Global Payments, Inc. (GPN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mastercard, Inc.

Visa, Inc.

PayPal Holdings, Inc.

WEX, Inc.

Corpay, Inc.

Copart, Inc.

Equifax, Inc.

Booz Allen Hamilton Holding Corp.

Charles River Laboratories International, Inc.

ICON plc

Global Payments, Inc.

Why is Global Payments, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 7.30% and Operating profit at 14.76%

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 605.84
NET SALES(Q) Lowest at USD 1,956.75 MM
OPERATING PROFIT(Q) Lowest at USD 917.25 MM

With ROCE of 6.24%, it has a fair valuation with a 0.90 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -30.02%, its profits have risen by 7.5% ; the PEG ratio of the company is 0.9

Below par performance in long term as well as near term

Along with generating -30.02% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Global Payments, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Global Payments, Inc.

-25.77%

-0.39

40.64%

S&P 500

17.45%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.19%

EBIT Growth (5y)

9.86%

EBIT to Interest (avg)

4.29

Debt to EBITDA (avg)

3.33

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.23

Tax Ratio

17.64%

Dividend Payout Ratio

17.98%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

5.29%

ROE (avg)

5.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.93

EV to EBIT

16.11

EV to EBITDA

8.71

EV to Capital Employed

0.96

EV to Sales

3.70

PEG Ratio

Dividend Yield

ROCE (Latest)

5.96%

ROE (Latest)

7.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

CASH AND EQV(HY)

Highest at USD 11,322.73 MM

DEBT-EQUITY RATIO (HY)

Lowest at 58.55 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.33 times

OPERATING PROFIT MARGIN(Q)

Highest at 48.6 %

-19What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 450.77

NET SALES(Q)

Lowest at USD 1,896.77 MM

INTEREST(Q)

Highest at USD 204.5 MM

PRE-TAX PROFIT(Q)

Lowest at USD 375.02 MM

EPS(Q)

Lowest at USD 0.9

Here's what is working for Global Payments, Inc.

Operating Profit Margin

Highest at 48.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 11,322.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 58.55 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Global Payments, Inc.

Pre-Tax Profit

At USD 375.02 MM has Fallen at -50.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Sales

At USD 1,896.77 MM has Fallen at -24.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Interest

At USD 204.5 MM has Grown at 43.12%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 450.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at USD 1,896.77 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Interest

Highest at USD 204.5 MM

in the last five periods and Increased by 43.12% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD 375.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD 0.9

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)