GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - NYSE:GPN - US37940X1028 - Common Stock
86.1 USD
-0.37 (-0.43%)
84.45 USD
-1.65 (-1.92%)
We assign a fundamental rating of 5 out of 10 to GPN. GPN was compared to 99 industry peers in the Financial Services industry. While GPN has a great profitability rating, there are quite some concerns on its financial health. GPN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GPN had positive earnings in the past year.
In the past year GPN had a positive cash flow from operations.
Each year in the past 5 years GPN has been profitable.
GPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.95%, GPN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a Return On Equity value of 6.33%, GPN is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
The Return On Invested Capital of GPN (4.73%) is better than 62.63% of its industry peers.
GPN had an Average Return On Invested Capital over the past 3 years of 4.36%. This is below the industry average of 7.72%.
The 3 year average ROIC (4.36%) for GPN is below the current ROIC(4.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 6.33% | ||
| ROIC | 4.73% |
ROA(3y)1.85%
ROA(5y)1.8%
ROE(3y)3.95%
ROE(5y)3.55%
ROIC(3y)4.36%
ROIC(5y)3.81%
1.3 Margins
GPN has a better Profit Margin (15.07%) than 64.65% of its industry peers.
GPN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.54%, GPN is in the better half of the industry, outperforming 70.71% of the companies in the same industry.
In the last couple of years the Operating Margin of GPN has grown nicely.
With a decent Gross Margin value of 65.01%, GPN is doing good in the industry, outperforming 76.77% of the companies in the same industry.
GPN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.54% | ||
| PM (TTM) | 15.07% | ||
| GM | 65.01% |
OM growth 3Y5.13%
OM growth 5Y1.68%
PM growth 3Y11.11%
PM growth 5Y12.13%
GM growth 3Y3.83%
GM growth 5Y1.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GPN is destroying value.
The number of shares outstanding for GPN has been reduced compared to 1 year ago.
The number of shares outstanding for GPN has been reduced compared to 5 years ago.
Compared to 1 year ago, GPN has a worse debt to assets ratio.
2.2 Solvency
GPN has an Altman-Z score of 0.98. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GPN (0.98) is better than 60.61% of its industry peers.
The Debt to FCF ratio of GPN is 5.33, which is a neutral value as it means it would take GPN, 5.33 years of fcf income to pay off all of its debts.
GPN has a better Debt to FCF ratio (5.33) than 66.67% of its industry peers.
GPN has a Debt/Equity ratio of 0.65. This is a neutral value indicating GPN is somewhat dependend on debt financing.
The Debt to Equity ratio of GPN (0.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.77
WACC6.14%
2.3 Liquidity
A Current Ratio of 0.95 indicates that GPN may have some problems paying its short term obligations.
The Current ratio of GPN (0.95) is comparable to the rest of the industry.
A Quick Ratio of 0.95 indicates that GPN may have some problems paying its short term obligations.
GPN's Quick ratio of 0.95 is in line compared to the rest of the industry. GPN outperforms 46.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.24% over the past year.
GPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.36% yearly.
GPN shows a decrease in Revenue. In the last year, the revenue decreased by -4.17%.
GPN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.52% yearly.
EPS 1Y (TTM)8.24%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%5.8%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%1.6%
3.2 Future
Based on estimates for the next years, GPN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.75% on average per year.
Based on estimates for the next years, GPN will show a quite strong growth in Revenue. The Revenue will grow by 10.52% on average per year.
EPS Next Y6.6%
EPS Next 2Y9.45%
EPS Next 3Y11.36%
EPS Next 5Y9.75%
Revenue Next Year1.46%
Revenue Next 2Y3.57%
Revenue Next 3Y5.21%
Revenue Next 5Y10.52%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.28 indicates a rather cheap valuation of GPN.
Based on the Price/Earnings ratio, GPN is valued cheaper than 86.87% of the companies in the same industry.
GPN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.55.
A Price/Forward Earnings ratio of 6.22 indicates a rather cheap valuation of GPN.
Based on the Price/Forward Earnings ratio, GPN is valued cheaper than 80.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GPN indicates a somewhat cheap valuation: GPN is cheaper than 78.79% of the companies listed in the same industry.
