI analysis gives Corpay, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CPAY's free cash flow?
Corpay, Inc..'s operating cash flow is $1.5B, with capital expenditures of $200.8M. FCF margin is 28.7%.
How does CPAY compare to other Services stocks?
Vs Services sector averages: Net margin 23.6% (avg: 10%), ROE 27.5% (avg: 16%), current ratio 0.98 (avg: 1.5).
Is Corpay, Inc.. carrying too much debt?
CPAY has a debt-to-equity ratio of 2.58x, which is above the Services sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is CPAY's return on equity (ROE) so high?
Corpay, Inc.. has a return on equity of 27.5%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 23.6% net margin.