Corpay Inc (NYSE:CPAY): A Prime GARP Stock with Strong Growth and Fair Valuation

Investors looking for growth chances at fair prices often use the Growth At Reasonable Price (GARP) method, which focuses on companies showing solid expansion possibilities without extreme cost. This method balances the aim for capital gains with careful valuation measures, steering clear of both costly growth stocks and very cheap value options with little upward potential. One way to find these chances is by filtering for stocks with strong growth scores, good profitability, sufficient financial condition, and fair prices, criteria that together point to lasting expansion without speculative excess.

Corpay Inc (NYSE:CPAY) appears as a prospect matching this description, as seen in its basic analysis report. The company works in the financial services field, offering digital payment options that assist businesses in handling expenses from vehicle-related charges to accounts payable. Its choice through a low-cost growth filter depends on multiple important factors detailed in its basic evaluation.

Growth Characteristics
Corpay shows notable growth traits, receiving a growth score of 7 out of 10. In the last year, earnings per share grew by 13.77%, while revenue rose by 9.22%. The company has kept an average yearly EPS growth of 10.03% over recent years, showing steady results. For the future, analysts estimate EPS growth of 15.01% and revenue growth of 10.09% each year, hinting at a pickup in profit generation. This forward progress is key for GARP investing, as it means the company is not just expanding but possibly enhancing its growth path.

Valuation Points
With a valuation score of 5, Corpay seems fairly valued compared to its future. Its price-to-earnings ratio of 15.82 matches industry norms but is lower than the S&P 500's multiple of 26.86, showing a relative discount next to the wider market. The forward P/E of 12.72 adds to this perspective, trading at a lower level than the S&P 500's forward multiple of 34.94. Enterprise value to EBITDA and price-to-free-cash-flow ratios also imply the stock is less expensive than many industry counterparts. For investors using low-cost growth tactics, these measures suggest the market has not completely accounted for the company's growth possibility, providing a safety buffer.

Profitability Highlights
Corpay’s profitability score of 7 highlights effective operations. The company has a return on equity of 26.72%, doing better than 90% of its financial services competitors, while its return on invested capital of 10.80% places it in the leading group of the field. Profit margins stay solid, with a 25.17% net margin and 43.91% operating margin, both above industry averages. Strong profitability is vital for maintained growth, as it supplies the monetary means to fund expansion without heavy dependence on outside funding.

Financial Condition Remarks
The company’s condition score of 5 shows a varied but acceptable monetary state. Although the debt-to-equity ratio of 1.91 points to considerable borrowing, it is still less than many industry rivals. The current and quick ratios both are at 1.12, indicating enough immediate liquidity. The Altman-Z score of 2.04, while not outstanding, shows low bankruptcy danger and exceeds 78% of peers. For GARP investors, sufficient condition measures confirm the company can maintain growth without encountering monetary trouble.

The mix of these elements—good growth outlook, fair valuation, solid profitability, and satisfactory financial condition—makes Corpay a clear example of the low-cost growth method. Investors applying this tactic look for companies that can provide growth without high costs, and Corpay’s basic profile indicates it fits these requirements. The full basic analysis report offers more detailed views into these measures and their meanings.

For investors wanting to examine comparable chances, other prospects found through the low-cost growth filtering approach can be located using this stock screener.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.