NYSE:TSS

Stock Analysis Report

Total System Services

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-0.6%

TSS

-1.5%

US IT

0.5%

US Market


1 Year Return

37.3%

TSS

21.3%

US IT

6.8%

US Market

Return vs Industry: TSS exceeded the US IT industry which returned 21.3% over the past year.

Return vs Market: TSS exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

TSSIndustryMarket
7 Day-0.6%-1.5%0.5%
30 Day3.5%-0.8%-0.8%
90 Day2.7%-4.5%-0.9%
1 Year37.9%37.3%22.5%21.3%9.2%6.8%
3 Year187.2%181.9%94.0%86.1%45.6%36.2%
5 Year338.9%323.1%149.1%126.3%63.2%45.4%

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 (35.5x).

PE vs Market: TSS is poor value based on its PE Ratio (38.8x) compared to the US market (17.7x).


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


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Total System Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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


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 (9.8%).


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.


Return on Assets

ROA vs Industry: TSS has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: TSS has significantly improved its Return on Capital Employed over the past 3 years.


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) exceeds 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

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TSS's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TSS's dividend (0.39%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

What is the CEO of Total System Services's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

M. Woods (68yo)

5.2yrs

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 ($USD10.85M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

5.2yrs

Average Tenure

59.5yo

Average Age

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


Board Age and Tenure

4.4yrs

Average Tenure

66.5yo

Average Age

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


Insider Trading

Insider Buying: TSS insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$100,27816 Sep 19
Joia Johnson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares745
Max PriceUS$134.60
SellUS$974,14609 Sep 19
G. Griffith
EntityIndividual
Role
Chief Legal Officer
Shares6,873
Max PriceUS$141.92
SellUS$250,17003 Sep 19
Sidney Harris
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,860
Max PriceUS$134.50
SellUS$633,11103 Sep 19
Patricia Watson
EntityIndividual
Role
Chief Information Officer
Senior EVP & Chief Information Officer
Shares4,734
Max PriceUS$133.74
SellUS$1,500,92812 Mar 19
Patricia Watson
EntityIndividual
Role
Chief Information Officer
Senior EVP & Chief Information Officer
Shares16,000
Max PriceUS$93.81
SellUS$4,361,74512 Feb 19
M. Woods
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares47,812
Max PriceUS$91.23
SellUS$209,54812 Feb 19
Dorenda Weaver
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares2,297
Max PriceUS$91.23
SellUS$787,47112 Feb 19
Patricia Watson
EntityIndividual
Role
Chief Information Officer
Senior EVP & Chief Information Officer
Shares8,632
Max PriceUS$91.23
SellUS$979,68712 Feb 19
Paul Todd
EntityIndividual
Role
Chief Financial Officer
Senior EVP & CFO
Shares10,739
Max PriceUS$91.23
SellUS$1,028,40212 Feb 19
G. Griffith
EntityIndividual
Role
Chief Legal Officer
Shares11,273
Max PriceUS$91.23

Ownership Breakdown


Management Team

  • M. Woods (68yo)

    Chairman

    • Tenure: 5.2yrs
    • Compensation: US$10.85m
  • G. Griffith (66yo)

    • Tenure: 31.7yrs
    • Compensation: US$2.68m
  • Kelley Knutson

    Senior EVP & President of Netspend

    • Tenure: 0yrs
  • Paul Todd (48yo)

    Senior EVP & CFO

    • Tenure: 5.2yrs
    • Compensation: US$2.88m
  • Bruce Bacon

    Chief Sales Officer of North America Services and Group Executive of North America Services

    • Tenure: 0yrs
  • Ryland Harrelson

    Senior EVP

    • Tenure: 0.7yrs
  • Dorenda Weaver

    Chief Accounting Officer

    • Tenure: 15.4yrs
  • Virginia Holman

    Group Executive Global Marketing and Corporate Communications

    • Tenure: 0yrs
  • Shawn Roberts

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Patty Watson (53yo)

    Senior EVP & Chief Information Officer

    • Tenure: 4yrs
    • Compensation: US$3.86m

Board Members

  • Richard Smith (65yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$230.10k
  • Kriss Cloninger (71yo)

    Independent Lead Director

    • Tenure: 2.7yrs
    • Compensation: US$262.57k
  • M. Woods (68yo)

    Chairman

    • Tenure: 5.2yrs
    • Compensation: US$10.85m
  • Joia Johnson (59yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$115.07k
  • Sidney Harris (69yo)

    Director

    • Tenure: 20.7yrs
    • Compensation: US$265.07k
  • John Illges (84yo)

    Director Emeritus

    • Tenure: 0yrs
    • Compensation: US$58.95k
  • F. Thaddeus Arroyo (55yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$230.10k
  • John Turner (62yo)

    Director

    • Tenure: 16.7yrs
    • Compensation: US$260.07k
  • Walter Driver (74yo)

    Director

    • Tenure: 17.2yrs
    • Compensation: US$235.10k
  • Connie McDaniel (61yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$267.57k

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 Sol ...


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.