We looked at Corpay (NYSE: CPAY ) in February of 2024. We argued that despite higher growth, CPAY was trading at a discount to the S&P 500. The share prices are up 37% since and have outperformed the S&PWe use Cash Flow Returns On Investment based DCF valuation tools provided by our affiliate company, ROCGA Research.With over 20 years of experience in investment analysis, we are actively seeking out undervalued and quality companies.ROCGA Research is an online platform that provides an objective and systema ...

Corpay, Inc. (CPAY) has seen an impressive 22% stock price surge over the past six months, outperforming the industry’s 14% rally.The company has been actively pursuing strategic acquisitions and investments to expand its customer base, workforce and operational capabilities, fueling its growth trajectory.What’s Driving CPAY’s Success?Corpay’s revenue growth remains strong, fueled by increasing payment program volumes and solid sales performance. Organic revenue growth has been consistent, with rates of 10% ...

Investors with an interest in Financial Transaction Services stocks have likely encountered both Corpay (CPAY) and MasterCard (MA) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimat ...

Corpay, Inc. (CPAY) has had an impressive run over the past year. Shares have gained 58% compared with the 30.5% rally of the industry. The company has an expected long-term (three to five years) earnings per share growth rate of 14.3%. Its earnings are expected to register growth of 12.3% in 2024 and 16% in 2025. Factors Behind CPAY's Rally Corpay's top line continues to grow organically, driven by increased volume in its payment programs. The company continues to witness solid organic revenue growth, driv ...

Corpay (CPAY) reported impressive third-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.See Zacks Earnings Calendar to stay ahead of market-making news.CPAY’s earnings per share of $5 beat the consensus estimate by a slight margin and increased 11.4% on a year-over-year basis. The total revenues of $1 billion outpaced the consensus estimate marginally and grew 6% from the year-ago quarter.The stock has gained 21% over the past three months compared with the 18.2% r ...

Financial Performance - Corpay reported net revenues of $1,029.2 million for the three months ended September 30, 2024, a 6.0% increase from $970.9 million in the same period of 2023[98]. - Net income attributable to Corpay for the three months ended September 30, 2024, was $276.4 million, compared to $271.5 million for the same period in 2023, reflecting a 1.8% increase[97]. - Adjusted net income attributable to Corpay for the three months ended September 30, 2024, was $354.5 million, up from $335.1 million in the prior year, representing a 5.0% increase[99]. - EBITDA for the three months ended September 30, 2024, was $557.7 million, compared to $528.9 million in the same period of 2023, indicating a 5.4% increase[99]. - Total consolidated net revenues reached $1,029.2 million, marking a 6% growth from $970.9 million year-over-year[108]. - Consolidated operating income was $468.1 million, a 5.2% increase compared to the prior period[125]. - Net income attributable to Corpay increased to $276.4 million, or 1.8%, from the prior period[128]. - Consolidated revenues increased by 4.2% to $2,940.2 million for the nine months ended September 30, 2024, driven by organic growth of 6% and acquisitions[136]. - For the nine months ended September 30, 2024, net income was $757.7 million, an increase from $726.0 million in the same period of 2023[172]. Revenue Segments - The Vehicle Payments segment generated $506.8 million in net revenues for the three months ended September 30, 2024, accounting for 49% of total revenues[103]. - Corporate Payments segment revenues increased to $321.9 million for the three months ended September 30, 2024, representing 31% of total revenues, up from 27% in the same period of 2023[103]. - Vehicle Payments segment reported net revenues of $506.8 million, a 1% increase from $500.6 million in the same period last year[108]. - Corporate Payments segment achieved net revenues of $321.9 million, reflecting a 25% increase compared to $257.8 million in the prior year[108]. - Vehicle Payments revenues were $1,511.1 million, relatively flat with a 0.4% increase, supported by organic growth and acquisitions[141]. - Corporate Payments revenues surged by 20.0% to $875.7 million, driven by an 18% organic growth and strong new sales[142]. - Lodging Payments revenues decreased by 5.2% to $134.0 million in Q3 2024, primarily due to non-recurring insurance commissions from the prior year[131]. - Other revenues decreased by 6.3% to $66.5 million in Q3 2024, attributed to lower payroll card business volume and timing of gift transactions[132]. Acquisitions and Investments - The company acquired 70% of Zapay for approximately $59.5 million, enhancing its Vehicle Payments business in Brazil[114]. - In July 2024, the company acquired Paymerang for approximately $179.2 million, enhancing its presence in various market verticals[116]. - The company signed an agreement to acquire GPS Capital Markets for approximately $725 million, expected to close in early 2025[116]. - The company completed asset acquisitions totaling approximately $6.7 million for the nine months ended September 30, 2024[116]. - The company announced a stock repurchase program with an aggregate size of $9.1 billion, of which $7.6 billion has been utilized to repurchase 32,438,132 shares as of September 30, 2024[158]. - The company’s capital expenditures increased by 12% to $131.1 million in the nine months ended September 30, 2024, compared to $117.2 million in the prior period, driven by acquisitions and technology investments[148]. Cash Flow and Liquidity - Net cash provided by operating activities was $1,291.9 million for the nine months ended September 30, 2024, a decrease of 6.7% from $1,384.6 million in the same period of 2023[148]. - Net cash used in investing activities increased to $378.2 million in the nine months ended September 30, 2024, compared to $345.6 million in the prior period, primarily due to the absence of $197.0 million in proceeds from the sale of the Russian business[148]. - The company reported net cash provided by financing activities of $176.2 million for the nine months ended September 30, 2024, a significant turnaround from net cash used of $501.5 million in the same period of 2023[148]. - As of September 30, 2024, the company had approximately $2.1 billion in total liquidity, consisting of $0.8 billion available under the Credit Facility and $1.3 billion in unrestricted cash[145]. - The company has a $7.5 billion Credit Agreement, with $3.1 billion in borrowings outstanding on Term Loan A and $2.3 billion on Term Loan B as of September 30, 2024[149]. Market and Economic Factors - Approximately 8% of net revenues were directly impacted by changes in fuel prices for the nine months ended September 30, 2024[112]. - The company experienced a negative impact of approximately $14 million on consolidated revenues due to macroeconomic factors[121]. - The impact of foreign exchange rates negatively affected revenues by approximately $17 million, while fuel prices had a negative impact of about $5 million[166]. - The effective tax rate is subject to fluctuations driven by the impact of discrete tax items and changes in tax laws[111]. - The provision for income taxes for Q3 2024 was $82.0 million, down from $98.6 million in Q3 2023, a decrease of 16.7%[172]. Strategic Initiatives - Corpay's vision emphasizes that every payment is digital, aiming to reduce unauthorized purchases and fraud through enhanced data analytics[92]. - The company highlighted ongoing strategic initiatives and potential market expansions in its forward-looking statements[174]. - The company emphasized the importance of managing credit risks and maintaining operational efficiency amid macroeconomic uncertainties[175]. - The company continues to evaluate the performance and effectiveness of its operational strategies using adjusted net income and organic revenue growth as key metrics[169].

