Corpay (NYSE:CPAY) just announced a partnership with New Zealand Football, naming its Cross-Border business as the federation’s Official Foreign Exchange Partner. This deal means New Zealand Football will use Corpay’s FX solutions to help manage currency risk and global payments, all through a single platform. For investors, this latest client win highlights Corpay’s international ambitions and expanding reach in the sports sector, developments that could influence how the market values the stock.
Over the past year, Corpay’s stock has climbed 11%, delivering solid returns even as growth has slowed slightly this month. This new partnership builds on the company’s momentum after a string of international deals throughout the year and comes as Corpay’s annual revenue and net income continue to show healthy double-digit growth. The broader trend shows Corpay steadily expanding its client base while focusing on profitability, which is shaping the overall market narrative.
With Corpay’s share price consolidating after last year’s gains, the question for investors is whether this represents a genuine entry point or if the market has already factored in the company’s next phase of growth.
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Most Popular Narrative: 13.5% Undervalued
According to community narrative, Corpay is regarded as undervalued, with analysts projecting significant upside compared to the current share price based on its anticipated revenue growth, expanding margins, and broader sector positioning.
"Corpay's rapid expansion of its international cross-border platform, including product launches like the multicurrency account (MCA), extension of services to new customer verticals (FIs, asset managers, digital asset providers), and accretive acquisitions (e.g., Alpha, GPS) positions the company to capitalize on growing global commerce and cross-border payment flows. This supports sustained revenue growth and increases the company's long-term earnings power."
Want to peek behind the forecast that powers this bullish story? Corpay’s latest valuation rests on bold growth bets, including profit expansion and a long-term multiple that rivals sector leaders. Curious which future business wins could support this upside? There is more to this narrative than headlines, and you may want to see what could make the difference.
However, increased competition from fintechs and regulatory changes in payments could challenge Corpay's margin gains and disrupt its projected revenue trajectory.
While the market’s go-to valuation uses sector price multiples, our DCF model offers another perspective and points to Corpay being undervalued. Could a discount of this size signal that the market is overlooking potential?
If you have a different perspective or want to dive deeper into the numbers, shaping your own view is straightforward and only takes a few minutes. do it your way.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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Operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally.
