Morningstar

Global Payments Inc GPN

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Stock XNYS Rating as of
$78.38 −1.91 (2.38%)
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As of Delayed Price Post-Trading: $78.38 0.00

Company Report

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Global Payments' Moat Was Strengthened Through the Combination With WorldPay

Brett Horn

We believe the market is overly concerned about disruption to incumbent payment players like Global Payments. In our view, Global Payments continues to benefit from a strong competitive position, is adapting to a changing industry, and can maintain reasonable growth over time. While Worldpay struggled under FIS' roof, we think that was largely due to underinvestment and a poor strategy, which shouldn't be an issue under Global Payments.

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Price vs Fair Value

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GPN is trading at a LOCK|!Y$D$^ premium.
Price
$80.29
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
LOCK|.w
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. The Worldpay merger dramatically improves scale.

Bears

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

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News

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Trading Information

Previous Close Price
$80.29
Day Range
$77.92–80.50
52-Week Range
$61.16–95.88
Bid/Ask
$78.38 / $78.38
Shares Outstanding
264.62M
Market Cap
$20.74B
Volume/Avg
3M / 3M

Key Statistics

Price/Earnings (Normalized)
6.24
Price/Sales
2.00
Dividend Yield (Trailing)
1.25%
Dividend Yield (Forward)
1.25%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
8.95%

Company Profile

Global Payments is a leading provider of payment processing and software solutions and historically focused on serving small and midsize merchants. The Worldpay acquisition pushes the company into the large merchant space and expands the company's international operations. Following the Worldpay acquisition, the company will process about $4 trilliion in payment volume.
Sector
Industrials
Industry
Specialty Business Services
Stock Style Box
Mid Value
Total Number of Employees
26,000
Website
https://www.globalpayments.com

Competitors

Valuation

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Metric
GPN
JKHY
FISV
Price/Earnings (Normalized)
 6.2421.756.20
Price/Book Value
 0.924.910.90
Price/Sales
 2.004.071.17
Price/Cash Flow
 30.6711.824.61
Price/Earnings
GPN
JKHY
FISV

Financial Strength

Metric
GPN
JKHY
FISV
Quick Ratio
 0.490.660.18
Current Ratio
 0.821.171.04
Interest Coverage
 1.46117.883.10
Quick Ratio
GPN
JKHY
FISV

Profitability

Metric
GPN
JKHY
FISV
Return on Assets (Normalized)
 5.91%15.54%5.11%
Return on Equity (Normalized)
 14.26%22.31%15.91%
Return on Invested Capital (Normalized)
 8.82%21.33%9.72%
Return on Assets
GPN
JKHY
FISV

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