GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
NYSE:GPN - New York Stock Exchange, Inc. - US37940X1028 - Common Stock
Taking everything into account, GPN scores 5 out of 10 in our fundamental rating. GPN was compared to 101 industry peers in the Financial Services industry. There are concerns on the financial health of GPN while its profitability can be described as average. GPN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GPN was profitable.
GPN had a positive operating cash flow in the past year.
GPN had positive earnings in each of the past 5 years.
Each year in the past 5 years GPN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GPN (2.73%) is comparable to the rest of the industry.
GPN's Return On Equity of 5.98% is in line compared to the rest of the industry. GPN outperforms 43.56% of its industry peers.
GPN's Return On Invested Capital of 4.25% is fine compared to the rest of the industry. GPN outperforms 63.37% of its industry peers.
GPN had an Average Return On Invested Capital over the past 3 years of 3.73%. This is below the industry average of 7.84%.
The 3 year average ROIC (3.73%) for GPN is below the current ROIC(4.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 5.98% | ||
| ROIC | 4.25% |
ROA(3y)1.44%
ROA(5y)1.32%
ROE(3y)2.85%
ROE(5y)2.45%
ROIC(3y)3.73%
ROIC(5y)3.12%
1.3 Margins
GPN's Profit Margin of 13.61% is in line compared to the rest of the industry. GPN outperforms 57.43% of its industry peers.
GPN's Profit Margin has declined in the last couple of years.
The Operating Margin of GPN (22.69%) is better than 68.32% of its industry peers.
GPN's Operating Margin has been stable in the last couple of years.
The Gross Margin of GPN (62.79%) is better than 75.25% of its industry peers.
GPN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.69% | ||
| PM (TTM) | 13.61% | ||
| GM | 62.79% |
OM growth 3Y11.62%
OM growth 5Y-0.72%
PM growth 3Y9.07%
PM growth 5Y-5.32%
GM growth 3Y6.26%
GM growth 5Y-1.81%
2. Health
2.1 Basic Checks
GPN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GPN has less shares outstanding
The number of shares outstanding for GPN has been increased compared to 5 years ago.
GPN has a worse debt/assets ratio than last year.
2.2 Solvency
GPN has an Altman-Z score of 1.07. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
GPN has a better Altman-Z score (1.07) than 63.37% of its industry peers.
The Debt to FCF ratio of GPN is 6.08, which is on the high side as it means it would take GPN, 6.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GPN (6.08) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.70 indicates that GPN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, GPN is in line with its industry, outperforming 48.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.58
WACC7.31%
2.3 Liquidity
GPN has a Current Ratio of 0.93. This is a bad value and indicates that GPN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.93, GPN is in line with its industry, outperforming 42.57% of the companies in the same industry.
GPN has a Quick Ratio of 0.93. This is a bad value and indicates that GPN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GPN (0.93) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
GPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.40%, which is quite good.
GPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.96% yearly.
The Revenue has been growing slightly by 5.81% in the past year.
Measured over the past years, GPN shows a very strong growth in Revenue. The Revenue has been growing by 23.46% on average per year.
EPS 1Y (TTM)10.4%
EPS 3Y17.64%
EPS 5Y14.96%
EPS Q2Q%12%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.15%
Revenue growth 5Y23.46%
Sales Q2Q%5.58%
3.2 Future
GPN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.50% yearly.
The Revenue is expected to grow by 6.59% on average over the next years.
EPS Next Y11.97%
EPS Next 2Y11.45%
EPS Next 3Y12.13%
EPS Next 5Y12.5%
Revenue Next Year5.88%
Revenue Next 2Y4.69%
Revenue Next 3Y5.25%
Revenue Next 5Y6.59%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.67, which indicates a very decent valuation of GPN.
Compared to the rest of the industry, the Price/Earnings ratio of GPN indicates a somewhat cheap valuation: GPN is cheaper than 70.30% of the companies listed in the same industry.
GPN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
GPN is valuated reasonably with a Price/Forward Earnings ratio of 8.40.
GPN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GPN is cheaper than 69.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPN is valued a bit cheaper than 74.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GPN is valued a bit cheaper than 79.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.58 | ||
| EV/EBITDA | 10.04 |
4.3 Compensation for Growth
GPN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GPN's earnings are expected to grow with 12.13% in the coming years.
PEG (NY)0.81
PEG (5Y)0.65
EPS Next 2Y11.45%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, GPN is not a good candidate for dividend investing.
