Global Payments (GPN) AI Stock Analysis

• Market Cap: $20.89B
• Dividend Yield: 1.31%
• Average Volume (3M): 3.00M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.88
• Revenue Growth: 4.68%
• EPS Growth: 63.39%
• Country: US
• Employees: 27,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Specialty Business Services
• EPS (TTM): 2.95
• Shares Outstanding: 245,876,280
• 10 Day Avg. Volume: 3,845,048
• 30 Day Avg. Volume: 2,995,219
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.38
• Price to Cash Flow (P/CF): 9.20
• P/FCF Ratio: 10.20
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.84
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $99.43
• Price Target Upside: 29.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

Global Payments exhibits strong financial performance, bolstered by a strategic corporate event that enhances its market position. Positive earnings call sentiment supports growth outlook. However, bearish technical indicators and moderate valuation temper the overall score. The company's focus on shareholder returns and operational transformation is promising, but market challenges remain a consideration.

Positive Factors

Financial Performance

GPN expects to generate over $13B in cumulative adjusted free cash flow over the three years post-close.

Growth Potential

Worldpay’s revenue growth has re-accelerated to 6.5% from -2.5%, making GPN the biggest US merchant acquirer/processor.

Strategic Focus

By divesting the Issuer segment, GPN tightens its strategic focus while monetizing an asset that was weighing on total growth and not adding much value to the Merchant business.

Negative Factors

Execution Risk

The integration of GPN Merchant Solutions and Worldpay may not be seamless, potentially leading to internal and external fatigue.

Leverage Concerns

Investors have been seeking lower leverage and higher accounting quality, but the current direction increases leverage and raises execution risks.

Market Competition

GPN's positioning in the SMB market will remain a concern, and Worldpay's eCommerce business sits in the core markets of next-gen disrupters Adyen and Stripe.

Global Payments Business Overview & Revenue Model

Company Description

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through three segments: Merchant Solutions, Issuer Solutions, and Business and Consumer Solutions. The Merchant Solutions segment offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, and on-line reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added services, such as point-of-sale solutions, and analytic and engagement tools, as well as payroll and human capital management services. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments and ePayables solutions for businesses and governments. The Business and Consumer Solutions segment provides general-purpose reloadable prepaid debit and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers, and businesses under the Netspend brand. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Global Payments Inc. generates revenue primarily through transaction fees charged to merchants for processing payments. This includes fees from credit and debit card transactions, as well as other electronic payment methods. The company also earns money from software solutions and value-added services designed to enhance the payment experience for merchants and consumers. Key revenue streams include merchant services, which involve acquiring and processing payments for businesses, and technology services, where Global Payments provides integrated payment solutions to partners and clients. Additionally, Global Payments forms strategic partnerships with financial institutions and technology companies to expand its reach and enhance its service offerings, contributing significantly to its earnings.

Global Payments Financial Statement Overview

Summary

Global Payments exhibits robust financial health with notable revenue and profit growth, a stable balance sheet, and strong cash flow generation. The company effectively managed its growth trajectory, as seen in the increasing revenue and net income over the years. While the leverage has increased, it remains within manageable levels, supported by strong equity. The cash flow metrics showcase effective cash management, enhancing the company's ability to invest and return value to shareholders. Overall, the financial statements reflect a well-managed company with solid growth prospects in the corporate services industry.

Income Statement

Global Payments has demonstrated strong revenue growth with a consistent increase in total revenue over the years, from $4.91 billion in 2019 to $10.11 billion in 2024. The gross profit margin remained robust at 100% in 2024 due to equal gross profit and revenue, although this is anomalous. Net profit margin improved to 15.54% in 2024 from 8.76% in 2023. EBIT and EBITDA margins also indicate solid operational efficiency, with EBIT margin at 23.10% and EBITDA margin at 23.10% in 2024, showing consistent growth. However, the decline in gross profit margin from previous years might indicate potential cost management issues.

Balance Sheet

The company's balance sheet shows a stable financial position with an improving equity base, with stockholders' equity increasing from $27.83 billion in 2019 to $22.28 billion in 2024. The debt-to-equity ratio was 0.73 in 2024, indicating moderate leverage, though it has increased compared to earlier years. The return on equity improved significantly to 7.05% in 2024 from 4.29% in 2023, reflecting better profitability and efficient use of equity. The equity ratio was 47.49% in 2024, indicating a balanced capital structure, though slightly lower than previous years.

