Corpay Inc. (CPAY), formerly known as Fleetcor Technologies, is a global business-to-business (B2B) payments and expense management company serving middle-market businesses. The company rebranded as Corpay in March 2024 to better reflect its broader corporate payments focus, notes Doug Gerlach, editor of Investor Advisory Service.
Through more than 125 acquisitions during the past 25 years, Corpay has broadened into a corporate payments platform that helps businesses control employee spending, automate vendor payments, and manage cross-border transactions. Its products are designed to reduce misuse and fraud, simplify accounts payable, improve recordkeeping, and make it easier for companies to move money across currencies and countries.
Corpay Inc. (CPAY)
Management expects Corpay to remain a steady organic grower, with a long-term target of around 10% organic revenue growth. Recent results have met that goal, as Q1 2026 marked the fourth straight quarter of 11% organic growth.
Corporate Payments should be the main driver, helped by cross-border payments, AP automation, and the continued move away from paper checks. Over time, earnings should grow faster than revenue as the company gains scale, uses technology to improve productivity, and continues buying back stock.
We model 12% long-term revenue growth and 15% EPS growth. The company has a long history of share repurchases, reducing share count by more than 3% annually. Management has also been opportunistic, increasing buybacks when the share price has fallen.
In five years, we expect EPS to reach $33.61. At an average high P/E of 25, shares could reach $840, implying a potential annual return of nearly 19%. We see downside risk as 25% to $267, which is based on an average low P/E of 16 and trailing 12-month EPS of $16.71.
Recommended Action: Buy CPAY.
