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Worldpay

NYSE:WP
Snowflake Description

Reasonable growth potential and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WP
NYSE
$35B
Imp Market Cap
  1. Home
  2. US
  3. Software
Company description

Worldpay, Inc., through its subsidiary, Worldpay Holding, LLC, provides electronic payment processing services in the United States, Europe, Asia, and Australasia. The last earnings update was 57 days ago. More info.


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  • Worldpay has significant price volatility in the past 3 months.
WP Share Price and Events
7 Day Returns
1.8%
NYSE:WP
-0.5%
US IT
-0.1%
US Market
1 Year Returns
43.5%
NYSE:WP
25.4%
US IT
7.6%
US Market
WP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Worldpay (WP) 1.8% 4.4% 38.3% 43.5% 100.9% 269%
US IT -0.5% 3.9% 17.7% 25.4% 80.6% 106.1%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • WP outperformed the IT industry which returned 25.4% over the past year.
  • WP outperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
WP
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Worldpay to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Worldpay.

NYSE:WP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (22.59%))
1.169
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.169 * 5.96%)
9.7%

Discounted Cash Flow Calculation for NYSE:WP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Worldpay is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.7%)
2019 1,399.34 Analyst x11 1,275.65
2020 1,755.42 Analyst x13 1,458.80
2021 2,021.57 Analyst x6 1,531.47
2022 1,826.70 Analyst x3 1,261.52
2023 1,998.70 Analyst x2 1,258.29
2024 2,054.48 Est @ 2.79% 1,179.07
2025 2,111.44 Est @ 2.77% 1,104.65
2026 2,169.70 Est @ 2.76% 1,034.79
2027 2,229.39 Est @ 2.75% 969.27
2028 2,290.58 Est @ 2.74% 907.84
Present value of next 10 years cash flows $11,981.36
NYSE:WP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,290.58 × (1 + 2.73%) ÷ (9.7% – 2.73%)
$33,776.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $33,776.77 ÷ (1 + 9.7%)10
$13,387.04
NYSE:WP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $11,981.36 + $13,387.04
$25,368.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $25,368.39 / 310.97
$81.58
NYSE:WP Discount to Share Price
Calculation Result
Value per share (USD) From above. $81.58
Current discount Discount to share price of $113.47
= -1 x ($113.47 - $81.58) / $81.58
-39.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Worldpay is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Worldpay's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Worldpay's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.04
NYSE:WP Share Price ** NYSE (2019-04-23) in USD $113.47
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 31.79x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Worldpay.

NYSE:WP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WP Share Price ÷ EPS (both in USD)

= 113.47 ÷ 0.04

2597.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Worldpay is overvalued based on earnings compared to the US IT industry average.
  • Worldpay is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Worldpay's expected growth come at a high price?
Raw Data
NYSE:WP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2597.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
46.1%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.63x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:WP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 2597.34x ÷ 46.1%

56.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Worldpay is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Worldpay's assets?
Raw Data
NYSE:WP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $32.85
NYSE:WP Share Price * NYSE (2019-04-23) in USD $113.47
United States of America IT Industry PB Ratio Median Figure of 124 Publicly-Listed IT Companies 4.5x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:WP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WP Share Price ÷ Book Value per Share (both in USD)

= 113.47 ÷ 32.85

3.45x

* Primary Listing of Worldpay.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Worldpay is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Worldpay's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Worldpay has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Worldpay expected to perform in the next 1 to 3 years based on estimates from 30 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
46.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Worldpay expected to grow at an attractive rate?
  • Worldpay's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Worldpay's earnings growth is expected to exceed the United States of America market average.
  • Worldpay's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 46.1%
NYSE:WP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 8%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.4%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 5,797 2
2022-12-31 5,535 2,317 1,099 4
2021-12-31 5,111 2,822 861 11
2020-12-31 4,663 2,240 700 30
2019-12-31 4,258 1,723 440 30
NYSE:WP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,925 936 13
2018-09-30 3,941 494 -157
2018-06-30 3,957 745 -68
2018-03-31 3,949 735 4
2017-12-31 4,027 785 130
2017-09-30 3,916 726 238
2017-06-30 3,796 815 212
2017-03-31 3,689 750 202
2016-12-31 3,579 645 213
2016-09-30 3,476 682 216
2016-06-30 3,378 654 191
2016-03-31 3,273 685 169

