GPN  Global Payments Inc.

Exchange

NYSE

Sector

Miscellaneous

Industry

Business Services

Market Cap.

14.01B

Vuru Grade

52.04/100

Current Price

$91.85
-0.52 (-0.56%)

Growth Price

$40.94
Overvalued by 55.42%

Stability Price

$14.01
Overvalued by 84.74%

Company Metrics

  • P/E 72.27
  • P/S 3.46
  • P/B 5.16
  • EPS 1.27
  • Cash ROIC 1.87%
  • Cash Ratio 0.43
  • Dividend 0.04 / 0.04 %
  • Avg. Vol. 1.22M
  • Shares 133.17M
  • Market Cap. 14.01B

Company Description

Global Payments Inc. provides electronic transaction processing services for merchants, independent sales organizations (ISO), financial institutions, government agencies, and multi-national corporations located in the United States, Canada, Europe, and the Asia-Pacific region. It offers a comprehensive line of processing solutions for credit and debit cards; business-to-business purchasing cards;... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Global Payments Inc. (GPN) Isn't Shy About Revealing Its Soul In The Technicals
NY Stock News - 17 hours ago
Global Payments Inc. (GPN) has been having a set of eventful trading activity and it is clear from an examination of the charts that traders are now fully aware of the company's key metrics.
Global Payments Inc (GPN) Receives "Buy" Rating from Keefe, Bruyette & Woods
The Cerbat Gem - May 28, 2017
Global Payments Inc logo Keefe, Bruyette & Woods restated their buy rating on shares of Global Payments Inc (NYSE:GPN) in a research note issued to investors on Friday, May 5th.
Global Payments Announces Full Support for Samsung Pay in the UK - Business Wire (press release)
Global Payments (GPN) to Provide Samsung Pay in Hong Kong - Zacks.com
Global Payments (GPN) Growing on Buyouts, Headwinds Prevail
Zacks.com - May 23, 2017
The merger significantly expanded Global Payments' small and medium-sized enterprise distribution, merchant base and vertical reach in the United States.
BMO Capital Markets Boosts Global Payments Inc (GPN) Price Target to $93.00 - The Cerbat Gem
Global Payments Inc (GPN) Earns "Reduce" Rating from Instinet - Sports Perspectives
Global Payments Inc. (GPN): Ignore the noise and focus on the technicals
USA Commerce Daily - 22 hours ago
With all other things going on, Global Payments Inc. (NYSE:GPN) has been on a run - rising 14.96 percent in just three months.
Global Payments Hits 52-Week High on Strong Q1, Recent Deals
Nasdaq - May 10, 2017
Payment technology services provider Global Payments Inc.'s GPN shares touched a 52-week high of $87.27, on May 9. The company's shares received an uplift from strong first-quarter earnings and raised guidance.
Global Payments Inc. Setting The Table For Earnings - AppsforPCdaily
Market Highlights for the day: Global Payments Inc. (GPN) - The Daily Leicester
: An Industry-First, Cloud-Based Restaurant Management Platform
Business Wire (press release) - May 17, 2017
ATLANTA--(BUSINESS WIRE)--Global Payments Inc. (NYSE: GPN), a leading worldwide provider of payment technology services, today announced the release of Xenial.
Earnings Clues on Cisco Systems, Inc. (CSCO), Global Payments Inc. (GPN ...
StockNewsJournal - May 26, 2017
Global Payments Inc. (NYSE:GPN), maintained return on investment for the last twelve months at 4.39, higher than what Reuters data shows regarding industry's average.
Connect&GO and Mobeewave's Cashless Payment Solution Enabled by Global ...
Point of Sale News (tm) (press release) (blog) - May 25, 2017
Enabled by the innovative payment solutions of Global Payments Inc. (NYSE: GPN), a leading worldwide provider of payment technology services, the solution will allow attendees to make purchases at the event by simply tapping their credit cards or ...
Buy or Sell? Average Brokerage Ratings on Global Payments Inc. (GPN), The Walt ...
StockNewsJournal - May 24, 2017
Investors who are keeping close eye on the stock of Global Payments Inc. (NYSE:GPN) established that the company was able to keep return on investment at 4.39 in the trailing twelve month while Reuters data showed that industry's average stands at 8.92 ...
These stock's might change the kismet of Investors: Global Payments Inc. (GPN ...
StockNewsJournal - May 16, 2017
Global Payments Inc. (NYSE:GPN) market capitalization at present is $13.72B at the rate of $89.44 a share. The firm's price-to-sales ratio was noted 3.46 in contrast with an overall industry average of 3,094.97.
Private Advisor Group LLC Has $451000 Position in Global Payments Inc (GPN) - The Cerbat Gem
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for GPN to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate GPN's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$91.85 Current Price

$40.94 Growth Price (DCF)

Overvalued by 55.42%


Growth Rate Assumed by Market: 26.66%


Future Free Cash Flow Growth Rate: -4.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$14.01 Stability Price (EPV)

Overvalued by 84.74%


Discount Rate: 15.0%

$85.88 Book Price

Overvalued by 6.50%


Poor Cash Return on Invested Capital over the past 5 years

GPN has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

GPN has only created $1.87 of cash for every $100 invested.
Figures in USD. Fiscal year ends in May
20122013201420152016
Free Cash Flow -283.35M 141.96M 112.69M 332.15M 493.41M
divided by
Invested Capital 1.07B 1.74B 2.23B 2.13B 7.03B
Cash ROIC -26.49% 8.16% 5.06% 15.62% 7.01%

