One-glance verdict
Within fair range
$509.70 our estimate vs market $360.37
Wall Street consensus: $395.14 (-22.5% lower than our fair-value estimate)
29% below our estimate
Fundamentals snapshot
Corpay, Inc.
CPAY · NYQ · Technology · Software - Infrastructure
Current price
$360.37
52-week range
$252.84 - $367.43
Market cap
$23.55B
Balance sheet
Distressed
4.83x Stretched
Net debt $7.93B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 5.6% last year.
- Reward Returns 32.1% on equity, ahead of 80% of its peers.
- Risk Net debt grew 35.6% over 3 years.
- Risk Stock trades 5.3% above its 5-year average P/E.
What this company does
Corpay, Inc.
Corpay helps businesses pay for specific expenses, such as fuel for their vehicle fleets, hotels for traveling employees, and payments to international suppliers. The company makes money primarily by taking a small fee from each transaction it processes for its clients. This business model is important because it can create a steady stream of repeatable income (often called recurring revenue) as long as businesses need to manage and pay these costs.
How the company got here
Corpay started in 1986 but its modern story began in 2000 when it was a small fuel card provider called FLEETCOR. [4, 16, 20] The company grew rapidly by acquiring over 100 other businesses, expanding beyond just fuel cards. [18] In 2010, it became a public company through an initial public offering (a way for a private company to sell shares to the public for the first time). [4, 20] Over the years, it added services for lodging and general business payments, becoming a much broader company. [1, 22] To reflect this shift away from just vehicle fleets, the company officially changed its name from FLEETCOR to Corpay in March 2024. [5, 6, 7]
What it actually does
Corpay is a payments company that helps other businesses control how they and their employees spend money. [1, 4] Think of it as providing financial tools and software that replace manual paperwork and personal credit cards for business expenses. [10] They offer specialized payment cards for things like fuel or hotel stays, software that automates paying a company's bills, and services to handle payments to suppliers in other countries. [3, 14] The main goal is to help businesses save time, reduce the risk of fraud (theft or improper use of funds), and get a clearer picture of where their money is going. [10, 30]
Vehicle Payments
This is the company's original and largest business, making up about half of its sales. [1, 22] It provides businesses that operate vehicle fleets (like trucking or delivery companies) with special cards for their drivers to buy fuel, pay tolls, and handle maintenance. [1, 14, 31] This helps the business owner control and track spending for each vehicle, rather than having drivers pay for things themselves and ask for reimbursement. [31] The company earns money from fees on these transactions.
Corporate Payments
This is Corpay's fastest-growing and most important segment for the future. [15, 22] It helps businesses pay their other business suppliers in a more modern and efficient way. [3, 14] This includes services like AP automation (software that automates the process of receiving, approving, and paying bills) and providing virtual cards (temporary credit card numbers used for a single purchase to improve security). [10] It also includes cross-border payments, which help companies pay suppliers in other countries and manage the risk of changing currency exchange rates. [3, 14]
Lodging Payments
This is the company's smallest business line, focused on companies whose employees travel for work, like construction crews or airline staff. [1, 19] Through its Corpay Lodging brand, it provides a way for companies to book and pay for hotel stays with centralized control and often at pre-negotiated rates. [12, 24] This avoids the need for employees to pay out-of-pocket and fill out expense reports. [12] The company makes money by providing these managed travel and payment services to businesses.
What management is betting on now
The company's main strategy is to shift its focus from the original vehicle payments business to the larger and faster-growing world of corporate payments. [1, 22, 30] A key part of this is expanding its cross-border services, helping businesses make secure international payments, which was boosted by a recent partnership with Mastercard. [2, 21] Corpay also plans to continue its long history of growth through acquisitions (buying other companies) to add new corporate payment capabilities. [1, 18] While focusing on corporate payments, they are also updating their vehicle services to include things like electric vehicle charging to adapt to industry changes. [1, 28]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$496.82M
FY2024 Q3
$355.01M
FY2024 Q4
$604.56M
FY2025 Q1
$-118.92M
FY2025 Q2
$1.09B
FY2025 Q3
$-429.84M
FY2025 Q4
$760.30M
FY2026 Q1
$-107.71M
Revenue
$1.26B
Net income
$350.07M
Diluted EPS
5.07
Operating cash flow
$-56.62M
Free cash flow
$-107.71M
Fetching…
Sources
Revenue
$1.25B
Net income
$264.48M
Diluted EPS
3.74
Operating cash flow
$812.74M
Free cash flow
$760.30M
Fetching…
Sources
Revenue
$1.17B
Net income
$277.94M
Diluted EPS
3.91
Operating cash flow
$-378.93M
Free cash flow
$-429.84M
Fetching…
Sources
Revenue
$1.10B
Net income
$284.17M
Diluted EPS
3.98
Operating cash flow
$1.14B
Free cash flow
$1.09B
Fetching…
Sources
Revenue
$1.01B
Net income
$243.23M
Diluted EPS
3.40
Operating cash flow
$-74.15M
Free cash flow
$-118.92M
Fetching…
Sources
Revenue
$1.03B
Net income
$245.96M
Diluted EPS
3.43
Operating cash flow
$648.67M
Free cash flow
$604.56M
Fetching…
Sources
Revenue
$1.03B
Net income
$276.40M
Diluted EPS
3.90
Operating cash flow
$400.79M
Free cash flow
$355.01M
Fetching…
Sources
Revenue
$975.71M
Net income
$251.62M
Diluted EPS
3.52
Operating cash flow
$540.92M
Free cash flow
$496.82M
Fetching…
Sources
Is it cheap or expensive?
Fair value $509.70 vs current price $360.37
Wall Street consensus is the average analyst price target: $395.14 (-22.5% lower than our fair-value estimate).
Our most-likely fair value is $509.70 a share — about 41.4% away from today's price of $360.37, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $7.9B. Interest coverage 4.8x.
Net debt
$7.93B
Interest coverage
4.83x
Corpay, Inc.'s profit covers its interest bill about 4.8 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
CPAY
BASELINE
Corpay, Inc.
Total debt $10.48B Interest coverage 4.83x This is the baseline the peer rows are being compared against.
Total debt $5.24B Interest coverage 2.76x -43% vs CPAY Carries about 1.8x less debt cushion than CPAY.
Total debt $23.59B Interest coverage 2.27x -53% vs CPAY Carries about 2.1x less debt cushion than CPAY.
Total debt $1.89B Interest coverage -5.83x -100% vs CPAY This peer has almost no interest-payment cushion compared with CPAY.
Total debt $136.59M Interest coverage 54.49x +1,027% vs CPAY Carries about 11.3x more debt cushion than CPAY.
What you should know
The case for and against CPAY
3 Rewards
3 Risks
Rewards
-
Revenue grew 5.6% last year.
-
Returns 32.1% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 35.6% over 3 years.
-
Stock trades 5.3% above its 5-year average P/E.
-
Operating margin compressed from 42.2% to 41.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.19x
Forward P/E
11.77x
P/B
6.79x
P/S
4.92x
EV/EBITDA
12.48x
PEG ratio
0.86x
Profitability
How much profit each dollar creates
Gross margin
79.7%
Operating margin
41.4%
Net margin
24.6%
ROE
32.1%
ROA
6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
2.71x
Current ratio
0.98x
Quick ratio
0.49x
Total debt
$10.48B
Total cash
$2.55B
Growth
How the business has been compounding
Revenue TTM
$4.78B
Revenue 5Y CAGR
12.4%
EPS TTM
17.01
EPS 5Y CAGR
6.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.52B
Free CF TTM
$1.30B
FCF margin
27.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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