Global Payments Inc
GPN
Services-Business Services, NEC
Mkt Cap
$26.06BPE
19.88Debt
$18.81BCash
$2.328BEV
$42.54BFCF
$1.424BP/E Ratio
19.88Debt
$18.81BCash
$2.328BEV
$42.54BFCF
$1.424BCharts data: {"Earnings":[{"time":"2015-05-30","value":278040000},{"time":"2017-12-30","value":468425000},{"time":"2018-12-30","value":452053000},{"time":"2019-12-30","value":430613000},{"time":"2020-12-30","value":584520000},{"time":"2021-12-30","value":965460000},{"time":"2022-12-30","value":111493000},{"time":"2023-12-30","value":986233000}],"Sales":[{"time":"2015-05-30","value":2773718000},{"time":"2017-12-30","value":3975163000},{"time":"2018-12-30","value":3366366000},{"time":"2019-12-30","value":4911892000},{"time":"2020-12-30","value":7423558000},{"time":"2021-12-30","value":8523762000},{"time":"2022-12-30","value":8975515000},{"time":"2023-12-30","value":9654419000}],"Net Margins":[{"time":"2015-05-30","value":0.10024090408613998},{"time":"2017-12-30","value":0.11783793519913523},{"time":"2018-12-30","value":0.1342851609123904},{"time":"2019-12-30","value":0.08766744057076173},{"time":"2020-12-30","value":0.07873852403389318},{"time":"2021-12-30","value":0.11326688849360177},{"time":"2022-12-30","value":0.012421905595389233},{"time":"2023-12-30","value":0.10215353197328601}],"Assets":[{"time":"2015-05-30","value":5793548000},{"time":"2017-12-30","value":12998069000},{"time":"2018-12-30","value":13230774000},{"time":"2019-12-30","value":44480162000},{"time":"2020-12-30","value":44201545000},{"time":"2021-12-30","value":45279713000},{"time":"2022-12-30","value":44809014000},{"time":"2023-12-30","value":50570186000}],"Stockholders Equity":[{"time":"2015-05-30","value":863553000},{"time":"2017-12-30","value":3965231000},{"time":"2018-12-30","value":4186343000},{"time":"2019-12-30","value":28054989000},{"time":"2020-12-30","value":27487044000},{"time":"2021-12-30","value":25869417000},{"time":"2022-12-30","value":22540210000},{"time":"2023-12-30","value":23279550000}],"ROE":[{"time":"2015-05-30","value":0.32197213141521136},{"time":"2017-12-30","value":0.11813309237217201},{"time":"2018-12-30","value":0.10798279070778481},{"time":"2019-12-30","value":0.015348892134657404},{"time":"2020-12-30","value":0.021265291386007166},{"time":"2021-12-30","value":0.03732051634561382},{"time":"2022-12-30","value":0.0049464046696991735},{"time":"2023-12-30","value":0.042364779387917724}],"ROA":[{"time":"2015-05-30","value":0.07888257765362434},{"time":"2017-12-30","value":0.043620556253394255},{"time":"2018-12-30","value":0.05726467703250014},{"time":"2019-12-30","value":0.018415512965083175},{"time":"2020-12-30","value":0.020830855573034834},{"time":"2021-12-30","value":0.030312581707397306},{"time":"2022-12-30","value":0.014758682259779249},{"time":"2023-12-30","value":0.03558909196023127}]}
Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through three segments: Merchant Solutions, Issuer Solutions, and Consumer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, human capital management, and payroll. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, and account payables and electronic payment alternatives solutions for businesses and governments. The Consumer Solutions segment provides general purpose reloadable prepaid debit and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers, and businesses under the Netspend and other brands. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.
Sector
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DCF
Discounted Cash Flow Valuation of Global Payments Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $1.424B | $1.683B | $1.963B | $2.262B | $2.574B | $2.891B | $3.204B | $3.505B | $3.782B | $4.027B | $4.228B | $42.28B |
| DCF | $1.463B | $1.485B | $1.488B | $1.472B | $1.437B | $1.385B | $1.318B | $1.236B | $1.145B | $1.045B | $10.45B | |
| Value | $23.92B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 19%
Earnings Stability 27%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 05-2015 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 10% | 12% | 13% | 8.8% | 7.9% | 11% | 1.2% | 10% | 13% |
| ROA | 7.9% | 4.4% | 5.7% | 1.8% | 2.1% | 3% | 1.5% | 3.6% | 4.3% |
| ROE | 32% | 12% | 11% | 1.5% | 2.1% | 3.7% | 0.49% | 4.2% | 5.7% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.81%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -1.01%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +2.95%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.31%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +3.82%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.98%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 05-2015 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 14.40 | 5.88 | 8.46 | 5.39 | 5.06 | 9.01 | 10.68 | 13.21 | |
| Debt Equity | 2.09 | 1.20 | 1.25 | 0.33 | 0.37 | 0.45 | 0.65 | 0.73 | 0.82 | |
| MIN | ||||||||||
| Graham Stability | - | - | - | 100% | 100% | 100% | 17% | 100% | 17% | |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 13.21.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.72.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.17.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 05-2015 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 20% | 23% | 9.2% | 7.6% | -3.5% |
| Net Income | 20% | 17% | 19% | 780% | 73% |
| Stockholders Equity | 60% | 41% | -5.4% | 3.3% | -60% |
| FCF | 25% | 12% | -5.4% | -2.3% | -14% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +23.46%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -3.47%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +16.88%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +73.15%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +40.94%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -60.02%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +12.24%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -14.39%.