GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPN - US37940X1028 - Common Stock
74.97 USD
+0.95 (+1.28%)
74.97 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. 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.
Each year in the past 5 years GPN has 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 comparable to the rest of the industry.
The Return On Invested Capital of GPN (4.90%) is better than 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPN is below the industry average of 8.20%.
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
Looking at the Profit Margin, with a value of 19.68%, GPN is in the better half of the industry, outperforming 78.57% 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 26.85%. This is in the better half of the industry: GPN outperforms 71.43% of its industry peers.
GPN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 67.06%, GPN is doing good in the industry, outperforming 78.57% 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.
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 0.92, we must say that GPN is in the distress zone and has some risk of bankruptcy.
GPN's Altman-Z score of 0.92 is in line compared to the rest of the industry. GPN outperforms 56.12% 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 has a Debt to FCF ratio of 7.50. This is comparable to the rest of the industry: GPN outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that GPN is somewhat dependend on debt financing.
The Debt to Equity ratio of GPN (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.83
WACC5.93%
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.
Looking at the Quick ratio, with a value of 0.85, GPN is in line with its industry, outperforming 47.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
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 for GPN has decreased by -11.30% in the past year. This is quite bad
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
Based on estimates for the next years, GPN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.55% on average per year.
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 Y6.65%
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
With a Price/Earnings ratio of 6.25, the valuation of GPN can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of GPN indicates a rather cheap valuation: GPN is cheaper than 88.78% of the companies listed in the same industry.
GPN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
GPN is valuated cheaply with a Price/Forward Earnings ratio of 5.47.
Based on the Price/Forward Earnings ratio, GPN is valued cheaply inside the industry as 84.69% of the companies are valued more expensively.
GPN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.25 | ||
| Fwd PE | 5.47 |
4.2 Price Multiples
GPN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPN is cheaper than 75.51% of the companies in the same industry.
77.55% of the companies in the same industry are more expensive than GPN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 7.85 |
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.
GPN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.94
PEG (5Y)0.47
EPS Next 2Y8.97%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.40%.
Compared to an average industry Dividend Yield of 5.20, GPN has a dividend in line with its industry peers.
With a Dividend Yield of 1.40, GPN pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of GPN is nicely growing with an annual growth rate of 21.27%!
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
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 2Y8.97%
EPS Next 3Y11.02%
74.97
+0.95 (+1.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change0.69%
Ins Owners0.53%
Ins Owner Change-0.52%
Market Cap18.19B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts69.44
Price Target106.6 (42.19%)
Short Float %3.33%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend0.99
Dividend Growth(5Y)21.27%
DP13.82%
Div Incr Years0
Div Non Decr Years6
Ex-Date
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)5.16%
PT rev (3m)1.08%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.25 | ||
| Fwd PE | 5.47 | ||
| P/S | 2.05 | ||
| P/FCF | 8.42 | ||
| P/OCF | 6.51 | ||
| P/B | 0.8 | ||
| P/tB | 10.98 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)12
EY16.01%
EPS(NY)13.71
Fwd EY18.29%
FCF(TTM)8.91
FCFY11.88%
OCF(TTM)11.52
OCFY15.37%
SpS36.65
BVpS93.43
TBVpS6.83
PEG (NY)0.94
PEG (5Y)0.47
Graham Number158.83
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 | 0.92 |
F-Score7
WACC5.93%
ROIC/WACC0.83
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)-11.3%
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 1Y2.31%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year10.5%
EBIT Next 3Y7.53%
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.
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 6.25 and the Price/Book (PB) ratio is 0.8.
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 13.82%.