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 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

-1.0%

GPN

-0.8%

US IT

-1.1%

US Market


1 Year Return

60.0%

GPN

34.8%

US IT

17.9%

US Market

Return vs Industry: GPN exceeded the US IT industry which returned 34.8% over the past year.

Return vs Market: GPN exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

GPNIndustryMarket
7 Day-1.0%-0.8%-1.1%
30 Day2.8%3.3%1.4%
90 Day13.8%13.0%6.9%
1 Year60.2%60.0%36.2%34.8%20.3%17.9%
3 Year159.3%158.8%107.0%98.1%47.8%38.3%
5 Year346.5%345.0%148.0%125.8%71.9%53.0%

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?

7.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPN ($204.39) is trading below our estimate of fair value ($221.07)

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 (94.1x) compared to the IT industry average (31.4x).

PE vs Market: GPN is poor value based on its PE Ratio (94.1x) 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 (2.2x) compared to the US IT industry average (4.2x).


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 (14.1% 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

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.4%

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 (1.45%).

High Dividend: GPN's dividend (0.38%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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

NamePositionTenureCompensationOwnership
Jeffrey Sloan
CEO & Director6.3yrsUS$16.82m0.14% $88.2m
Cameron Bready
President & COO0.4yrsUS$5.72m0.033% $20.3m
Guido Sacchi
Senior EVP & Chief Information Officer8.7yrsUS$4.15m0.012% $7.2m
David Green
Senior EVP6.3yrsUS$2.86m0.019% $11.9m
Paul Todd
Senior EVP & CFO0.4yrsno data0.028% $17.3m
David Sheffield
Senior VP & Chief Accounting Officer4.8yrsno data0.0078% $4.8m
Winnie Smith
Vice President of Investor Relations1.8yrsno datano data
Phyllis McNeill
Vice President of Corporate Communications0yrsno datano data
Frank Young
Chief Product Officer4.8yrsno datano data
Joshua Whipple
Senior EVP and Chief Strategy & Enterprise Risk Officer0.4yrsno datano data

4.8yrs

Average Tenure

52yo

Average Age

Experienced Management: GPN's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Sloan
CEO & Director6.3yrsUS$16.82m0.14% $88.2m
Kriss Cloninger
Lead Independent Director0.4yrsno data0.012% $7.4m
Robert H. Baldwin
Director3.8yrsUS$264.11k0.015% $9.2m
M. Woods
Chairman of the Board of Directors0.4yrsno data0.15% $91.8m
Joia Johnson
Director0.4yrsno data0.00098% $600.2k
William Jacobs
Independent Director19yrsUS$390.00k0.0087% $5.3m
William Plummer
Independent Director2.9yrsUS$277.50k0.0016% $979.9k
John Turner
Director0.4yrsno data0.18% $110.6m
John Bruno
Independent Director5.7yrsUS$273.80k0.0043% $2.6m
Ruth Marshall
Independent Director13.4yrsUS$272.50k0.013% $7.9m

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$61.241b
  • Shares outstanding: 299.63m
  • 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
GLOBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 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. 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:39
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.