GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPN - US37940X1028 - Common Stock
77.4 USD
-1.91 (-2.41%)
77.4 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. GPN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GPN was profitable.
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
Looking at the Return On Assets, with a value of 3.65%, GPN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
GPN has a Return On Equity (7.72%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 4.90%, GPN is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GPN is below the industry average of 8.44%.
The 3 year average ROIC (4.36%) for GPN is below the current ROIC(4.90%), indicating increased profibility in the last year.
| 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 better Profit Margin (19.68%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of GPN has grown nicely.
With a decent Operating Margin value of 26.85%, GPN is doing good in 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 better Gross Margin (67.06%) than 78.57% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GPN is destroying value.
GPN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GPN has been reduced compared to 5 years ago.
The debt/assets ratio for GPN is higher compared to a year ago.
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's Altman-Z score of 0.93 is fine compared to the rest of the industry. GPN outperforms 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.
GPN's Debt to FCF ratio of 7.50 is in line compared to the rest of the industry. GPN outperforms 47.96% of its industry peers.
GPN has a Debt/Equity ratio of 0.63. This is a neutral value indicating GPN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, GPN perfoms like the industry average, outperforming 52.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.82
WACC6.01%
2.3 Liquidity
A Current Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
GPN has a Current ratio of 0.85. This is comparable to the rest of the industry: GPN outperforms 44.90% 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 has a Quick ratio of 0.85. This is comparable to the rest of the industry: GPN outperforms 46.94% 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.
The Earnings Per Share has been growing by 13.36% on average over the past years. This is quite good.
Looking at the last year, GPN shows a very negative growth in Revenue. The Revenue has decreased by -11.30% in the last year.
Measured over the past years, GPN shows a quite strong growth in Revenue. The Revenue has been growing by 15.52% on average per year.
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.
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 Y6.67%
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
A Price/Earnings ratio of 6.45 indicates a rather cheap valuation of GPN.
Compared to the rest of the industry, the Price/Earnings ratio of GPN indicates a rather cheap valuation: GPN is cheaper than 86.73% of the companies listed in the same industry.
GPN is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.61 indicates a rather cheap valuation of GPN.
GPN's Price/Forward Earnings ratio is rather cheap when compared to the industry. GPN is cheaper than 84.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GPN to the average of the S&P500 Index (23.13), we can say GPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 5.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPN is valued a bit cheaper than 75.51% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPN indicates a somewhat cheap valuation: GPN is cheaper than 79.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.48 | ||
| EV/EBITDA | 8 |
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
GPN has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
GPN's Dividend Yield is comparable with the industry average which is at 2.36.
Compared to the average S&P500 Dividend Yield of 2.00, GPN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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
13.82% of the earnings are spent on dividend by GPN. This is a low number and 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%
77.4
-1.91 (-2.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.78%
Inst Owner Change0.7%
Ins Owners0.54%
Ins Owner Change-1.04%
Market Cap18.32B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts70.86
Price Target106.46 (37.55%)
Short Float %4.3%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)0.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.13%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 5.61 | ||
| P/S | 2.06 | ||
| P/FCF | 8.48 | ||
| P/OCF | 6.56 | ||
| P/B | 0.81 | ||
| P/tB | 11.06 | ||
| EV/EBITDA | 8 |
EPS(TTM)12
EY15.5%
EPS(NY)13.8
Fwd EY17.83%
FCF(TTM)9.13
FCFY11.79%
OCF(TTM)11.81
OCFY15.25%
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 | 0.93 |
F-Score7
WACC6.01%
ROIC/WACC0.82
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 6.45 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%.