Paymentus Holdings Inc. Class A Common Stock (PAY)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Paymentus is a software infrastructure business that helps billers present bills and collect payments. I look for durable economics and a price that leaves a margin of safety. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $360.7 million, net income was $25.6 million, and diluted EPS was $0.20. A year earlier, in fiscal Q2 2025, revenue was $280.1 million, net income was $14.7 million, and diluted EPS was $0.11. In FY2025, the year ended 2025-12-31, revenue was $1.2 billion, net income was $66.9 million, and diluted EPS was $0.52, versus FY2024 revenue of $871.7 million, net income of $44.2 million, and diluted EPS of $0.35. That is real growth and improving profitability. The balance sheet looks conservative: D/E is 0.02, Altman Z is 23.73, and trailing free cash flow is $121.4 million. ROE is 15.02% and ROCE is 9.65%, decent but not extraordinary. At the 2026-10-13 close of $31.87, FairStock calculates a P/E of 48.29, P/B of 6.54, EV/EBITDA of 26.31, Graham Number of $8.50, and margin of safety of -274.94%. The market is paying a rich multiple for moderate returns on capital. PEG of 0.65 may signal the growth-adjusted price is not extreme, but Graham would demand a margin of safety that is clearly absent. The SaaS bill-payment platform may have switching costs, but the figures do not yet show a wide moat. This is a good growth story at a price that leaves little room for error.

In plain English: Paymentus provides cloud-based bill payment technology and services to billers such as utilities and financial firms. The business looks reasonably strong because sales and profits are growing, debt is very low, and it generates cash. However, at the 2026-10-13 close of $31.87, the shares look expensive compared with current earnings and the company's net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer