GLOBAL PAYMENTS INC (GPN)
US37940X1028 - Common Stock
Overall GPN gets a fundamental rating of 5 out of 10. We evaluated GPN against 99 industry peers in the Financial Services industry. While GPN is still in line with the averages on profitability rating, there are concerns on its financial health. GPN is not valued too expensively and it also shows a decent growth rate.
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.
GPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GPN's Return On Assets of 2.73% is in line compared to the rest of the industry. GPN outperforms 58.59% of its industry peers.
Looking at the Return On Equity, with a value of 5.98%, GPN is in line with its industry, outperforming 42.42% of the companies in the same industry.
The Return On Invested Capital of GPN (4.25%) is better than 62.63% of its industry peers.
GPN had an Average Return On Invested Capital over the past 3 years of 3.73%. This is below the industry average of 7.84%.
The last Return On Invested Capital (4.25%) for GPN is above the 3 year average (3.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 5.98% | ||
| ROIC | 4.25% |
ROA(3y)1.44%
ROA(5y)1.32%
ROE(3y)2.85%
ROE(5y)2.45%
ROIC(3y)3.73%
ROIC(5y)3.12%
1.3 Margins
With a Profit Margin value of 13.61%, GPN perfoms like the industry average, outperforming 56.57% of the companies in the same industry.
GPN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 22.69%, GPN is doing good in the industry, outperforming 67.68% of the companies in the same industry.
GPN's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 62.79%, GPN is doing good in the industry, outperforming 74.75% of the companies in the same industry.
In the last couple of years the Gross Margin of GPN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.69% | ||
| PM (TTM) | 13.61% | ||
| GM | 62.79% |
OM growth 3Y11.62%
OM growth 5Y-0.72%
PM growth 3Y9.07%
PM growth 5Y-5.32%
GM growth 3Y6.26%
GM growth 5Y-1.81%
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.
GPN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GPN has been increased 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 1.08. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
GPN has a Altman-Z score of 1.08. This is in the better half of the industry: GPN outperforms 62.63% of its industry peers.
GPN has a debt to FCF ratio of 6.08. This is a slightly negative value and a sign of low solvency as GPN would need 6.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.08, GPN is in line with its industry, outperforming 57.58% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that GPN is somewhat dependend on debt financing.
GPN's Debt to Equity ratio of 0.70 is in line compared to the rest of the industry. GPN outperforms 47.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.58
WACC7.35%
2.3 Liquidity
A Current Ratio of 0.93 indicates that GPN may have some problems paying its short term obligations.
GPN has a Current ratio (0.93) which is in line with its industry peers.
A Quick Ratio of 0.93 indicates that GPN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.93, GPN is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.40% over the past year.
Measured over the past years, GPN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.96% on average per year.
Looking at the last year, GPN shows a small growth in Revenue. The Revenue has grown by 5.81% in the last year.
The Revenue has been growing by 23.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)10.4%
EPS 3Y17.64%
EPS 5Y14.96%
EPS Q2Q%12%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.15%
Revenue growth 5Y23.46%
Sales Q2Q%5.58%
3.2 Future
The Earnings Per Share is expected to grow by 12.50% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.59% on average over the next years.
EPS Next Y11.97%
EPS Next 2Y11.45%
EPS Next 3Y12.13%
EPS Next 5Y12.5%
Revenue Next Year5.94%
Revenue Next 2Y4.86%
Revenue Next 3Y5.29%
Revenue Next 5Y6.59%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.96 indicates a reasonable valuation of GPN.
Based on the Price/Earnings ratio, GPN is valued a bit cheaper than the industry average as 71.72% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GPN to the average of the S&P500 Index (27.20), we can say GPN is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.66, the valuation of GPN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GPN is valued a bit cheaper than the industry average as 68.69% of the companies are valued more expensively.
GPN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
GPN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPN is cheaper than 72.73% of the companies in the same industry.
GPN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GPN is cheaper than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.87 | ||
| EV/EBITDA | 10.25 |
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.
A more expensive valuation may be justified as GPN's earnings are expected to grow with 12.13% in the coming years.
PEG (NY)0.83
PEG (5Y)0.67
EPS Next 2Y11.45%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, GPN is not a good candidate for dividend investing.
GPN's Dividend Yield is comparable with the industry average which is at 3.79.