Excellent Return on Equity over the past 5 years

Over the past 5 years, GPN has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

GPN has generated $23.56 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in May
20122013201420152016
Net Income 217.57M 238.71M 269.95M 309.12M 290.22M
divided by
Stockholders' Equity 1.17B 1.15B 997.23M 757.98M 2.75B
Return on Equity 18.56% 20.83% 27.07% 40.78% 10.57%

Excellent Business Performance over the past 10 years

GPN has been able to maintain profitability in good times and bad. This could mean GPN has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

GPN has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in May
2007200820092010201120122013201420152016
Free Cash Flow 155.76M 227.44M 342.03M 409.71M 611.24M -283.35M 141.96M 112.69M 332.15M 493.41M

Weak Balance Sheet

GPN's financial position is not ideal. The key is to check whether GPN is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in May
2007200820092010201120122013201420152016
Cash 308.87M 456.06M 426.94M 769.95M 1.35B 781.28M 680.47M 581.87M 650.74M 1.04B
Current Assets 444.43M 617.41M 595.19M 968.26M 1.85B 1.25B 1.21B 1.64B 3.30B 2.85B
Total Assets 1.20B 1.45B 1.68B 2.04B 3.35B 2.69B 3.13B 4.02B 5.79B 10.51B
Current Liabilities 142.88M 217.75M 336.18M 672.47M 1.44B 837.29M 704.11M 1.21B 3.02B 2.43B
Total Liabilities 242.85M 319.09M 629.81M 1.18B 2.17B 1.52B 1.98B 3.02B 5.04B 7.76B
Stockholder' Equity 957.78M 1.13B 1.05B 861.26M 1.18B 1.17B 1.15B 997.23M 757.98M 2.75B
Current Ratio 3.11 2.84 1.77 1.44 1.28 1.49 1.72 1.36 1.09 1.17
TL-to-TA 0.20 0.22 0.38 0.58 0.65 0.56 0.63 0.75 0.87 0.74

Consistent Reinvestment of Profits over the past 10 years

GPN has consistently retained profits. This may put GPN in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, GPN can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in May
2007200820092010201120122013201420152016
Retained Earnings 466.42M 621.88M 652.68M 544.77M 715.20M 843.46M 958.75M 815.98M 795.23M 1.02B
Retained Earnings Growth - 33.33% 4.95% -16.53% 31.28% 17.93% 13.67% -14.89% -2.54% 27.74%

Potential Competitive Advantage over the past 10 years

GPN potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$10.58 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in May
2007200820092010201120122013201420152016
Net Income 142.99M 162.75M 37.22M 219.11M 228.16M 217.57M 238.71M 269.95M 309.12M 290.22M
divided by
Revenue 1.06B 1.27B 1.60B 1.64B 1.86B 2.20B 2.38B 2.55B 2.77B 2.90B
Net Profit Margin 13.47% 12.77% 2.32% 13.34% 12.27% 9.87% 10.05% 10.57% 11.14% 10.01%

Strong Pricing Power over the past 10 years

GPN has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$66.48 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in May
2007200820092010201120122013201420152016
Gross Profit 646.69M 798.62M 1.00B 1.06B 1.19B 2.20B 1.51B 1.60B 1.75B 1.75B
divided by
Revenue 1.06B 1.27B 1.60B 1.64B 1.86B 2.20B 2.38B 2.55B 2.77B 2.90B
Gross Margin 60.92% 62.67% 62.61% 64.41% 64.24% 100.00% 63.72% 62.72% 63.15% 60.40%

Medium Capital Intensity over the past 10 years

GPN has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

41.46% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in May
2007200820092010201120122013201420152016
Capital Expenditure 35.37M 44.97M 40.94M 56.05M 98.54M 109.88M 98.59M 81.41M 92.55M 91.59M
divided by
Net Income 142.99M 162.75M 37.22M 219.11M 228.16M 217.57M 238.71M 269.95M 309.12M 290.22M
Capital Expenditure Ratio 24.74% 27.63% 110.00% 25.58% 43.19% 50.50% 41.30% 30.16% 29.94% 31.56%

Very Strong Dividend History over the past 10 years

GPN has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests GPN is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in May
2007200820092010201120122013201420152016
Dividend Paid 6.44M 6.38M 6.42M 6.50M 15.14M 33.39M 22.40M 42.43M 45.09M 5.44M
divided by
Shares Outstanding 81.71M 80.97M 80.99M 82.12M 80.48M 79.43M 78.23M 72.69M 67.46M 133.17M
Dividend Paid Per Share 0.08 0.08 0.08 0.08 0.19 0.42 0.29 0.58 0.67 0.04
Price at Year End 45.48 32.80 53.93 46.54 47.36 44.59 64.48 80.97 65.26 69.41
Dividend Yield 0.17% 0.24% 0.15% 0.17% 0.40% 0.94% 0.44% 0.72% 1.02% 0.06%

Strong History of Stock Buybacks over the past 10 years

GPN has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in May
2007200820092010201120122013201420152016
Shares Outstanding 81.71M 80.97M 80.99M 82.12M 80.48M 79.43M 78.23M 72.69M 67.46M 133.17M
Stock Bought Back - 0.91% -0.02% -1.37% 2.04% 1.32% 1.54% 7.62% 7.75% -49.34%
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