GLOBAL PAYMENTS INC (GPN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:GPN • US37940X1028
70.44 USD
-0.91 (-1.28%)
Last: Jan 30, 2026, 11:06 AM
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
- In the past year GPN was profitable.
- GPN had a positive operating cash flow in the past year.
- 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
- The Return On Assets of GPN (3.65%) is better than 72.16% of its industry peers.
- The Return On Equity of GPN (7.72%) is comparable to the rest of the industry.
- GPN's Return On Invested Capital of 4.90% is fine compared to the rest of the industry. GPN outperforms 67.01% 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 8.46%.
- 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 79.38% of its industry peers.
- In the last couple of years the Profit Margin of GPN has grown nicely.
- Looking at the Operating Margin, with a value of 26.85%, GPN is in the better half of the industry, outperforming 73.20% of the companies in the same industry.
- In the last couple of years the Operating Margin of GPN has grown nicely.
- With a decent Gross Margin value of 67.06%, GPN is doing good in the industry, outperforming 77.32% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- GPN has a worse debt/assets ratio than last year.
2.2 Solvency
- GPN has an Altman-Z score of 0.89. This is a bad value and indicates that GPN is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.89, GPN is in line with its industry, outperforming 56.70% of the companies in the same 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 (7.50) which is in line with 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.
- With a Debt to Equity ratio value of 0.63, GPN perfoms like the industry average, outperforming 52.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.67
WACC7.32%
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.
- GPN has a Quick Ratio of 0.85. This is a bad value and indicates that GPN is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.85, GPN perfoms like the industry average, outperforming 47.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.67% over the past year.
- The Earnings Per Share has been growing by 13.36% on average over the past years. This is quite good.
- Looking at the last year, GPN shows a very negative growth in Revenue. The Revenue has decreased by -11.30% in the last year.
- GPN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.52% yearly.
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.
- Based on estimates for the next years, GPN will show a quite strong growth in Revenue. The Revenue will grow by 10.52% on average per year.
EPS Next Y6.66%
EPS Next 2Y9.07%
EPS Next 3Y11.3%
EPS Next 5Y15.55%
Revenue Next Year1.63%
Revenue Next 2Y2.67%
Revenue Next 3Y3.76%
Revenue Next 5Y10.52%
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 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 5.87, which indicates a rather cheap valuation of GPN.
- Based on the Price/Earnings ratio, GPN is valued cheaply inside the industry as 89.69% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, GPN is valued rather cheaply.
- GPN is valuated cheaply with a Price/Forward Earnings ratio of 5.13.
- Based on the Price/Forward Earnings ratio, GPN is valued cheaper than 88.66% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, GPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 5.13 |
4.2 Price Multiples
- 78.35% of the companies in the same industry are more expensive than GPN, based on the Enterprise Value to EBITDA ratio.
- 82.47% 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 | 7.72 | ||
| EV/EBITDA | 7.52 |
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)0.88
PEG (5Y)0.44
EPS Next 2Y9.07%
EPS Next 3Y11.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.32%, GPN has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.09, GPN pays a bit more dividend than its industry peers.
- GPN's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
- On average, the dividend of GPN grows each year by 21.27%, which is quite nice.
- GPN has paid a dividend for at least 10 years, which is 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
- GPN pays out 13.82% of its income as dividend. This is a sustainable payout ratio.
- GPN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.82%
EPS Next 2Y9.07%
EPS Next 3Y11.3%
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.
What is the valuation status of GLOBAL PAYMENTS INC (GPN) stock?
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.
What is the valuation of GLOBAL PAYMENTS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GLOBAL PAYMENTS INC (GPN) is 5.87 and the Price/Book (PB) ratio is 0.74.
Is the dividend of GLOBAL PAYMENTS INC sustainable?
The dividend rating of GLOBAL PAYMENTS INC (GPN) is 5 / 10 and the dividend payout ratio is 13.82%.