GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPN - US37940X1028 - Common Stock
78.85 USD
-0.89 (-1.12%)
78.85 USD
0 (0%)
GPN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 97 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
GPN had positive earnings in the past year.
In the past year GPN had a positive cash flow from operations.
In the past 5 years GPN has always been profitable.
Each year in the past 5 years GPN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GPN (3.65%) is better than 71.43% of its industry peers.
The Return On Equity of GPN (7.72%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.90%, GPN is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GPN is below the industry average of 8.44%.
The 3 year average ROIC (4.36%) for GPN is below the current ROIC(4.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 7.72% | ||
| ROIC | 4.9% |
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 has a better Profit Margin (19.68%) than 78.57% of its industry peers.
GPN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 26.85%, GPN is doing good in the industry, outperforming 72.45% of the companies in the same industry.
In the last couple of years the Operating Margin of GPN has grown nicely.
The Gross Margin of GPN (67.06%) is better than 78.57% of its industry peers.
GPN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.85% | ||
| PM (TTM) | 19.68% | ||
| GM | 67.06% |
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
GPN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GPN has less shares outstanding
Compared to 5 years ago, GPN has less shares outstanding
Compared to 1 year ago, GPN has a worse debt to assets ratio.
2.2 Solvency
GPN has an Altman-Z score of 0.93. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GPN (0.93) is comparable to the rest of the industry.
The Debt to FCF ratio of GPN is 7.50, which is on the high side as it means it would take GPN, 7.50 years of fcf income to pay off all of its debts.
GPN has a Debt to FCF ratio of 7.50. This is comparable to the rest of the industry: GPN outperforms 46.94% of its industry peers.
GPN has a Debt/Equity ratio of 0.63. This is a neutral value indicating GPN is somewhat dependend on debt financing.
GPN has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: GPN outperforms 52.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.81
WACC6.04%
2.3 Liquidity
A Current Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
GPN has a Current ratio of 0.85. This is comparable to the rest of the industry: GPN outperforms 44.90% of its industry peers.
A Quick Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
GPN's Quick ratio of 0.85 is in line compared to the rest of the industry. GPN outperforms 46.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
GPN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.67%.
The Earnings Per Share has been growing by 13.36% on average over the past years. This is quite good.
GPN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.30%.
The Revenue has been growing by 15.52% on average over the past years. This is quite good.
EPS 1Y (TTM)6.67%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%5.84%
Revenue 1Y (TTM)-11.3%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%3.04%
3.2 Future
GPN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.55% yearly.
GPN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.52% yearly.
EPS Next Y6.67%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
EPS Next 5Y15.55%
Revenue Next Year1.39%
Revenue Next 2Y2.9%
Revenue Next 3Y3.52%
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 stable.
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
The Price/Earnings ratio is 6.57, which indicates a rather cheap valuation of GPN.
Based on the Price/Earnings ratio, GPN is valued cheaply inside the industry as 86.73% of the companies are valued more expensively.
GPN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 5.71 indicates a rather cheap valuation of GPN.
83.67% of the companies in the same industry are more expensive than GPN, based on the Price/Forward Earnings ratio.
GPN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.57 | ||
| Fwd PE | 5.71 |
4.2 Price Multiples
75.51% of the companies in the same industry are more expensive than GPN, based on the Enterprise Value to EBITDA ratio.
GPN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GPN is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.64 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GPN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)0.49
EPS Next 2Y9.31%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.96, GPN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, GPN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of GPN is nicely growing with an annual growth rate of 21.27%!
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
13.82% 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.
DP13.82%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
78.85
-0.89 (-1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.78%
Inst Owner Change0.69%
Ins Owners0.54%
Ins Owner Change-0.92%
Market Cap18.67B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts70.86
Price Target106.46 (35.02%)
Short Float %3.34%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend0.99
Dividend Growth(5Y)21.27%
DP13.82%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.02%
Min EPS beat(2)-0.49%
Max EPS beat(2)0.44%
EPS beat(4)1
Avg EPS beat(4)-0.8%
Min EPS beat(4)-1.97%
Max EPS beat(4)0.44%
EPS beat(8)2
Avg EPS beat(8)-0.8%
EPS beat(12)5
Avg EPS beat(12)-0.27%
EPS beat(16)6
Avg EPS beat(16)-0.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)-0.46%
Revenue beat(8)0
Avg Revenue beat(8)-1%
Revenue beat(12)2
Avg Revenue beat(12)0.22%
Revenue beat(16)6
Avg Revenue beat(16)2.55%
PT rev (1m)0.25%
PT rev (3m)0.96%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.57 | ||
| Fwd PE | 5.71 | ||
| P/S | 2.1 | ||
| P/FCF | 8.64 | ||
| P/OCF | 6.68 | ||
| P/B | 0.82 | ||
| P/tB | 11.27 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)12
EY15.22%
EPS(NY)13.8
Fwd EY17.5%
FCF(TTM)9.13
FCFY11.58%
OCF(TTM)11.81
OCFY14.97%
SpS37.56
BVpS95.75
TBVpS7
PEG (NY)0.99
PEG (5Y)0.49
Graham Number160.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 7.72% | ||
| ROCE | 6.04% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 11.76% | ||
| OM | 26.85% | ||
| PM (TTM) | 19.68% | ||
| GM | 67.06% | ||
| FCFM | 24.31% |
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%
ROICexgc growth 3Y5.38%
ROICexgc 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-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 41.25% | ||
| Cap/Sales | 7.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.24% | ||
| Profit Quality | 123.52% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 0.93 |
F-Score7
WACC6.04%
ROIC/WACC0.81
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)6.67%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%5.84%
EPS Next Y6.67%
EPS Next 2Y9.31%
EPS Next 3Y11.51%
EPS Next 5Y15.55%
Revenue 1Y (TTM)-11.3%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%3.04%
Revenue Next Year1.39%
Revenue Next 2Y2.9%
Revenue Next 3Y3.52%
Revenue Next 5Y10.52%
EBIT growth 1Y2.31%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year10.45%
EBIT Next 3Y7.54%
EBIT Next 5Y9.19%
FCF growth 1Y31.17%
FCF growth 3Y7.7%
FCF growth 5Y21.41%
OCF growth 1Y21.47%
OCF growth 3Y8.3%
OCF growth 5Y20.49%
GLOBAL PAYMENTS INC / GPN FAQ
Can you provide the ChartMill fundamental rating for GLOBAL PAYMENTS INC?
ChartMill assigns a fundamental rating of 5 / 10 to GPN.
Can you provide the valuation status for GLOBAL PAYMENTS INC?
ChartMill assigns a valuation rating of 8 / 10 to GLOBAL PAYMENTS INC (GPN). This can be considered as Undervalued.
What is the profitability of GPN stock?
GLOBAL PAYMENTS INC (GPN) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for GPN stock?
The Price/Earnings (PE) ratio for GLOBAL PAYMENTS INC (GPN) is 6.57 and the Price/Book (PB) ratio is 0.82.
How sustainable is the dividend of GLOBAL PAYMENTS INC (GPN) stock?
The dividend rating of GLOBAL PAYMENTS INC (GPN) is 5 / 10 and the dividend payout ratio is 13.82%.