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Paymentus Holdings (Paymentus Holdings) ROE %

: 8.88% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Paymentus Holdings's annualized net income for the quarter that ended in Dec. 2023 was $37.6 Mil. Paymentus Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $423.5 Mil. Therefore, Paymentus Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 8.88%.

The historical rank and industry rank for Paymentus Holdings's ROE % or its related term are showing as below:

PAY' s ROE % Range Over the Past 10 Years
Min: -0.13   Med: 5.4   Max: 19.97
Current: 5.44

During the past 5 years, Paymentus Holdings's highest ROE % was 19.97%. The lowest was -0.13%. And the median was 5.40%.

PAY's ROE % is ranked better than
55.53% of 2642 companies
in the Software industry
Industry Median: 3.145 vs PAY: 5.44

Paymentus Holdings ROE % Historical Data

The historical data trend for Paymentus Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Paymentus Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
19.97 17.93 3.95 -0.13 5.40

Paymentus Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.97 0.71 5.78 6.18 8.88

Competitive Comparison

For the Software - Infrastructure subindustry, Paymentus Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Paymentus Holdings ROE % Distribution

For the Software industry and Technology sector, Paymentus Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Paymentus Holdings's ROE % falls into.



Paymentus Holdings ROE % Calculation

Paymentus Holdings's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=22.322/( (397.179+429.616)/ 2 )
=22.322/413.3975
=5.40 %

Paymentus Holdings's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=37.608/( (417.448+429.616)/ 2 )
=37.608/423.532
=8.88 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Paymentus Holdings  (NYSE:PAY) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=37.608/423.532
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(37.608 / 659.2)*(659.2 / 497.102)*(497.102 / 423.532)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.71 %*1.3261*1.1737
=ROA %*Equity Multiplier
=7.57 %*1.1737
=8.88 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=37.608/423.532
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (37.608 / 44.8) * (44.8 / 36.56) * (36.56 / 659.2) * (659.2 / 497.102) * (497.102 / 423.532)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8395 * 1.2254 * 5.55 % * 1.3261 * 1.1737
=8.88 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Paymentus Holdings ROE % Related Terms

Thank you for viewing the detailed overview of Paymentus Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Paymentus Holdings (Paymentus Holdings) Business Description

Traded in Other Exchanges
N/A
Address
11605 N. Community House Road, Suite 300, Charlotte, NC, USA, 28277
Paymentus Holdings Inc provides electronic bill presentment and payment services, enterprise customer communication and self-service revenue management to billers and financial institutions through a Software-as-a-Service, (SaaS), secure, omni-channel technology platform. The platform integrates into a biller's core financial and operating systems to provide flexible and secure access to payment processing of credit cards, debit cards, eChecks and digital wallets across a number of channels including online, mobile, IVR, call center, chatbot and voice-based assistants. The Company generates revenue from payment transaction fees processed through the Company's platform. The fees are generated as a percentage of transaction value or a specified fee per transaction.
Executives
Andrew A. Gerber officer: General Counsel and Secretary 18390 NE 68TH ST., REDMOND WA 98052
Gerasimos (jerry) Portocalis officer: Chief Commercial Officer 18390 NE 68TH ST., REDMOND WA 98052
Arun Oberoi director 100 EAST DAVIE STREET, RALEIGH NC 27601
Sanjay Kalra officer: SVP and CFO HARMONIC INC., 4300 NORTH FIRST STREET, SAN JOSE CA 95134
Paul E. Seamon officer: Interim CFO 18390 NE 68TH ST, REDMOND WA 98052
Matt Parson officer: Chief Financial Officer 18390 NE 68TH ST., REDMOND WA 98052
Gary Trainor director 18390 NE 68TH ST., REDMOND WA 98052
Jody R Davids director C/O PREMIER INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Dushyant Sharma director, 10 percent owner, officer: Chairman, President and CEO 18390 NE 68TH ST., REDMOND WA 98052
William Ingram director C/O LEAP WIRELESS INTERNATIONAL, INC., 5887 COPLEY DRIVE, SAN DIEGO CA 92111
Accel-kkr Growth Capital Partners Ii, Lp 10 percent owner 2500 SAND HILL ROAD, SUITE 300, MENLO PARK CA 94025
Accel-kkr Growth Capital Partners Ii Strategic Fund, Lp 10 percent owner 2500 SAND HILL ROAD, SUITE 300, MENLO PARK CA 94025
John C Morrow officer: General Counsel and Secretary 11100 NE 8TH ST #600, BELLEVUE WA 98004
Accel-kkr Growth Capital Partners Iii, Lp 10 percent owner 2500 SAND HILL ROAD, SUITE 300, MENLO PARK CA 94025
Accel-kkr Capital Partners Cv Iii, Lp 10 percent owner 2500 SAND HILL ROAD, SUITE 300, MENLO PARK CA 94025