GLOBAL PAYMENTS INC (GPN)
US37940X1028 - Common Stock
Taking everything into account, GPN scores 5 out of 10 in our fundamental rating. GPN was compared to 100 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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
With a decent Return On Assets value of 2.73%, GPN is doing good in the industry, outperforming 61.00% of the companies in the same industry.
GPN's Return On Equity of 5.98% is in line compared to the rest of the industry. GPN outperforms 45.00% of its industry peers.
GPN's Return On Invested Capital of 4.25% is fine compared to the rest of the industry. GPN outperforms 67.00% 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 7.54%.
The 3 year average ROIC (3.73%) for GPN is below the current ROIC(4.25%), indicating increased profibility in the last year.
| 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 59.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GPN has declined.
The Operating Margin of GPN (22.69%) is better than 68.00% of its industry peers.
In the last couple of years the Operating Margin of GPN has remained more or less at the same level.
GPN has a Gross Margin of 62.79%. This is in the better half of the industry: GPN outperforms 74.00% of its industry peers.
GPN's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GPN is destroying value.
GPN has less shares outstanding than it did 1 year ago.
GPN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GPN is higher compared to a year ago.
2.2 Solvency
GPN has an Altman-Z score of 1.11. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.11, GPN is doing good in the industry, outperforming 63.00% of the companies in the same industry.
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.
GPN has a Debt to FCF ratio of 6.08. This is comparable to the rest of the industry: GPN outperforms 59.00% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that GPN is somewhat dependend on debt financing.
GPN has a Debt to Equity ratio (0.70) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.58
WACC7.3%
2.3 Liquidity
GPN has a Current Ratio of 0.93. 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 Current ratio of 0.93. This is in the lower half of the industry: GPN underperforms 61.00% of 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 42.00% 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.
GPN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.81%.
GPN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.46% yearly.
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 16.04% on average over the next years. This is quite good.
Based on estimates for the next years, GPN will show a small growth in Revenue. The Revenue will grow by 6.53% on average per year.
EPS Next Y11.97%
EPS Next 2Y11.37%
EPS Next 3Y11.99%
EPS Next 5Y16.04%
Revenue Next Year5.64%
Revenue Next 2Y4.88%
Revenue Next 3Y5.28%
Revenue Next 5Y6.53%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.40, which indicates a very decent valuation of GPN.
Compared to the rest of the industry, the Price/Earnings ratio of GPN indicates a somewhat cheap valuation: GPN is cheaper than 71.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GPN to the average of the S&P500 Index (28.96), we can say GPN is valued rather cheaply.
GPN is valuated reasonably with a Price/Forward Earnings ratio of 9.05.
GPN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GPN is cheaper than 69.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, GPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GPN indicates a somewhat cheap valuation: GPN is cheaper than 74.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GPN is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.31 | ||
| EV/EBITDA | 10.52 |
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.
The decent profitability rating of GPN may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)0.7
EPS Next 2Y11.37%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
GPN has a yearly dividend return of 0.86%, which is pretty low.
GPN's Dividend Yield is comparable with the industry average which is at 3.55.
Compared to an average S&P500 Dividend Yield of 2.23, GPN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
On average, the dividend of GPN grows each year by 90.47%, which is quite nice.
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)90.47%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
18.71% of the earnings are spent on dividend by GPN. This is a low number and 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 2Y11.37%
EPS Next 3Y11.99%
GLOBAL PAYMENTS INC
NYSE:GPN (11/22/2024, 11:09:22 AM)
117.01
+0.68 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 9.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 5.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.69% | ||
| PM (TTM) | 13.61% | ||
| GM | 62.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.4%
EPS 3Y17.64%
EPS 5Y
EPS Q2Q%
EPS Next Y11.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.81%
Revenue growth 3Y9.15%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y