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Global Payments Inc GPN

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Global Payments Sees Pressure Ease in Fourth Quarter, Improves Margins

Brett Horn, CFA Senior Equity Analyst

Analyst Note

| Brett Horn, CFA |

Global Payments’ revenue continued to decline in the fourth quarter, but the pressure seems to be easing a bit, with improved margins leading to a year-over-year increase in operating profitability. Additionally, management seems increasingly optimistic about the narrow-moat company’s outlook, with guidance for 2021 essentially implying a return to more normalized growth and the company looking to actively return capital to shareholders. We will maintain our $170 per share fair value estimate.

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Company Profile

Business Description

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. Global Payments recently announced its intention to merge with Total System Services in an all-stock deal that will give Total System Services shareholders 48% of the combined company's shares.

Contact
3550 Lenox Road
Atlanta, GA, 30326
T +1 770 829-8000
Sector Industrials
Industry Specialty Business Services
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 24,000