What If You Were Missing The Value In CPAY Stock?

Here is why we think Corpay (CPAY) deserves consideration as a value stock. It is currently trading nearly 26% below its 1 year high, and also trading at a PS multiple which is below the average for the last 3 years. However, it has reasonable fundamentals for its level of valuation.

• Reasonable Revenue Growth: 9.2% LTM and 9.2% last 3 year average.
• Cash Generative: Nearly 46.2% free cash flow margin and 43.9% operating margin LTM.
• No Major Margin Shocks: CPAY has avoided any large margin collapse in the last 12 months.
• Modest Valuation: Despite encouraging fundamentals, CPAY trades at a PE multiple of 19.3
• Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, and better margins

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

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell CPAY Stock to see if Corpay still has an edge that holds up under the hood.

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

Stocks Like These Can Outperform. Here Is Data

Below are statistics for stocks with same selection strategy applied between 12/31/2016 and 6/30/2025.

• Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively
• Win rate (percentage of picks returning positive) of > 70% for both 6-month and 12-month periods
• Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 20% with 67% win rate.

But Consider The Risk

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 good – 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.