Paymentus HoldingsPAY -1.01%80 ROA % is 12.22% as of Mar. 2026, which is 50% above its 10-year median of 8.17. GuruFocus rates PAY with a GF Score™ of 80/100 and a GF Value™ of $38.75 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,883 Software companies, Paymentus Holdings ranks better than 86.33% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Paymentus Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $84 Mil.
Paymentus Holdings's average Total Assets over the quarter that ended in Mar. 2026 was $683 Mil. Therefore, Paymentus Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 12.22%.
The historical rank and industry rank for Paymentus Holdings's ROA % or its related term are showing as below:
PAY'
s ROA % Range Over the Past 10 Years
Min: -0.11 Med: 8.17 Max: 17.02
Current: 11.52
During the past 7 years, Paymentus Holdings's highest ROA % was 17.02%. The lowest was -0.11%. And the median was 8.17%.
PAY's ROA % is ranked better than 86.33% of 2883
companies
in the Software industry
Industry Median: 1.68
vs PAY: 11.52
Paymentus Holdings (NYSE:PAY) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Paymentus Holdings ROA % Related Terms
Paymentus Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Paymentus Holdings's ROA % 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.
For the Software - Infrastructure subindustry, Paymentus Holdings's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, Paymentus Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Paymentus Holdings's ROA % falls into.
* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Paymentus Holdings (PAY) has a ROA % of 12.22% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Paymentus Holdings and its competitors. This is 50% above median its historical median of 8.17. According to the industry distribution chart, Paymentus Holdings ranks #394 out of 2883 companies in the Software industry, placing it in the top 13.7%.
Is Paymentus Holdings' ROA % too high?
Paymentus Holdings' current ROA % of 12.22% is 50% above median its 10-year median of 8.17. The Software industry median ROA % is 1.68. Paymentus Holdings' value of 12.22% is 627.4% above this industry median. Based on the distribution chart, Paymentus Holdings ranks #394 out of 2883 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Paymentus Holdings has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paymentus Holdings' ROA % compare to NTCT and NN?
According to the Software industry distribution chart, Paymentus Holdings ranks #394 out of 2883 companies for ROA %. This places Paymentus Holdings in the top 14% of its industry — outperforming the majority of peers. The industry median ROA % is 1.68. Paymentus Holdings' value of 12.22% is 627.4% above this benchmark. While the company's 10-year median is 8.17 vs. the industry median of 1.68, Paymentus Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Software company?
The median ROA % among Software companies is 1.68, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paymentus Holdings's current ROA % of 12.22% is 627.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Paymentus Holdings and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paymentus Holdings's current ROA % is 12.22%, which is 50% above median its own 10-year median of 8.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paymentus Holdings stock overvalued right now?
Based on GuruFocus' analysis, Paymentus Holdings (PAY) is currently considered Significantly Undervalued. The stock's GF Value™ is $38.75, compared to a current price of $21.51 — trading 44.5% below its estimated fair value. The current ROA % is 12.22%, which is 50% above median its 10-year median of 8.17 and 627.4% above the Software industry median of 1.68. Paymentus Holdings' overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Paymentus Holdings (PAY), the current ROA % is 12.22% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paymentus Holdings (PAY) Overvalued in 2026?
Based on GuruFocus' analysis, Paymentus Holdings stock appears to be undervalued.
The current stock price of $21.51 is trading 44.5% below its estimated GF Value™ of $38.75.
GuruFocus considers Paymentus Holdings to be Significantly Undervalued.
Key valuation signals for PAY:
ROA %: 12.22% (50% above median its 10-year median of 8.17)
GF Value™: $38.75 vs. price of $21.51 (44.5% below fair value)
Industry Position: 627.4% above the Software median (#394 of 2883)
No single metric tells the full story. See the PAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paymentus Holdings Inc provides electronic bill presentment and payment services, enterprise customer communication and self-service revenue management to billers through a Software-as-a-Service (SaaS), secure, omni-channel technology platform. The platform integrates with a biller's financial and operational systems to provide secure and flexible processing of payments, including credit cards, debit cards, eChecks, and digital wallets, across multiple channels such as online, mobile, IVR, call centers, chatbots, and voice-based assistants. The company generates the majority of its revenue from payment transaction fees processed through its platform. Geographically, it derives the maximum revenue from the United States.
80GF Score
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