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Global Payments Inc GPN

Morningstar Rating
$133.10 +0.65 (0.49%)
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Company Report

Global Payments Earnings: Solid Growth and Margin Improvement

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.

Price vs Fair Value

GPN is trading within a range we consider fairly valued.
Price
$133.10
Fair Value
$761.00
Uncertainty
Medium
1-Star Price
$944.91
5-Star Price
$378.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The merger with Total System Services bulked up Global Payments' acquiring business and strengthened its moat, given the importance of scale in the business.

Bears

The focus on small merchants increases Global Payments' macro sensitivity.

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News

Trading Information

Previous Close Price
$132.45
Day Range
$132.01135.06
52-Week Range
$94.05141.78
Bid/Ask
$128.94 / $142.75
Market Cap
$34.34 Bil
Volume/Avg
4.1 Mil / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
13.34
Price/Sales
3.77
Dividend Yield (Trailing)
0.75%
Dividend Yield (Forward)
0.75%
Total Yield
2.09%

Company Profile

Global Payments is a leading provider of payment processing and software solutions and focuses on serving small and midsize merchants. The company operates in 30 countries and generates about one fourth of its revenue from outside North America, primarily in Europe and Asia. In 2019, Global Payments merged with Total System Services in an all-stock deal that gave Total System Services shareholders 48% of the combined company’s shares. The merger added issuer processing operations.
Sector
Industrials
Industry
Specialty Business Services
Stock Style Box
Mid Core
Total Number of Employees
27,000

Competitors

Valuation

Metric
GPN
FIS
JKHY
Price/Earnings (Normalized)
13.3411.4132.80
Price/Book Value
1.571.907.40
Price/Sales
3.773.365.92
Price/Cash Flow
12.498.4022.67
Price/Earnings
GPN
FIS
JKHY

Financial Strength

Metric
GPN
FIS
JKHY
Quick Ratio
0.390.170.74
Current Ratio
0.990.761.37
Interest Coverage
2.60−26.7326.68
Quick Ratio
GPN
FIS
JKHY

Profitability

Metric
GPN
FIS
JKHY
Return on Assets (Normalized)
5.66%3.97%14.80%
Return on Equity (Normalized)
12.18%8.82%24.75%
Return on Invested Capital (Normalized)
7.94%6.13%21.05%
Return on Assets
GPN
FIS
JKHY
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