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Worldpay's earnings are expected to grow significantly at over 20% yearly.
  • Worldpay's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from Worldpay Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.35 2.47 2.22 2.00
2020-12-31 2.26 2.73 1.79 9.00
2019-12-31 1.50 1.80 1.24 10.00
NYSE:WP Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.04
2018-09-30 -0.61
2018-06-30 -0.31
2018-03-31 0.02
2017-12-31 0.81
2017-09-30 1.48
2017-06-30 1.33
2017-03-31 1.29
2016-12-31 1.37
2016-09-30 1.41
2016-06-30 1.27
2016-03-31 1.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Worldpay is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Worldpay's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Worldpay has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Worldpay performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Worldpay's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Worldpay's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Worldpay's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Worldpay's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
Worldpay's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Worldpay Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,925.40 12.80 1,672.90
2018-09-30 3,941.28 -157.39 1,519.41
2018-06-30 3,957.08 -68.09 1,306.11
2018-03-31 3,948.98 3.61 1,105.01
2017-12-31 4,026.50 130.10 879.30
2017-09-30 3,915.73 237.65 853.10
2017-06-30 3,796.05 211.84 823.67
2017-03-31 3,688.57 202.37 798.64
2016-12-31 3,579.00 213.20 772.00
2016-09-30 3,476.19 216.29 746.02
2016-06-30 3,378.17 191.49 726.02
2016-03-31 3,272.95 168.70 702.04
2015-12-31 3,159.94 147.95 686.32
2015-09-30 3,041.39 165.60 671.43
2015-06-30 2,922.50 154.09 654.11
2015-03-31 2,745.24 116.15 623.19
2014-12-31 2,577.20 125.29 570.34
2014-09-30 2,401.77 99.55 520.10
2014-06-30 2,237.01 105.27 470.49
2014-03-31 2,147.69 135.59 437.73
2013-12-31 2,108.08 133.57 433.75
2013-09-30 2,043.81 119.49 416.80
2013-06-30 1,978.20 108.05 407.67
2013-03-31 1,928.42 102.09 401.10
2012-12-31 1,863.24 57.61 395.38
2012-09-30 1,808.19 44.57 359.79
2012-06-30 1,750.82 31.95 337.27

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Worldpay has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Worldpay used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • Worldpay's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Worldpay's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Worldpay has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Worldpay's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Worldpay's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Worldpay's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Worldpay's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Worldpay's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Worldpay Company Filings, last reported 3 months ago.

NYSE:WP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 10,204.00 7,914.80 215.80
2018-09-30 10,821.50 7,998.30 394.10
2018-06-30 10,874.60 8,146.70 384.70
2018-03-31 10,992.20 8,342.90 472.50
2017-12-31 600.60 5,711.20 136.20
2017-09-30 617.11 4,753.42 99.47
2017-06-30 1,780.50 3,540.73 125.79
2017-03-31 1,668.77 3,218.26 142.91
2016-12-31 1,607.29 3,256.87 141.29
2016-09-30 1,572.21 3,019.74 184.48
2016-06-30 1,365.63 3,051.61 202.91
2016-03-31 1,278.65 3,075.98 82.77
2015-12-31 1,225.07 3,109.10 197.10
2015-09-30 1,288.93 3,165.57 287.56
2015-06-30 1,393.68 3,208.78 400.78
2015-03-31 1,331.31 3,205.02 239.54
2014-12-31 1,300.59 3,424.16 411.57
2014-09-30 1,243.22 3,452.39 371.45
2014-06-30 1,191.20 3,486.47 230.66
2014-03-31 1,185.13 1,808.52 136.97
2013-12-31 1,176.32 1,831.35 171.43
2013-09-30 1,082.70 1,854.14 304.26
2013-06-30 1,054.49 1,876.36 472.59
2013-03-31 1,482.85 1,215.73 141.74
2012-12-31 1,444.24 1,269.89 67.06
2012-09-30 1,417.18 1,243.60 380.76
2012-06-30 1,369.94 1,256.11 308.82
  • Worldpay's level of debt (77.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (155.6% vs 77.6% today).
  • Debt is not well covered by operating cash flow (11.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Worldpay's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Worldpay has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Worldpay's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Worldpay dividends. Estimated to be 0% next year.
If you bought $2,000 of Worldpay shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Worldpay's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Worldpay's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 5.00
2019-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Worldpay has not reported any payouts.
  • Unable to verify if Worldpay's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Worldpay's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Worldpay has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Worldpay's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Worldpay's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Worldpay afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Worldpay has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charles Drucker
COMPENSATION $17,500,309
AGE 55
TENURE AS CEO 0.3 years
CEO Bio