86.87% of the companies in the same industry are more expensive than GPN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.69 | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
GPN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GPN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)0.55
EPS Next 2Y9.45%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, GPN has a reasonable but not impressive dividend return.
GPN's Dividend Yield is comparable with the industry average which is at 4.87.
With a Dividend Yield of 1.15, GPN pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of GPN is nicely growing with an annual growth rate of 21.27%!
GPN has paid a dividend for at least 10 years, which is a reliable track record.
As GPN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)21.27%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
GPN pays out 17.30% of its income as dividend. This is a sustainable payout ratio.
GPN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.3%
EPS Next 2Y9.45%
EPS Next 3Y11.36%
86.1
-0.37 (-0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change0.2%
Ins Owners0.53%
Ins Owner Change1.71%
Market Cap20.89B
Analysts68.82
Price Target101.37 (17.74%)
Short Float %3.68%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend0.99
Dividend Growth(5Y)21.27%
DP17.3%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.77%
Min EPS beat(2)-1.97%
Max EPS beat(2)0.44%
EPS beat(4)1
Avg EPS beat(4)-1.25%
Min EPS beat(4)-2.29%
Max EPS beat(4)0.44%
EPS beat(8)3
Avg EPS beat(8)-0.69%
EPS beat(12)5
Avg EPS beat(12)-0.31%
EPS beat(16)7
Avg EPS beat(16)-0.24%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.82%
Revenue beat(8)0
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)1.2%
Revenue beat(16)7
Avg Revenue beat(16)3.18%
PT rev (1m)-3.87%
PT rev (3m)1.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 6.22 | ||
| P/S | 2.2 | ||
| P/FCF | 6.69 | ||
| P/OCF | 5.57 | ||
| P/B | 0.92 | ||
| P/tB | 14.21 | ||
| EV/EBITDA | 8.52 |
EPS(TTM)11.82
EY13.73%
EPS(NY)13.84
Fwd EY16.07%
FCF(TTM)12.87
FCFY14.95%
OCF(TTM)15.47
OCFY17.96%
SpS39.1
BVpS93.13
TBVpS6.06
PEG (NY)1.1
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 6.33% | ||
| ROCE | 5.77% | ||
| ROIC | 4.73% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 11.24% | ||
| OM | 24.54% | ||
| PM (TTM) | 15.07% | ||
| GM | 65.01% | ||
| FCFM | 32.91% |
ROA(3y)1.85%
ROA(5y)1.8%
ROE(3y)3.95%
ROE(5y)3.55%
ROIC(3y)4.36%
ROIC(5y)3.81%
ROICexc(3y)4.61%
ROICexc(5y)4.02%
ROICexgc(3y)47.47%
ROICexgc(5y)47.57%
ROCE(3y)5.34%
ROCE(5y)4.65%
ROICexcg growth 3Y5.38%
ROICexcg growth 5Y12.85%
ROICexc growth 3Y11.96%
ROICexc growth 5Y18.11%
OM growth 3Y5.13%
OM growth 5Y1.68%
PM growth 3Y11.11%
PM growth 5Y12.13%
GM growth 3Y3.83%
GM growth 5Y1.31%
F-Score9
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 3.66 | ||
| Cap/Depr | 36.9% | ||
| Cap/Sales | 6.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.98% | ||
| Profit Quality | 218.38% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 0.98 |
F-Score9
WACC6.14%
ROIC/WACC0.77
Cap/Depr(3y)36.77%
Cap/Depr(5y)33.3%
Cap/Sales(3y)6.79%
Cap/Sales(5y)6.4%
Profit Quality(3y)601.21%
Profit Quality(5y)472.37%
High Growth Momentum
Growth
EPS 1Y (TTM)8.24%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%5.8%
EPS Next Y6.6%
EPS Next 2Y9.45%
EPS Next 3Y11.36%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%1.6%
Revenue Next Year1.46%
Revenue Next 2Y3.57%
Revenue Next 3Y5.21%
Revenue Next 5Y10.52%
EBIT growth 1Y-2.46%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year10.5%
EBIT Next 3Y7.53%
EBIT Next 5Y9.19%
FCF growth 1Y96.64%
FCF growth 3Y7.7%
FCF growth 5Y21.41%
OCF growth 1Y69.75%
OCF growth 3Y8.3%
OCF growth 5Y20.49%