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Global Payments

NYSE:GPN
Snowflake Description

Moderate growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GPN
NYSE
$21B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments. The last earnings update was 27 days ago. More info.


Add to Portfolio Compare Print
  • Global Payments has significant price volatility in the past 3 months.
GPN Share Price and Events
7 Day Returns
0.3%
NYSE:GPN
1.7%
US IT
1.2%
US Market
1 Year Returns
14.4%
NYSE:GPN
15.5%
US IT
3%
US Market
GPN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Global Payments (GPN) 0.3% 8.2% 34.9% 14.4% 123.5% 289.5%
US IT 1.7% 4.9% 22.3% 15.5% 80.2% 94.8%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • GPN underperformed the IT industry which returned 15.5% over the past year.
  • GPN outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
GPN
Industry
5yr Volatility vs Market

Value

 Is Global Payments undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Global Payments to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Global Payments.

NYSE:GPN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GPN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.064 (1 + (1- 21%) (27.7%))
1.199
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.199 * 5.96%)
9.88%

Discounted Cash Flow Calculation for NYSE:GPN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Global Payments is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GPN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.88%)
2019 1,007.38 Analyst x8 916.83
2020 1,144.37 Analyst x6 947.89
2021 1,311.80 Analyst x2 988.92
2022 1,309.20 Analyst x3 898.25
2023 1,628.00 Analyst x2 1,016.58
2024 1,763.82 Est @ 8.34% 1,002.40
2025 1,881.28 Est @ 6.66% 973.05
2026 1,984.38 Est @ 5.48% 934.12
2027 2,076.75 Est @ 4.66% 889.74
2028 2,161.44 Est @ 4.08% 842.79
Present value of next 10 years cash flows $9,410.56
NYSE:GPN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,161.44 × (1 + 2.73%) ÷ (9.88% – 2.73%)
$31,072.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $31,072.90 ÷ (1 + 9.88%)10
$12,115.92
NYSE:GPN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,410.56 + $12,115.92
$21,526.48
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $21,526.48 / 157.85
$136.37
NYSE:GPN Discount to Share Price
Calculation Result
Value per share (USD) From above. $136.37
Current discount Discount to share price of $133.36
= -1 x ($133.36 - $136.37) / $136.37
2.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Global Payments is available for.
Intrinsic value
2%
Share price is $133.36 vs Future cash flow value of $136.37
Current Discount Checks
For Global Payments to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Global Payments's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Global Payments's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Global Payments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Global Payments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GPN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.85
NYSE:GPN Share Price ** NYSE (2019-03-20) in USD $133.36
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 30.36x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Global Payments.

NYSE:GPN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GPN Share Price ÷ EPS (both in USD)

= 133.36 ÷ 2.85

46.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Global Payments is overvalued based on earnings compared to the US IT industry average.
  • Global Payments is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Global Payments's expected growth come at a high price?
Raw Data
NYSE:GPN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
19.7%per year
United States of America IT Industry PEG Ratio Median Figure of 64 Publicly-Listed IT Companies 2.42x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:GPN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.81x ÷ 19.7%

2.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Global Payments is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Global Payments's assets?
Raw Data
NYSE:GPN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $25.27
NYSE:GPN Share Price * NYSE (2019-03-20) in USD $133.36
United States of America IT Industry PB Ratio Median Figure of 122 Publicly-Listed IT Companies 4.43x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:GPN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GPN Share Price ÷ Book Value per Share (both in USD)

= 133.36 ÷ 25.27

5.28x

* Primary Listing of Global Payments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Global Payments is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Global Payments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Global Payments has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Global Payments expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Global Payments expected to grow at an attractive rate?
  • Global Payments's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Global Payments's earnings growth is expected to exceed the United States of America market average.
  • Global Payments's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GPN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GPN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 19.7%
NYSE:GPN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 13.2%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GPN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GPN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 6,105 1
2022-12-31 5,638 1,007 1
2021-12-31 5,263 851 5
2020-12-31 4,872 1,418 707 24
2019-12-31 4,463 1,315 550 24
2019-05-31 3,817 474 1
NYSE:GPN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,366 1,106 452
2018-09-30 3,540 813 619
2018-06-30 3,721 751 553
2018-03-31 3,850 503 511
2017-12-31 3,975 512 468
2017-09-30 4,277 877 263
2017-06-30 4,189 903 208
2017-03-31 4,070 970 203
2016-12-31 3,776 884 214
2016-11-30 3,308 324 241
2016-08-31 3,089 227 270
2016-05-31 2,898 593 272
2016-02-29 2,858 956 300

