Company Reports

Narrow-moat Global Payments largely maintained its recent path in the first quarter. In the quarter, overall adjusted revenue increased 7% year over year. We think the company's ability to continue to generate solid top-line growth and some margin expansion supports our view that it can retain its long-term competitive position within the evolving payments space. We will maintain our $179 fair value estimate, and we see shares as undervalued at the moment.

We believe the market is concerned about disruption to incumbent payment players like Global Payments. In our view, though, Global Payments continues to benefit from a strong competitive position and is successfully adapting to a changing industry. While Worldpay struggled under FIS' roof, we think that was due to underinvestment, an issue that we don't believe applies to Global Payments.

Global Payments’ fourth-quarter results largely showed the company maintaining recent trends. In the quarter, overall revenue increased 8% year over year. We think the company’s ability to continue to deliver solid top-line growth and margin expansion supports our view that it can retain its competitive position within the evolving payments space. We will maintain our $179 fair value estimate for the narrow-moat firm and see shares as undervalued at the moment.

Global Payments merged with Total System Services in 2019. While it was the last large deal done in the acquiring space that year, we think this combination was the most attractive.

Global Payments’ third-quarter results show the company holding steady, with solid growth in line with the last quarter and margins continuing to improve. We will maintain our $179 fair value estimate and narrow moat rating. We think shares are undervalued and that the company’s stability supports our view on the company’s long-term prospects and should lessen fears of disruption.

Global Payments merged with Total System Services in 2019. While it was the last large deal done in the acquiring space that year, we think this combination was the most attractive.

Global Payments turned in a strong second quarter, with solid growth and a strong improvement in margins. The company is tracking a bit ahead of our full-year expectations but not by a large enough margin to alter our $179 fair value estimate for the narrow-moat company. We continue to see shares as materially undervalued and believe the company's recent performance should help to dispel fears of disruption.

Global Payments delivered a strong first quarter, in our view, with adjusted net revenue up 5% year over year, or 9% excluding currency effects and divestitures. The company also saw strong margin improvement in the quarter. While macroeconomic uncertainty remains, we think the quarter shows the business holding up well. We will maintain our $179 fair value estimate for the narrow-moat company and continue to see shares as undervalued.

Global Payments merged with Total System Services in 2019. While it was the last large deal done in the acquiring space that year, we think this combination was the most attractive.

Global Payments' fourth-quarter results were encouraging, in our view. While the company, like its peers, saw growth slow in the quarter, we think it held up reasonably well. Revenue, excluding currency impacts and dispositions, increased 7% year over year. We think the narrow-moat company's competitive position remains strong, and as the industry sees some pressure in terms of growth, we view relative results as more important than absolute results from a long-term perspective. We maintain our $186 fair value estimate and see the shares as materially undervalued.

Global Payments merged with Total System Services in 2019. While it was the last large deal done in the acquiring space that year, we think this combination was the most attractive.

Global Payments' reported third-quarter results that were weighed down by the stronger dollar, the exit from Russia, and a divestiture, with adjusted net revenue up just 3% year over year. However, excluding these factors, revenue growth was solid at 9% when compared with the prior year's period. Additionally, the company continues to see relatively strong margin expansion. We will maintain our $186 per share fair value estimate and continue to see the shares as materially undervalued. While the company's focus on smaller merchants potentially increases its exposure to a recession in the near term, we think the narrow-moat firm remains well positioned over the long term.

Global Payments merged with Total System Services in 2019. The all-stock deal gave Total System Services shareholders 48% of the combined company’s shares. While it was the last large deal done in the acquiring space that year, we think this combination was the most attractive.

Narrow-moat Global Payments announced solid second-quarter results, with overall constant-currency revenue growth of 11% and solid margin expansion. The company also announced a few strategic moves that we view favorably. We will maintain our $186 per-share fair value estimate and continue to view the shares as materially undervalued.

Like its peers, Global Payments saw strong growth on the acquiring side of the business in the first quarter, which was slightly offset by some headwinds in its smaller segments. Overall revenue increased 8% on an adjusted basis, and the company saw some margin improvement. We will maintain our $186 fair value estimate. We continue to see the shares as undervalued from a long-term perspective, as we believe the market is overly skeptical about the narrow-moat company’s long-term prospects.

Global Payments merged with Total System Services in 2019. The all-stock deal gave Total System Services shareholders 48% of the combined company’s shares. While it was the last large deal done in the acquiring space that year, we think this combination was the most attractive.

Global Payments finished the year on a solid note, and results in the quarter largely maintained recent trends. Overall adjusted revenue increased 13% year over year and margins increased modestly. As the pandemic headwind eases, we think the narrow-moat franchise is well positioned to benefit from favorable long-term trends and that the current market price overly discounts its prospects. We will maintain our $186 fair value estimate.

Global Payments merged with Total System Services in 2019. The all-stock deal gave Total System Services shareholders 48% of the combined company’s shares. While it was the last large deal done in the acquiring space last year, we think this combination was the most attractive.

While some headwinds persist, Global Payments continued to see its results bounce back from the impact of the COVID-19 pandemic. While the rate of recovery appears to be underwhelming the market, we believe the market is overly focused on the near-term ups and downs created by the pandemic. In our view, Global Payments is attractive fundamentally, as the narrow-moat franchise should continue to benefit from a long-term favorable secular trend, and we see the shares as materially undervalued. We will maintain our $186 per share fair value estimate.

Global Payments merged with Total System Services in 2019. The all-stock deal gave Total System Services shareholders 48% of the combined company’s shares. While it was the last large deal done in the acquiring space last year, we think this combination was the most attractive.