GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
NYSE:GPN - US37940X1028 - Common Stock
88.23 USD
-0.59 (-0.66%)
88.23 USD
0 (0%)
GPN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. While GPN belongs to the best of the industry regarding profitability, there are concerns on its financial health. GPN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
GPN had positive earnings in the past year.
GPN had a positive operating cash flow in the past year.
In the past 5 years GPN has always been profitable.
In the past 5 years GPN always reported a positive cash flow from operatings.
1.2 Ratios
GPN's Return On Assets of 2.95% is fine compared to the rest of the industry. GPN outperforms 67.00% of its industry peers.
GPN's Return On Equity of 6.33% is on the low side compared to the rest of the industry. GPN is outperformed by 60.00% of its industry peers.
GPN has a better Return On Invested Capital (4.73%) than 63.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPN is below the industry average of 7.71%.
The 3 year average ROIC (4.36%) for GPN is below the current ROIC(4.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 6.33% | ||
| ROIC | 4.73% |
ROA(3y)1.85%
ROA(5y)1.8%
ROE(3y)3.95%
ROE(5y)3.55%
ROIC(3y)4.36%
ROIC(5y)3.81%
1.3 Margins
GPN's Profit Margin of 15.07% is fine compared to the rest of the industry. GPN outperforms 65.00% of its industry peers.
GPN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 24.54%, GPN is doing good in the industry, outperforming 71.00% of the companies in the same industry.
GPN's Operating Margin has improved in the last couple of years.
GPN's Gross Margin of 65.01% is fine compared to the rest of the industry. GPN outperforms 77.00% of its industry peers.
In the last couple of years the Gross Margin of GPN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.54% | ||
| PM (TTM) | 15.07% | ||
| GM | 65.01% |
OM growth 3Y5.13%
OM growth 5Y1.68%
PM growth 3Y11.11%
PM growth 5Y12.13%
GM growth 3Y3.83%
GM growth 5Y1.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GPN is destroying value.
Compared to 1 year ago, GPN has less shares outstanding
The number of shares outstanding for GPN has been reduced compared to 5 years ago.
GPN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that GPN is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.99, GPN is doing good in the industry, outperforming 61.00% of the companies in the same industry.
The Debt to FCF ratio of GPN is 5.33, which is a neutral value as it means it would take GPN, 5.33 years of fcf income to pay off all of its debts.
GPN's Debt to FCF ratio of 5.33 is fine compared to the rest of the industry. GPN outperforms 68.00% of its industry peers.
GPN has a Debt/Equity ratio of 0.65. This is a neutral value indicating GPN is somewhat dependend on debt financing.
GPN has a Debt to Equity ratio (0.65) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.64
WACC7.44%
2.3 Liquidity
GPN has a Current Ratio of 0.95. This is a bad value and indicates that GPN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.95, GPN perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that GPN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, GPN is in line with its industry, outperforming 46.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.24% over the past year.
GPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.36% yearly.
GPN shows a decrease in Revenue. In the last year, the revenue decreased by -4.17%.
Measured over the past years, GPN shows a quite strong growth in Revenue. The Revenue has been growing by 15.52% on average per year.
EPS 1Y (TTM)8.24%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%5.8%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%1.6%
3.2 Future
Based on estimates for the next years, GPN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.75% on average per year.
Based on estimates for the next years, GPN will show a quite strong growth in Revenue. The Revenue will grow by 10.52% on average per year.
EPS Next Y6.63%
EPS Next 2Y9.42%
EPS Next 3Y11.45%
EPS Next 5Y9.75%
Revenue Next Year1.42%
Revenue Next 2Y3.57%
Revenue Next 3Y5.02%
Revenue Next 5Y10.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.46 indicates a rather cheap valuation of GPN.
Based on the Price/Earnings ratio, GPN is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. GPN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.38, the valuation of GPN can be described as very cheap.
83.00% of the companies in the same industry are more expensive than GPN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GPN to the average of the S&P500 Index (22.67), we can say GPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 6.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPN is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPN indicates a rather cheap valuation: GPN is cheaper than 88.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.86 | ||
| EV/EBITDA | 8.66 |
4.3 Compensation for Growth
GPN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GPN may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)0.56
EPS Next 2Y9.42%
EPS Next 3Y11.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, GPN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.27, GPN has a dividend in line with its industry peers.
