NYSE:GPN

Stock Analysis Report

Executive Summary

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments.

Snowflake

High growth potential with adequate balance sheet.

Rewards

Trading at 11.5% below its fair value

Earnings are forecast to grow 35.15% per year

Earnings have grown 16.5% per year over the past 5 years

Risk Analysis

Large one-off items impacting financial results

Profit margins (10.6%) are lower than last year (17.5%)

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



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

5.3%

GPN

1.7%

US IT

0.7%

US Market


1 Year Return

63.4%

GPN

30.9%

US IT

13.7%

US Market

Return vs Industry: GPN exceeded the US IT industry which returned 30.9% over the past year.

Return vs Market: GPN exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

GPNIndustryMarket
7 Day5.3%1.7%0.7%
30 Day11.9%3.9%4.7%
90 Day12.4%0.4%6.1%
1 Year63.4%63.4%32.2%30.9%16.2%13.7%
3 Year153.7%153.5%96.0%87.8%48.8%39.2%
5 Year329.2%328.2%133.9%113.1%62.5%44.5%

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

Valuation

Is Global Payments undervalued compared to its fair value and its price relative to the market?

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPN ($179.23) is trading below our estimate of fair value ($202.42)

Significantly Below Fair Value: GPN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GPN is poor value based on its PE Ratio (72.2x) compared to the IT industry average (31.4x).

PE vs Market: GPN is poor value based on its PE Ratio (72.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: GPN is poor value based on its PEG Ratio (2.1x)


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 (4x).


Next Steps

Future Growth

How is Global Payments forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

35.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPN's forecast earnings growth (35.2% per year) is above the savings rate (2.7%).

Earnings vs Market: GPN's earnings (35.2% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GPN's revenue (21.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: GPN's revenue (21.1% per year) is forecast to grow faster 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 (9.4%).


Next Steps

Past Performance

How has Global Payments performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPN has large one-off items impacting its financial results.

Growing Profit Margin: GPN's current net profit margins (10.6%) are lower than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: GPN's earnings have grown by 16.5% 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 (-34.9%) over the past year, making it difficult to compare to the IT industry average (17%).


Return on Equity

High ROE: GPN's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Global Payments's financial position?


Financial Position Analysis

Short Term Liabilities: GPN's short term assets ($5.0B) exceeds its short term liabilities ($4.3B)

Long Term Liabilities: GPN's short term assets ($5.0B) do not cover its long term liabilities (13.0B)


Debt to Equity History and Analysis

Debt Level: GPN's debt to equity ratio (34.3%) is considered satisfactory.

Reducing Debt: GPN's debt to equity ratio has reduced from 198.6% to 34.3% over the past 5 years.

Debt Coverage: GPN's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: GPN's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: GPN has a low level of unsold assets or inventory.

Debt Coverage by Assets: GPN's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

0.43%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Global Payments before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.6%industryaverage1.3%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: GPN's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: GPN's dividend (0.44%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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

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

4.6yrs

Average management tenure


CEO

Jeff Sloan (52yo)

6.1yrs

Tenure

US$16,818,560

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 ($USD16.82M) is above average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

52yo

Average Age

Experienced Management: GPN's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

63yo

Average Age

Experienced Board: GPN's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: GPN insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$97,37607 Nov 19
Joia Johnson
EntityIndividual
Shares575
Max PriceUS$169.35
SellUS$1,666,14421 Aug 19
Guido Sacchi
EntityIndividual
Role
Chief Information Officer
Senior EVP & Chief Information Officer
Shares10,450
Max PriceUS$159.74
SellUS$2,404,39013 Mar 19
Cameron Bready
EntityIndividual
Role
President
President & COO
Shares18,308
Max PriceUS$131.33
SellUS$4,525,39508 Mar 19
Jeffrey Sloan
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares34,859
Max PriceUS$129.82

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Management Team

  • Guido Sacchi (55yo)

    Senior EVP & Chief Information Officer

    • Tenure: 8.4yrs
    • Compensation: US$4.15m
  • Cameron Bready (47yo)

    President & COO

    • Tenure: 0.2yrs
    • Compensation: US$5.72m
  • Paul Todd (48yo)

    Senior EVP & CFO

    • Tenure: 0.2yrs
  • David Sheffield (57yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.6yrs
  • Jeff Sloan (52yo)

    CEO & Director

    • Tenure: 6.1yrs
    • Compensation: US$16.82m
  • Phyllis McNeill

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • David Green (52yo)

    Senior EVP

    • Tenure: 6yrs
    • Compensation: US$2.86m
  • Frank Young

    Chief Product Officer

    • Tenure: 4.6yrs
  • Winnie Smith

    Vice President of Investor Relations

    • Tenure: 1.5yrs
  • Josh Whipple

    Senior EVP and Chief Strategy & Enterprise Risk Officer

    • Tenure: 0.2yrs

Board Members

  • Kriss Cloninger (71yo)

    Lead Independent Director

    • Tenure: 0.2yrs
  • Bob Baldwin (64yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$264.11k
  • M. Woods (68yo)

    Chairman of the Board of Directors

    • Tenure: 0.2yrs
  • Bill Jacobs (77yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$390.00k
  • Bill Plummer (60yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$277.50k
  • F. Thaddeus Arroyo (55yo)

    Director

    • Tenure: 0.2yrs
  • John Turner (62yo)

    Director

    • Tenure: 0.2yrs
  • John Bruno (54yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$273.80k
  • Ruth Marshall (65yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$272.50k
  • Jeff Sloan (52yo)

    CEO & Director

    • Tenure: 6.1yrs
    • Compensation: US$16.82m

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$53.867b
  • Shares outstanding: 300.55m
  • Website: https://www.globalpaymentsinc.com

Number of Employees


Location

  • Global Payments Inc.
  • 3550 Lenox Road
  • Atlanta
  • Georgia
  • 30326
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPNNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2001
GLODB (Deutsche Boerse AG)YesCommon StockDEEURJan 2001
GPN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 2001
0IW7LSE (London Stock Exchange)YesCommon StockGBUSDJan 2001

Biography

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-Paci ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:38
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.