Financial Data and Key Metrics Changes - The company reported revenue of $1.29 billion for Q3 2024, marking a 7% increase, and cash EPS of $5, up 14% when excluding Russia [8][27] - EBITDA margins improved to 54.2%, up about 100 basis points sequentially [8][27] - Organic revenue growth was 6% overall, with corporate payments leading at 18% growth [10][27] Business Line Data and Key Metrics Changes - Corporate Payments revenue increased by 18%, driven by a 7% growth in spend volume [28] - Vehicle payments organic revenue grew by 4%, with a 7% increase in transactions [31] - Lodging revenue decreased by 5% but showed signs of improvement, with room nights increasing by 10% [36] Market Data and Key Metrics Changes - Brazil and international fleet segments showed strong growth, with Brazil's revenue growing 18% and sales increasing 22% [35] - North America fleet and lodging solutions have been underperforming, but lodging is expected to turn positive in Q4 [12][17] Company Strategy and Development Direction - The company is focusing on a consolidated U.S. sales organization to enhance sales efforts, particularly in the payables business [20][17] - M&A activities are a priority, with four deals finalized and more in the pipeline, including acquisitions in corporate payments [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong Q4 finish, expecting organic revenue growth to accelerate to 13% [11][12] - For 2025, the company anticipates organic revenue growth of 9% to 11%, driven by recovery in North America fleet and lodging businesses [14][16] Other Important Information - The company ended Q3 with $1.3 billion in unrestricted cash and $800 million available on its revolver [40] - Share repurchase authorization has been increased to over $1.5 billion, indicating a commitment to returning capital to shareholders [42] Q&A Session Summary Question: Retention breakdown by segment - Management does not break down retention by segment but noted that Corporate Payments has better retention than the line average [46][47] Question: Contribution of FEMA to lodging payments - Estimated at about $1 million above normalized emergencies for the quarter [49] Question: New sales performance and reorganization impact - Corporate Payments performed well, while North American fleet business was softer; expectations for Q4 are low to mid-20s growth [52][53] Question: Visibility into 2025 growth - Management expressed improved visibility due to current trends and retention metrics [55][56] Question: North American fleet growth outlook - Same-store sales are flat, but retention has improved; expectations for low single-digit growth next year [60][61] Question: Impact of interest rates and taxes on 2025 outlook - Lower interest rates are expected to reduce interest expense, while tax rates may increase due to global minimum tax exposure [66][69] Question: Corporate Payments growth expectations - Anticipated organic growth in the high teens for Corporate Payments, supported by strong sales and retention [93]

Corpay (CPAY) reported $1.03 billion in revenue for the quarter ended September 2024, representing a yearover-year increase of 6%. EPS of $5.00 for the same period compares to $4.49 a year ago. The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $1.03 billion. With the consensus EPS estimate being $4.98, the EPS surprise was +0.40%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...

Corpay (CPAY) came out with quarterly earnings of $5 per share, beating the Zacks Consensus Estimate of $4.98 per share. This compares to earnings of $4.49 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 0.40%. A quarter ago, it was expected that this provider of fuel card and payment products for businesses would post earnings of $4.51 per share when it actually produced earnings of $4.55, delivering a surprise of 0.89%. Over ...

Exhibit 99.1 Corpay Reports Third Quarter 2024 Financial Results Surpasses $1 Billion in quarterly revenue Atlanta, Ga., November 7, 2024 — Corpay, Inc. (NYSE: CPAY), a corporate payments company, today reported financial results for its third quarter ended September 30, 2024. "We surpassed $1 billion in quarterly revenue for the first time, led by Corporate Payments organic growth of 18%. Business fundamentals were quite good with same store sales and retention improving and sales remaining strong," said R ...