Global Payments
Market Cap
US$65.2b
Last Updated
2021/04/17 22:25 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with acceptable track record.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GPN's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
2.1%
GPN
1.0%
US IT
1.3%
US Market
1 Year Return
40.6%
GPN
58.8%
US IT
53.9%
US Market
Return vs Industry: GPN underperformed the US IT industry which returned 58.8% over the past year.
Return vs Market: GPN underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| GPN | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 1.0% | 1.3% |
| 30 Day | 5.7% | 6.1% | 5.3% |
| 90 Day | 13.8% | 10.5% | 8.9% |
| 1 Year | 41.2%40.6% | 60.4%58.8% | 56.6%53.9% |
| 3 Year | 97.1%95.7% | 108.4%100.8% | 64.4%53.6% |
| 5 Year | 199.5%197.2% | 211.6%190.5% | 120.4%95.7% |
Long-Term 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 week ago | Simply Wall St
Has Global Payments Inc. (NYSE:GPN) Stock's Recent Performance Got Anything to Do With Its Financial Health?3 weeks ago | Simply Wall St
Estimating The Intrinsic Value Of Global Payments Inc. (NYSE:GPN)Valuation
Is Global Payments undervalued compared to its fair value and its price relative to the market?
111.49x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GPN ($217.8) is trading above our estimate of fair value ($191.23)
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 (111.5x) compared to the US IT industry average (39.7x).
PE vs Market: GPN is poor value based on its PE Ratio (111.5x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: GPN is poor value based on its PEG Ratio (4.5x)
Price to Book Ratio
PB vs Industry: GPN is good value based on its PB Ratio (2.4x) 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 30 analysts?
24.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPN's forecast earnings growth (24.6% per year) is above the savings rate (2%).
Earnings vs Market: GPN's earnings (24.6% per year) are forecast to grow faster than the US market (18% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GPN's revenue (6.3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: GPN's revenue (6.3% 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 (9.9%).
Past Performance
How has Global Payments performed over the past 5 years?
15.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GPN has a large one-off loss of $291.8M impacting its December 31 2020 financial results.
Growing Profit Margin: GPN's current net profit margins (7.9%) are lower than last year (8.8%).
Past Earnings Growth Analysis
Earnings Trend: GPN's earnings have grown by 15.5% per year over the past 5 years.
Accelerating Growth: GPN's earnings growth over the past year (35.6%) exceeds its 5-year average (15.5% per year).
Earnings vs Industry: GPN earnings growth over the past year (35.6%) exceeded the IT industry 8.4%.
Return on Equity
High ROE: GPN's Return on Equity (2.2%) is considered low.
Financial Health
How is Global Payments's financial position?
Financial Position Analysis
Short Term Liabilities: GPN's short term assets ($4.6B) exceed its short term liabilities ($4.5B).
Long Term Liabilities: GPN's short term assets ($4.6B) do not cover its long term liabilities ($12.2B).
Debt to Equity History and Analysis
Debt Level: GPN's debt to equity ratio (35.1%) is considered satisfactory.
Reducing Debt: GPN's debt to equity ratio has reduced from 258.2% to 35.1% over the past 5 years.
Debt Coverage: GPN's debt is well covered by operating cash flow (24%).
Interest Coverage: GPN's interest payments on its debt are well covered by EBIT (3.9x coverage).
Balance Sheet
Dividend
What is Global Payments's current dividend yield, its reliability and sustainability?
0.36%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GPN's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: GPN's dividend (0.36%) is low compared to the top 25% of dividend payers in the US market (3.46%).
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?
2.9yrs
Average management tenure
CEO
Jeff Sloan (53 yo)
7.5yrs
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 (2.9 years average tenure).
Board Members
Experienced Board: GPN's board of directors are not considered experienced ( 2.8 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 not been meaningfully diluted in the past year.
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$65.171b
- Shares outstanding: 295.09m
- Website: https://www.globalpaymentsinc.com
Number of Employees
Location
- Global Payments Inc.
- 3550 Lenox Road
- Atlanta
- Georgia
- 30326
- United States
Listings
Biography
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 t...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/17 22:25 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.