GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - NYSE:GPN - US37940X1028 - Common Stock
72.58 USD
-1.53 (-2.06%)
80.52 USD
+7.94 (+10.94%)
We assign a fundamental rating of 5 out of 10 to GPN. GPN was compared to 99 industry peers in the Financial Services industry. While GPN belongs to the best of the industry regarding profitability, 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
In the past year GPN was profitable.
In the past year GPN had a positive cash flow from operations.
GPN had positive earnings in each of the past 5 years.
GPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.65%, GPN is doing good in the industry, outperforming 72.73% of the companies in the same industry.
With a Return On Equity value of 7.72%, GPN perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.90%, GPN is doing good in the industry, outperforming 64.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GPN is below the industry average of 8.15%.
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
With a decent Profit Margin value of 19.68%, GPN is doing good in the industry, outperforming 79.80% of the companies in the same industry.
In the last couple of years the Profit Margin of GPN has grown nicely.
GPN has a Operating Margin of 26.85%. This is in the better half of the industry: GPN outperforms 71.72% of its industry peers.
In the last couple of years the Operating Margin of GPN has grown nicely.
GPN has a better Gross Margin (67.06%) than 78.79% 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
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.
GPN has less shares outstanding than it did 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 0.91, we must say that GPN is in the distress zone and has some risk of bankruptcy.
GPN has a Altman-Z score of 0.91. This is comparable to the rest of the industry: GPN outperforms 57.58% 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 53.54% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that GPN is somewhat dependend on debt financing.
GPN has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: GPN outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.82
WACC5.95%
2.3 Liquidity
A Current Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, GPN is in line with its industry, outperforming 46.46% of the companies in the same industry.
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 (0.85) which is in line with 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.
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.
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
Based on the Price/Earnings ratio of 6.05, the valuation of GPN can be described as very cheap.
88.89% of the companies in the same industry are more expensive than GPN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.56. GPN is valued rather cheaply when compared to this.
GPN is valuated cheaply with a Price/Forward Earnings ratio of 5.29.
Based on the Price/Forward Earnings ratio, GPN is valued cheaper than 84.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GPN to the average of the S&P500 Index (34.62), we can say GPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 5.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPN is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GPN is valued a bit cheaper than the industry average as 76.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 7.8 |
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)0.91
PEG (5Y)0.45
EPS Next 2Y8.97%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
GPN's Dividend Yield is comparable with the industry average which is at 4.67.
Compared to an average S&P500 Dividend Yield of 2.44, GPN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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.
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 2Y8.97%
EPS Next 3Y11.02%
72.58
-1.53 (-2.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change0.62%
Ins Owners0.53%
Ins Owner Change-0.72%
Market Cap17.61B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts69.44
Price Target106.2 (46.32%)
Short Float %3.68%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)4.76%
PT rev (3m)5.21%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 5.29 | ||
| P/S | 1.98 | ||
| P/FCF | 8.15 | ||
| P/OCF | 6.3 | ||
| P/B | 0.78 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)12
EY16.53%
EPS(NY)13.71
Fwd EY18.9%
FCF(TTM)8.91
FCFY12.27%
OCF(TTM)11.52
OCFY15.87%
SpS36.65
BVpS93.43
TBVpS6.83
PEG (NY)0.91
PEG (5Y)0.45
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 | 0.91 |
F-Score7
WACC5.95%
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 Y6.65%
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 6.05 and the Price/Book (PB) ratio is 0.78.
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%.