GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - NYSE:GPN - US37940X1028 - Common Stock
84.23 USD
-1.12 (-1.31%)
Overall GPN gets a fundamental rating of 5 out of 10. We evaluated GPN against 101 industry peers in the Financial Services industry. While GPN has a great profitability rating, there are quite some concerns on its financial health. GPN may be a bit undervalued, certainly considering the very reasonable score on growth
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.
GPN had positive earnings in each of the past 5 years.
GPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GPN has a Return On Assets of 2.95%. This is in the better half of the industry: GPN outperforms 66.34% of its industry peers.
Looking at the Return On Equity, with a value of 6.33%, GPN is doing worse than 60.40% of the companies in the same industry.
GPN has a better Return On Invested Capital (4.73%) than 63.37% 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 7.64%.
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
With a decent Profit Margin value of 15.07%, GPN is doing good in the industry, outperforming 64.36% of the companies in the same industry.
In the last couple of years the Profit Margin of GPN has grown nicely.
GPN's Operating Margin of 24.54% is fine compared to the rest of the industry. GPN outperforms 70.30% of its industry peers.
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 77.23% 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.
GPN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GPN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that GPN is in the distress zone and has some risk of bankruptcy.
GPN's Altman-Z score of 0.97 is in line compared to the rest of the industry. GPN outperforms 57.43% of its industry peers.
GPN has a debt to FCF ratio of 5.33. This is a neutral value as GPN would need 5.33 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.33, GPN is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that GPN is somewhat dependend on debt financing.
GPN has a Debt to Equity ratio (0.65) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.65
WACC7.24%
2.3 Liquidity
GPN has a Current Ratio of 0.95. This is a bad value and indicates that GPN is not financially healthy enough and could expect problems in meeting its short term obligations.
GPN's Current ratio of 0.95 is in line compared to the rest of the industry. GPN outperforms 46.53% of its industry peers.
GPN has a Quick Ratio of 0.95. 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 Quick ratio, with a value of 0.95, GPN is in line with its industry, outperforming 47.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
GPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.24%, 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 13.36% yearly.
GPN shows a decrease in Revenue. In the last year, the revenue decreased by -4.17%.
The Revenue has been growing by 15.52% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 9.75% on average over the next years. This is quite good.
GPN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.52% yearly.
EPS Next Y6.63%
EPS Next 2Y9.42%
EPS Next 3Y11.45%
EPS Next 5Y9.75%
Revenue Next Year1.45%
Revenue Next 2Y3.58%
Revenue Next 3Y5.02%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.13, the valuation of GPN can be described as very cheap.
86.14% of the companies in the same industry are more expensive than GPN, based on the Price/Earnings ratio.
GPN is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.09, which indicates a rather cheap valuation of GPN.
84.16% of the companies in the same industry are more expensive than GPN, based on the Price/Forward Earnings ratio.
GPN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 6.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPN is valued cheaply inside the industry as 80.20% of the companies are valued more expensively.
89.11% 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 | 6.55 | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GPN may justify a higher PE ratio.
PEG (NY)1.07
PEG (5Y)0.53
EPS Next 2Y9.42%
EPS Next 3Y11.45%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.86, GPN has a dividend in line with its industry peers.
With a Dividend Yield of 1.15, GPN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of GPN grows each year by 21.27%, which is quite nice.
GPN has been paying a dividend for at least 10 years, so it has 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)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 2Y9.42%
EPS Next 3Y11.45%
NYSE:GPN (9/15/2025, 12:30:08 PM)
84.23
-1.12 (-1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.17%
Inst Owner Change-3.32%
Ins Owners0.53%
Ins Owner Change1.59%
Market Cap20.44B
Analysts69.41
Price Target105.45 (25.19%)
Short Float %3.2%
Short Ratio3.13
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)4.48%
PT rev (3m)5.04%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)0.74%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 6.09 | ||
| P/S | 2.15 | ||
| P/FCF | 6.55 | ||
| P/OCF | 5.45 | ||
| P/B | 0.9 | ||
| P/tB | 13.9 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)11.82
EY14.03%
EPS(NY)13.83
Fwd EY16.42%
FCF(TTM)12.87
FCFY15.28%
OCF(TTM)15.47
OCFY18.36%
SpS39.1
BVpS93.13
TBVpS6.06
PEG (NY)1.07
PEG (5Y)0.53
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 | 0.97 |
F-Score9
WACC7.24%
ROIC/WACC0.65
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 Y6.63%
EPS Next 2Y9.42%
EPS Next 3Y11.45%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%1.6%
Revenue Next Year1.45%
Revenue Next 2Y3.58%
Revenue Next 3Y5.02%
Revenue Next 5Y10.52%
EBIT growth 1Y-2.46%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year11.22%
EBIT Next 3Y7.32%
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%