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Global Payments's earnings are expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
  • Global Payments's revenue is expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GPN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from Global Payments Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GPN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 9.72 9.72 9.72 1.00
2022-12-31 8.17 8.17 8.17 1.00
2021-12-31 6.68 6.68 6.68 1.00
2020-12-31 4.41 5.22 3.81 11.00
2019-12-31 3.51 4.13 2.61 15.00
2019-05-31 3.20 3.20 3.20 1.00
NYSE:GPN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.85
2018-09-30 3.89
2018-06-30 3.50
2018-03-31 3.27
2017-12-31 3.03
2017-09-30 1.64
2017-06-30 1.30
2017-03-31 1.28
2016-12-31 1.40
2016-11-30 1.67
2016-08-31 1.95
2016-05-31 2.05
2016-02-29 2.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Global Payments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Global Payments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Global Payments has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Global Payments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Global Payments's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Global Payments's year on year earnings growth rate has been positive over the past 5 years.
  • Global Payments's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Global Payments's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
Global Payments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Global Payments Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GPN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,366.37 452.05 1,478.20
2018-09-30 3,540.06 618.80 1,469.71
2018-06-30 3,721.30 553.17 1,459.47
2018-03-31 3,850.38 511.01 1,429.02
2017-12-31 3,975.16 468.43 1,393.66
2017-09-30 4,276.51 262.98 1,363.23
2017-06-30 4,189.49 207.75 1,407.99
2017-03-31 4,069.90 203.07 1,384.26
2016-12-31 3,776.39 214.17 1,335.00
2016-11-30 3,308.32 240.79 1,264.02
2016-08-31 3,088.85 270.11 1,261.17
2016-05-31 2,898.15 271.67 1,274.27
2016-02-29 2,857.64 299.80 1,323.02
2015-11-30 2,842.68 293.31 1,325.82
2015-08-31 2,817.62 289.32 1,312.71
2015-05-31 2,773.72 278.04 1,295.01
2015-02-28 2,741.15 264.34 1,277.97
2014-11-30 2,692.62 256.89 1,254.08
2014-08-31 2,629.45 256.01 1,232.61
2014-05-31 2,554.24 245.29 1,196.51
2014-02-28 2,498.61 234.47 1,162.39
2013-11-30 2,460.91 237.81 1,147.87
2013-08-31 2,415.32 234.09 1,130.00
2013-05-31 2,375.92 216.13 1,119.86
2013-02-28 2,354.60 180.41 1,119.00
2012-11-30 2,309.40 179.86 1,094.28
2012-08-31 2,251.36 170.86 1,066.10
2012-05-31 2,203.85 188.16 1,027.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Global Payments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Global Payments used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • Global Payments's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Global Payments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Global Payments has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Global Payments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Global Payments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Global Payments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Global Payments's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Global Payments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Global Payments Company Filings, last reported 2 months ago.

