Paymentus Holdings Inc-A (NYSE:PAY) – A CANSLIM Candidate with Strong Growth Metrics

Paymentus Holdings Inc-A (NYSE:PAY) was recently flagged by our CANSLIM stock screener, which identifies high-growth market leaders. The company’s financial and technical characteristics align well with the CANSLIM investing approach, making it a stock worth examining for growth-focused investors.

Why PAY Fits the CANSLIM Criteria

• Earnings Growth (C & A): PAY reported a 40% year-over-year EPS growth in its most recent quarter, well above the CANSLIM minimum threshold of 20%. Over the past three years, EPS growth has averaged an impressive 79.3%, signaling sustained profitability.
• Revenue Growth (C): Quarterly revenue surged by 48.9%, exceeding the 25% benchmark set by the CANSLIM system.
• Return on Equity (A): With an ROE of 10.14%, PAY demonstrates efficient use of shareholder capital, meeting the system’s preference for companies with ROE above 10%.
• Low Debt (S): PAY carries no debt, a positive factor for supply and demand dynamics, as low debt reduces financial risk.
• Relative Strength (L): PAY’s relative strength score of 93.09 places it in the top 7% of all stocks, a key trait for market leaders.
• Institutional Sponsorship (I): Institutional ownership stands at 77.9%, below the 85% threshold, indicating room for further institutional accumulation.

Technical and Fundamental Overview

• Technical Rating (7/10): PAY has outperformed 93% of stocks in its industry over the past year. However, recent price action shows short-term weakness, suggesting investors should monitor for a better entry point.
• Fundamental Rating (5/10): PAY has strong growth and financial health but trades at a premium valuation (P/E of 60.5). Future earnings growth (estimated at 16.9% annually) may justify the higher multiple.

For a deeper dive, review the full technical analysis and fundamental report.

Our CANSLIM High Growth screener lists more stocks matching these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.