GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPN - US37940X1028 - Common Stock
77.5 USD
-0.41 (-0.53%)
77.5 USD
0 (0%)
Taking everything into account, GPN scores 5 out of 10 in our fundamental rating. GPN was compared to 97 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 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.
In the past year GPN had a positive cash flow from operations.
In the past 5 years GPN has always been profitable.
In the past 5 years GPN always reported a positive cash flow from operatings.
1.2 Ratios
GPN has a Return On Assets of 3.65%. This is in the better half of the industry: GPN outperforms 71.13% of its industry peers.
GPN has a Return On Equity (7.72%) which is comparable to the rest of the industry.
GPN has a better Return On Invested Capital (4.90%) than 65.98% of its industry peers.
GPN had an Average Return On Invested Capital over the past 3 years of 4.36%. This is below the industry average of 8.44%.
The last Return On Invested Capital (4.90%) for GPN is above the 3 year average (4.36%), which is a sign of increasing profitability.
| 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 78.35% of the companies in the same industry.
In the last couple of years the Profit Margin of GPN has grown nicely.
Looking at the Operating Margin, with a value of 26.85%, GPN is in the better half of the industry, outperforming 72.16% of the companies in the same industry.
GPN's Operating Margin has improved in the last couple of years.
GPN's Gross Margin of 67.06% is fine compared to the rest of the industry. GPN outperforms 78.35% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GPN is destroying value.
The number of shares outstanding for GPN has been reduced compared to 1 year ago.
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 0.93, we must say that GPN is in the distress zone and has some risk of bankruptcy.
GPN's Altman-Z score of 0.93 is in line compared to the rest of the industry. GPN outperforms 56.70% of 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.
Looking at the Debt to FCF ratio, with a value of 7.50, GPN is in line with its industry, outperforming 46.39% of the companies in the same industry.
GPN has a Debt/Equity ratio of 0.63. This is a neutral value indicating GPN is somewhat dependend on debt financing.
GPN has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.81
WACC6.03%
2.3 Liquidity
A Current Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
GPN has a Current ratio of 0.85. This is comparable to the rest of the industry: GPN outperforms 45.36% of its industry peers.
A Quick Ratio of 0.85 indicates that GPN may have some problems paying 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.
GPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.36% yearly.
Looking at the last year, GPN shows a very negative growth in Revenue. The Revenue has decreased by -11.30% in the last year.
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
The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
GPN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.52% yearly.
EPS Next Y6.67%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
EPS Next 5Y15.55%
Revenue Next Year1.39%
Revenue Next 2Y2.9%
Revenue Next 3Y3.52%
Revenue Next 5Y10.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 6.46, the valuation of GPN can be described as very cheap.
Based on the Price/Earnings ratio, GPN is valued cheaply inside the industry as 86.60% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.28. GPN is valued rather cheaply when compared to this.
GPN is valuated cheaply with a Price/Forward Earnings ratio of 5.62.
84.54% 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 23.52. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 5.62 |
4.2 Price Multiples
GPN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPN is cheaper than 75.26% of the companies in the same industry.
78.35% 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 | 8.49 | ||
| EV/EBITDA | 7.92 |
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.
GPN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.97
PEG (5Y)0.48
EPS Next 2Y9.31%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.25%.
Compared to an average industry Dividend Yield of 3.96, GPN has a dividend in line with its industry peers.
With a Dividend Yield of 1.25, GPN pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of GPN is nicely growing with an annual growth rate of 21.27%!
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
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 2Y9.31%
EPS Next 3Y11.51%
77.5
-0.41 (-0.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.78%
Inst Owner Change0.69%
Ins Owners0.54%
Ins Owner Change-0.92%
Market Cap18.35B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts70.86
Price Target106.46 (37.37%)
Short Float %3.34%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)0.25%
PT rev (3m)0.96%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 5.62 | ||
| P/S | 2.06 | ||
| P/FCF | 8.49 | ||
| P/OCF | 6.56 | ||
| P/B | 0.81 | ||
| P/tB | 11.07 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)12
EY15.48%
EPS(NY)13.8
Fwd EY17.81%
FCF(TTM)9.13
FCFY11.78%
OCF(TTM)11.81
OCFY15.23%
SpS37.56
BVpS95.75
TBVpS7
PEG (NY)0.97
PEG (5Y)0.48
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 | 0.93 |
F-Score7
WACC6.03%
ROIC/WACC0.81
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 Year1.39%
Revenue Next 2Y2.9%
Revenue Next 3Y3.52%
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.
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 6.46 and the Price/Book (PB) ratio is 0.81.
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%.