NYSE:GPN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,186.34 5,830.73 1,214.08
2018-09-30 4,175.57 5,486.08 992.43
2018-06-30 4,016.00 4,877.20 1,102.07
2018-03-31 4,139.79 4,731.95 1,008.55
2017-12-31 3,965.23 5,294.88 1,335.86
2017-09-30 3,694.95 5,260.33 1,186.05
2017-06-30 3,004.64 4,582.68 1,080.58
2017-03-31 2,876.29 4,678.57 1,261.85
2016-12-31 2,779.34 4,830.68 1,162.78
2016-11-30 2,801.84 4,965.50 995.82
2016-08-31 2,905.21 4,815.84 977.78
2016-05-31 2,877.40 4,893.72 1,044.73
2016-02-29 952.75 2,079.82 825.50
2015-11-30 926.10 2,607.13 988.46
2015-08-31 917.14 2,294.70 803.31
2015-05-31 863.55 2,332.70 650.74
2015-02-28 941.63 2,059.30 610.15
2014-11-30 1,022.24 2,135.62 644.47
2014-08-31 1,070.51 2,072.16 595.88
2014-05-31 1,132.80 1,833.81 581.87
2014-02-28 1,263.71 1,516.46 1,013.56
2013-11-30 1,231.68 1,441.40 1,096.83
2013-08-31 1,204.69 1,401.10 725.89
2013-05-31 1,286.61 1,150.93 680.47
2013-02-28 1,285.24 1,122.95 682.96
2012-11-30 1,374.80 1,092.81 998.26
2012-08-31 1,283.02 542.26 841.33
2012-05-31 1,445.34 528.38 781.28
  • Global Payments's level of debt (139.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (118.1% vs 139.3% today).
  • Debt is not well covered by operating cash flow (19%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).
X
Financial health checks
We assess Global Payments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Global Payments has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Global Payments's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.03%
Current annual income from Global Payments dividends. Estimated to be 0.03% next year.
If you bought $2,000 of Global Payments shares you are expected to receive $1 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Global Payments's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Global Payments's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GPN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GPN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.04 1.00
2021-12-31 0.05 5.00
2020-12-31 0.04 11.00
2019-12-31 0.04 12.00
2019-05-31
NYSE:GPN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.040 0.031
2019-02-13 0.040 0.032
2018-10-30 0.040 0.037
2018-08-02 0.040 0.033
2018-05-03 0.040 0.035
2018-02-15 0.040 0.035
2017-11-08 0.040 0.039
2017-08-03 0.040 0.041
2017-05-04 0.040 0.044
2017-01-09 0.040 0.051
2016-10-05 0.040 0.056
2016-07-28 0.040 0.053
2016-04-06 0.040 0.054
2016-01-11 0.040 0.067
2015-10-07 0.020 0.030
2015-07-30 0.040 0.070
2015-07-28 0.040 0.072
2015-04-08 0.040 0.077
2015-01-08 0.040 0.089
2014-10-02 0.040 0.100
2014-07-30 0.040 0.113
2014-04-07 0.040 0.115
2014-02-03 0.040 0.115
2013-11-01 0.040 0.125
2013-08-05 0.040 0.155
2013-05-03 0.040 0.169
2013-02-01 0.040 0.168
2012-08-03 0.040 0.182
2012-05-03 0.040 0.188
2012-02-01 0.040 0.162
2011-11-02 0.040 0.174
2011-08-03 0.040 0.185
2011-05-03 0.040 0.158
2011-02-01 0.040 0.162
2010-11-02 0.040 0.182
2010-08-03 0.040 0.203
2010-05-03 0.040 0.201
2010-02-02 0.040 0.179
2009-11-02 0.040 0.159
2009-08-04 0.040 0.176
2009-05-01 0.040 0.218
2009-03-23 0.040 0.246

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Global Payments is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Global Payments is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Global Payments's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Global Payments's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Global Payments's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Global Payments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Global Payments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Global Payments has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Global Payments's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Sloan
COMPENSATION $16,818,560
AGE 51
TENURE AS CEO 5.4 years
CEO Bio

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 30, 2014. He is a decisive leader with deep industry knowledge and nearly 20 years of experience in financial services. Prior to joining Global Payments, Mr. Sloan served in several executive positions with Goldman Sachs Group, Inc. (Goldman) from 1998 to 2010, where he was a partner and the worldwide head of the financial technology group in New York. With Goldman, Mr. Sloan focused on mergers and acquisitions and corporate finance and pioneered the development of the firm’s payments practice in investment banking, where he led many of the landmark transactions in payments. Mr. Sloan has been a Director of Global Payments Inc., since January 13, 2014. He has been an Independent Director of FleetCor Technologies, Inc. since July 25, 2013. He serves as a Director of Electronic Transactions Association, Camp Twin Lakes and the Metro Atlanta Chamber of Commerce. He serves on the Undergraduate Executive Board of The Wharton School of the University of Pennsylvania. He serves as a Trustee of Pace Academy. Mr. Sloan earned dual BA and BS Degrees from the Wharton School of the University of Pennsylvania in 1989 (summa cum laude) and a JD from New York University School of Law in 1992 (magna cum laude).

