GLOBAL PAYMENTS INC (GPN)
US37940X1028 - Common Stock
Taking everything into account, GPN scores 5 out of 10 in our fundamental rating. GPN was compared to 102 industry peers in the Financial Services industry. There are concerns on the financial health of GPN while its profitability can be described as average. GPN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GPN was profitable.
GPN had a positive operating cash flow in the past year.
In the past 5 years GPN has always been profitable.
In the past 5 years GPN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GPN (1.95%) is comparable to the rest of the industry.
GPN has a Return On Equity (4.29%) which is in line with its industry peers.
GPN's Return On Invested Capital of 3.99% is fine compared to the rest of the industry. GPN outperforms 65.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GPN is below the industry average of 7.90%.
The last Return On Invested Capital (3.99%) for GPN is above the 3 year average (3.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 4.29% | ||
| ROIC | 3.99% |
ROA(3y)1.44%
ROA(5y)1.32%
ROE(3y)2.85%
ROE(5y)2.45%
ROIC(3y)3.73%
ROIC(5y)3.12%
1.3 Margins
GPN has a Profit Margin (10.21%) which is in line with its industry peers.
In the last couple of years the Profit Margin of GPN has declined.
GPN's Operating Margin of 22.73% is fine compared to the rest of the industry. GPN outperforms 69.61% of its industry peers.
In the last couple of years the Operating Margin of GPN has remained more or less at the same level.
With a decent Gross Margin value of 61.39%, GPN is doing good in the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Gross Margin of GPN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.73% | ||
| PM (TTM) | 10.21% | ||
| GM | 61.39% |
OM growth 3Y11.62%
OM growth 5Y-0.72%
PM growth 3Y9.07%
PM growth 5Y-5.32%
GM growth 3Y6.26%
GM growth 5Y-1.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GPN is destroying value.
Compared to 1 year ago, GPN has less shares outstanding
GPN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GPN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that GPN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GPN (1.11) is better than 63.73% of its industry peers.
The Debt to FCF ratio of GPN is 10.87, which is on the high side as it means it would take GPN, 10.87 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GPN (10.87) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.72 indicates that GPN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, GPN perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 10.87 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.53
WACC7.51%
2.3 Liquidity
GPN has a Current Ratio of 0.99. 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 of 0.99. This is in the lower half of the industry: GPN underperforms 60.78% of its industry peers.
A Quick Ratio of 0.99 indicates that GPN may have some problems paying its short term obligations.
GPN's Quick ratio of 0.99 is in line compared to the rest of the industry. GPN outperforms 42.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
GPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.68%, which is quite good.
Measured over the past years, GPN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.96% on average per year.
Looking at the last year, GPN shows a small growth in Revenue. The Revenue has grown by 7.56% in the last year.
GPN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.46% yearly.
EPS 1Y (TTM)11.68%
EPS 3Y17.64%
EPS 5Y14.96%
EPS growth Q2Q9.5%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y9.15%
Revenue growth 5Y23.46%
Revenue growth Q2Q8.03%
3.2 Future
The Earnings Per Share is expected to grow by 15.42% on average over the next years. This is quite good.
Based on estimates for the next years, GPN will show a small growth in Revenue. The Revenue will grow by 6.73% on average per year.
EPS Next Y12.34%
EPS Next 2Y12.93%
EPS Next 3Y12.44%
EPS Next 5Y15.42%
Revenue Next Year6.18%
Revenue Next 2Y6.63%
Revenue Next 3Y6.73%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GPN is valuated reasonably with a Price/Earnings ratio of 11.79.
Based on the Price/Earnings ratio, GPN is valued a bit cheaper than 67.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.83. GPN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.49, the valuation of GPN can be described as reasonable.
GPN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GPN is cheaper than 65.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. GPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
72.55% of the companies in the same industry are more expensive than GPN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GPN indicates a somewhat cheap valuation: GPN is cheaper than 60.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 11.48 |
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's earnings are expected to grow with 12.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.79
EPS Next 2Y12.93%
EPS Next 3Y12.44%
5. Dividend
5.1 Amount
GPN has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 3.54, GPN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.80, GPN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
The dividend of GPN is nicely growing with an annual growth rate of 90.47%!
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)90.47%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
26.41% 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.
DP26.41%
EPS Next 2Y12.93%
EPS Next 3Y12.44%
GLOBAL PAYMENTS INC
NYSE:GPN (4/18/2024, 8:49:01 AM)
122.82
-0.13 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 10.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.96
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 4.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.73% | ||
| PM (TTM) | 10.21% | ||
| GM | 61.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.68%
EPS 3Y17.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.56%
Revenue growth 3Y9.15%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y