GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - NYSE:GPN - US37940X1028 - Common Stock
76.37 USD
-2.83 (-3.57%)
76.75 USD
+0.38 (+0.5%)
GPN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. GPN scores excellent on profitability, but there are 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.
GPN had a positive operating cash flow in the past year.
GPN had positive earnings in each of the past 5 years.
In the past 5 years GPN always reported a positive cash flow from operatings.
1.2 Ratios
GPN has a Return On Assets of 2.95%. This is in the better half of the industry: GPN outperforms 67.35% of its industry peers.
Looking at the Return On Equity, with a value of 6.33%, GPN is doing worse than 61.22% of the companies in the same industry.
The Return On Invested Capital of GPN (4.73%) is better than 62.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPN is below the industry average of 7.85%.
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
Looking at the Profit Margin, with a value of 15.07%, GPN is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
GPN's Profit Margin has improved in the last couple of years.
GPN has a Operating Margin of 24.54%. This is in the better half of the industry: GPN outperforms 71.43% 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 77.55% of the companies in the same industry.
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 | 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
GPN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
GPN has a worse debt/assets ratio than last year.
2.2 Solvency
GPN has an Altman-Z score of 0.94. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.94, GPN is in line with its industry, outperforming 57.14% of the companies in the same industry.
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.
The Debt to FCF ratio of GPN (5.33) is better than 66.33% 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.
GPN has a Debt to Equity ratio (0.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.78
WACC6.06%
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 has a Current ratio (0.95) which is in line with its industry peers.
A Quick Ratio of 0.95 indicates that GPN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, GPN is in line with its industry, outperforming 46.94% 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 small growth in Earnings Per Share. In the last year, the EPS has grown by 6.67%.
The Earnings Per Share has been growing by 13.36% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.68% in the past year.
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)4.68%
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.
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 Y6.65%
EPS Next 2Y8.97%
EPS Next 3Y11.02%
EPS Next 5Y15.55%
Revenue Next Year1.46%
Revenue Next 2Y3.54%
Revenue Next 3Y5.08%
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.
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
Based on the Price/Earnings ratio of 6.36, the valuation of GPN can be described as very cheap.
89.80% 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 26.13, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.57 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 82.65% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.35. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 5.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPN is valued a bit cheaper than 76.53% of the companies in the same industry.
GPN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GPN is cheaper than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.93 | ||
| EV/EBITDA | 8.08 |
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.
GPN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)0.48
EPS Next 2Y8.97%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.26%.
Compared to an average industry Dividend Yield of 4.91, GPN has a dividend in line with its industry peers.
With a Dividend Yield of 1.26, GPN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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.
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.
The dividend of GPN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.3%
EPS Next 2Y8.97%
EPS Next 3Y11.02%
76.37
-2.83 (-3.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change-0.01%
Ins Owners0.53%
Ins Owner Change0.57%
Market Cap18.53B
Revenue(TTM)10.11B
Net Income(TTM)1.43B
Analysts69.44
Price Target106.2 (39.06%)
Short Float %3.68%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)0.7%
PT rev (3m)7.04%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 5.57 | ||
| P/S | 1.95 | ||
| P/FCF | 5.93 | ||
| P/OCF | 4.94 | ||
| P/B | 0.82 | ||
| P/tB | 12.6 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)12
EY15.71%
EPS(NY)13.71
Fwd EY17.96%
FCF(TTM)12.87
FCFY16.85%
OCF(TTM)15.47
OCFY20.25%
SpS39.1
BVpS93.13
TBVpS6.06
PEG (NY)0.96
PEG (5Y)0.48
Graham Number158.57
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%
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-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 | 0.94 |
F-Score9
WACC6.06%
ROIC/WACC0.78
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 Y6.65%
EPS Next 2Y8.97%
EPS Next 3Y11.02%
EPS Next 5Y15.55%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%3.04%
Revenue Next Year1.46%
Revenue Next 2Y3.54%
Revenue Next 3Y5.08%
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%
GLOBAL PAYMENTS INC / GPN FAQ
Can you provide the ChartMill fundamental rating for GLOBAL PAYMENTS INC?
ChartMill assigns a fundamental rating of 6 / 10 to GPN.
Can you provide the valuation status for GLOBAL PAYMENTS INC?
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.
Can you provide the PE and PB ratios for GPN stock?
The Price/Earnings (PE) ratio for GLOBAL PAYMENTS INC (GPN) is 6.36 and the Price/Book (PB) ratio is 0.82.
How sustainable is the dividend of GLOBAL PAYMENTS INC (GPN) stock?
The dividend rating of GLOBAL PAYMENTS INC (GPN) is 5 / 10 and the dividend payout ratio is 17.3%.