GPN Stock 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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$135.44|
|52 Week High||US$175.73|
|52 Week Low||US$105.52|
|1 Month Change||17.98%|
|3 Month Change||12.94%|
|1 Year Change||-20.99%|
|3 Year Change||-14.14%|
|5 Year Change||44.45%|
|Change since IPO||3,526.85%|
Recent News & Updates
Global Payments: Time To Pay Up
Global Payments is a long-term secular and acquisitive growth play in the payment space. The company has a sound long-term track record. Valuations have been reset over the past year, as a fair earnings multiple looks compelling given the company's long-term growth prospects and track record. About eight years ago, I called Global Payments Inc. (GPN) a great business and long-term investment, although I was mindful of the timing after shares had enjoyed some momentum at the time. The payment company had seen solid growth at the time, and while the past performance was strong, and the future outlook was solid, the valuation more than reflected this already. A Quick Look Back Late in 2014, Global Payments has seen solid operating momentum, reporting double-digit sales growth with revenues approaching the $3 billion mark, while posting earnings around $4 per share at the time on the back of operating margins in the high-teens (GAAP margins those are). A net debt load of $1.5 billion translated into a leverage ratio between 2.5 and 3 times on the back of $560 million in EBITDA. The company had 69 million shares trading at $76 at the time, although this valuation really coincided with a $38 per-share price following a two-for-one stock split in 2015. The valuation at 20 times earnings looked more than fair to me, given the overall valuations at the time, including the leverage position. However, the growth performance and prospects were sufficient to create long-term appeal, albeit that the valuation looked full at the time. On Fire The long-term outlook for Global Payments has certainly come to fruition, as shares rose to a high of $200, which means that shares have essentially quadrupled from the $38 split-adjusted price late in 2014. Shares traded in the low $200s in 2021, only to witness a meaningful pullback alongside the shares of other technology and payment companies. Shares now trade hands at $130, and that is actually up from levels in the low $100s earlier in June. The company continued to grow amidst secular growth and deal-making, which includes a 2021 deal for Zego, in an all-cash transaction valued at $925 million. By February 2022, Global Payments posted its 2021 results, with revenues up 15% to $8.5 billion. The business has essentially tripled its sales since 2014. The company continues to be very profitable, as adjusted operating margins came in at 42%. This is not a fair comparison to the high-teen margins in 2014, as those were GAAP margins. This comes as the nature of the business model and deal-making efforts results in structural and substantial amortization charges. The company now has 293 million shares outstanding, which, adjusted for the two-for-one stock split, implies that the share count has doubled, adjusted for the split. The growth and dilution have been the result of the mega-deal with TSYS, which closed in 2019. The company posted earnings of $8.16 per share in 2021, as the majority of these earnings are the result of adjustments from the GAAP earnings starting point. If we back out $0.47 per share in stock-based compensation expenses, a $7.70 earnings per share number translates into a reasonable 17 times earnings multiple. Net debt has risen to $10 billion (by year-end 2021) following the deal-making efforts, as adjusted operating earnings were posted at $3.2 billion in 2021, translating to high, but still very manageable, leverage ratios. With a current enterprise valuation of $47 billion, this implies a valuation around 5 times sales here. The company posted solid growth in the first quarter, guiding for adjusted earnings at a midpoint of $9.56 per share for this year. While second quarter sales growth slowed down to 6%, the company actually upped the midpoint of the adjusted earnings guidance to $9.64 per share. Net debt has inched up to $10.7 billion by now, mostly the result of buybacks which reduced the share tally to 278 million shares outstanding. In the meantime, the company has reached a deal to divest Netspend consumer assets in a $1 billion deal, only to reinvest the money into EVO Payments (EVOP). A Big Deal Alongside the second quarter earnings report, Global Payments has reached a deal to acquire EVO Payments in a $4.0 billion deal, after paying a 24% premium for the shares.
|GPN||US IT||US Market|
Return vs Industry: GPN exceeded the US IT industry which returned -26.5% over the past year.