Mr. Charles D. Drucker has been Executive Chairman of Worldpay Inc. since January 2018 and also serves as its Chief Executive Officer since December 31, 2018. He served as Co-Chief Executive Officer of Worldpay Inc. (formerly Vantiv, Inc.) since January 2018 until December 31, 2018. He served as President of Fifth Third Processing Solutions (Vantiv, Inc.’s predecessor) from 2004 to 2009, as President and Chief Executive Officer of Vantiv, Inc. from 2009 to January 2018 and as Director of Vantiv, Inc. from 2011 to January 2018.. Mr. Drucker has over 20 years experience in financial services and payment processing, directing business strategy, sales, product development, marketing and operations. Mr. Drucker’s financial technology and financial services experience. Prior to this, Mr. Drucker served as President and Chief Executive Officer of Vantiv Holding LLC (part of Fifth Third Bancorp until it was spun off in 2009); Head of Investment Advisors Division for Fifth Third Investment Advisors, Inc. from 2006 to 2009 and President of Fifth Third Processing Solutions from 2004 to 2006. Mr. Drucker served as an Executive Vice President of Fifth Third Bancorp. from June 2005 to June 2009. He served as Executive Vice President and Chief Operating Officer of STAR ® Debit Services, a division of First Data Corporation. He was responsible for STAR’s sales strategy with the additional responsibility of daily operations and client management for the 1 debit network in the U.S. He served as President and Chief Executive Officer of TeleCheck Services, Inc. In addition, he served as Senior Vice President and General Manager of Commercial Services for Wells Fargo & Company, where he directed the ninth-largest merchant-acquiring portfolio in the U.S. Prior to his tenure at Wells Fargo, Mr. Drucker held executive leadership and financial management positions with Bank One and Security Pacific Bank. He has been an Independent Director of Donnelley Financial Solutions, Inc. since October 1, 2016. He served as a Director of Vantiv Holding, LLC from June 2009 to March 2012. He also served as Chief Executive Officer and President of Worldpay Inc. and has an extensive senior management experience at a number of large corporations in the payments industry, deep industry experience and intimate knowledge of the operational, financial and strategic development of Worldpay Inc. He served on the MasterCard Acquirer’s Committee and the Visa Acquirer’s Council. Mr. Drucker holds a Bachelor of Science degree in Management.

CEO Compensation
  • Charles's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Charles's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Worldpay management team in years:

1.3
Average Tenure
54
Average Age
  • The average tenure for the Worldpay management team is less than 2 years, this suggests a new team.
Management Team

Charles Drucker

TITLE
Executive Chairman & CEO
COMPENSATION
$18M
AGE
55
TENURE
0.3 yrs

Mark Heimbouch

TITLE
President
COMPENSATION
$10M
AGE
54
TENURE
0.4 yrs

Stephanie Ferris

TITLE
Chief Financial Officer
COMPENSATION
$8M
AGE
44
TENURE
1.3 yrs

Royal Cole

TITLE
Executive VP & Head of the North American Region
COMPENSATION
$7M
AGE
57
TENURE
1.3 yrs

