Paymentus Holdings (PAY) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: N/A
• Average Volume (3M): 813.86K
• Price to Earnings (P/E): 70.2
• Beta (1Y): 1.19
• Revenue Growth: 49.35%
• EPS Growth: 72.05%
• Country: US
• Employees: 1,307
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.15
• Shares Outstanding: 45,348,953
• 10 Day Avg. Volume: 669,711
• 30 Day Avg. Volume: 813,859
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 15.00
• Enterprise Value/Ebitda: 51.57
• 1Y Price Target: $39.00
• Price Target Upside: 27.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $35.00 ▲(14.19% Upside)

Paymentus Holdings demonstrates strong financial performance and a positive outlook from its earnings call, which are the most significant factors driving the score. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Paymentus' services and successful client acquisition, supporting long-term expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Cash Generation

Robust cash generation supports operational flexibility and provides resources for strategic investments and shareholder returns.

Negative Factors

Contribution Margin Decline

A declining contribution margin may pressure profitability, especially with the addition of large, higher-volume enterprise billers.

Flat Revenue Growth Guidance

Flat sequential revenue growth guidance suggests potential challenges in maintaining momentum, possibly affecting future performance.

Bad Debt Expense Increase

An increase in bad debt expense can erode margins, indicating potential credit risk that may affect financial performance.

Paymentus Holdings Business Overview & Revenue Model

Company Description

Paymentus Holdings (PAY) is a leading provider of cloud-based bill payment solutions, primarily serving utility, insurance, and government sectors. The company offers a comprehensive platform that enables businesses to streamline their billing processes, enhance customer payment experiences, and facilitate real-time payment processing. With a focus on innovation, Paymentus delivers a range of services including electronic bill presentment, automated payment processing, and mobile payment solutions, positioning itself as a trusted partner for organizations seeking to modernize their payment infrastructures.

How the Company Makes Money

Paymentus generates revenue primarily through transaction fees charged to clients for each payment processed on its platform. The company operates on a subscription-based model as well, where clients pay a recurring fee for access to its services and technology. Additionally, Paymentus earns revenue from value-added services, such as analytics and reporting tools that help clients optimize their billing operations. Strategic partnerships with financial institutions and technology providers also bolster its revenue streams, enabling Paymentus to expand its offerings and reach a broader customer base.

Paymentus Holdings Financial Statement Overview

Summary

Paymentus Holdings exhibits strong financial health across all statements. The company shows impressive revenue and profit growth, supported by a solid balance sheet with low leverage. Cash flow generation is robust, ensuring liquidity and operational flexibility. The overall financial position is stable, with a positive outlook for continued growth and profitability.

Income Statement

Paymentus Holdings demonstrates strong revenue growth with an 8.59% increase in TTM, indicating robust demand for its services. The gross profit margin is healthy at 25.29%, although slightly lower than previous periods, suggesting some cost pressures. The net profit margin of 5.37% reflects solid profitability, supported by an improving EBIT margin of 5.78%. Overall, the income statement reflects a positive growth trajectory and stable profitability.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial risk. Return on equity is commendable at 11.38%, showcasing efficient use of equity to generate profits. The equity ratio stands at 84.79%, highlighting a solid capital structure with significant equity backing. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flow performance is robust, with a 13.16% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.40 suggests efficient conversion of income into cash. The free cash flow to net income ratio is nearly 1, reflecting effective cash management. Overall, the cash flow statement indicates healthy liquidity and cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	871.75M	614.49M	497.00M	395.52M	301.77M
Gross Profit	264.19M	238.17M	182.34M	149.68M	121.38M	92.63M
EBITDA	76.87M	81.34M	27.39M	6.39M	23.67M	26.50M
Net Income	56.10M	44.17M	22.32M	-513.00K	9.30M	13.71M
Balance Sheet
Total Assets	609.52M	576.25M	504.86M	461.54M	472.94M	124.87M
Cash, Cash Equivalents and Short-Term Investments	266.42M	209.41M	179.36M	147.33M	168.39M	46.67M
Total Debt	8.04M	8.41M	10.51M	12.63M	11.18M	10.03M
Total Liabilities	92.82M	90.65M	75.25M	64.36M	86.81M	40.50M
Stockholders Equity	516.70M	485.60M	429.62M	397.18M	386.13M	84.38M
Cash Flow
Free Cash Flow	116.24M	63.18M	34.53M	-11.43M	-916.00K	20.77M
Operating Cash Flow	116.57M	63.63M	68.83M	19.87M	19.49M	35.62M
Investing Cash Flow	-35.68M	-36.76M	-34.30M	-34.56M	-77.81M	-15.14M
Financing Cash Flow	-3.51M	-207.00K	-1.20M	-37.28M	213.49M	-1.36M

Paymentus Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAY, the sentiment is Negative. The current price of 30.65 is above the 20-day moving average (MA) of 30.62, below the 50-day MA of 33.22, and below the 200-day MA of 31.93, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 56.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAY.

Paymentus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	―	$3.84B	70.22	11.59%	―	49.35%	72.05%
FLYW	―	$1.67B	331.75	0.86%	―	22.20%	―
CTLP	―	$779.66M	12.33	29.45%	―	12.64%	457.40%
TSSI	―	$500.35M	49.59	122.80%	―	328.80%	339.87%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNDT	―	$372.82M	76.62	2.21%	―	-14.36%	-73.74%
PSFE	―	$723.23M	―	-5.88%	―	0.47%	-292.07%

Paymentus Holdings Corporate Events

Paymentus Holdings: Strong Growth and Raised Guidance

Paymentus Holdings, Inc. has delivered a largely positive earnings call, showcasing strong revenue growth and significant bookings, despite some concerns about seasonal revenue fluctuations and contribution margin decline. The company has raised its guidance for the year, reflecting confidence in its future performance.

Paymentus Holdings Reports Strong Q2 2025 Results

Paymentus Holdings, Inc. is a prominent provider of cloud-based bill payment technology, serving over 2,500 billers and financial institutions across North America with its omni-channel platform.