📊 CPAY Key Takeaways
Is Corpay, Inc.. (CPAY) a Good Investment?
CORPAY demonstrates exceptional profitability metrics with 50.4% operating margins, 27.8% net margins, and 13.9% revenue growth, supported by outstanding interest coverage (58x). However, persistent negative operating cash flow (-$56.6M) and negative free cash flow (-$107.7M) despite high reported earnings create significant financial distress signals, compounded by 2.95x leverage that constrains financial flexibility.
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.
Corpay, Inc.. Key Strengths (CPAY)
- Exceptional operating margin of 50.4% demonstrates strong pricing power and operational leverage
- Robust net margin of 27.8% with 13.9% revenue growth shows healthy top-line momentum
- Outstanding interest coverage ratio of 58x provides strong debt servicing capacity despite high leverage
- EPS growth of 7.6% YoY indicates effective capital allocation despite modest net income decline
- 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
- Negative operating cash flow of -$56.6M and free cash flow of -$107.7M despite profitability indicates working capital stress or potential earnings quality concerns
- High financial leverage at 2.95x Debt/Equity with $10.4B long-term debt creates vulnerability to economic downturns
- Current ratio of 0.98x below 1.0 signals tight liquidity management despite $2.5B cash balance
- Net income declined 0.3% YoY while revenue grew 13.9%, indicating margin compression or cost pressures
- Very low ROA of 1.3% despite strong net margins suggests inefficient asset deployment across $26.7B asset base
- 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 cash flow trend - critical to determine if negative cash generation is structural or cyclical
- Working capital dynamics (receivables, payables, accrued expenses) driving cash flow divergence from earnings
- Net margin trajectory as revenue grows - confirm if decline stabilizes or worsens
- Debt/Equity ratio and absolute debt levels - monitor leverage in light of cash flow pressure
- 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 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 |
|---|---|---|---|
| Q1 2026 | $1.0B | $243.2M | $3.40 |
| 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 |
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 Grade of A from Claude (B) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPAY's key strengths?
Claude: Exceptional operating margin of 50.4% demonstrates strong pricing power and operational leverage. Robust net margin of 27.8% with 13.9% revenue growth shows healthy top-line momentum. 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: Negative operating cash flow of -$56.6M and free cash flow of -$107.7M despite profitability indicates working capital stress or potential earnings quality concerns. High financial leverage at 2.95x Debt/Equity with $10.4B long-term debt creates vulnerability to economic downturns. 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 $1.3B.
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 $5.07.
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 grade reflects both perspectives for balanced insights.
What is CPAY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Corpay, Inc.. has a A grade with 74% 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 10.0% (sector avg: 16%), net margin of 27.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is CPAY's AI grade for 2026?
Our dual AI analysis gives Corpay, Inc.. a combined A grade 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 $-56.6M, with capital expenditures of $51.1M. FCF margin is -8.5%.
How does CPAY compare to other Services stocks?
Vs Services sector averages: Net margin 27.8% (avg: 10%), ROE 10.0% (avg: 16%), current ratio 0.98 (avg: 1.5).
Is Corpay, Inc.. carrying too much debt?
CPAY has a debt-to-equity ratio of 2.95x, 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.