Shane Happach

TITLE
Executive VP & Head of Global Enterprise eCommerce
COMPENSATION
$8M
AGE
39
TENURE
1.3 yrs

Christopher Thompson

TITLE
Chief Accounting Officer
AGE
54
TENURE
4.8 yrs

Nathan Rozof

TITLE
Senior VP of Investor Relations

Jared Warner

TITLE
General Counsel & Corporate Secretary

Andrew Ciafardini

TITLE
Head of Corporate Comm. & Corporate Social Responsibility and VP of Corporate Comm.

Asif Ramji

TITLE
Chief Product & Marketing Officer
AGE
43
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the Worldpay board of directors in years:

4
Average Tenure
56.5
Average Age
  • The tenure for the Worldpay board of directors is about average.
Board of Directors

Charles Drucker

TITLE
Executive Chairman & CEO
COMPENSATION
$18M
AGE
55
TENURE
1.3 yrs

Mark Heimbouch

TITLE
President
COMPENSATION
$10M
AGE
54
TENURE
5.3 yrs

Ron Kalifa

TITLE
Executive Director
AGE
57
TENURE
1.3 yrs

Lee Adrean

TITLE
Director
COMPENSATION
$355K
AGE
67
TENURE
7.1 yrs

Gary Lauer

TITLE
Director
COMPENSATION
$315K
AGE
65
TENURE
7.1 yrs

Kevin Costello

TITLE
Director
COMPENSATION
$295K
AGE
56
TENURE
4.8 yrs

Jeff Stiefler

TITLE
Lead Director
COMPENSATION
$275K
AGE
72
TENURE
0.2 yrs

Lisa Hook

TITLE
Director
COMPENSATION
$295K
AGE
60
TENURE
4.2 yrs

Hong Sim

TITLE
Director
COMPENSATION
$275K
AGE
56
TENURE
3.8 yrs

Karen Richardson

TITLE
Director
COMPENSATION
$288K
AGE
55
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • Worldpay insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Mar 19 Sell Christopher Thompson Individual 15. Mar 19 15. Mar 19 -12,392 $98.90 $-1,223,152
05. Mar 19 Sell Royal Cole Individual 04. Mar 19 04. Mar 19 -28,585 $97.43 $-2,760,283
X
Management checks
We assess Worldpay's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Worldpay has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Worldpay Inc (NYSE:WP): Assessing Capital Returns

and want to begin learning the link between Worldpay Inc (NYSE:WP)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently Worldpay is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Is Worldpay Inc (NYSE:WP) Worth US$83.66 Based On Intrinsic Value?

by taking the expected future cash flows and discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

What You Must Know About Worldpay Inc's (NYSE:WP) Financial Strength

its financial health remains the key to continued success. … I will provide an overview of Worldpay’s financial liquidity and leverage to give you an idea of Worldpay’s position to take advantage of potential acquisitions or comfortably endure future downturns … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

What Do Analysts Think About Worldpay Inc's (NYSE:WP) Future Margins?

Worldpay Inc's (NYSE:WP) … growth of 86.70% annualised … but it's critical to take a step back

Simply Wall St -

Why Worldpay Inc (NYSE:WP) May Not Be As Efficient As Its Industry

Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … ROE can be dissected into three distinct ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:WP Last Perf May 25th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Worldpay Inc (NYSE:WP) Investors Are Paying Above The Intrinsic Value

5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $1,100.78 $1,539.20 $1,886.80 $1,877.00 $2,095.00 Source Analyst x10 Analyst x9 Analyst x5 Analyst x2 Analyst x2 Present Value Discounted @ 11.24% $989.54 $1,243.82 $1,370.63 $1,225.72 $1,229.82 Present Value of 5-year Cash Flow (PVCF)= $6,060 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $2,095 × (1 + 2.5%) ÷ (11.2% – 2.5%) = $24,473 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $24,473 / ( 1 + 11.2%)5 = $14,366 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $20,426. … NYSE:WP Intrinsic Value May 12th 18 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Is Worldpay Inc (NYSE:WP) Undervalued?

Worldpay Inc (NYSE:WP) saw a decent share price growth in the teens level on the NYSE over the last few months. … It’s trading around 15% above my intrinsic value, which means if you buy Worldpay today, you’d be paying a relatively fair price for it. … WP’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Is Worldpay Inc's (NYSE:WP) Strong Prospects Worth The Price?

Alarm bells rang in my head when I saw WP's debt level exceeds equity on its balance sheet, and its cash from its core activities is only enough to cover a mere 13.74% of this large debt amount. … The current state of WP's financial health lowers my conviction around the sustainability of the business going forward. … One reason I do like WP as a business is its low level of fixed assets on its balance sheet (5.47% of total assets).

Simply Wall St -

How Do Analysts See Worldpay Inc's (NYSE:WP) Margin Performing In The Years Ahead?

Margin Calculation for WP Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 130.11 Million ÷ 4.03 Billion = 3.23% There has been an expansion in Worldpay's margin over the past five years, as a result of 25.08% in average net income growth outstripping 16.00% in average revenue growth, which means that the previous increase in revenue has coincided with a larger portion falling to the bottom line. … Using Worldpay's margin expectations as a way to understand projections for the future Forward looking projections suggest margins will keep on expanding, with 4.69% in expected annual revenue growth and annual net income growth forecasted at 49.36%. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth.

Simply Wall St -

Is Worldpay Inc (NYSE:WP) Undervalued After Accounting For Its Future Growth?

Worldpay Inc (NYSE:WP) is considered a high-growth stock, but its last closing price of $72.64 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … This illustrates that Worldpay is overvalued compared to the US market average ratio of 18.9x , and overvalued based on current earnings compared to the it industry average of 26.42x. … NYSE:WP PE PEG Gauge Feb 9th 18 After looking at WP's value based on current earnings, we can see it seems overvalued relative to other companies in the industry.

Simply Wall St -

Company Info

Description

Worldpay, Inc., through its subsidiary, Worldpay Holding, LLC, provides electronic payment processing services in the United States, Europe, Asia, and Australasia. It operates in two segments, Technology Solutions, Merchant Solutions, and Issuer Solutions. The company offers merchant acquiring and payment processing services, such as authorization and settlement, customer service, chargeback and retrieval processing, and interchange management. It also provides value-added services, such data analytics and information management solutions, foreign currency management, and various funding options; and security solutions, including point-to-point encryption and tokenization at the point of sale and for e-commerce transactions. In addition, the company offers card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine driving, portfolio optimization, data analytics, and card program marketing, as well as network gateway and switching services. Further, it provides card and statement production, and collections and inbound/outbound call centers. The company serves merchants and financial institutions comprising regional banks, community banks, credit unions, and regional personal identification number networks through direct sales forces and referral partners. The company was formerly known as Vantiv, Inc. and changed its name to Worldpay, Inc. in January 2018. Worldpay, Inc. was incorporated in 2009 and is headquartered in Cincinnati, Ohio.

Details
Name: Worldpay, Inc.
WP
Exchange: NYSE
Founded: 2009
$35,043,225,527
$35,285,782,239
310,970,144
Website: http://www.worldpay.com
Address: Worldpay, Inc.
8500 Governor's Hill Drive,
Symmes Township,
Cincinnati,
Ohio, 45249,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WP Class A Common Stock New York Stock Exchange US USD 22. Mar 2012
DB V7TA Class A Common Stock Deutsche Boerse AG DE EUR 22. Mar 2012
LSE WPY Class A Common Stock London Stock Exchange GB GBP 22. Mar 2012
BATS-CHIXE WPYL Class A Common Stock BATS 'Chi-X Europe' GB GBP 22. Mar 2012
LSE WPY USD0.00001 A London Stock Exchange GB USD 24. Apr 2019
Number of employees
Current staff
Staff numbers
8,186
Worldpay employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 00:33
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.