With a Dividend Yield of 1.17, GPN pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
On average, the dividend of GPN grows each year by 21.27%, which is quite nice.
GPN has been paying a dividend for at least 10 years, so it has a reliable track record.
GPN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)21.27%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
17.30% of the earnings are spent on dividend by GPN. This is a low number and sustainable payout ratio.
GPN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.3%
EPS Next 2Y9.42%
EPS Next 3Y11.45%
88.23
-0.59 (-0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.17%
Inst Owner Change-3.32%
Ins Owners0.53%
Ins Owner Change5.91%
Market Cap21.41B
Analysts69.41
Price Target105.45 (19.52%)
Short Float %3.08%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend0.99
Dividend Growth(5Y)21.27%
DP17.3%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.77%
Min EPS beat(2)-1.97%
Max EPS beat(2)0.44%
EPS beat(4)1
Avg EPS beat(4)-1.25%
Min EPS beat(4)-2.29%
Max EPS beat(4)0.44%
EPS beat(8)3
Avg EPS beat(8)-0.69%
EPS beat(12)5
Avg EPS beat(12)-0.31%
EPS beat(16)7
Avg EPS beat(16)-0.24%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.82%
Revenue beat(8)0
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)1.2%
Revenue beat(16)7
Avg Revenue beat(16)3.18%
PT rev (1m)6.29%
PT rev (3m)-2.18%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0.74%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 6.38 | ||
| P/S | 2.26 | ||
| P/FCF | 6.86 | ||
| P/OCF | 5.7 | ||
| P/B | 0.95 | ||
| P/tB | 14.56 | ||
| EV/EBITDA | 8.66 |
EPS(TTM)11.82
EY13.4%
EPS(NY)13.83
Fwd EY15.67%
FCF(TTM)12.87
FCFY14.59%
OCF(TTM)15.47
OCFY17.53%
SpS39.1
BVpS93.13
TBVpS6.06
PEG (NY)1.13
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 6.33% | ||
| ROCE | 5.77% | ||
| ROIC | 4.73% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 11.24% | ||
| OM | 24.54% | ||
| PM (TTM) | 15.07% | ||
| GM | 65.01% | ||
| FCFM | 32.91% |
ROA(3y)1.85%
ROA(5y)1.8%
ROE(3y)3.95%
ROE(5y)3.55%
ROIC(3y)4.36%
ROIC(5y)3.81%
ROICexc(3y)4.61%
ROICexc(5y)4.02%
ROICexgc(3y)47.47%
ROICexgc(5y)47.57%
ROCE(3y)5.34%
ROCE(5y)4.65%
ROICexcg growth 3Y5.38%
ROICexcg growth 5Y12.85%
ROICexc growth 3Y11.96%
ROICexc growth 5Y18.11%
OM growth 3Y5.13%
OM growth 5Y1.68%
PM growth 3Y11.11%
PM growth 5Y12.13%
GM growth 3Y3.83%
GM growth 5Y1.31%
F-Score9
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 3.66 | ||
| Cap/Depr | 36.9% | ||
| Cap/Sales | 6.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.98% | ||
| Profit Quality | 218.38% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 0.99 |
F-Score9
WACC7.44%
ROIC/WACC0.64
Cap/Depr(3y)36.77%
Cap/Depr(5y)33.3%
Cap/Sales(3y)6.79%
Cap/Sales(5y)6.4%
Profit Quality(3y)601.21%
Profit Quality(5y)472.37%
High Growth Momentum
Growth
EPS 1Y (TTM)8.24%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%5.8%
EPS Next Y6.63%
EPS Next 2Y9.42%
EPS Next 3Y11.45%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%1.6%
Revenue Next Year1.42%
Revenue Next 2Y3.57%
Revenue Next 3Y5.02%
Revenue Next 5Y10.52%
EBIT growth 1Y-2.46%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year11.22%
EBIT Next 3Y7.32%
EBIT Next 5Y9.19%
FCF growth 1Y96.64%
FCF growth 3Y7.7%
FCF growth 5Y21.41%
OCF growth 1Y69.75%
OCF growth 3Y8.3%
OCF growth 5Y20.49%