2024-05-23 13:34:33 ET
Summary
- Corpay is a highly predictable business that seeks to unify payments for clients who require frequent work trips or who operate fleets of vehicles.
- The company has EBITDA margins of more than 50%, leaving clues to the high added value of Corpay's services.
- Management reduced its guidance during Q1 2024 and now expects to grow around 7% only, but made it clear that this should be temporary.
- Thanks to this short-term fear, the company is currently trading at a P/E of 20, which is a multiple below its historical average of 25.
Investment Thesis
I recently wrote about Wex (WEX), a company similar to Corpay (CPAY) that has a cheaper valuation, but in my opinion, it's justified because Corpay has better financials derived from its greater scale and operational efficiency....
Read the full article on Seeking Alpha
For further details see:
Corpay: Short-Term Concerns And A Predictable Business