GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
NYSE:GPN - New York Stock Exchange, Inc. - US37940X1028 - Common Stock - Currency: USD
Taking everything into account, GPN scores 5 out of 10 in our fundamental rating. GPN was compared to 101 industry peers in the Financial Services industry. While GPN has a great profitability rating, there are quite some 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.
Each year in the past 5 years GPN has been profitable.
In the past 5 years GPN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.28%, GPN is doing good in the industry, outperforming 69.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.02%, GPN is in line with its industry, outperforming 47.52% of the companies in the same industry.
The Return On Invested Capital of GPN (4.84%) is better than 66.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GPN is significantly below the industry average of 11.69%.
The last Return On Invested Capital (4.84%) for GPN is above the 3 year average (4.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 7.02% | ||
| ROIC | 4.84% |
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 Profit Margin of 15.48%. This is in the better half of the industry: GPN outperforms 66.34% of its industry peers.
GPN's Profit Margin has improved in the last couple of years.
GPN has a better Operating Margin (23.72%) than 70.30% of its industry peers.
GPN's Operating Margin has improved in the last couple of years.
GPN has a Gross Margin of 62.77%. This is in the better half of the industry: GPN outperforms 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 | 23.72% | ||
| PM (TTM) | 15.48% | ||
| GM | 62.77% |
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.
The number of shares outstanding for GPN has been reduced compared to 1 year ago.
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 0.98. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
GPN has a Altman-Z score of 0.98. This is in the better half of the industry: GPN outperforms 61.39% of its industry peers.
The Debt to FCF ratio of GPN is 5.61, which is a neutral value as it means it would take GPN, 5.61 years of fcf income to pay off all of its debts.
GPN has a Debt to FCF ratio of 5.61. This is in the better half of the industry: GPN outperforms 63.37% of its industry peers.
GPN has a Debt/Equity ratio of 0.71. This is a neutral value indicating GPN is somewhat dependend on debt financing.
GPN's Debt to Equity ratio of 0.71 is in line compared to the rest of the industry. GPN outperforms 52.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.66
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.94 indicates that GPN may have some problems paying its short term obligations.
GPN has a Current ratio (0.94) which is comparable to the rest of the industry.
GPN has a Quick Ratio of 0.94. This is a bad value and indicates that GPN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, GPN is in line with its industry, outperforming 48.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
GPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.80%, 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 small growth in Revenue. In the last year, the Revenue has grown by 3.23%.
The Revenue has been growing by 15.52% on average over the past years. This is quite good.
EPS 1Y (TTM)9.8%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%3.86%
Revenue 1Y (TTM)3.23%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%0.96%
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 9.75% yearly.
The Revenue is expected to grow by 6.22% on average over the next years.
EPS Next Y5.7%
EPS Next 2Y8.95%
EPS Next 3Y10.53%
EPS Next 5Y9.75%
Revenue Next Year1.47%
Revenue Next 2Y3.53%
Revenue Next 3Y4.3%
Revenue Next 5Y6.22%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GPN is valuated cheaply with a Price/Earnings ratio of 6.70.
Compared to the rest of the industry, the Price/Earnings ratio of GPN indicates a rather cheap valuation: GPN is cheaper than 84.16% of the companies listed in the same industry.
GPN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 5.70, 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 84.16% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.43. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 5.7 |
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.
Based on the Price/Free Cash Flow ratio, GPN is valued cheaper than 90.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 7.74 |
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)1.18
PEG (5Y)0.5
EPS Next 2Y8.95%
EPS Next 3Y10.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, GPN has a reasonable but not impressive dividend return.
In the last 3 months the price of GPN has falen by -22.73%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
GPN's Dividend Yield is a higher than the industry average which is at 4.87.
With a Dividend Yield of 1.21, GPN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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.
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
16.02% 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.
DP16.02%
EPS Next 2Y8.95%
EPS Next 3Y10.53%
NYSE:GPN (5/21/2025, 11:16:03 AM)
78.09
-1.64 (-2.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners93.41%
Inst Owner Change0.43%
Ins Owners0.85%
Ins Owner Change6.73%
Market Cap19.17B
Analysts71.05
Price Target107.8 (38.05%)
Short Float %3.06%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.99
Dividend Growth(5Y)21.27%
DP16.02%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.59%
Min EPS beat(2)-1.97%
Max EPS beat(2)-1.2%
EPS beat(4)1
Avg EPS beat(4)-1.36%
Min EPS beat(4)-2.29%
Max EPS beat(4)0.03%
EPS beat(8)3
Avg EPS beat(8)-0.7%
EPS beat(12)4
Avg EPS beat(12)-0.37%
EPS beat(16)7
Avg EPS beat(16)0.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.68%
Revenue beat(8)0
Avg Revenue beat(8)-0.95%
Revenue beat(12)4
Avg Revenue beat(12)2.05%
Revenue beat(16)8
Avg Revenue beat(16)4.11%
PT rev (1m)-18.81%
PT rev (3m)-20.56%
EPS NQ rev (1m)-1.45%
EPS NQ rev (3m)-4.46%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 5.7 | ||
| P/S | 1.9 | ||
| P/FCF | 6.36 | ||
| P/OCF | 5.22 | ||
| P/B | 0.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.74 |
EPS(TTM)11.65
EY14.92%
EPS(NY)13.71
Fwd EY17.56%
FCF(TTM)12.28
FCFY15.73%
OCF(TTM)14.96
OCFY19.15%
SpS41.13
BVpS90.63
TBVpS-52.29
PEG (NY)1.18
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 7.02% | ||
| ROCE | 5.92% | ||
| ROIC | 4.84% | ||
| ROICexc | 5.2% | ||
| ROICexgc | 61.84% | ||
| OM | 23.72% | ||
| PM (TTM) | 15.48% | ||
| GM | 62.77% | ||
| FCFM | 29.85% |
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-Score8
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.61 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 35.45% | ||
| Cap/Sales | 6.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.41% | ||
| Profit Quality | 192.89% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 0.98 |
F-Score8
WACC7.3%
ROIC/WACC0.66
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)9.8%
EPS 3Y12.23%
EPS 5Y13.36%
EPS Q2Q%3.86%
EPS Next Y5.7%
EPS Next 2Y8.95%
EPS Next 3Y10.53%
EPS Next 5Y9.75%
Revenue 1Y (TTM)3.23%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%0.96%
Revenue Next Year1.47%
Revenue Next 2Y3.53%
Revenue Next 3Y4.3%
Revenue Next 5Y6.22%
EBIT growth 1Y3.13%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year13.28%
EBIT Next 3Y8.66%
EBIT Next 5Y10.13%
FCF growth 1Y89.38%
FCF growth 3Y7.7%
FCF growth 5Y21.41%
OCF growth 1Y65.87%
OCF growth 3Y8.3%
OCF growth 5Y20.49%