We believe the market is overly concerned about disruption to incumbent payment players like Global Payments. In our view, Global Payments continues to benefit from a strong competitive position, is adapting to a changing industry, and can maintain reasonable growth over time. While Worldpay struggled under FIS' roof, we think that was due to underinvestment.
The merger with Total System Services bulked up Global Payments' acquiring business and strengthened its moat, given the importance of scale in the business. The Worldpay merger dramatically improves scale.
The focus on small merchants increases Global Payments' macro sensitivity.
|
Metric
|
GPN
|
JKHY
|
FISV
|
|---|---|---|---|
Price/Earnings (Normalized) | 5.84 | 22.18 | 6.36 |
Price/Book Value | 0.84 | 4.92 | 1.03 |
Price/Sales | 2.05 | 4.25 | 1.30 |
Price/Cash Flow | 52.12 | 12.32 | 4.82 |
|
Metric
|
GPN
|
JKHY
|
FISV
|
|---|---|---|---|
Quick Ratio | 0.49 | 0.90 | 0.19 |
Current Ratio | 0.79 | 1.74 | 1.06 |
Interest Coverage | 1.83 | 118.82 | 3.43 |
|
Metric
|
GPN
|
JKHY
|
FISV
|
|---|---|---|---|
Return on Assets (Normalized) | 5.92% | 15.94% | 5.59% |
Return on Equity (Normalized) | 13.58% | 22.59% | 17.52% |
Return on Invested Capital (Normalized) | 8.29% | 21.30% | 10.40% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Cintas Corp
CTAS
| LOCK|Kv<bdRL$ | LOCK|dD& | $72B | |||
| RELX PLC
RLXXF
| — | LOCK|@&^ | $57B | |||
| RELX PLC ADR
RELX
| LOCK|my?vdhH | LOCK|<! | $57B | |||
| Thomson Reuters Corp
TRI
| LOCK|z#rkz?& | LOCK|vG?P | $39B | |||
| Copart Inc
CPRT
| LOCK|q&G^!F | LOCK|&s$ | $25B | |||
| RB Global Inc
RBA
| LOCK|r^L#WN | LOCK|L&R<C | $20B | |||
| UL Solutions Inc Class A common stock
ULS
| LOCK|$Y!!JG | LOCK|>#XKm | $18B | |||
| Aramark
ARMK
| LOCK|dzX%Jkx | LOCK|HY | $15B | |||
| Rentokil Initial PLC ADR
RTO
| LOCK|dx!!%Rn | LOCK|><<&C | $15B |
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United States