One-glance verdict
Undervalued
$98.24 our estimate vs market $35.04
Wall Street consensus: $40.14 (-59.1% lower than our fair-value estimate)
64% below our estimate, below the bear case
Fundamentals snapshot
Paymentus Holdings, Inc.
PAY · NYQ · Technology · Software - Infrastructure
Current price
$35.04
52-week range
$20.11 - $45.31
Market cap
$4.41B
Balance sheet
Healthy
12,590.00x Strong cushion
Net cash $367.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 13.7% last year.
- Reward Returns 15.0% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Insider ownership is only 2.9% (peer median: 3.7%).
What this company does
Paymentus Holdings, Inc.
Paymentus provides the online technology that large organizations, like your utility or insurance company, use to let you pay your bills. The company makes money by charging these organizations a fee for each payment processed through its system. This is important because as more payments move from paper checks to digital methods, Paymentus has an opportunity to grow by handling a greater volume of these transactions.
How the company got here
Paymentus was founded in 2004 by Dushyant Sharma to create a modern way for companies to accept electronic payments. [1] For years, it grew by signing up billers, like utility and insurance companies, to its cloud-based platform. A major turning point came in 2021 when the company went public on the New York Stock Exchange and acquired Payveris, a company that provides payment technology to banks and credit unions. [2, 11, 16] This acquisition significantly accelerated its expansion into the financial services sector, allowing it to offer its payment network to hundreds of new financial institutions. [11, 18]
What it actually does
Paymentus acts as a technology middleman for bill payments. [2] When you pay your electricity, insurance, or loan bill online, you might be using Paymentus's system without even realizing it. [7] The company provides the secure, behind-the-scenes software platform that lets businesses (called "billers") present bills and accept payments from their customers in many ways—like through a website, mobile app, or over the phone. [4] This saves the billers from having to build and maintain their own complex and secure payment systems. [2] Consumers can pay using their preferred method, whether it's a credit card, debit card, bank account transfer (often called an eCheck), or a digital wallet like PayPal or Venmo. [23]
Payment Transaction Processing
This is the company's single, primary business and accounts for nearly all of its income. [2, 5, 9] It involves processing electronic payments on behalf of thousands of billers across many industries, including utilities, government, insurance, and financial services. [3, 19] The company makes money by charging a small fee for each transaction it processes. [2, 8] This fee is usually paid by the biller, though sometimes it is passed along to the customer as a "convenience fee" for paying electronically. [2]
What management is betting on now
The company's strategy centers on expanding its Instant Payment Network (IPN), which connects billers to popular consumer apps like PayPal. [3, 10] This allows people to pay their bills directly inside the apps they already use, making the process more convenient. [2] Management is also investing heavily in artificial intelligence (AI) to transform a simple bill payment into a more interactive and personalized customer service experience. [27] Finally, Paymentus is focused on signing up more large corporate clients and banks, while also looking to grow internationally by serving the global needs of its existing U.S.-based partners. [23, 31]
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
$6.67M
FY2024 Q4
$27.83M
FY2025 Q1
$50.38M
FY2025 Q2
$31.36M
FY2025 Q3
$34.97M
FY2025 Q4
$45.05M
FY2026 Q1
$30.37M
FY2026 Q2
$48.75M
Revenue
$360.74M
Net income
$25.56M
Diluted EPS
0.20
Operating cash flow
$48.86M
Free cash flow
$48.75M
Fetching…
Sources
Revenue
$358.44M
Net income
$20.88M
Diluted EPS
0.16
Operating cash flow
$30.45M
Free cash flow
$30.37M
Fetching…
Sources
Revenue
$330.46M
Net income
$20.67M
Diluted EPS
0.16
Operating cash flow
$45.13M
Free cash flow
$45.05M
Fetching…
Sources
Revenue
$310.74M
Net income
$17.74M
Diluted EPS
0.14
Operating cash flow
$35.08M
Free cash flow
$34.97M
Fetching…
Sources
Revenue
$280.08M
Net income
$14.71M
Diluted EPS
0.11
Operating cash flow
$31.48M
Free cash flow
$31.36M
Fetching…
Sources
Revenue
$275.24M
Net income
$13.81M
Diluted EPS
0.11
Operating cash flow
$50.44M
Free cash flow
$50.38M
Fetching…
Sources
Revenue
$257.88M
Net income
$13.15M
Diluted EPS
0.11
Operating cash flow
$27.91M
Free cash flow
$27.83M
Fetching…
Sources
Revenue
$231.57M
Net income
$14.43M
Diluted EPS
0.11
Operating cash flow
$6.74M
Free cash flow
$6.67M
Fetching…
Sources
Is it cheap or expensive?
Fair value $98.24 vs current price $35.04
Wall Street consensus is the average analyst price target: $40.14 (-59.1% lower than our fair-value estimate).
Our most-likely fair value is $98.24 a share — about 180.4% above today's price of $35.04, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $367.3M - more cash than debt. Interest coverage 12590.0x.
Net debt
$-367.30M
Interest coverage
12,590.00x
Paymentus Holdings, Inc.'s profit covers its interest bill about 12590.0 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PAY
BASELINE
Paymentus Holdings, Inc.
Total debt $10.39M Interest coverage 12,590.00x This is the baseline the peer rows are being compared against.
Total debt $863.59M Interest coverage 5.70x -100% vs PAY Carries about 2207.5x less debt cushion than PAY.
Total debt $1.90B Interest coverage 0.90x -100% vs PAY Carries about 14023.8x less debt cushion than PAY.
Total debt $1.47M Interest coverage 5.67x -100% vs PAY Carries about 2221.3x less debt cushion than PAY.
Total debt $772.84M Interest coverage -0.86x -100% vs PAY This peer has almost no interest-payment cushion compared with PAY.
What you should know
The case for and against PAY
3 Rewards
1 Risk
Rewards
-
Revenue grew 13.7% last year.
-
Returns 15.0% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Insider ownership is only 2.9% (peer median: 3.7%).
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)
53.09x
Forward P/E
32.12x
P/B
7.19x
P/S
3.24x
EV/EBITDA
37.38x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
24.9%
Operating margin
9.0%
Net margin
6.2%
ROE
15.0%
ROA
9.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
4.89x
Quick ratio
4.79x
Total debt
$10.39M
Total cash
$377.69M
Growth
How the business has been compounding
Revenue TTM
$1.36B
Revenue 5Y CAGR
31.9%
EPS TTM
0.66
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$159.52M
Free CF TTM
$161.77M
FCF margin
11.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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