With a Dividend Yield of 0.90, GPN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of GPN is nicely growing with an annual growth rate of 90.47%!
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)90.47%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
GPN pays out 18.71% 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.
DP18.71%
EPS Next 2Y11.45%
EPS Next 3Y12.13%
GLOBAL PAYMENTS INC
NYSE:GPN (12/20/2024, 8:15:24 PM)
After market: 112.03 0 (0%)112.03
+1.45 (+1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.93%
Inst Owner Change3.05%
Ins Owners0.83%
Ins Owner Change-1.08%
Market Cap28.51B
Analysts77.07
Price Target135.63 (21.07%)
Short Float %2.7%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Dividend Growth(5Y)90.47%
DP18.71%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.13%
Min EPS beat(2)-2.29%
Max EPS beat(2)0.03%
EPS beat(4)1
Avg EPS beat(4)-0.8%
Min EPS beat(4)-2.29%
Max EPS beat(4)0.03%
EPS beat(8)4
Avg EPS beat(8)0%
EPS beat(12)5
Avg EPS beat(12)-0.14%
EPS beat(16)9
Avg EPS beat(16)0.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.32%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.64%
Revenue beat(8)2
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)3.73%
Revenue beat(16)10
Avg Revenue beat(16)5.51%
PT rev (1m)-0.63%
PT rev (3m)-5.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.66 | ||
| P/S | 2.84 | ||
| P/FCF | 9.87 | ||
| P/OCF | 8.06 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.25 |
EPS(TTM)11.25
EY10.04%
EPS(NY)12.94
Fwd EY11.55%
FCF(TTM)11.35
FCFY10.13%
OCF(TTM)13.9
OCFY12.4%
SpS39.39
BVpS89.64
TBVpS-52.92
PEG (NY)0.83
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 5.98% | ||
| ROCE | 5.49% | ||
| ROIC | 4.25% | ||
| ROICexc | 4.57% | ||
| ROICexgc | 59.4% | ||
| OM | 22.69% | ||
| PM (TTM) | 13.61% | ||
| GM | 62.79% | ||
| FCFM | 28.81% |
ROA(3y)1.44%
ROA(5y)1.32%
ROE(3y)2.85%
ROE(5y)2.45%
ROIC(3y)3.73%
ROIC(5y)3.12%
ROICexc(3y)3.92%
ROICexc(5y)3.27%
ROICexgc(3y)42.44%
ROICexgc(5y)40.23%
ROCE(3y)4.81%
ROCE(5y)4.01%
ROICexcg growth 3Y-3.79%
ROICexcg growth 5Y-17.24%
ROICexc growth 3Y18.53%
ROICexc growth 5Y-8.75%
OM growth 3Y11.62%
OM growth 5Y-0.72%
PM growth 3Y9.07%
PM growth 5Y-5.32%
GM growth 3Y6.26%
GM growth 5Y-1.81%
F-Score8
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.08 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 34.96% | ||
| Cap/Sales | 6.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.66% | ||
| Profit Quality | 211.69% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.08 |
F-Score8
WACC7.35%
ROIC/WACC0.58
Cap/Depr(3y)34.41%
Cap/Depr(5y)33.06%
Cap/Sales(3y)6.49%
Cap/Sales(5y)6.32%
Profit Quality(3y)619.52%
Profit Quality(5y)486.3%
High Growth Momentum
Growth
EPS 1Y (TTM)10.4%
EPS 3Y17.64%
EPS 5Y14.96%
EPS Q2Q%12%
EPS Next Y11.97%
EPS Next 2Y11.45%
EPS Next 3Y12.13%
EPS Next 5Y12.5%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.15%
Revenue growth 5Y23.46%
Sales Q2Q%5.58%
Revenue Next Year5.94%
Revenue Next 2Y4.86%
Revenue Next 3Y5.29%
Revenue Next 5Y6.59%
EBIT growth 1Y9.46%
EBIT growth 3Y21.83%
EBIT growth 5Y22.57%
EBIT Next Year19.22%
EBIT Next 3Y10.09%
EBIT Next 5Y9.95%
FCF growth 1Y71.75%
FCF growth 3Y-5.39%
FCF growth 5Y12.24%
OCF growth 1Y54.6%
OCF growth 3Y-0.95%
OCF growth 5Y15.25%