Paymentus currently trades at $30.79 per share and has shown little upside over the past six months, posting a small loss of 1.1%. The stock also fell short of the S&P 500’s 22.9% gain during that period.
Does this present a buying opportunity for PAY? Or is its underperformance reflective of its story and business quality? Find out in our full research report, it’s free for active Edge members.
Why Are We Positive On PAY?
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
Luckily, Paymentus’s revenue grew at an incredible 31% compounded annual growth rate over the last five years. Its growth surpassed the average financials company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Paymentus’s full-year EPS grew at an astounding 111% compounded annual growth rate over the last three years, better than the broader financials sector.
Final Judgment
These are just a few reasons why Paymentus ranks near the top of our list. With its shares lagging the market recently, the stock trades at 45.1× forward P/E (or $30.79 per share). Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More Than Paymentus
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