GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - NYSE:GPN - US37940X1028 - Common Stock
87.645 USD
+0.69 (+0.8%)
GPN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on GPN.
1. Profitability
1.1 Basic Checks
In the past year GPN was profitable.
In the past year GPN had a positive cash flow from operations.
GPN had positive earnings in each of the past 5 years.
GPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.95%, GPN is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
GPN has a worse Return On Equity (6.33%) than 60.40% of its industry peers.
GPN has a Return On Invested Capital of 4.73%. This is in the better half of the industry: GPN outperforms 63.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPN is below the industry average of 7.65%.
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
The Profit Margin of GPN (15.07%) is better than 64.36% of its industry peers.
GPN's Profit Margin has improved in the last couple of years.
GPN's Operating Margin of 24.54% is fine compared to the rest of the industry. GPN outperforms 70.30% of its industry peers.
GPN's Operating Margin has improved in the last couple of years.
GPN has a better Gross Margin (65.01%) than 77.23% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GPN is destroying value.
GPN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GPN has less shares outstanding
The debt/assets ratio for GPN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that GPN is in the distress zone and has some risk of bankruptcy.
GPN has a Altman-Z score (0.98) which is in line with its industry peers.
GPN has a debt to FCF ratio of 5.33. This is a neutral value as GPN would need 5.33 years to pay back of all of its debts.
GPN has a better Debt to FCF ratio (5.33) than 68.32% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that GPN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, GPN perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.65
WACC7.26%
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.
GPN has a Current ratio (0.95) which is comparable to the rest of the industry.
GPN has a Quick 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.
The Quick ratio of GPN (0.95) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
GPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.24%, which is quite good.
The Earnings Per Share has been growing by 13.36% on average over the past years. This is quite good.
GPN shows a decrease in Revenue. In the last year, the revenue decreased by -4.17%.
GPN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.52% yearly.
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.
The Revenue is expected to grow by 10.52% on average over the next years. This is quite good.
EPS Next Y6.63%
EPS Next 2Y9.42%
EPS Next 3Y11.45%
EPS Next 5Y9.75%
Revenue Next Year1.45%
Revenue Next 2Y3.58%
Revenue Next 3Y5.02%
Revenue Next 5Y10.52%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
GPN is valuated cheaply with a Price/Earnings ratio of 7.41.
GPN's Price/Earnings ratio is rather cheap when compared to the industry. GPN is cheaper than 86.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of GPN to the average of the S&P500 Index (27.41), we can say GPN is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.34, the valuation of GPN can be described as very cheap.
Based on the Price/Forward Earnings ratio, GPN is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.87. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 6.34 |
4.2 Price Multiples
GPN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GPN is cheaper than 80.20% of the companies in the same industry.
86.14% of the companies in the same industry are more expensive than GPN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
GPN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GPN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.12
PEG (5Y)0.56
EPS Next 2Y9.42%
EPS Next 3Y11.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, GPN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.03, GPN has a dividend in line with its industry peers.
With a Dividend Yield of 1.16, GPN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
On average, the dividend of GPN grows each year by 21.27%, which is quite nice.
GPN has paid a dividend for at least 10 years, which is a reliable track record.
As GPN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)21.27%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
GPN pays out 17.30% of its income as dividend. This is a sustainable payout ratio.
The dividend of GPN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.3%
EPS Next 2Y9.42%
EPS Next 3Y11.45%
NYSE:GPN (9/23/2025, 12:19:00 PM)
87.645
+0.69 (+0.8%)
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 Change1.59%
Market Cap21.26B
Analysts69.41
Price Target105.45 (20.31%)
Short Float %3.31%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)4.48%
PT rev (3m)5.88%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 6.34 | ||
| P/S | 2.24 | ||
| P/FCF | 6.81 | ||
| P/OCF | 5.67 | ||
| P/B | 0.94 | ||
| P/tB | 14.46 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)11.82
EY13.49%
EPS(NY)13.83
Fwd EY15.78%
FCF(TTM)12.87
FCFY14.68%
OCF(TTM)15.47
OCFY17.65%
SpS39.1
BVpS93.13
TBVpS6.06
PEG (NY)1.12
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 | 0.98 |
F-Score9
WACC7.26%
ROIC/WACC0.65
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 Year1.45%
Revenue Next 2Y3.58%
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%