Global Payments Inc.
Global Payments Inc. Fundamental Analysis
Global Payments Inc. (GPN) shows moderate financial fundamentals with a PE ratio of 13.67, profit margin of 16.92%, and ROE of 6.20%. The company generates $8.2B in annual revenue with moderate year-over-year growth of 4.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GPN's fundamental strength across five key dimensions:
Efficiency Score
WeakGPN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGPN trades at attractive valuation levels.
Growth Score
ModerateGPN shows steady but slowing expansion.
Financial Health Score
ExcellentGPN maintains a strong and stable balance sheet.
Profitability Score
ModerateGPN maintains healthy but balanced margins.
Key Financial Metrics
Is GPN Expensive or Cheap?
P/E Ratio
GPN trades at 13.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GPN's PEG of -0.72 indicates potential undervaluation.
Price to Book
The market values Global Payments Inc. at 0.84 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.70 times EBITDA. This is generally considered low.
How Well Does GPN Make Money?
Net Profit Margin
For every $100 in sales, Global Payments Inc. keeps $16.92 as profit after all expenses.
Operating Margin
Core operations generate 23.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.20 in profit for every $100 of shareholder equity.
ROA
Global Payments Inc. generates $2.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Global Payments Inc. generates strong operating cash flow of $2.62B, reflecting robust business health.
Free Cash Flow
Global Payments Inc. generates strong free cash flow of $2.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.50 in free cash annually.
FCF Yield
GPN converts 10.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How GPN Stacks Against Its Sector Peers
| Metric | GPN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.67 | 26.49 | Better (Cheaper) |
| ROE | 6.20% | 1307.00% | Weak |
| Net Margin | 16.92% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.95 | 0.81 | Neutral |
| Current Ratio | 1.69 | 10.48 | Neutral |
| ROA | 2.62% | -1549793.00% (disorted) | Weak |
GPN outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Global Payments Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.09%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
183.76%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
97.58%
Industry Style: Cyclical, Value, Infrastructure
High Growth