GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPN - US37940X1028 - Common Stock
73.8 USD
-1.19 (-1.59%)
73.8 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 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.
- GPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GPN has a Return On Assets of 3.65%. This is in the better half of the industry: GPN outperforms 71.43% of its industry peers.
- The Return On Equity of GPN (7.72%) is comparable to the rest of the industry.
- GPN has a Return On Invested Capital of 4.90%. This is in the better half of the industry: GPN outperforms 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 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.
- GPN's Profit Margin has improved in the last couple of years.
- GPN has a Operating Margin of 26.85%. This is in the better half of the industry: GPN outperforms 72.45% of its industry peers.
- In the last couple of years the Operating Margin of GPN has grown nicely.
- Looking at the Gross Margin, with a value of 67.06%, GPN is in the better half of 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 | 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.
- 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.
- Compared to 1 year ago, GPN has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.91, we must say that GPN is in the distress zone and has some risk of bankruptcy.
- GPN has a Altman-Z score (0.91) which is in line with its industry peers.
- GPN has a debt to FCF ratio of 7.50. This is a slightly negative value and a sign of low solvency as GPN would need 7.50 years to pay back of all of its debts.
- GPN has a Debt to FCF ratio of 7.50. This is comparable to the rest of the industry: GPN outperforms 46.94% of its industry peers.
- 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 52.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.66
WACC7.39%
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 has a Current ratio of 0.85. This is comparable 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.
- With a Quick ratio value of 0.85, GPN perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
| 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.
- 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.
- Based on estimates for the next years, GPN will show a quite strong growth in Revenue. The Revenue will grow by 10.52% on average per year.
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.
- 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
- A Price/Earnings ratio of 6.15 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.
- When comparing the Price/Earnings ratio of GPN to the average of the S&P500 Index (27.47), we can say GPN is valued rather cheaply.
- GPN is valuated cheaply with a Price/Forward Earnings ratio of 5.35.
- 87.76% of the companies in the same industry are more expensive than GPN, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.15 | ||
| Fwd PE | 5.35 |
4.2 Price Multiples
- GPN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPN is cheaper than 76.53% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, GPN is valued cheaper than 80.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
- The 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)0.92
PEG (5Y)0.46
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 2.49, GPN has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.89, 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 been paying a dividend for at least 10 years, so it has 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 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%
73.8
-1.19 (-1.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners95.88%
Inst Owner Change0.08%
Ins Owners0.54%
Ins Owner Change-0.98%
Market Cap17.47B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts70.86
Price Target106.46 (44.25%)
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 | 6.15 | ||
| Fwd PE | 5.35 | ||
| P/S | 1.96 | ||
| P/FCF | 8.08 | ||
| P/OCF | 6.25 | ||
| P/B | 0.77 | ||
| P/tB | 10.54 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)12
EY16.26%
EPS(NY)13.8
Fwd EY18.7%
FCF(TTM)9.13
FCFY12.37%
OCF(TTM)11.81
OCFY16%
SpS37.56
BVpS95.75
TBVpS7
PEG (NY)0.92
PEG (5Y)0.46
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 | 0.91 |
F-Score7
WACC7.39%
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 6.15 and the Price/Book (PB) ratio is 0.77.
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%.