NYSE:TSS

Stock Analysis Report

Total System Services

Executive Summary

Total System Services, Inc. provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide.

Snowflake

Fundamentals

Moderate growth potential with acceptable track record.

Risks

  • Total System Services has significant price volatility in the past 3 months.

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

0.7%

NYSE:TSS

0.2%

US IT

-0.3%

US Market


1 Year Return

48.5%

NYSE:TSS

23.1%

US IT

3.4%

US Market

TSS outperformed the IT industry which returned 22.9% over the past year.

TSS outperformed the Market in United States of America which returned 4.1% over the past year.


Share holder returns

TSSIndustryMarket
7 Day0.7%0.2%-0.3%
30 Day3.8%5.1%2.9%
90 Day32.3%11.3%2.1%
1 Year49.3%48.5%24.4%23.1%5.7%3.4%
3 Year143.9%139.2%102.9%93.7%45.8%36.2%
5 Year328.8%312.5%136.9%112.5%58.9%41.3%

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 based on future cash flows and its price relative to the stock market?

40.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Total System Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Total System Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Total System Services is overvalued based on earnings compared to the US IT industry average.

Total System Services is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Total System Services is poor value based on expected growth next year.


Price Based on Value of Assets

Total System Services is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Total System Services expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Total System Services's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Total System Services's earnings are expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).

Total System Services's revenue growth is positive but not above the United States of America market average.

Total System Services's earnings growth is expected to exceed the United States of America market average.

Total System Services's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Total System Services is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

20.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Total System Services has delivered over 20% year on year earnings growth in the past 5 years.

Total System Services's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Total System Services's 1-year earnings growth is negative, it can't be compared to the US IT industry average.


Return on Equity

Whilst Total System Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Total System Services used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Total System Services has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Total System Services's financial position?


Financial Position Analysis

Total System Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Total System Services's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Total System Services's level of debt (178.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (88.9% vs 178.3% today).

Debt is well covered by operating cash flow (25.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).


Balance Sheet

Low level of unsold assets.

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?

0.40%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Total System Services's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Total System Services's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).

Total System Services is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Total System Services is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Total System Services's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Total System Services's dividends in 3 years as they are not expected to pay a notable one for United States of America.


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?

5.0yrs

Average management tenure


CEO

M. Woods (68yo)

5.0yrs

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

M.'s remuneration is about average for companies of similar size in United States of America.

M.'s compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

5.0yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Total System Services management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.3yrs

Average Tenure

66.5yo

Average Age

The tenure for the Total System Services board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellUS$1,500,92812 Mar 19
Patricia Watson
EntityIndividual
Role
Senior EVP & Chief Information Officer
Shares16,000
Max PriceUS$93.81
SellUS$4,361,74512 Feb 19
M. Woods
EntityIndividual
Role
Chairman
Chairman of the Board
Shares47,812
Max PriceUS$91.23
SellUS$209,54812 Feb 19
Dorenda Weaver
EntityIndividual
Role
Chief Accounting Officer
Shares2,297
Max PriceUS$91.23
SellUS$787,47112 Feb 19
Patricia Watson
EntityIndividual
Role
Senior EVP & Chief Information Officer
Shares8,632
Max PriceUS$91.23
SellUS$979,68712 Feb 19
Paul Todd
EntityIndividual
Role
Senior EVP & CFO
Shares10,739
Max PriceUS$91.23
SellUS$1,028,40212 Feb 19
G. Griffith
EntityIndividual
Role
Senior EVP
Shares11,273
Max PriceUS$91.23
SellUS$495,89117 Sep 18
Dorenda Weaver
EntityIndividual
Role
Chief Accounting Officer
Shares5,009
Max PriceUS$99.00

Ownership Breakdown


Management Team

  • Virginia Holman

    Group Executive Global Marketing and Corporate Communications

  • Bruce Bacon

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

  • Dorenda Weaver

    Chief Accounting Officer

    • Tenure: 15.3yrs
  • Kelley Knutson

    Senior EVP & President of Netspend

  • M. Woods (68yo)

    Chairman

    • Tenure: 5.0yrs
    • Compensation: $10.85m
  • Shawn Roberts

    Vice President of Investor Relations

  • Patty Watson (53yo)

    Senior EVP & Chief Information Officer

    • Tenure: 3.8yrs
    • Compensation: $3.86m
  • G. Griffith (66yo)

    Senior EVP

    • Tenure: 31.5yrs
    • Compensation: $2.68m
  • Ryland Harrelson

    Senior EVP

    • Tenure: 0.5yrs
  • Paul Todd (48yo)

    Senior EVP & CFO

    • Tenure: 5.0yrs
    • Compensation: $2.88m

Board Members

  • Kriss Cloninger (71yo)

    Independent Lead Director

    • Tenure: 2.5yrs
    • Compensation: $262.57k
  • Sidney Harris (69yo)

    Director

    • Tenure: 20.5yrs
    • Compensation: $265.07k
  • Walter Driver (74yo)

    Director

    • Tenure: 17.0yrs
    • Compensation: $235.10k
  • Richard Smith (65yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: $230.10k
  • John Turner (62yo)

    Director

    • Tenure: 16.5yrs
    • Compensation: $260.07k
  • M. Woods (68yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: $10.85m
  • John Illges (84yo)

    Director Emeritus

    • Compensation: $58.95k
  • Joia Johnson (59yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: $115.07k
  • Connie McDaniel (61yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: $267.57k
  • F. Arroyo (55yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: $230.10k

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$23.542b
  • Shares outstanding: 176.97m
  • Website: Click here

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 Analysis2019/07/17 23:46
End of Day Share Price2019/07/17 00:00
Earnings2019/03/31
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.