Return vs Market: GPN underperformed the US Market which returned -10.2% over the past year.
|GPN Average Weekly Movement||5.2%|
|IT Industry Average Movement||9.3%|
|Market Average Movement||7.7%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.2%|
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
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. It 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
|GPN fundamental statistics|
Is GPN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GPN income statement (TTM)|
|Cost of Revenue||US$3.79b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.28|
|Net Profit Margin||0.87%|
How did GPN perform over the long term?See historical performance and comparison
0.7%Current Dividend Yield
Does GPN pay a reliable dividends?See GPN dividend history and benchmarks
|Global Payments dividend dates|
|Ex Dividend Date||Sep 15 2022|
|Dividend Pay Date||Sep 30 2022|
|Days until Ex dividend||31 days|
|Days until Dividend pay date||46 days|
Does GPN pay a reliable dividends?See GPN dividend history and benchmarks
Is GPN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for GPN?
Other financial metrics that can be useful for relative valuation.
|What is GPN's n/a Ratio?|
Price to Sales Ratio vs Peers
How does GPN's PS Ratio compare to its peers?
|GPN PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
FIS Fidelity National Information Services
BR Broadridge Financial Solutions
GPN Global Payments
Price-To-Sales vs Peers: GPN is good value based on its Price-To-Sales Ratio (4.2x) compared to the peer average (5.7x).
Price to Earnings Ratio vs Industry
How does GPN's PE Ratio compare vs other companies in the US IT Industry?
Price-To-Sales vs Industry: GPN is expensive based on its Price-To-Sales Ratio (4.2x) compared to the US IT industry average (3x)
Price to Sales Ratio vs Fair Ratio
What is GPN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||4.2x|
|Fair PS Ratio||6.9x|
Price-To-Sales vs Fair Ratio: GPN is good value based on its Price-To-Sales Ratio (4.2x) compared to the estimated Fair Price-To-Sales Ratio (6.9x).
Share Price vs Fair Value
What is the Fair Price of GPN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GPN ($135.44) is trading below our estimate of fair value ($281.14)
Significantly Below Fair Value: GPN is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Global Payments forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPN's forecast earnings growth (89.7% per year) is above the savings rate (1.9%).
Earnings vs Market: GPN's earnings (89.7% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: GPN's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GPN's revenue (6.9% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: GPN's revenue (6.9% 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 (12.5%).
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How has Global Payments performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GPN has a large one-off loss of $1.3B impacting its June 30 2022 financial results.
Growing Profit Margin: GPN's current net profit margins (0.9%) are lower than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: GPN's earnings have grown by 14.4% 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 (-91.1%) over the past year, making it difficult to compare to the IT industry average (20.5%).
Return on Equity
High ROE: GPN's Return on Equity (0.4%) is considered low.
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How is Global Payments's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: GPN's short term assets ($5.2B) do not cover its short term liabilities ($6.0B).
Long Term Liabilities: GPN's short term assets ($5.2B) do not cover its long term liabilities ($14.2B).
Debt to Equity History and Analysis
Debt Level: GPN's net debt to equity ratio (44.4%) is considered high.
Reducing Debt: GPN's debt to equity ratio has reduced from 150.5% to 52.5% over the past 5 years.
Debt Coverage: GPN's debt is well covered by operating cash flow (22.8%).
Interest Coverage: GPN's interest payments on its debt are well covered by EBIT (5.5x coverage).
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What is Global Payments's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: GPN's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: GPN's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.95%).
Stability and Growth of Payments
Stable Dividend: GPN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: GPN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: GPN is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: GPN is not paying a notable dividend for the US market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jeff Sloan (55 yo)
Mr. Jeffrey S. Sloan, also known as Jeff, has been the Chief Executive Officer at Global Payments Inc. since October 1, 2013. Mr. Sloan served as the President at Global Payments from June 1, 2010 to June...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD23.32M) is above average for companies of similar size in the US market ($USD12.88M).
Compensation vs Earnings: Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: GPN's management team is seasoned and experienced (5.8 years average tenure).
Experienced Board: GPN's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Global Payments Inc.'s employee growth, exchange listings and data sources
- Name: Global Payments Inc.
- Ticker: GPN
- Exchange: NYSE
- Founded: 1967
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Implied Market Cap: US$37.539b
- Shares outstanding: 277.16m
- Website: https://www.globalpaymentsinc.com
Number of Employees
- Global Payments Inc.
- 3550 Lenox Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/14 00:00|
|End of Day Share Price||2022/08/12 00:00|
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.