Cash Flow

Operating cash flow increased to $3.53 billion in 2024 from $2.25 billion in 2023, showing strong cash generation capabilities. The free cash flow grew to $2.86 billion in 2024, a significant increase from $1.59 billion in 2023, reflecting improved liquidity. The operating cash flow to net income ratio was 2.25 in 2024, indicating strong cash flow relative to net income. Free cash flow to net income ratio also improved, supporting sustainable cash dividends and potential reinvestment. Overall, the company's cash flow position is strong, supporting its growth and operational needs.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.11B	9.65B	8.98B	8.52B	7.42B
	Gross Profit
6.35B	5.93B	5.20B	4.75B	3.77B
	EBIT
2.33B	1.72B	640.15M	1.36B	893.95M
	EBITDA
4.37B	3.61B	2.43B	3.23B	2.51B
	Net Income Common Stockholders
1.57B	986.23M	111.49M	965.46M	584.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.54B	2.09B	2.00B	1.98B	1.95B
	Total Assets
46.89B	50.57B	44.81B	45.28B	44.20B
	Total Debt
16.24B	17.38B	14.29B	12.08B	9.76B
	Net Debt
13.70B	15.29B	12.29B	10.10B	7.81B
	Total Liabilities
23.87B	26.78B	22.27B	19.41B	16.71B
	Stockholders Equity
22.28B	23.00B	22.30B	25.63B	27.33B
Cash Flow		Free Cash Flow
2.86B	1.59B	1.63B	2.29B	1.88B
	Operating Cash Flow
3.53B	2.25B	2.24B	2.78B	2.31B
	Investing Cash Flow
-173.89M	-4.36B	-675.54M	-2.29B	-438.34M
	Financing Cash Flow
-2.77B	2.14B	-1.38B	-405.37M	-1.55B

Global Payments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPN, the sentiment is Negative. The current price of 76.58 is below the 20-day moving average (MA) of 79.07, below the 50-day MA of 91.03, and below the 200-day MA of 103.26, indicating a bearish trend. The MACD of -5.27 indicates Negative momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 81.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GPN.

Global Payments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPN	75 Outperform	$20.89B	13.79	6.94%	1.31%	4.68%	63.39%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
CASS	61 Neutral	$556.10M	27.00	8.87%	2.99%	-1.70%	-29.97%

Global Payments Corporate Events

Global Payments Approves 2025 Incentive Plan at Meeting

On April 24, 2025, Global Payments Inc. held its Annual Meeting of Shareholders, where shareholders approved the 2025 Incentive Plan and the Amended and Restated Employee Stock Purchase Plan. The meeting also included the election of directors, approval of executive compensation for 2024, and ratification of Deloitte & Touche LLP as the independent public accounting firm for 2025, reflecting the company’s ongoing commitment to governance and strategic growth.

Spark’s Take on GPN Stock

According to Spark, TipRanks’ AI Analyst, GPN is a Outperform.

Global Payments exhibits strong financial performance, bolstered by a strategic corporate event that enhances its market position. Positive earnings call sentiment supports growth outlook. However, bearish technical indicators and moderate valuation temper the overall score. The company’s focus on shareholder returns and operational transformation is promising, but market challenges remain a consideration.

To see Spark’s full report on GPN stock, click here.

Global Payments Sells Issuer Solutions, Acquires Worldpay

On April 17, 2025, Global Payments announced agreements to sell its Issuer Solutions business to Fidelity National Information Services (FIS) for $13.5 billion and acquire Worldpay from FIS and GTCR for $24.25 billion. This strategic move positions Global Payments as a leading pure play merchant solutions provider, enhancing its financial strength and scale with expected pro forma adjusted net revenue of $12.5 billion. The transaction is anticipated to deliver significant cost and revenue synergies, driving value for customers, partners, and shareholders.

Spark’s Take on GPN Stock

According to Spark, TipRanks’ AI Analyst, GPN is a Outperform.

Global Payments scores well due to strong financial performance and positive earnings call sentiment, highlighting robust revenue growth and strategic initiatives. However, technical indicators suggest bearish momentum, and the valuation reflects moderate pricing. The company’s focus on operational transformation and shareholder returns is promising, but macroeconomic challenges and softer trends in specific segments are potential risks.

To see Spark’s full report on GPN stock, click here.