| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
GPN Overview
Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific.
Global Payments Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$158.00 |
| 52 Week High | US$148.69 |
| 52 Week Low | US$220.81 |
| Beta | 1.15 |
| 1 Month Change | -2.25% |
| 3 Month Change | -17.33% |
| 1 Year Change | -10.73% |
| 3 Year Change | 41.02% |
| 5 Year Change | 117.66% |
| Change since IPO | 4,130.96% |
Recent News & Updates
Is Now The Time To Look At Buying Global Payments Inc. (NYSE:GPN)?
Today we're going to take a look at the well-established Global Payments Inc. ( NYSE:GPN ). The company's stock saw...
Global Payments - Unfazed By BNPL And Disruptive Fintech
Global Payments has thrived despite the presence of disruptive fintech startups, delivering 22% annualized returns over the past decade. Management is unfazed by the market’s anxiety toward BNPL and disruptive industry forces; BNPL is not new and Global Payments powers over a billion such transactions per year. GPN’s shrinking stock price has decoupled from fundamentals, offering investors an opportunity to buy a quality business at a modest price. Reaching the lower end of management guidance and repricing to a 25x multiple could produce 73% two-year returns if the company overcomes its rivals in the competitive payments industry. Adding GPN to the Prime Portfolio and updating on other recent activity.
Global Payments Inc.'s (NYSE:GPN) Intrinsic Value Is Potentially 42% Above Its Share Price
Does the September share price for Global Payments Inc. ( NYSE:GPN ) reflect what it's really worth? Today, we will...
Here's Why Global Payments (NYSE:GPN) Can Manage Its Debt Responsibly
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| GPN | US IT | US Market | |
|---|---|---|---|
| 7D | -1.6% | -0.7% | 1.7% |
| 1Y | -10.7% | 21.9% | 30.3% |
Return vs Industry: GPN underperformed the US IT industry which returned 21.9% over the past year.
Return vs Market: GPN underperformed the US Market which returned 30.3% over the past year.
Price Volatility
| GPN volatility | |
|---|---|
| GPN Beta | 1.15 |
| Industry Beta | 1.18 |
| Market Beta | 1 |
Stable Share Price: GPN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: GPN's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1967 | 24,000 | Jeff Sloan | https://www.globalpaymentsinc.com |
Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. The company operates through three segments: Merchant Solutions, Issuer Solutions, and Business and Consumer Solutions. The Merchant Solutions segment offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, and on-line reporting services.
Global Payments Fundamentals Summary
| GPN fundamental statistics | |
|---|---|
| Market Cap | US$46.41b |
| Earnings (TTM) | US$863.89m |
| Revenue (TTM) | US$7.98b |
53.7x
P/E Ratio5.8x
P/S RatioIs GPN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| GPN income statement (TTM) | |
|---|---|
| Revenue | US$7.98b |
| Cost of Revenue | US$3.65b |
| Gross Profit | US$4.33b |
| Expenses | US$3.47b |
| Earnings | US$863.89m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 02, 2021
| Earnings per share (EPS) | 2.94 |
| Gross Margin | 54.28% |
| Net Profit Margin | 10.83% |
| Debt/Equity Ratio | 40.0% |
How did GPN perform over the long term?
See historical performance and comparisonDividends
0.6%
Current Dividend Yield29%
Payout RatioValuation
Is Global Payments undervalued compared to its fair value and its price relative to the market?
36.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GPN ($158) is trading below our estimate of fair value ($248.57)
Significantly Below Fair Value: GPN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GPN is poor value based on its PE Ratio (53.7x) compared to the US IT industry average (35.1x).
PE vs Market: GPN is poor value based on its PE Ratio (53.7x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: GPN is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: GPN is good value based on its PB Ratio (1.7x) compared to the US IT industry average (5.3x).
Future Growth
How is Global Payments forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
21.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPN's forecast earnings growth (21.1% per year) is above the savings rate (2%).
Earnings vs Market: GPN's earnings (21.1% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GPN's revenue (8.7% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: GPN's revenue (8.7% 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 (10.8%).
Past Performance
How has Global Payments performed over the past 5 years?
18.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GPN has a large one-off loss of $308.1M impacting its June 30 2021 financial results.
Growing Profit Margin: GPN's current net profit margins (10.8%) are higher than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: GPN's earnings have grown by 18.9% per year over the past 5 years.
Accelerating Growth: GPN's earnings growth over the past year (128.1%) exceeds its 5-year average (18.9% per year).
Earnings vs Industry: GPN earnings growth over the past year (128.1%) exceeded the IT industry 35.6%.
Return on Equity
High ROE: GPN's Return on Equity (3.3%) is considered low.
Financial Health
How is Global Payments's financial position?
Financial Position Analysis
Short Term Liabilities: GPN's short term assets ($4.9B) exceed its short term liabilities ($4.4B).
Long Term Liabilities: GPN's short term assets ($4.9B) do not cover its long term liabilities ($13.9B).
Debt to Equity History and Analysis
Debt Level: GPN's debt to equity ratio (40%) is considered satisfactory.
Reducing Debt: GPN's debt to equity ratio has reduced from 168.6% to 40% over the past 5 years.
Debt Coverage: GPN's debt is well covered by operating cash flow (23%).
Interest Coverage: GPN's interest payments on its debt are well covered by EBIT (5x coverage).
Balance Sheet
Dividend
What is Global Payments's current dividend yield, its reliability and sustainability?
0.63%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GPN's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: GPN's dividend (0.63%) is low compared to the top 25% of dividend payers in the US market (3.48%).
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?
5.0yrs
Average management tenure
CEO
Jeff Sloan (54 yo)
8yrs
Tenure
US$15,517,272
Compensation
Mr. Jeffrey S. Sloan, also known as Jeff, has been the Chief Executive Officer at Global Payments Inc. since October 1, 2013. Mr. Sloan served as the President at Global Payments from June 1, 2010 to June...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD15.52M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: GPN's management team is considered experienced (5 years average tenure).
Board Members
Experienced Board: GPN's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GPN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Global Payments Inc.'s 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$46.412b
- Shares outstanding: 293.75m
- Website: https://www.globalpaymentsinc.com
Number of Employees
Location
- Global Payments Inc.
- 3550 Lenox Road
- Atlanta
- Georgia
- 30326
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/24 22:13 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.