Paymentus Holdings's Return on Invested Capital Insights
Portfolio Pulse from Benzinga Insights
Paymentus Holdings (NYSE:PAY) reported a 26.44% decrease in earnings from Q4, despite a 12.22% increase in sales to $148.33 million. The company posted a negative Return on Invested Capital (ROIC) of -0.25% in Q1, suggesting inefficient capital allocation.

May 24, 2023 | 2:59 pm
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NEGATIVE IMPACT
Paymentus Holdings reported a decrease in earnings and a negative ROIC of -0.25%, indicating inefficient capital allocation.
Paymentus Holdings' decrease in earnings and negative ROIC of -0.25% suggest that the company is not utilizing its capital effectively. This inefficiency in capital allocation may negatively impact the stock price in the short term, as investors may perceive the company as less attractive compared to its peers with better capital allocation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100