GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
NYSE:GPN - New York Stock Exchange, Inc. - US37940X1028 - Common Stock - Currency: USD
Overall GPN gets a fundamental rating of 5 out of 10. We evaluated GPN 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years GPN has been profitable.
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 3.28%, GPN is doing good in the industry, outperforming 67.00% of the companies in the same industry.
GPN has a Return On Equity (7.02%) which is comparable to the rest of the industry.
GPN has a Return On Invested Capital of 4.84%. This is in the better half of the industry: GPN outperforms 63.00% 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 11.84%.
The 3 year average ROIC (4.36%) for GPN is below the current ROIC(4.84%), indicating increased profibility in the last year.
| 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's Profit Margin of 15.48% is fine compared to the rest of the industry. GPN outperforms 66.00% of its industry peers.
In the last couple of years the Profit Margin of GPN has grown nicely.
GPN has a better Operating Margin (23.72%) than 70.00% of its industry peers.
In the last couple of years the Operating Margin of GPN has grown nicely.
With a decent Gross Margin value of 62.77%, GPN is doing good in the industry, outperforming 76.00% of the companies in the same industry.
GPN's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GPN is destroying value.
The number of shares outstanding for GPN has been reduced compared to 1 year ago.
GPN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GPN is higher compared to a year ago.
2.2 Solvency
GPN has an Altman-Z score of 0.97. 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 (0.97) which is comparable to the rest of the industry.
GPN has a debt to FCF ratio of 5.61. This is a neutral value as GPN would need 5.61 years to pay back of 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 65.00% 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 has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.78
WACC6.16%
2.3 Liquidity
GPN has a Current 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.
GPN has a Current ratio (0.94) which is comparable to the rest of the industry.
A Quick Ratio of 0.94 indicates that GPN may have some problems paying its short term obligations.
GPN has a Quick ratio of 0.94. This is comparable to the rest of the industry: GPN outperforms 47.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.80% over the past year.
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%.
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)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.
Based on estimates for the next years, GPN will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y5.74%
EPS Next 2Y8.9%
EPS Next 3Y10.54%
EPS Next 5Y9.75%
Revenue Next Year1.35%
Revenue Next 2Y3.8%
Revenue Next 3Y4.85%
Revenue Next 5Y6.01%
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
A Price/Earnings ratio of 6.87 indicates a rather cheap valuation of GPN.
Based on the Price/Earnings ratio, GPN is valued cheaply inside the industry as 87.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GPN to the average of the S&P500 Index (27.15), we can say GPN is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.84, the valuation of GPN can be described as very cheap.
86.00% of the companies in the same industry are more expensive than GPN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, GPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.87 | ||
| Fwd PE | 5.84 |
4.2 Price Multiples
GPN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GPN is cheaper than 80.00% of the companies in the same industry.
92.00% 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 | 6.48 | ||
| EV/EBITDA | 7.65 |
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)1.2
PEG (5Y)0.51
EPS Next 2Y8.9%
EPS Next 3Y10.54%
5. Dividend
5.1 Amount
GPN has a Yearly Dividend Yield of 1.28%.
Compared to an average industry Dividend Yield of 4.97, GPN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.28, GPN pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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
16.02% 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.
DP16.02%
EPS Next 2Y8.9%
EPS Next 3Y10.54%
80.04
+1.32 (+1.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners94.25%
Inst Owner Change0.37%
Ins Owners0.53%
Ins Owner Change6.64%
Market Cap19.52B
Analysts69.73
Price Target99.6 (24.44%)
Short Float %4.93%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)-7.61%
PT rev (3m)-25.08%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.87 | ||
| Fwd PE | 5.84 | ||
| P/S | 1.93 | ||
| P/FCF | 6.48 | ||
| P/OCF | 5.32 | ||
| P/B | 0.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.65 |
EPS(TTM)11.65
EY14.56%
EPS(NY)13.7
Fwd EY17.11%
FCF(TTM)12.36
FCFY15.44%
OCF(TTM)15.05
OCFY18.81%
SpS41.4
BVpS91.23
TBVpS-52.64
PEG (NY)1.2
PEG (5Y)0.51
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 | 0.97 |
F-Score8
WACC6.16%
ROIC/WACC0.78
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 Y5.74%
EPS Next 2Y8.9%
EPS Next 3Y10.54%
EPS Next 5Y9.75%
Revenue 1Y (TTM)3.23%
Revenue growth 3Y5.84%
Revenue growth 5Y15.52%
Sales Q2Q%0.96%
Revenue Next Year1.35%
Revenue Next 2Y3.8%
Revenue Next 3Y4.85%
Revenue Next 5Y6.01%
EBIT growth 1Y3.13%
EBIT growth 3Y11.27%
EBIT growth 5Y17.46%
EBIT Next Year11.34%
EBIT Next 3Y8.37%
EBIT Next 5Y9.19%
FCF growth 1Y89.38%
FCF growth 3Y7.7%
FCF growth 5Y21.41%
OCF growth 1Y65.87%
OCF growth 3Y8.3%
OCF growth 5Y20.49%