Paymentus Holdings (NYSE:PAY) has surfaced as a stock worth a closer look for investors following the growth-focused methodology outlined in Louis Navellier’s classic book, The Little Book That Makes You Rich (2007). The strategy centers on eight rules designed to identify high-quality growth stocks, emphasizing consistent earnings surprises, upward estimate revisions, solid sales and earnings growth, expanding margins, strong cash flow, and solid returns on equity. By screening for these fundamental strengths, investors aim to catch companies with momentum early, before the broader market fully prices in their potential. This approach has been translated into actionable filters in the ChartMill screener, and Paymentus checks nearly every box.
[Image: Chart showing Paymentus Holdings stock performance (PAY)]
Source: ChartMill
Recent Performance and Growth Metrics
Paymentus has been firing on multiple cylinders when it comes to the core growth criteria from the Little Book strategy. The company’s revenue growth over the past twelve months sits at a solid 33%, with quarter-over-quarter sales growth of 30.2%. This aligns directly with the book’s requirement for increasing sales—ideally above 20% on both a year-over-year and sequential basis.
On the earnings front, the story is equally strong. Earnings per share (EPS) have grown by 40.7% over the trailing twelve months, with the most recent quarter showing 50% year-over-year EPS growth. The book emphasizes positive earnings momentum, and Paymentus demonstrates this with a clear acceleration: earnings growth in the last quarter (50%) exceeded the growth rate from the comparable quarter a year earlier (40%). This kind of acceleration is a green flag for Little Book investors.
Surprises, Revisions, and Operating Strength
A key pillar of the Navellier strategy is positive earnings surprises, as companies that consistently beat estimates force analysts to raise their outlooks, often driving share prices higher. Paymentus has delivered four positive EPS surprises in the last four reports, with an average beat of 21%. This consistency supports the second rule in the book: "Positive Earnings Surprises."
Analysts are taking notice. Over the past three months, the EPS estimate for the next quarter has been revised upward by 6.45%, meeting the screener’s threshold for positive revisions. This upward movement reflects growing confidence in the company’s trajectory.
Operational efficiency is also improving. The operating margin has expanded by 25.1% over the past year, far exceeding the 2% minimum the book suggests is a positive sign. This margin expansion is critical because it shows that Paymentus is not just growing revenue—it’s doing so while controlling costs, which feeds into better profitability over time.
Cash Flow and Financial Health
Strong cash flow generation is another hallmark of the Little Book strategy. Paymentus’ free cash flow (FCF) has surged by 164.6% over the past twelve months, well above the 15% threshold used in the screen. This kind of cash flow growth provides the company with flexibility to reinvest in its business, pay down debt, or pursue strategic opportunities—all without relying on external financing.
According to the fundamental analysis report from ChartMill, Paymentus scores a 6 out of 10 overall. While the valuation is on the higher side—with a trailing P/E of 31.79—the growth metrics provide context. The company’s return on equity (ROE) stands at 12.7%, surpassing the 10% minimum used in the screen. More importantly, financial health is a standout. The Altman-Z score is an exceptionally high 19.08, and the company carries no long-term debt. Both solvency and liquidity ratings are among the best in its industry, with a current ratio of 4.41.
For a detailed breakdown of the metrics, you can review the full fundamental analysis report here: PAY Fundamental Analysis.
Analyst Views and Valuation Considerations
Growth often comes with a premium price tag, and Paymentus is no exception. The stock trades at 31.79 times earnings, which is slightly above the S&P 500 average of 27.43 and pricier than about 65% of its industry peers. However, the PEG ratio—which accounts for expected growth—suggests the valuation is more reasonable when factoring in the projected 24.7% annual EPS growth over the next several years.
Analyst expectations are supportive. The forward P/E of 23.42 is lower than the trailing multiple, indicating that Wall Street anticipates continued earnings expansion. This aligns with the book’s emphasis on forward-looking momentum, even as it primarily screens based on published results.
Summary of the FA Report
Taking everything into account, Paymentus scores 6 out of 10 in the fundamental rating. The company is in excellent financial health with no liquidity or solvency concerns, but its profitability rating is average. While the stock is relatively expensive on a pure earnings basis, it also demonstrates excellent growth characteristics—making it a strong candidate for a growth-focused strategy.
Screen Results and Next Steps
Paymentus was identified through a dedicated screener based on the eight rules from The Little Book That Makes You Rich. This screener filters for stocks that combine positive earnings surprises, rising revisions, accelerating sales and earnings, expanding margins, strong cash flow, and high ROE. To explore similar opportunities and see the full list of stocks that currently meet these criteria, visit the live screen here: Little Book Strategy Screener.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.