CEO Compensation
  • Jeff's compensation has increased by more than 20% in the past year.
  • Jeff's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Global Payments management team in years:

3.9
Average Tenure
51
Average Age
  • The tenure for the Global Payments management team is about average.
Management Team

Jeff Sloan

TITLE
CEO & Director
COMPENSATION
$17M
AGE
51
TENURE
5.4 yrs

Cameron Bready

TITLE
Senior EVP & CFO
COMPENSATION
$6M
AGE
46
TENURE
4.8 yrs

Guido Sacchi

TITLE
Senior EVP & Chief Information Officer
COMPENSATION
$4M
AGE
54
TENURE
7.8 yrs

David Green

TITLE
Executive VP
COMPENSATION
$3M
AGE
51
TENURE
5.3 yrs

David Sheffield

TITLE
Senior VP & Chief Accounting Officer
AGE
56
TENURE
3.9 yrs

Winnie Smith

TITLE
Vice President of Investor Relations
TENURE
0.8 yrs

Phyllis McNeill

TITLE
Vice President of Corporate Communications

Joshua Whipple

TITLE
Executive Vice President of Corporate Development & Strategic Planning
TENURE
0.5 yrs

Karen Matterson

TITLE
Senior VP & Chief People Officer
TENURE
0.9 yrs

Frank Young

TITLE
Chief Product Officer
TENURE
3.9 yrs
Board of Directors Tenure

Average tenure and age of the Global Payments board of directors in years:

4.8
Average Tenure
63
Average Age
  • The tenure for the Global Payments board of directors is about average.
Board of Directors

Bill Jacobs

TITLE
Chairman of the Board
COMPENSATION
$390K
AGE
76
TENURE
4.8 yrs

Jeff Sloan

TITLE
CEO & Director
COMPENSATION
$17M
AGE
51
TENURE
5.2 yrs

Alan Silberstein

TITLE
Independent Director
COMPENSATION
$273K
AGE
70
TENURE
15.5 yrs

Ruth Marshall

TITLE
Independent Director
COMPENSATION
$273K
AGE
64
TENURE
12.5 yrs

John Bruno

TITLE
Independent Director
COMPENSATION
$274K
AGE
53
TENURE
4.8 yrs

Bob Baldwin

TITLE
Director
COMPENSATION
$264K
AGE
63
TENURE
2.9 yrs

Bill Plummer

TITLE
Independent Director
COMPENSATION
$278K
AGE
59
TENURE
2 yrs

John Partridge

TITLE
Independent Director
COMPENSATION
$255K
AGE
69
TENURE
5.3 yrs

Mitchell Hollin

TITLE
Independent Director
COMPENSATION
$275K
AGE
55
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • Global Payments insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Mar 19 Sell Cameron Bready Individual 11. Mar 19 11. Mar 19 -18,308 $131.33 $-2,404,390
08. Mar 19 Sell Jeffrey Sloan Individual 07. Mar 19 07. Mar 19 -34,859 $129.82 $-4,525,395
14. Sep 18 Sell David Green Individual 13. Sep 18 13. Sep 18 -9,212 $128.17 $-1,180,702
14. Sep 18 Sell Cameron Bready Individual 12. Sep 18 12. Sep 18 -20,879 $128.12 $-2,671,073
06. Sep 18 Sell Guido Sacchi Individual 04. Sep 18 04. Sep 18 -15,156 $125.11 $-1,896,167
14. Jun 18 Sell William Jacobs Individual 14. Jun 18 14. Jun 18 -10,181 $119.06 $-1,212,150
X
Management checks
We assess Global Payments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Global Payments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Will Global Payments Inc.'s (NYSE:GPN) Earnings Grow In The Next Couple Of Years?

