NYSE:GPN

Stock Analysis Report

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Executive Summary

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in North America, Europe, the Asia-Pacific, and Latin America.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

-1.8%

GPN

2.7%

US IT

2.5%

US Market


1 Year Return

9.2%

GPN

22.4%

US IT

16.3%

US Market

Return vs Industry: GPN underperformed the US IT industry which returned 22% over the past year.

Return vs Market: GPN underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

GPNIndustryMarket
7 Day-1.8%2.7%2.5%
30 Day6.3%6.1%5.3%
90 Day1.2%17.4%16.3%
1 Year9.6%9.2%23.6%22.4%18.8%16.3%
3 Year88.1%87.4%108.8%100.5%45.0%35.7%
5 Year200.5%199.0%153.1%132.2%75.8%56.8%

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?

124.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GPN ($174.83) is trading above our estimate of fair value ($167.69)

Significantly Below Fair Value: GPN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GPN is poor value based on its PE Ratio (124.3x) compared to the US IT industry average (31.6x).

PE vs Market: GPN is poor value based on its PE Ratio (124.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GPN is poor value based on its PEG Ratio (2.4x)


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 (3.6x).


Next Steps

Future Growth

How is Global Payments forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

52.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPN's forecast earnings growth (52.8% per year) is above the savings rate (2.2%).

Earnings vs Market: GPN's earnings (52.8% per year) are forecast to grow faster than the US market (23.1% per year).

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

Revenue vs Market: GPN's revenue (9.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: GPN's revenue (9.3% 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 (8.8%).


Next Steps

Past Performance

How has Global Payments performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPN has a large one-off loss of $391.8M impacting its June 30 2020 financial results.

Growing Profit Margin: GPN's current net profit margins (5.7%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: GPN's earnings have grown by 14% 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 (-21.7%) over the past year, making it difficult to compare to the IT industry average (8.1%).


Return on Equity

High ROE: GPN's Return on Equity (1.5%) is considered low.


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 ($4.2B).

Long Term Liabilities: GPN's short term assets ($4.4B) do not cover its long term liabilities ($12.1B).


Debt to Equity History and Analysis

Debt Level: GPN's debt to equity ratio (34.9%) is considered satisfactory.

Reducing Debt: GPN's debt to equity ratio has reduced from 262.9% to 34.9% over the past 5 years.

Debt Coverage: GPN's debt is well covered by operating cash flow (21.8%).

Interest Coverage: GPN's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.45%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: GPN's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: GPN's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (4.36%).


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?

2.3yrs

Average management tenure


CEO

Jeff Sloan (53 yo)

6.83yrs

Tenure

US$20,502,096

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 ($USD20.50M) is above average for companies of similar size in the US market ($USD11.35M).

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

NamePositionTenureCompensationOwnership
Jeffrey Sloan
CEO & Director6.83yrsUS$20.50m0.16%
$ 84.5m
Cameron Bready
President & COO0.92yrUS$9.45m0.039%
$ 20.2m
Paul Todd
Senior EVP & CFO0.92yrUS$2.57m0.031%
$ 16.2m
Guido Sacchi
Senior EVP & Chief Information Officer9.17yrsUS$5.41m0.012%
$ 6.3m
David Green
Senior EVP6.75yrsUS$4.84m0.020%
$ 10.5m
David Sheffield
Senior VP & Chief Accounting Officer5.33yrsno data0.0073%
$ 3.8m
Winnie Smith
Vice President of Investor Relations2.25yrsno datano data
Phyllis McNeill
Vice President of Corporate Communicationsno datano datano data
Frank Young
Chief Product Officer5.33yrsno datano data
Joshua Whipple
Senior EVP and Chief Strategy & Enterprise Risk Officer0.92yrno datano data
Gaylon Jowers
Senior EVP & President of TSYS Issuer Solutions0.92yrno datano data
Kelley Knutson
Senior EVP & President of NetSpend0.92yrno datano data

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: GPN's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Sloan
CEO & Director6.83yrsUS$20.50m0.16%
$ 84.5m
Kriss Cloninger
Lead Independent Director0.92yrUS$57.70k0.012%
$ 6.5m
Robert H. Baldwin
Independent Director4.33yrsUS$309.54k0.015%
$ 7.8m
M. Woods
Chairman of the Board of Directors0.92yrUS$278.41k0.15%
$ 79.8m
Joia Johnson
Independent Director0.92yrUS$47.16k0.0016%
$ 831.8k
William Jacobs
Independent Director19.5yrsUS$425.09k0.0083%
$ 4.4m
William Plummer
Independent Director3.42yrsUS$331.59k0.0020%
$ 1.0m
F. Thaddeus Arroyo
Independent Director0.92yrUS$53.18k0.0012%
$ 627.8k
John Turner
Independent Director0.92yrUS$43.39k0.18%
$ 95.0m
John Bruno
Independent Director6.17yrsUS$321.59k0.0047%
$ 2.4m
Connie McDaniel
Independent Director0.92yrUS$32.09k0.0040%
$ 2.1m
Ruth Marshall
Independent Director13.92yrsUS$309.54k0.013%
$ 7.0m

2.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: GPN's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GPN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 91%.


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$52.317b
  • Shares outstanding: 299.24m
  • 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
GLOETLX (Eurotlx)YesCommon StockITEURJan 2001
G1PI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in North America, Europe, the Asia-Pacific, and Latin America. The company op ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 00:14
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.