GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPN - US37940X1028 - Common Stock
79.52 USD
+0.83 (+1.05%)
79.52 USD
0 (0%)
Taking everything into account, GPN scores 5 out of 10 in our fundamental rating. GPN was compared to 98 industry peers in the Financial Services industry. GPN has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GPN.
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.
In the past 5 years GPN has always been profitable.
In the past 5 years GPN always reported a positive cash flow from operatings.
1.2 Ratios
GPN has a better Return On Assets (3.65%) than 71.43% of its industry peers.
GPN has a Return On Equity of 7.72%. This is comparable to the rest of the industry: GPN outperforms 44.90% of its industry peers.
The Return On Invested Capital of GPN (4.90%) is better than 66.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPN is below the industry average of 8.44%.
The last Return On Invested Capital (4.90%) for GPN is above the 3 year average (4.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 7.72% | ||
| ROIC | 4.9% |
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
The Profit Margin of GPN (19.68%) is better than 78.57% 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 26.85%, GPN is in the better half of the industry, outperforming 72.45% of the companies in the same industry.
In the last couple of years the Operating Margin of GPN has grown nicely.
GPN has a Gross Margin of 67.06%. This is in the better half of the industry: GPN outperforms 78.57% of its industry peers.
In the last couple of years the Gross Margin of GPN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.85% | ||
| PM (TTM) | 19.68% | ||
| GM | 67.06% |
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.
Compared to 1 year ago, GPN has less shares outstanding
Compared to 5 years ago, GPN has less shares outstanding
GPN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that GPN is in the distress zone and has some risk of bankruptcy.
GPN has a better Altman-Z score (0.93) than 60.20% of its industry peers.
The Debt to FCF ratio of GPN is 7.50, which is on the high side as it means it would take GPN, 7.50 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.50, GPN perfoms like the industry average, outperforming 47.96% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that GPN is somewhat dependend on debt financing.
GPN's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. GPN outperforms 53.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.65
WACC7.49%
2.3 Liquidity
GPN has a Current Ratio of 0.85. 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 0.85 is in line compared to the rest of the industry. GPN outperforms 45.92% of its industry peers.
GPN has a Quick Ratio of 0.85. 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 Quick ratio of 0.85 is in line compared to the rest of the industry. GPN outperforms 47.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.67% over the past year.
Measured over the past years, GPN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.36% on average per year.
GPN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.30%.
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)6.67%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%5.84%
Revenue 1Y (TTM)-11.3%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%3.04%
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 15.55% yearly.
The Revenue is expected to grow by 10.52% on average over the next years. This is quite good.
EPS Next Y6.67%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
EPS Next 5Y15.55%
Revenue Next Year1.04%
Revenue Next 2Y2.56%
Revenue Next 3Y3.26%
Revenue Next 5Y10.52%
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.
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
A Price/Earnings ratio of 6.63 indicates a rather cheap valuation of GPN.
Based on the Price/Earnings ratio, GPN is valued cheaply inside the industry as 86.73% of the companies are valued more expensively.
GPN is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.76 indicates a rather cheap valuation of GPN.
Based on the Price/Forward Earnings ratio, GPN is valued cheaper than 84.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 5.76 |
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 74.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GPN is valued a bit cheaper than 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.71 | ||
| EV/EBITDA | 7.97 |
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.
The decent profitability rating of GPN may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)0.5
EPS Next 2Y9.31%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.27%.
Compared to an average industry Dividend Yield of 2.36, GPN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.90, GPN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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.
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 13.82% of its income as dividend. This is a sustainable payout ratio.
The dividend of GPN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.82%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
79.52
+0.83 (+1.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.88%
Inst Owner Change0%
Ins Owners0.54%
Ins Owner Change-0.98%
Market Cap18.83B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts70.86
Price Target106.46 (33.88%)
Short Float %4.3%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.99
Dividend Growth(5Y)21.27%
DP13.82%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.02%
Min EPS beat(2)-0.49%
Max EPS beat(2)0.44%
EPS beat(4)1
Avg EPS beat(4)-0.8%
Min EPS beat(4)-1.97%
Max EPS beat(4)0.44%
EPS beat(8)2
Avg EPS beat(8)-0.8%
EPS beat(12)5
Avg EPS beat(12)-0.27%
EPS beat(16)6
Avg EPS beat(16)-0.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)-0.46%
Revenue beat(8)0
Avg Revenue beat(8)-1%
Revenue beat(12)2
Avg Revenue beat(12)0.22%
Revenue beat(16)6
Avg Revenue beat(16)2.55%
PT rev (1m)-0.12%
PT rev (3m)5.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 5.76 | ||
| P/S | 2.12 | ||
| P/FCF | 8.71 | ||
| P/OCF | 6.74 | ||
| P/B | 0.83 | ||
| P/tB | 11.36 | ||
| EV/EBITDA | 7.97 |
EPS(TTM)12
EY15.09%
EPS(NY)13.8
Fwd EY17.36%
FCF(TTM)9.13
FCFY11.48%
OCF(TTM)11.81
OCFY14.85%
SpS37.56
BVpS95.75
TBVpS7
PEG (NY)0.99
PEG (5Y)0.5
Graham Number160.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 7.72% | ||
| ROCE | 6.04% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 11.76% | ||
| OM | 26.85% | ||
| PM (TTM) | 19.68% | ||
| GM | 67.06% | ||
| FCFM | 24.31% |
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%
ROICexgc growth 3Y5.38%
ROICexgc 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-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 41.25% | ||
| Cap/Sales | 7.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.24% | ||
| Profit Quality | 123.52% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 0.93 |
F-Score7
WACC7.49%
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)6.67%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%5.84%
EPS Next Y6.67%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
EPS Next 5Y15.55%
Revenue 1Y (TTM)-11.3%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%3.04%
Revenue Next Year1.04%
Revenue Next 2Y2.56%
Revenue Next 3Y3.26%
Revenue Next 5Y10.52%
EBIT growth 1Y2.31%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year10.45%
EBIT Next 3Y7.54%
EBIT Next 5Y9.19%
FCF growth 1Y31.17%
FCF growth 3Y7.7%
FCF growth 5Y21.41%
OCF growth 1Y21.47%
OCF growth 3Y8.3%
OCF growth 5Y20.49%
GLOBAL PAYMENTS INC / GPN FAQ
Can you provide the ChartMill fundamental rating for GLOBAL PAYMENTS INC?
ChartMill assigns a fundamental rating of 5 / 10 to GPN.
What is the valuation status of GLOBAL PAYMENTS INC (GPN) stock?
ChartMill assigns a valuation rating of 8 / 10 to GLOBAL PAYMENTS INC (GPN). This can be considered as Undervalued.
What is the profitability of GPN stock?
GLOBAL PAYMENTS INC (GPN) has a profitability rating of 7 / 10.
What is the valuation of GLOBAL PAYMENTS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GLOBAL PAYMENTS INC (GPN) is 6.63 and the Price/Book (PB) ratio is 0.83.
Is the dividend of GLOBAL PAYMENTS INC sustainable?
The dividend rating of GLOBAL PAYMENTS INC (GPN) is 5 / 10 and the dividend payout ratio is 13.82%.