One-glance verdict
Within fair range
$627.10 our estimate vs market $412.56
Wall Street consensus: $461.00 (-26.5% lower than our fair-value estimate)
34% below our estimate
Fundamentals snapshot
Corpay, Inc.
CPAY · NYQ · Technology · Software - Infrastructure
Current price
$412.56
52-week range
$252.84 - $427.46
Market cap
$27.09B
Balance sheet
Stretched
4.83x Stretched
Net debt $7.56B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 10.9% last year.
- Reward Returns 29.2% on equity, ahead of 60% of its peers.
- Risk Net debt grew 35.6% over 3 years.
- Risk Stock trades 24.7% above its 5-year average P/E.
What this company does
Corpay, Inc.
Corpay provides specialized payment systems for companies, helping them pay for things like fuel for their truck fleets and hotels for traveling employees. It makes money primarily by charging fees on these transactions, creating a stream of recurring revenue (income that is predictable and likely to continue). This matters because by embedding itself in the day-to-day operations of other businesses, Corpay can build a very loyal customer base.
How the company got here
Corpay started in 2000 as FLEETCOR, a company focused on providing fuel cards for trucking and other commercial vehicle fleets. For years, it grew by acquiring other companies, which allowed it to expand beyond just fuel and into areas like paying for road tolls and managing lodging for traveling workers. A major turning point was its push into broader corporate payments, helping businesses pay all sorts of bills, not just vehicle expenses. To reflect this bigger mission, the company officially changed its name from FLEETCOR to Corpay in March 2024.
What it actually does
Corpay provides smart payment cards and software that help businesses control and pay for their expenses. Think of it as a specialized financial toolkit for companies. For example, a business can give its truck drivers a Corpay fuel card that only works for buying gas, or use Corpay's software to pay hundreds of different suppliers automatically instead of writing checks. The company also helps manage payments for things like tolls, vehicle maintenance, and hotel stays for employees who travel for work.
Vehicle Payments
This is the company's original and largest business, making up about half of its revenue. It provides fuel cards that businesses give to their employees to pay for gas and now, electric vehicle charging. This service helps companies track fuel spending and prevent fraud, as the cards can be set to only allow certain types of purchases. Customers, which are companies with fleets of vehicles, pay Corpay for processing these transactions and for the controls and data it provides.
Corporate Payments
This is Corpay's fastest-growing and most strategic segment, representing a little over a third of the company's business. It helps companies manage and automate paying their bills to other businesses, a process known as accounts payable. It also offers virtual credit cards for secure online payments and handles cross-border payments, which helps companies pay suppliers in other countries and manage different currencies. Businesses pay for these services to save time, reduce errors, and get better control over their spending.
Lodging Payments
This is the smallest part of Corpay's business, contributing a little over 10% of its revenue. It helps companies manage and pay for hotel stays for their traveling workforces, like construction crews, airline pilots, or insurance policyholders who are displaced from their homes. Companies use this service to get access to a network of hotels, often at discounted rates, and to simplify the billing process for many employees at once. The revenue for this segment can be unpredictable as it is sometimes influenced by events like severe weather that require emergency lodging.
What management is betting on now
Management is focused on transforming the company from its legacy in fuel cards into a broader corporate payments provider. Their main strategy is to aggressively grow the Corporate Payments segment, which they believe serves a much larger potential market than vehicle payments. They are achieving this by acquiring other corporate payment companies and investing in technology to automate how businesses pay their bills. The company is also selling off some of its non-core vehicle-related businesses to sharpen its focus on the higher-growth areas of corporate and cross-border payments.
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 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
FY2026 Q2
$1.42B
Revenue
$1.34B
Net income
$248.31M
Diluted EPS
3.70
Operating cash flow
$1.47B
Free cash flow
$1.42B
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $627.10 vs current price $412.56
Wall Street consensus is the average analyst price target: $461.00 (-26.5% lower than our fair-value estimate).
Our most-likely fair value is $627.10 a share — about 52.0% away from today's price of $412.56, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $7.6B. Interest coverage 4.8x.
Net debt
$7.56B
Interest coverage
4.83x
Corpay, Inc.'s profit covers its interest bill about 4.8 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
CPAY
BASELINE
Corpay, Inc.
Total debt $10.74B Interest coverage 4.83x This is the baseline the peer rows are being compared against.
Total debt $5.36B Interest coverage 2.76x -43% vs CPAY Carries about 1.8x less debt cushion than CPAY.
Total debt $23.56B Interest coverage 2.27x -53% vs CPAY Carries about 2.1x less debt cushion than CPAY.
Total debt $1.90B Interest coverage 0.90x -81% vs CPAY Carries about 5.4x less debt cushion than CPAY.
Total debt $4.57B Interest coverage 1.77x -63% vs CPAY Carries about 2.7x less debt cushion than CPAY.
What you should know
The case for and against CPAY
3 Rewards
2 Risks
Rewards
-
Revenue grew 10.9% last year.
-
Returns 29.2% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 35.6% over 3 years.
-
Stock trades 24.7% above its 5-year average P/E.
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)
25.08x
Forward P/E
13.12x
P/B
7.65x
P/S
5.40x
EV/EBITDA
12.51x
PEG ratio
0.78x
Profitability
How much profit each dollar creates
Gross margin
80.5%
Operating margin
46.9%
Net margin
22.7%
ROE
29.2%
ROA
6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
2.75x
Current ratio
0.97x
Quick ratio
0.48x
Total debt
$10.74B
Total cash
$3.18B
Growth
How the business has been compounding
Revenue TTM
$5.02B
Revenue 5Y CAGR
12.4%
EPS TTM
16.45
EPS 5Y CAGR
6.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.85B
Free CF TTM
$1.30B
FCF margin
25.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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