GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA - NYSE:GPN - US37940X1028 - Common Stock
74.11 USD
-1.33 (-1.76%)
74.35 USD
+0.24 (+0.32%)
Overall GPN gets a fundamental rating of 5 out of 10. We evaluated GPN against 97 industry peers in the Financial Services industry. GPN has an excellent profitability rating, but there are concerns on its financial health. GPN is valued quite cheap, while showing a decent growth score. This is a good 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.
GPN had positive earnings in each of the past 5 years.
Each year in the past 5 years GPN had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.65%, GPN is doing good in the industry, outperforming 71.13% of the companies in the same industry.
With a Return On Equity value of 7.72%, GPN perfoms like the industry average, outperforming 42.27% of the companies in the same industry.
GPN has a Return On Invested Capital of 4.90%. This is in the better half of the industry: GPN outperforms 62.89% of its industry peers.
GPN had an Average Return On Invested Capital over the past 3 years of 4.36%. This is below the industry average of 8.15%.
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's Profit Margin of 19.68% is fine compared to the rest of the industry. GPN outperforms 78.35% of its industry peers.
GPN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.85%, GPN is in the better half of the industry, outperforming 71.13% of the companies in the same industry.
GPN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 67.06%, GPN is doing good in the industry, outperforming 78.35% of the companies in the same industry.
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 | 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.
GPN has less shares outstanding than it did 1 year ago.
GPN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GPN has a worse debt to assets ratio.
2.2 Solvency
GPN has an Altman-Z score of 0.92. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
GPN's Altman-Z score of 0.92 is in line compared to the rest of the industry. GPN outperforms 57.73% of its industry peers.
GPN has a debt to FCF ratio of 7.50. This is a slightly negative value and a sign of low solvency as GPN would need 7.50 years to pay back of 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 55.67% 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 (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.82
WACC5.97%
2.3 Liquidity
A Current Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, GPN is in line with its industry, outperforming 46.39% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that GPN may have some problems paying its short term obligations.
GPN has a Quick ratio of 0.85. This is comparable to the rest of the industry: GPN outperforms 48.45% 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%.
GPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.36% yearly.
The Revenue for GPN has decreased by -11.30% in the past year. This is quite bad
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
Based on estimates for the next years, GPN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.55% on average per year.
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 Y6.65%
EPS Next 2Y8.97%
EPS Next 3Y11.02%
EPS Next 5Y15.55%
Revenue Next Year1.46%
Revenue Next 2Y3.54%
Revenue Next 3Y5.08%
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.
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
The Price/Earnings ratio is 6.18, which indicates a rather cheap valuation of GPN.
Compared to the rest of the industry, the Price/Earnings ratio of GPN indicates a rather cheap valuation: GPN is cheaper than 87.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GPN to the average of the S&P500 Index (25.89), we can say GPN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.40, the valuation of GPN can be described as very cheap.
Based on the Price/Forward Earnings ratio, GPN is valued cheaper than 84.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GPN to the average of the S&P500 Index (34.59), we can say GPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.18 | ||
| Fwd PE | 5.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GPN indicates a somewhat cheap valuation: GPN is cheaper than 78.35% of the companies listed in the same industry.
76.29% 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 | 8.32 | ||
| EV/EBITDA | 7.88 |
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.
The decent profitability rating of GPN may justify a higher PE ratio.
PEG (NY)0.93
PEG (5Y)0.46
EPS Next 2Y8.97%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
GPN's Dividend Yield is comparable with the industry average which is at 4.50.
Compared to an average S&P500 Dividend Yield of 2.36, GPN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
The dividend of GPN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.82%
EPS Next 2Y8.97%
EPS Next 3Y11.02%
74.11
-1.33 (-1.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change0.24%
Ins Owners0.53%
Ins Owner Change-0.61%
Market Cap17.98B
Revenue(TTM)8.89B
Net Income(TTM)1.75B
Analysts69.44
Price Target106.2 (43.3%)
Short Float %3.68%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)4.76%
PT rev (3m)5.21%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.18 | ||
| Fwd PE | 5.4 | ||
| P/S | 2.02 | ||
| P/FCF | 8.32 | ||
| P/OCF | 6.43 | ||
| P/B | 0.79 | ||
| P/tB | 10.85 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)12
EY16.19%
EPS(NY)13.71
Fwd EY18.51%
FCF(TTM)8.91
FCFY12.02%
OCF(TTM)11.52
OCFY15.54%
SpS36.65
BVpS93.43
TBVpS6.83
PEG (NY)0.93
PEG (5Y)0.46
Graham Number158.83
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 | 0.92 |
F-Score7
WACC5.97%
ROIC/WACC0.82
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 Y6.65%
EPS Next 2Y8.97%
EPS Next 3Y11.02%
EPS Next 5Y15.55%
Revenue 1Y (TTM)-11.3%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%3.04%
Revenue Next Year1.46%
Revenue Next 2Y3.54%
Revenue Next 3Y5.08%
Revenue Next 5Y10.52%
EBIT growth 1Y2.31%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year10.5%
EBIT Next 3Y7.53%
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 6.18 and the Price/Book (PB) ratio is 0.79.
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%.