Global Payments
Market Cap
US$52.3b
Last Updated
2020/08/09 00:14 UTC
Data Sources
Company Financials +
Executive Summary
Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in North America, Europe, the Asia-Pacific, and Latin America.
Snowflake Analysis
Excellent balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Global Payments's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GPN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.8%
GPN
2.7%
US IT
2.5%
US Market
1 Year Return
9.2%
GPN
22.4%
US IT
16.3%
US Market
Return vs Industry: GPN underperformed the US IT industry which returned 22% over the past year.
Return vs Market: GPN underperformed the US Market which returned 16.3% over the past year.
Shareholder returns
| GPN | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | 2.7% | 2.5% |
| 30 Day | 6.3% | 6.1% | 5.3% |
| 90 Day | 1.2% | 17.4% | 16.3% |
| 1 Year | 9.6%9.2% | 23.6%22.4% | 18.8%16.3% |
| 3 Year | 88.1%87.4% | 108.8%100.5% | 45.0%35.7% |
| 5 Year | 200.5%199.0% | 153.1%132.2% | 75.8%56.8% |
Price Volatility Vs. Market
How volatile is Global Payments's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Does Global Payments's (NYSE:GPN) Statutory Profit Adequately Reflect Its Underlying Profit?2 weeks ago | Simply Wall St
Read This Before Buying Global Payments Inc. (NYSE:GPN) Shares1 month ago | Simply Wall St
What Did Global Payments' (NYSE:GPN) CEO Take Home Last Year?Valuation
Is Global Payments undervalued compared to its fair value and its price relative to the market?
124.35x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GPN ($174.83) is trading above our estimate of fair value ($167.69)
Significantly Below Fair Value: GPN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GPN is poor value based on its PE Ratio (124.3x) compared to the US IT industry average (31.6x).
PE vs Market: GPN is poor value based on its PE Ratio (124.3x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: GPN is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: GPN is good value based on its PB Ratio (1.9x) compared to the US IT industry average (3.6x).
Next Steps
Future Growth
How is Global Payments forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
52.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPN's forecast earnings growth (52.8% per year) is above the savings rate (2.2%).
Earnings vs Market: GPN's earnings (52.8% per year) are forecast to grow faster than the US market (23.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GPN's revenue (9.3% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: GPN's revenue (9.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GPN's Return on Equity is forecast to be low in 3 years time (8.8%).
Next Steps
Past Performance
How has Global Payments performed over the past 5 years?
14.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GPN has a large one-off loss of $391.8M impacting its June 30 2020 financial results.
Growing Profit Margin: GPN's current net profit margins (5.7%) are lower than last year (13.6%).
Past Earnings Growth Analysis
Earnings Trend: GPN's earnings have grown by 14% per year over the past 5 years.
Accelerating Growth: GPN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GPN had negative earnings growth (-21.7%) over the past year, making it difficult to compare to the IT industry average (8.1%).
Return on Equity
High ROE: GPN's Return on Equity (1.5%) is considered low.
Next Steps
Financial Health
How is Global Payments's financial position?
Financial Position Analysis
Short Term Liabilities: GPN's short term assets ($4.4B) exceed its short term liabilities ($4.2B).
Long Term Liabilities: GPN's short term assets ($4.4B) do not cover its long term liabilities ($12.1B).
Debt to Equity History and Analysis
Debt Level: GPN's debt to equity ratio (34.9%) is considered satisfactory.
Reducing Debt: GPN's debt to equity ratio has reduced from 262.9% to 34.9% over the past 5 years.
Debt Coverage: GPN's debt is well covered by operating cash flow (21.8%).
Interest Coverage: GPN's interest payments on its debt are well covered by EBIT (3.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Global Payments's current dividend yield, its reliability and sustainability?
0.45%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: GPN's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: GPN's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (4.36%).
Stability and Growth of Payments
Stable Dividend: GPN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: GPN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: GPN is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GPN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Jeff Sloan (53 yo)
6.83yrs
Tenure
US$20,502,096
Compensation
Mr. Jeffrey S. Sloan, also known as Jeff, has been the Chief Executive Officer at Global Payments Inc. since October 1, 2013. Mr. Sloan served as the President at Global Payments from June 1, 2010 to June ...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD20.50M) is above average for companies of similar size in the US market ($USD11.35M).
Compensation vs Earnings: Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.83yrs | US$20.50m | 0.16% $ 84.5m | |
| President & COO | 0.92yr | US$9.45m | 0.039% $ 20.2m | |
| Senior EVP & CFO | 0.92yr | US$2.57m | 0.031% $ 16.2m | |
| Senior EVP & Chief Information Officer | 9.17yrs | US$5.41m | 0.012% $ 6.3m | |
| Senior EVP | 6.75yrs | US$4.84m | 0.020% $ 10.5m | |
| Senior VP & Chief Accounting Officer | 5.33yrs | no data | 0.0073% $ 3.8m | |
| Vice President of Investor Relations | 2.25yrs | no data | no data | |
| Vice President of Corporate Communications | no data | no data | no data | |
| Chief Product Officer | 5.33yrs | no data | no data | |
| Senior EVP and Chief Strategy & Enterprise Risk Officer | 0.92yr | no data | no data | |
| Senior EVP & President of TSYS Issuer Solutions | 0.92yr | no data | no data | |
| Senior EVP & President of NetSpend | 0.92yr | no data | no data |
2.3yrs
Average Tenure
53yo
Average Age
Experienced Management: GPN's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.83yrs | US$20.50m | 0.16% $ 84.5m | |
| Lead Independent Director | 0.92yr | US$57.70k | 0.012% $ 6.5m | |
| Independent Director | 4.33yrs | US$309.54k | 0.015% $ 7.8m | |
| Chairman of the Board of Directors | 0.92yr | US$278.41k | 0.15% $ 79.8m | |
| Independent Director | 0.92yr | US$47.16k | 0.0016% $ 831.8k | |
| Independent Director | 19.5yrs | US$425.09k | 0.0083% $ 4.4m | |
| Independent Director | 3.42yrs | US$331.59k | 0.0020% $ 1.0m | |
| Independent Director | 0.92yr | US$53.18k | 0.0012% $ 627.8k | |
| Independent Director | 0.92yr | US$43.39k | 0.18% $ 95.0m | |
| Independent Director | 6.17yrs | US$321.59k | 0.0047% $ 2.4m | |
| Independent Director | 0.92yr | US$32.09k | 0.0040% $ 2.1m | |
| Independent Director | 13.92yrs | US$309.54k | 0.013% $ 7.0m |
2.2yrs
Average Tenure
62.5yo
Average Age
Experienced Board: GPN's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GPN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 91%.
Top Shareholders
Company Information
Global Payments Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Global Payments Inc.
- Ticker: GPN
- Exchange: NYSE
- Founded: 1967
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$52.317b
- Shares outstanding: 299.24m
- Website: https://www.globalpaymentsinc.com
Number of Employees
Location
- Global Payments Inc.
- 3550 Lenox Road
- Atlanta
- Georgia
- 30326
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GPN | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 2001 |
| GLO | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 2001 |
| GPN * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 2001 |
| 0IW7 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 2001 |
| GLO | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 2001 |
| G1PI34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in North America, Europe, the Asia-Pacific, and Latin America. The company op ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/09 00:14 |
| End of Day Share Price | 2020/08/07 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.