GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPN - US37940X1028 - Common Stock
77.47 USD
-2.21 (-2.77%)
77.47 USD
0 (0%)
GPN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. While GPN has a great profitability rating, there are quite some concerns on its financial health. GPN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
GPN had positive earnings in the past year.
GPN had a positive operating cash flow in the past year.
In the past 5 years GPN has always been profitable.
Each year in the past 5 years GPN had a positive operating cash flow.
1.2 Ratios
GPN's Return On Assets of 3.65% is fine compared to the rest of the industry. GPN outperforms 71.43% of its industry peers.
GPN's Return On Equity of 7.72% is in line compared to the rest of the industry. GPN outperforms 44.90% of its industry peers.
GPN's Return On Invested Capital of 4.90% is fine compared to the rest of the industry. GPN outperforms 66.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
GPN has a Profit Margin of 19.68%. This is in the better half of the industry: GPN outperforms 78.57% of its industry peers.
GPN's Profit Margin has improved in the last couple of years.
The Operating Margin of GPN (26.85%) is better than 72.45% 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 67.06%, GPN is doing good in the industry, outperforming 77.55% 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 | 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
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
Compared to 5 years ago, GPN has less shares outstanding
Compared to 1 year ago, GPN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that GPN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GPN (0.94) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of GPN (7.50) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.63 indicates that GPN is somewhat dependend on debt financing.
GPN has a Debt to Equity ratio (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.66
WACC7.43%
2.3 Liquidity
A Current Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, GPN is in line with its industry, outperforming 45.92% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
GPN has a Quick ratio (0.85) which is in line with 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.
GPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.36% yearly.
The Revenue for GPN has decreased by -11.30% in the past year. This is quite bad
The Revenue has been growing by 15.52% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 6.46, which indicates a rather cheap valuation of GPN.
GPN's Price/Earnings ratio is rather cheap when compared to the industry. GPN is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. GPN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.61, which indicates a rather cheap valuation of GPN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GPN indicates a rather cheap valuation: GPN is cheaper than 85.71% of the companies listed in the same industry.
GPN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 5.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPN is valued a bit cheaper than the industry average as 74.49% of the companies are valued more expensively.
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 | 8.49 | ||
| EV/EBITDA | 8.03 |
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)0.97
PEG (5Y)0.48
EPS Next 2Y9.31%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, GPN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.49, GPN has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 1.92, GPN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
On average, the dividend of GPN grows each year by 21.27%, which is quite nice.
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.
GPN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.82%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
77.47
-2.21 (-2.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.88%
Inst Owner Change0.08%
Ins Owners0.54%
Ins Owner Change-0.98%
Market Cap18.34B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts70.86
Price Target106.46 (37.42%)
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%
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 | 6.46 | ||
| Fwd PE | 5.61 | ||
| P/S | 2.06 | ||
| P/FCF | 8.49 | ||
| P/OCF | 6.56 | ||
| P/B | 0.81 | ||
| P/tB | 11.07 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)12
EY15.49%
EPS(NY)13.8
Fwd EY17.82%
FCF(TTM)9.13
FCFY11.78%
OCF(TTM)11.81
OCFY15.24%
SpS37.56
BVpS95.75
TBVpS7
PEG (NY)0.97
PEG (5Y)0.48
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 | 0.94 |
F-Score7
WACC7.43%
ROIC/WACC0.66
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 6.46 and the Price/Book (PB) ratio is 0.81.
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%.