CPAY Pulls Back to Support. Smart Time to Enter?

September 9th, 2025 by Trefis Team
CPAY: Corpay logo
CPAY
Corpay

Corpay (CPAY) should be on your watchlist. Here is why – it is currently trading in the support zone ($296.01 – $327.17), levels from which it has bounced meaningfully before. In the last 10 years, the stock received buying interest at this level 3 times and subsequently went on to generate 12.6% in average peak returns.

  Peak Return Days to Peak Return
8/26/2024 10.0% 39
10/4/2024 17.7% 125
4/9/2025 10.2% 34

But is the price action enough alone? It certainly helps if the fundamentals check out. For CPAY Read Buy or Sell CPAY Stock to see how convincing this buy opportunity might be.

Here are some quick data points:

  • Revenue Growth: 9.2% LTM and 9.2% last 3 year average.
  • Cash Generation: Nearly 46.2% free cash flow margin and 43.9% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for CPAY was 5.3%.
  • Valuation: CPAY trades at a PE multiple of 21.5
  • Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, and better margins

Corpay provides payment solutions for managing vehicle, lodging, and corporate expenses internationally, serving businesses and consumers across the US, Brazil, the UK, and beyond.

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  CPAY S&P Median
Sector Financials –
Industry Transaction & Payment Processing Services –
PE Ratio 21.5 24.1
   
LTM* Revenue Growth 9.2% 5.1%
3Y Average Annual Revenue Growth 9.2% 5.3%
Min Annual Revenue Growth Last 3Y 5.3% -0.1%
   
LTM* Operating Margin 43.9% 18.7%
3Y Average Operating Margin 43.7% 17.9%
LTM* Free Cash Flow Margin 46.2% 13.4%

*LTM: Last Twelve Months

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

What Is Stock-Specific Risk If The Market Crashes?

That said, CPAY isn’t immune to big hits. It fell about 23% during the 2018 correction, nearly 48% during the Covid crash, and around 44% in the inflation shock. Even with positive factors in play, these dips show the risks are real. Solid fundamentals matter, but when the market turns sour, CPAY can still take a sizable hit.

But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read CPAY Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.