In December 2018, Global Payments Inc. … (NYSE:GPN) announced its latest earnings update, whicha … confirmed

Simply Wall St -

Who Has Been Selling Global Payments Inc. (NYSE:GPN) Shares?

Global Payments Insider Transactions Over The Last Year. … We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. … In total, Global Payments insiders sold more than they bought over the last year

Simply Wall St -

How Much Did Global Payments Inc.'s (NYSE:GPN) CEO Pocket Last Year?

This analysis aims first to contrast CEO compensation with other large companies. … has a market capitalization of US$20b, and pays its CEO total annual compensation worth US$9.1m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m.

Simply Wall St -

Should Global Payments Inc.'s (NYSE:GPN) Recent Earnings Decline Worry You?

Today I will examine Global Payments Inc.'s (NYSE:GPN) latest earnings update (31 December 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of GPN's industry performed. … GPN's trailing twelve-month earnings (from 31 December 2018) of US$452m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 17%, indicating the rate at which GPN is growing has slowed down

Simply Wall St -

At US$115, Is It Time To Put Global Payments Inc. (NYSE:GPN) On Your Watch List?

Want to participate in a short research study? … saw a significant share price rise of over 20% in the past couple of months on the NYSE … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock.

Simply Wall St -

Global Payments Inc. (NYSE:GPN) Investors Are Paying Above The Intrinsic Value

In this article I am going to calculate the intrinsic value of Global Payments Inc. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should We Worry About Global Payments Inc.'s (NYSE:GPN) P/E Ratio?

We'll show how you can use Global Payments Inc.'s (NYSE:GPN) P/E ratio to inform your assessment of the investment opportunity. … Global Payments has a P/E ratio of 28.26, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Global Payments Inc.'s (NYSE:GPN) 16% Better Than Average?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Global Payments Inc. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Global Payments Inc. (NYSE:GPN): Time For A Financial Health Check

Investors pursuing a solid, dependable stock investment can often be led to Global Payments Inc. … I will provide an overview of Global Payments’s financial liquidity and leverage to give you an idea of Global Payments’s position to take advantage of potential acquisitions or comfortably endure future downturns. … See our latest analysis for Global Payments

Simply Wall St -

Should You Be Worried About Insider Transactions At Global Payments Inc (NYSE:GPN)?

So shareholders might well want to know whether insiders have been buying or selling shares in Global Payments Inc (NYSE:GPN). … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price. … In total, Global Payments insiders sold more than they bought over the last year.

Simply Wall St -

Company Info

Description

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments. The company operates in three segments: North America, Europe, and Asia-Pacific. It 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 online reporting services. The company also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added services, such as analytic and engagement tools, as well as payroll services. In addition, it offers credit and debit card transaction processing services for various international card brands, including American Express, Discover Card, JCB, MasterCard, UnionPay International, and Visa; and non-traditional payment methods, as well as certain domestic debit networks, such as Interac in Canada. Further, the company provides e-commerce and omnichannel solutions; and gaming solutions to licensed gaming operators. It serves customers in various industries comprising education, restaurant, event management, hospitality, retail, healthcare, convenience stores and petroleum, professional services, automotive, and lodging. The company markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations in 32 countries of North America, Europe, the Asia-Pacific region, and Brazil. Global Payments Inc. was founded in 1967 and is headquartered in Atlanta, Georgia.

Details
Name: Global Payments Inc.
GPN
Exchange: NYSE
Founded: 1967
$21,050,921,875
157,850,344
Website: http://www.globalpaymentsinc.com
Address: Global Payments Inc.
3550 Lenox Road,
Atlanta,
Georgia, 30326,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GPN Common Stock New York Stock Exchange US USD 12. Jan 2001
DB GLO Common Stock Deutsche Boerse AG DE EUR 12. Jan 2001
LSE 0IW7 Common Stock London Stock Exchange GB USD 12. Jan 2001
Number of employees
Current staff
Staff numbers
11,000
Global Payments employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:37
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.