One-glance verdict
Within fair range
$502.44 our estimate vs market $382.11
Wall Street consensus: $396.21 (-21.1% lower than our fair-value estimate)
24% below our estimate
Fundamentals snapshot
Corpay, Inc.
CPAY · NYQ · Technology · Software - Infrastructure
Current price
$382.11
52-week range
$252.84 - $395.49
Market cap
$24.98B
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 16.2% above its 5-year average P/E.
What this company does
Corpay, Inc.
Corpay provides specialized payment cards and software to help other businesses manage their expenses, such as fuel for company vehicles, paying for hotels, or making international payments. The company makes money primarily by taking a small fee on each transaction, which creates recurring revenue (income that is predictable and likely to continue) because clients use these services for their regular, day-to-day operations. This matters because Corpay's success is tied to the business activity of its many customers, allowing it to grow as they spend more.
How the company got here
Corpay started in 2000 as FLEETCOR, a company focused on providing fuel cards to businesses to manage expenses for their vehicle fleets. Through many acquisitions, it expanded beyond just fuel and into other areas like helping businesses pay their bills and managing travel expenses for employees. A major turning point was its 2010 initial public offering (IPO), which is when a private company first sells shares of stock to the public. In March 2024, the company changed its name from FLEETCOR to Corpay to better reflect its broader focus on all types of corporate payments, not just fleets.
What it actually does
Corpay provides a way for businesses to control and pay for various expenses. Think of it as a specialized financial toolkit for companies. For example, they offer cards that employees can use for specific purposes like gasoline or booking a hotel, which helps the business track and manage that spending. They also help companies pay their suppliers, manage payments in different currencies for international business, and automate the accounts payable (the money a company owes to its suppliers) process. Essentially, Corpay helps businesses streamline how they spend money, saving them time and giving them better control over their finances.
Vehicle Payments
This is Corpay's original and largest business, making up about half of its revenue. It provides fuel cards that trucking companies and other businesses with vehicle fleets give to their drivers. These cards can only be used for approved purchases like fuel, tolls, and maintenance, which prevents misuse and makes tracking expenses easy for the company. The customers are businesses of all sizes that operate vehicles as a core part of their operations.
Corporate Payments
This is a fast-growing part of Corpay's business that helps companies manage their day-to-day spending. This includes services like automating bill payments to suppliers, providing virtual credit cards for online purchases, and helping businesses make payments in foreign currencies. Companies pay Corpay to make their payment processes more efficient and secure. This segment is a major focus for the company's future growth.
Lodging Payments
This segment provides payment solutions for businesses with employees who travel for work. For example, an airline might use Corpay to pay for hotel rooms for its flight crews or for passengers who are stranded overnight. Companies pay for this service to simplify the process of booking and paying for accommodations, ensuring their employees have a place to stay while controlling costs. This is the smallest of Corpay's main business lines.
What management is betting on now
Management is focused on expanding the Corporate Payments side of the business, seeing it as the main engine for future growth. They are actively acquiring other companies, especially in areas like automating bill payments and handling cross-border transactions, to strengthen these services. The company is also focused on cross-selling, which means encouraging existing customers who use one service (like fuel cards) to adopt others (like bill payment automation). The recent name change to Corpay was a key part of this strategy, creating a single brand to unify all their different payment solutions.
How the company got here
Corpay started in 2000 as a company called FLEETCOR, which focused on providing fuel cards for businesses with fleets of vehicles. Through numerous acquisitions (buying other companies), it expanded its services beyond just fuel to include things like helping businesses pay their suppliers and manage travel expenses. A key moment was in 2010 when it had its initial public offering (IPO), which is when a company first sells its stock to the public. In March 2024, the company officially changed its name to Corpay to better reflect that it now handles a wide range of corporate payments, not just vehicle-related ones.
What it actually does
Corpay helps businesses manage and control their spending. Think of it as a financial toolkit for companies that helps them pay for things in a simple and controlled way. They offer special payment cards that employees can use for specific business expenses like fuel or hotel stays, which helps companies track where their money is going. Corpay also provides services to automate paying bills to suppliers, handle payments in different currencies for international business, and issue virtual cards for secure online purchases. Essentially, Corpay's goal is to make the process of business payments easier, more efficient, and more secure.
Vehicle Payments
This is Corpay's original and largest business area, making up roughly half of the company's income. It provides solutions like fuel cards that businesses give to their drivers to buy gas, pay tolls, and cover maintenance costs. This helps companies ensure that the money is being spent only on approved, vehicle-related expenses. The customers for this service are businesses of all sizes that rely on vehicles for their daily operations.
Corporate Payments
This is a fast-growing segment for Corpay that helps businesses with their broader payment needs. This includes services that automate a company's accounts payable (the process of paying its bills), manage expenses for things other than vehicles, and handle cross-border payments for international business. Companies use these services to save time, reduce manual errors, and have better control over their finances. This area is a major focus for Corpay's future growth.
Lodging Payments
This part of the business provides payment solutions for companies whose employees travel for work. For instance, an airline could use Corpay to pay for hotel rooms for its flight crews or for passengers who get stranded. Businesses pay for this service to make booking and paying for employee travel simpler and more controlled. This is a smaller, more specialized part of Corpay's overall business.
What management is betting on now
Corpay's leadership is heavily focused on growing its Corporate Payments segment, viewing it as the key to the company's future success. They are actively pursuing this by acquiring other companies that specialize in areas like bill payment automation and international payments. A big part of their strategy is also cross-selling, which means getting their existing customers who use one type of service, like fuel cards, to also use their other services. The recent rebranding from FLEETCOR to Corpay was a strategic move to create a unified brand for all their different payment solutions, making this cross-selling easier.
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 $502.44 vs current price $382.11
Wall Street consensus is the average analyst price target: $396.21 (-21.1% lower than our fair-value estimate).
Our most-likely fair value is $502.44 a share — about 31.5% away from today's price of $382.11, 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 $5.36B 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 16.2% 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)
23.37x
Forward P/E
12.49x
P/B
7.20x
P/S
5.22x
EV/EBITDA
13.04x
PEG ratio
0.94x
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
16.35
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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