GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPN - US37940X1028 - Common Stock
78 USD
-1.68 (-2.11%)
We assign a fundamental rating of 5 out of 10 to GPN. GPN was compared to 98 industry peers in the Financial Services industry. GPN scores excellent on profitability, but 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.
GPN had a positive operating cash flow in the past year.
Each year in the past 5 years GPN has been profitable.
GPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GPN (3.65%) is better than 71.43% of its industry peers.
With a Return On Equity value of 7.72%, GPN perfoms like the industry average, outperforming 44.90% of the companies in the same 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.
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
The Profit Margin of GPN (19.68%) is better than 78.57% of its industry peers.
GPN's Profit Margin has improved in the last couple of years.
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.
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.
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.
Compared to 1 year ago, GPN has less shares outstanding
The number of shares outstanding for GPN has been reduced 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 0.94. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GPN (0.94) is comparable to the rest of the industry.
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 (7.50) which is in line with 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 52.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.66
WACC7.44%
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 45.92% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
GPN's Quick ratio of 0.85 is in line compared 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
GPN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.67%.
Measured over the past years, GPN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.36% on average per year.
GPN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.30%.
The Revenue has been growing by 15.52% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.52% on average over the next years. This is quite good.
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 6.50 indicates a rather cheap valuation of GPN.
Based on the Price/Earnings ratio, GPN is valued cheaper than 85.71% of the companies in the same industry.
GPN is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.65, which indicates a rather cheap valuation of GPN.
Based on the Price/Forward Earnings ratio, GPN is valued cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GPN to the average of the S&P500 Index (23.98), we can say GPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 5.65 |
4.2 Price Multiples
74.49% of the companies in the same industry are more expensive than GPN, based on the Enterprise Value to EBITDA ratio.
79.59% 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 | 8.54 | ||
| EV/EBITDA | 8.03 |
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)0.49
EPS Next 2Y9.31%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, GPN has a reasonable but not impressive dividend return.
GPN's Dividend Yield is comparable with the industry average which is at 2.49.
GPN's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| 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 paid a dividend for at least 10 years, which is 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.
The dividend of GPN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.82%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
NYSE:GPN (1/13/2026, 10:46:53 AM)
78
-1.68 (-2.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.88%
Inst Owner Change0.08%
Ins Owners0.54%
Ins Owner Change-0.98%
Market Cap18.47B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts70.86
Price Target106.46 (36.49%)
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 | 6.5 | ||
| Fwd PE | 5.65 | ||
| P/S | 2.08 | ||
| P/FCF | 8.54 | ||
| P/OCF | 6.61 | ||
| P/B | 0.81 | ||
| P/tB | 11.14 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)12
EY15.38%
EPS(NY)13.8
Fwd EY17.69%
FCF(TTM)9.13
FCFY11.7%
OCF(TTM)11.81
OCFY15.14%
SpS37.56
BVpS95.75
TBVpS7
PEG (NY)0.97
PEG (5Y)0.49
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 | 0.94 |
F-Score7
WACC7.44%
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 6.5 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%.