Corpay Inc. Projects $4.5 Billion Revenue for FY2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy MA?
Source: CNBC
- Accelerating Revenue Growth: Corpay Inc. anticipates approximately $4.5 billion in revenue for FY2025, indicating a significant growth trajectory, particularly in the U.S. vehicle payments sector, which is crucial for the company's overall performance.
- Acquisitions and Integration: The company has completed the acquisition of Alpha Group and acquired a 34% stake in AvidXchange, which, while presenting integration challenges, is expected to enhance future revenue streams and solidify its market position.
- Cash Flow and Profitability: Although free cash flow is projected to decline from $1.9 billion in FY2023 to just under $1.7 billion this year, it still represents a respectable 5.9% free cash flow to enterprise value ratio, reflecting the company's commitment to maintaining cash generation capabilities.
- Market Risks and Opportunities: The current liquidity in Corpay's options market is relatively low, necessitating cautious use of limit orders for favorable fills; however, despite downside risks, investors could benefit significantly from potential upside if the company's earnings exceed expectations.
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Analyst Views on MA
Wall Street analysts forecast MA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MA is 684.13 USD with a low forecast of 525.00 USD and a high forecast of 1088 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
20 Buy
4 Hold
0 Sell
Strong Buy
Current: 551.890
Low
525.00
Averages
684.13
High
1088
Current: 551.890
Low
525.00
Averages
684.13
High
1088
About MA
Mastercard Incorporated is a technology company in the global payments industry. The Company connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic payments and making those payment transactions secure, simple, smart and accessible. It provides a range of payment solutions and services using its brands, including Mastercard, Maestro and Cirrus. It operates a payments network that provides choice and flexibility for consumers, merchants and its customers. Through its proprietary global payments network, it switches (authorizes, clears and settles) payment transactions. Its additional payments capabilities include automated clearing house (ACH) transactions (both batch and real-time account-based payments). It offers security solutions, consumer acquisition and engagement, business and market insights, gateway, processing and open banking, among other services and solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Financial Performance: Over the past decade, both Visa and Mastercard have achieved double-digit annualized revenue and diluted earnings-per-share growth, and although they have lagged the S&P 500 in the last five years, their growth prospects remain robust, particularly with the ongoing adoption of cashless transactions.
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