Read full article here »
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Paymentus Holdings (NYSE:PAY) Surfaces as a Top Growth Stock in Navellier's Little Book Strategy
Paymentus Holdings (NYSE:PAY) has surfaced as a stock worth a closer look for investors following the growth-focused methodology outlined in Louis Navellier’s classic book, The Little Book That Makes You Rich (2007). The strategy centers on eight rules designed to identify high-quality growth stocks, emphasizing consistent earnings surprises, upward estimate revisions, solid sales and earnings growth, expanding margins, strong cash flow, and solid returns on equity. By screening for these fundamental strengths, investors aim to catch companies with momentum early, before the broader market fully prices in their potential. This approach has been translated into actionable filters in the ChartMill screener, and Paymentus checks nearly every box.
[Image: Chart showing Paymentus Holdings stock performance (PAY)] Source: ChartMill
Recent Performance and Growth Metrics
Paymentus has been firing on multiple cylinders when it comes to the core growth criteria from the Little Book strategy. The company’s revenue growth over the past twelve months sits at a solid 33%, with quarter-over-quarter sales growth of 30.2%. This aligns directly with the book’s requirement for increasing sales—ideally above 20% on both a year-over-year and sequential basis.
On the earnings front, the story is equally strong. Earnings per share (EPS) have grown by 40.7% over the trailing twelve months, with the most recent quarter showing 50% year-over-year EPS growth. The book emphasizes positive earnings momentum, and Paymentus demonstrates this with a clear acceleration: earnings growth in the last quarter (50%) exceeded the growth rate from the comparable quarter a year earlier (40%). This kind of acceleration is a green flag for Little Book investors.
Surprises, Revisions, and Operating Strength
A key pillar of the Navellier strategy is positive earnings surprises, as companies that consistently beat estimates force analysts to raise their outlooks, often driving share prices higher. Paymentus has delivered four positive EPS surprises in the last four reports, with an average beat of 21%. This consistency supports the second rule in the book: "Positive Earnings Surprises."
Analysts are taking notice. Over the past three months, the EPS estimate for the next quarter has been revised upward by 6.45%, meeting the screener’s threshold for positive revisions. This upward movement reflects growing confidence in the company’s trajectory.
Operational efficiency is also improving. The operating margin has expanded by 25.1% over the past year, far exceeding the 2% minimum the book suggests is a positive sign. This margin expansion is critical because it shows that Paymentus is not just growing revenue—it’s doing so while controlling costs, which feeds into better profitability over time.
Cash Flow and Financial Health
Strong cash flow generation is another hallmark of the Little Book strategy. Paymentus’ free cash flow (FCF) has surged by 164.6% over the past twelve months, well above the 15% threshold used in the screen. This kind of cash flow growth provides the company with flexibility to reinvest in its business, pay down debt, or pursue strategic opportunities—all without relying on external financing.
According to the fundamental analysis report from ChartMill, Paymentus scores a 6 out of 10 overall. While the valuation is on the higher side—with a trailing P/E of 31.79—the growth metrics provide context. The company’s return on equity (ROE) stands at 12.7%, surpassing the 10% minimum used in the screen. More importantly, financial health is a standout. The Altman-Z score is an exceptionally high 19.08, and the company carries no long-term debt. Both solvency and liquidity ratings are among the best in its industry, with a current ratio of 4.41.
For a detailed breakdown of the metrics, you can review the full fundamental analysis report here: PAY Fundamental Analysis.
Analyst Views and Valuation Considerations
Growth often comes with a premium price tag, and Paymentus is no exception. The stock trades at 31.79 times earnings, which is slightly above the S&P 500 average of 27.43 and pricier than about 65% of its industry peers. However, the PEG ratio—which accounts for expected growth—suggests the valuation is more reasonable when factoring in the projected 24.7% annual EPS growth over the next several years.
Analyst expectations are supportive. The forward P/E of 23.42 is lower than the trailing multiple, indicating that Wall Street anticipates continued earnings expansion. This aligns with the book’s emphasis on forward-looking momentum, even as it primarily screens based on published results.
Summary of the FA Report
Taking everything into account, Paymentus scores 6 out of 10 in the fundamental rating. The company is in excellent financial health with no liquidity or solvency concerns, but its profitability rating is average. While the stock is relatively expensive on a pure earnings basis, it also demonstrates excellent growth characteristics—making it a strong candidate for a growth-focused strategy.
Screen Results and Next Steps
Paymentus was identified through a dedicated screener based on the eight rules from The Little Book That Makes You Rich. This screener filters for stocks that combine positive earnings surprises, rising revisions, accelerating sales and earnings, expanding margins, strong cash flow, and high ROE. To explore similar opportunities and see the full list of stocks that currently meet these criteria, visit the live screen here: Little Book Strategy Screener.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.
Read full article here »