Global Payments Inc.
Find Ratings ReportsGLOBAL PAYMENTS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. GLOBAL PAYMENTS INC has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.11% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 2433.81 | 2252.98 |
EBITDA ($mil) | 1055.51 | 885.17 |
EBIT ($mil) | 606.87 | 484.48 |
Net Income ($mil) | 361.3 | 249.31 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2256.08 | 2144.99 |
Total Assets ($mil) | 50570.19 | 44809.01 |
Total Debt ($mil) | 17787.05 | 14725.48 |
Equity ($mil) | 22999.21 | 22303.51 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 80.56 | 76.6 |
EBITDA Margin | 43.36 | 39.28 |
Operating Margin | 24.93 | 21.5 |
Sales Turnover | 0.19 | 0.2 |
Return on Assets | 1.95 | 0.24 |
Return on Equity | 4.29 | 0.5 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.99 | 0.92 |
Debt/Capital | 0.44 | 0.4 |
Interest Expense | 165.2 | 118.2 |
Interest Coverage | 3.67 | 4.1 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 260.38 | 263.08 |
Div / share | 0.25 | 0.25 |
EPS | 1.38 | 0.94 |
Book value / share | 88.33 | 84.78 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2229745.0 | 1829255.0 |
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 61.20 for the Comp Infrastructure, Data, Web Hosting, Related Se subsector and a premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.49 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 9.55. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, GLOBAL PAYMENTS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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GPN 34.92 | Peers 61.20 | GPN 15.28 | Peers 28.25 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. GPN is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. GPN is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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GPN 9.99 | Peers 18.10 | GPN 0.17 | Peers 0.46 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. GPN is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. GPN trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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GPN 1.49 | Peers 9.55 | GPN 759.09 | Peers 211.27 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. GPN is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. GPN is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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GPN 3.56 | Peers 6.93 | GPN 7.56 | Peers 11.39 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. GPN is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. GPN significantly trails its peers on the basis of sales growth. |
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