NYSE:TSS

Stock Analysis Report

Total System Services

Executive Summary

As of September 17, 2019, Total System Services, Inc.


Snowflake Analysis

Moderate growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Total System Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TSS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

TSS

13.5%

US IT

10.5%

US Market


1 Year Return

37.3%

TSS

-3.5%

US IT

-11.5%

US Market

Return vs Industry: TSS underperformed the US IT industry which returned 39.9% over the past year.

Return vs Market: TSS exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

TSSIndustryMarket
7 Day-0.6%13.5%10.5%
30 Day3.5%-14.5%-15.4%
90 Day2.7%-17.4%-21.4%
1 Year37.9%37.3%-2.5%-3.5%-9.6%-11.5%
3 Year187.2%181.9%59.2%52.4%12.6%5.4%
5 Year338.9%323.1%89.2%72.7%32.8%18.1%

Price Volatility Vs. Market

How volatile is Total System Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Total System Services undervalued compared to its fair value and its price relative to the market?

38.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TSS ($133.27) is trading above our estimate of fair value ($112.61)

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


Price To Earnings Ratio

PE vs Industry: TSS is poor value based on its PE Ratio (38.8x) compared to the IT industry average (32x).

PE vs Market: TSS is poor value based on its PE Ratio (38.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TSS is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: TSS is overvalued based on its PB Ratio (9.5x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is Total System Services forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSS's forecast earnings growth (15.1% per year) is above the savings rate (2.7%).

Earnings vs Market: TSS's earnings (15.1% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: TSS's earnings are forecast to grow, but not significantly.

Revenue vs Market: TSS's revenue (6.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: TSS's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TSS's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has Total System Services performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSS has high quality earnings.

Growing Profit Margin: TSS's current net profit margins (15%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: TSS's earnings have grown by 20% per year over the past 5 years.

Accelerating Growth: TSS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TSS had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the IT industry average (16.2%).


Return on Equity

High ROE: Whilst TSS's Return on Equity (24.72%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Total System Services's financial position?


Financial Position Analysis

Short Term Liabilities: TSS's short term assets ($1.2B) exceed its short term liabilities ($501.3M).

Long Term Liabilities: TSS's short term assets ($1.2B) do not cover its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: TSS's debt to equity ratio (161.2%) is considered high.

Reducing Debt: TSS's debt to equity ratio has increased from 87.7% to 161.2% over the past 5 years.

Debt Coverage: TSS's debt is well covered by operating cash flow (24%).

Interest Coverage: TSS's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: TSS has a low level of unsold assets or inventory.

Debt Coverage by Assets: TSS's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Total System Services's current dividend yield, its reliability and sustainability?

0.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TSS's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: TSS's dividend (0.39%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: TSS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TSS 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: TSS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TSS'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?

5.2yrs

Average management tenure


CEO

M. Woods (68yo)

5.17s

Tenure

US$10,854,560

Compensation

Mr. M. Troy Woods has been the Chief Executive Officer of Total System Services, Inc. since July 31, 2014. Mr. Woods serves as President of TSYS at TSYS Acquiring Solutions, L.L.C. He has been the Chairman ...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD10.85M) is about average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: M.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
M. Woods
Chairman5.17yrsUS$10.85m0.29% $68.2m
Paul Todd
Senior EVP & CFO5.17yrsUS$2.88m0.036% $8.4m
Patricia Watson
Senior EVP & Chief Information Officer4yrsUS$3.86m0.011% $2.5m
G. Griffith
31.67yrsUS$2.68m0.10% $23.6m
Dorenda Weaver
Chief Accounting Officer15.42yrsno data0.035% $8.3m
Ryland Harrelson
Senior EVP0.67yrno datano data
Shawn Roberts
Vice President of Investor Relationsno datano datano data
Virginia Holman
Group Executive Global Marketing and Corporate Communicationsno datano datano data
Bruce Bacon
Chief Sales Officer of North America Services and Group Executive of North America Servicesno datano datano data
Kelley Knutson
Senior EVP & President of Netspendno datano datano data

5.2yrs

Average Tenure

59.5yo

Average Age

Experienced Management: TSS's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. Woods
Chairman5.17yrsUS$10.85m0.29% $68.2m
Richard Smith
Director1.92yrsUS$230.10k0.0018% $419.8k
Kriss Cloninger
Independent Lead Director2.67yrsUS$262.57k0.018% $4.2m
Joia Johnson
Independent Director0.92yrUS$115.07k0.0011% $266.5k
Sidney Harris
Director20.67yrsUS$265.07k0.013% $3.1m
John Illges
Director Emeritusno dataUS$58.95kno data
F. Thaddeus Arroyo
Director1.92yrsUS$230.10k0.0015% $358.5k
John Turner
Director16.67yrsUS$260.07k0.41% $97.3m
Walter Driver
Director17.17yrsUS$235.10k0.033% $7.7m
Connie McDaniel
Director5.67yrsUS$267.57k0.0073% $1.7m

4.4yrs

Average Tenure

66.5yo

Average Age

Experienced Board: TSS's board of directors are considered experienced (4.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TSS insiders have sold more shares than they have bought 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

Total System Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Total System Services, Inc.
  • Ticker: TSS
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$23.586b
  • Shares outstanding: 176.98m
  • Website: https://www.tsys.com

Number of Employees


Location

  • Total System Services, Inc.
  • One TSYS Way
  • Columbus
  • Georgia
  • 31901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSSNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1983
TTYDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1983
0LG1LSE (London Stock Exchange)YesCommon StockGBUSDAug 1983

Biography

Total System Services, Inc. provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide. The company operates through three segments: Issuer Solutions, Merchant Solutions, and Consumer Solutions. It offers general purpose reloadable prepaid and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers and businesses. The company also provides third party processing and related services for credit card issuers, merchant acquirers, independent sales organizations, and financial institutions; and issuer processing services, as well as operates as a prepaid program manager. Total System Services, Inc. was founded in 1983 and is headquartered in Columbus, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:41
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.