GPN's Dividend Yield is a higher than the industry average which is at 3.66.
Compared to an average S&P500 Dividend Yield of 2.28, GPN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of GPN is nicely growing with an annual growth rate of 90.47%!
GPN has paid a dividend for at least 10 years, which is a reliable track record.
GPN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)90.47%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
18.71% of the earnings are spent on dividend by GPN. This is a low number and sustainable payout ratio.
The dividend of GPN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.71%
EPS Next 2Y11.45%
EPS Next 3Y12.13%
GLOBAL PAYMENTS INC
NYSE:GPN (1/22/2025, 10:38:57 AM)
108.75
+0.18 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.93%
Inst Owner Change0.3%
Ins Owners0.83%
Ins Owner Change-1.03%
Market Cap27.68B
Analysts77.07
Price Target137.98 (26.88%)
Short Float %2.72%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend1
Dividend Growth(5Y)90.47%
DP18.71%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.13%
Min EPS beat(2)-2.29%
Max EPS beat(2)0.03%
EPS beat(4)1
Avg EPS beat(4)-0.8%
Min EPS beat(4)-2.29%
Max EPS beat(4)0.03%
EPS beat(8)4
Avg EPS beat(8)0%
EPS beat(12)5
Avg EPS beat(12)-0.14%
EPS beat(16)9
Avg EPS beat(16)0.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.32%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.64%
Revenue beat(8)2
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)3.73%
Revenue beat(16)10
Avg Revenue beat(16)5.51%
PT rev (1m)1.73%
PT rev (3m)-3.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 8.4 | ||
| P/S | 2.76 | ||
| P/FCF | 9.58 | ||
| P/OCF | 7.83 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.04 |
EPS(TTM)11.25
EY10.34%
EPS(NY)12.94
Fwd EY11.9%
FCF(TTM)11.35
FCFY10.44%
OCF(TTM)13.9
OCFY12.78%
SpS39.39
BVpS89.64
TBVpS-52.92
PEG (NY)0.81
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 5.98% | ||
| ROCE | 5.49% | ||
| ROIC | 4.25% | ||
| ROICexc | 4.57% | ||
| ROICexgc | 59.4% | ||
| OM | 22.69% | ||
| PM (TTM) | 13.61% | ||
| GM | 62.79% | ||
| FCFM | 28.81% |
ROA(3y)1.44%
ROA(5y)1.32%
ROE(3y)2.85%
ROE(5y)2.45%
ROIC(3y)3.73%
ROIC(5y)3.12%
ROICexc(3y)3.92%
ROICexc(5y)3.27%
ROICexgc(3y)42.44%
ROICexgc(5y)40.23%
ROCE(3y)4.81%
ROCE(5y)4.01%
ROICexcg growth 3Y-3.79%
ROICexcg growth 5Y-17.24%
ROICexc growth 3Y18.53%
ROICexc growth 5Y-8.75%
OM growth 3Y11.62%
OM growth 5Y-0.72%
PM growth 3Y9.07%
PM growth 5Y-5.32%
GM growth 3Y6.26%
GM growth 5Y-1.81%
F-Score8
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.08 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 34.96% | ||
| Cap/Sales | 6.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.66% | ||
| Profit Quality | 211.69% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.07 |
F-Score8
WACC7.31%
ROIC/WACC0.58
Cap/Depr(3y)34.41%
Cap/Depr(5y)33.06%
Cap/Sales(3y)6.49%
Cap/Sales(5y)6.32%
Profit Quality(3y)619.52%
Profit Quality(5y)486.3%
High Growth Momentum
Growth
EPS 1Y (TTM)10.4%
EPS 3Y17.64%
EPS 5Y14.96%
EPS Q2Q%12%
EPS Next Y11.97%
EPS Next 2Y11.45%
EPS Next 3Y12.13%
EPS Next 5Y12.5%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.15%
Revenue growth 5Y23.46%
Sales Q2Q%5.58%
Revenue Next Year5.88%
Revenue Next 2Y4.69%
Revenue Next 3Y5.25%
Revenue Next 5Y6.59%
EBIT growth 1Y9.46%
EBIT growth 3Y21.83%
EBIT growth 5Y22.57%
EBIT Next Year19.17%
EBIT Next 3Y9.96%
EBIT Next 5Y9.95%
FCF growth 1Y71.75%
FCF growth 3Y-5.39%
FCF growth 5Y12.24%
OCF growth 1Y54.6%
OCF growth 3Y-0.95%
OCF growth 5Y15.25%