Global Payments Inc
Exchange: NYSESector: IndustrialsIndustry: Specialty Business Services
Global Payments helps businesses around the world enable commerce and provide exceptional experiences to their customers. Our payment technology and software solutions enable merchants, issuers and developers to deliver seamless customer experiences, run smarter operations and adapt quickly to change. Because if it has anything to do with commerce, we are already on it. With 27,000 team members across 38 countries, we have the scale and expertise to help businesses grow with confidence. Headquartered in Georgia, Global Payments is a Fortune 500® company and a member of the S&P 500.
Current Price
$69.19
-1.34%GoodMoat Value
$132.94
92.1% undervaluedProfile
Valuation (TTM)
Market Cap$19.37B
P/E-27.45
EV$30.29B
P/B0.85
Shares Out279.90M
P/Sales2.34
Revenue$8.26B
EV/EBITDA17.79
Global Payments Inc (GPN) Stock Analysis
GoodMoat Analysis
Global Payments Inc is a payment processing company that appears to have a durable moat and trades at a significant discount to its estimated fair value. With a P/E of 12x and a strong free cash flow yield of 12.2%, the valuation is compelling, but investors should investigate its moderate debt and low ROE.
Read full analysis
Global Payments Inc operates in the payment technology and software sector, providing services that facilitate electronic transactions for merchants. Applying the GoodMoat framework, the business likely scores well on moat criteria such as switching costs, given its mission-critical, embedded software, and regulatory barriers inherent in the financial services industry. Its scale and strategic partnerships with financial institutions also contribute to a durable competitive position, suggesting a Moat Score that would pass the initial gate of 5+. The company's quality indicators are mixed. Its operating margin of 22.8% and profit margin of 18.2% are strong, and the 12.2% free cash flow yield indicates robust cash generation. However, an ROE of 6.1% is below the high-quality threshold of 15-20%, and a Debt/Equity ratio of 0.95 warrants attention, though it is not excessive. The valuation is the most striking feature. Trading at a P/E of 12 and with the provided GoodMoat Target of $142.70, the current price of $70 implies a margin of safety well over 40%, placing it in the 'Deeply Undervalued' band per the framework's DCF analysis. This significant discount, combined with a passing moat assessment, creates a favourable setup under Step 2 of the Decision Framework. A value investor should proceed with further due diligence, focusing on the drivers of the low ROE, the sustainability of cash flows, and the company's growth trajectory to complete the analysis.
Market Cap$19.37B
Current Price$69.19
P/E Ratio-27.45
Forward P/E—
PEG Ratio0.04
EPS$5.78
Book Value$81.77
P/B Ratio0.85
GPN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 11.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 13.5B
Revenue
4.9B
FY19
7.4B
FY20
8.5B
FY21
9.0B
FY22
7.4B
FY23
7.7B
FY24
7.7B
FY25
Net Income
431M
FY19
585M
FY20
965M
FY21
111M
FY22
986M
FY23
1.6B
FY24
1.4B
FY25
GPN 52-Week Range
$62.70
$89.18
50-Day MA: $70.18200-Day MA: $77.60
Did you know?
Free cash flow has been growing at 11.1% annually.
Global Payments Inc (GPN) Financial Summary
Global Payments Inc (GPN) is a Industrials company in the Specialty Business Services industry, listed on NYSE. The stock currently trades at $69.19 with a market capitalization of $19.37B.
Key valuation metrics include a P/E ratio of -27.45, price-to-book ratio of 0.85, and EPS of $5.78. The company reports a profit margin of -8.5% and return on equity of -3.1%.
GPN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $19.37B |
| P/E Ratio | -27.45 |
| EPS | $5.78 |
| P/B Ratio | 0.85 |
| P/S Ratio | 2.34 |
| EV/EBITDA | 17.79 |
| Dividend Yield | 1.23% |
| Profit Margin | -8.5% |
| Return on Equity | -3.1% |
| Debt/Equity | 0.95 |
GPN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.91B | $430.61M |
| FY20 | $7.42B | $584.52M |
| FY21 | $8.52B | $965.46M |
| FY22 | $8.98B | $111.49M |
| FY23 | $7.38B | $986.23M |
| FY24 | $7.74B | $1.57B |
| FY25 | $7.71B | $1.40B |
Global Payments Inc (GPN) Valuation
Based on GoodMoat's DCF model, Global Payments Inc has a fair value estimate of $132.94. At the current price of $69.19, the stock appears 48.0% undervalued relative to our intrinsic value estimate.
GPN Quality Indicators
Global Payments Inc maintains a profit margin of -8.5% and an operating margin of 22.8%. Return on equity stands at -3.1%. The current ratio is 1.69. Debt-to-equity ratio is 0.95.
About Global Payments Inc
Global Payments helps businesses around the world enable commerce and provide exceptional experiences to their customers. Our payment technology and software solutions enable merchants, issuers and developers to deliver seamless customer experiences, run smarter operations and adapt quickly to change. Because if it has anything to do with commerce, we are already on it. With 27,000 team members across 38 countries, we have the scale and expertise to help businesses grow with confidence. Headquartered in Georgia, Global Payments is a Fortune 500® company and a member of the S&P 500.
GPN Free Cash Flow
Global Payments Inc generated $2.04B in trailing twelve-month free cash flow, representing an FCF yield of 10.53%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
GPN Shares Outstanding
Global Payments Inc has 0.28 billion shares outstanding at a share price of $69.19, giving it a market capitalization of $19.37B.
GPN Recent Insider Trades
Recent insider transactions at Global Payments Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| JOHNSON JOIA M | BUY | 1,213 | $99344.70 |