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GPN

Global PaymentsNYSE:GPN Stock Report

Market Cap

US$46.4b

7D

-1.6%

1Y

-10.7%

Updated

24 Oct, 2021

Data

Company Financials +
GPN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends0/6

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

Visa

NYSE:V

US$491.8b

Mastercard

NYSE:MA

US$353.9b

PayPal Holdings

NasdaqGS:PYPL

US$282.5b

Square

NYSE:SQ

US$116.9b

Price History & Performance

Summary of all time highs, changes and price drops for Global Payments
Historical stock prices
Current Share PriceUS$158.00
52 Week HighUS$148.69
52 Week LowUS$220.81
Beta1.15
1 Month Change-2.25%
3 Month Change-17.33%
1 Year Change-10.73%
3 Year Change41.02%
5 Year Change117.66%
Change since IPO4,130.96%

Recent News & Updates

Oct 10
Is Now The Time To Look At Buying Global Payments Inc. (NYSE:GPN)?

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...

Sep 27

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.

Sep 25
Global Payments Inc.'s (NYSE:GPN) Intrinsic Value Is Potentially 42% Above Its Share Price

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...

Aug 26
Here's Why Global Payments (NYSE:GPN) Can Manage Its Debt Responsibly

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

GPNUS ITUS 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

Is GPN's price volatile compared to industry and market?
GPN volatility
GPN Beta1.15
Industry Beta1.18
Market Beta1

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

FoundedEmployeesCEOWebsite
196724,000Jeff Sloanhttps://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

How do Global Payments's earnings and revenue compare to its market cap?
GPN fundamental statistics
Market CapUS$46.41b
Earnings (TTM)US$863.89m
Revenue (TTM)US$7.98b

53.7x

P/E Ratio

5.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GPN income statement (TTM)
RevenueUS$7.98b
Cost of RevenueUS$3.65b
Gross ProfitUS$4.33b
ExpensesUS$3.47b
EarningsUS$863.89m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)2.94
Gross Margin54.28%
Net Profit Margin10.83%
Debt/Equity Ratio40.0%

How did GPN perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

29%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:13
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.