Global Payments
Market Cap
US$62.0b
Last Updated
2020/02/16 23:41 UTC
Data Sources
Company Financials +
Executive Summary
Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with adequate balance sheet.
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
2.8%
GPN
2.1%
US IT
1.5%
US Market
1 Year Return
67.4%
GPN
37.2%
US IT
20.1%
US Market
Return vs Industry: GPN exceeded the US IT industry which returned 37.2% over the past year.
Return vs Market: GPN exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| GPN | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 2.1% | 1.5% |
| 30 Day | 3.9% | 4.4% | 1.4% |
| 90 Day | 14.9% | 13.9% | 8.7% |
| 1 Year | 67.6%67.4% | 38.6%37.2% | 22.7%20.1% |
| 3 Year | 165.3%164.7% | 112.3%103.1% | 50.1%40.5% |
| 5 Year | 346.6%345.2% | 148.0%125.8% | 73.1%54.1% |
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
1 day ago | Simply Wall St
Global Payments Inc. (NYSE:GPN) Delivered A Weaker ROE Than Its Industry1 week ago | Simply Wall St
Global Payments Inc.’s (NYSE:GPN) Investment Returns Are Lagging Its Industry3 weeks ago | Simply Wall St
Is Global Payments (NYSE:GPN) A Risky Investment?Valuation
Is Global Payments undervalued compared to its fair value and its price relative to the market?
6.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GPN ($206.37) is trading below our estimate of fair value ($221.14)
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 (95x) compared to the IT industry average (33.1x).
PE vs Market: GPN is poor value based on its PE Ratio (95x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: GPN is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: GPN is good value based on its PB Ratio (2.2x) compared to the US IT industry average (4.3x).
Next Steps
Future Growth
How is Global Payments forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
43.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPN's forecast earnings growth (43.9% per year) is above the savings rate (1.7%).
Earnings vs Market: GPN's earnings (43.9% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GPN's revenue (20% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: GPN's revenue (20% 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 (10.2%).
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 a large one-off loss of $255.6M impacting its December 31 2019 financial results.
Growing Profit Margin: GPN's current net profit margins (8.8%) are lower than last year (13.4%).
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 (-4.7%) over the past year, making it difficult to compare to the IT industry average (12%).
Return on Equity
High ROE: GPN's Return on Equity (1.7%) 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 ($4.4B) exceed its short term liabilities ($3.6B).
Long Term Liabilities: GPN's short term assets ($4.4B) do not cover its long term liabilities ($12.8B).
Debt to Equity History and Analysis
Debt Level: GPN's debt to equity ratio (32.3%) is considered satisfactory.
Reducing Debt: GPN's debt to equity ratio has reduced from 212.2% to 32.3% over the past 5 years.
Debt Coverage: GPN's debt is not well covered by operating cash flow (15.4%).
Interest Coverage: GPN's interest payments on its debt are well covered by EBIT (3.8x 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?
0.38%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Global Payments before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: GPN's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: GPN's dividend (0.38%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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?
4.8yrs
Average management tenure
CEO
Jeff Sloan (52yo)
6.3yrs
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 ($USD10.81M).
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 | 6.3yrs | US$16.82m | 0.14% $89.2m | |
| President & COO | 0.4yrs | US$5.72m | 0.033% $20.5m | |
| Senior EVP & Chief Information Officer | 8.7yrs | US$4.15m | 0.012% $7.3m | |
| Senior EVP | 6.3yrs | US$2.86m | 0.019% $12.0m | |
| Senior EVP & CFO | 0.4yrs | no data | 0.020% $12.1m | |
| Senior VP & Chief Accounting Officer | 4.8yrs | no data | 0.0078% $4.8m | |
| Vice President of Investor Relations | 1.8yrs | no data | no data | |
| Vice President of Corporate Communications | 0yrs | no data | no data | |
| Chief Product Officer | 4.8yrs | no data | no data | |
| Senior EVP and Chief Strategy & Enterprise Risk Officer | 0.4yrs | no data | no data |
4.8yrs
Average Tenure
52yo
Average Age
Experienced Management: GPN's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.3yrs | US$16.82m | 0.14% $89.2m | |
| Lead Independent Director | 0.4yrs | no data | 0.012% $7.5m | |
| Director | 3.8yrs | US$264.11k | 0.015% $9.3m | |
| Chairman of the Board of Directors | 0.4yrs | no data | 0.15% $93.0m | |
| Director | 0.4yrs | no data | 0.00098% $607.2k | |
| Independent Director | 19yrs | US$390.00k | 0.0089% $5.5m | |
| Independent Director | 2.9yrs | US$277.50k | 0.0016% $991.3k | |
| Director | 0.4yrs | no data | 0.18% $111.9m | |
| Independent Director | 5.7yrs | US$273.80k | 0.0043% $2.6m | |
| Independent Director | 13.4yrs | US$272.50k | 0.013% $8.0m |
3.4yrs
Average Tenure
63yo
Average Age
Experienced Board: GPN's board of directors are considered experienced (3.4 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 been diluted in the past year, with total shares outstanding growing by 25%.
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$61.958b
- Shares outstanding: 300.23m
- 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. 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. has a strategic partnership with Desjardins Group to acquire its existing merchant acquiring business, which includes a portfolio of approximately 40,000 merchants. The company was founded in 1967 and is headquartered in Atlanta, Georgia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:41 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| 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.