Global Payments (GPN) AI Stock Analysis

• Market Cap: $18.95B
• Dividend Yield: 1.29%
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.00
• Revenue Growth: 3.23%
• EPS Growth: 22.96%
• Country: US
• Employees: 27,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): 2.69
• Shares Outstanding: 243,880,020
• 10 Day Avg. Volume: 3,556,194
• 30 Day Avg. Volume: 3,113,341
• PEG Ratio: 37.45
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.20
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: 1.87
• 1Y Price Target: $91.15
• Price Target Upside: 16.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 24

• Rating: 76 Outperform
• Price Target: $89.00 ▲(13.75%Upside)

Global Payments showcases strong financial performance and strategic growth initiatives, particularly through its recent acquisition of Worldpay. The company's valuation is attractive, and the positive earnings call sentiment further bolsters its outlook. Technical indicators suggest some short-term caution, but overall, the company is well-positioned for future growth.

Positive Factors

Earnings Performance

Q1 results were quite good, with EPS and revenue slightly beating expectations and SMB volumes growing, which is encouraging given the market decelerated.

Growth Strategy

The company's merchant segment is seeing consistent SMB volume growth, which is expected to drive future growth through new products like the Genius launch.

Negative Factors

Integration Risks

There is acknowledgment of a complicated road ahead as the two entities combine, increasing already-high execution risk for GPN.

Strategic Concerns

The decision to engage in large M&A activities instead of focusing on business simplification and organic growth has raised concerns about the company's strategic direction.

Global Payments Business Overview & Revenue Model

Company Description

Global Payments Inc. (GPN) is a leading provider of payment technology services, delivering innovative solutions to businesses worldwide. The company operates across a range of sectors, including retail, financial services, healthcare, and education, offering a comprehensive suite of products and services such as payment processing, merchant acquiring, and software solutions. Global Payments is committed to enabling seamless and secure transactions for its customers through its advanced technology platform.

How the Company Makes Money

Global Payments Inc. generates revenue primarily through transaction fees charged to merchants for processing payments. The company earns money by facilitating electronic payments through credit, debit, and other digital payment methods. Revenue streams include merchant acquiring services, where Global Payments provides end-to-end payment processing solutions for businesses and takes a percentage of each transaction. Additionally, Global Payments earns income from value-added services, such as analytics, fraud management, and customer engagement tools, which help businesses enhance their operations and customer experiences. Key partnerships with financial institutions and technology providers bolster its service offerings and expand its market reach, further contributing to its revenue growth.

Global Payments Financial Statement Overview

Summary

Global Payments showcases strong financial health with robust profitability and efficient cash flow management. While revenue growth sees slight fluctuations, the company maintains impressive margins and a stable balance sheet. Debt is well-managed but requires monitoring to prevent leverage risks, supporting its industry standing and potential for future growth.

Income Statement

Global Payments demonstrates strong profitability with a consistent gross profit margin averaging above 60% in recent periods. The company shows a robust net profit margin of approximately 15.5% in TTM (Trailing-Twelve-Months). Revenue growth is stable, with a TTM revenue slightly lower than the previous year, reflecting a slight contraction. Both EBIT and EBITDA margins have remained solid, highlighting efficient operational management.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of about 0.76, indicating controlled leverage compared to equity. The return on equity stands at roughly 7% in TTM, showcasing moderate profitability for shareholders. The equity ratio, around 46.7%, suggests a balanced use of financing between debt and equity. Overall, the balance sheet is stable but warrants attention on debt levels.

Cash Flow

Global Payments exhibits healthy cash flow metrics with a solid operating cash flow to net income ratio of approximately 2.35 in TTM. The company maintains a strong free cash flow to net income ratio of about 1.93, indicating efficient cash generation relative to income. The free cash flow growth rate is positive, demonstrating effective capital expenditure management and financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.10B	10.11B	9.65B	8.98B	8.52B	7.42B
Gross Profit	6.34B	6.35B	5.93B	5.20B	4.75B	3.77B
EBITDA	4.57B	4.40B	3.61B	2.43B	3.23B	2.51B
Net Income	1.56B	1.57B	986.23M	111.49M	965.46M	584.52M
Balance Sheet
Total Assets	47.62B	46.89B	50.57B	44.81B	45.28B	44.20B
Cash, Cash Equivalents and Short-Term Investments	2.90B	2.54B	2.09B	2.00B	1.98B	1.95B
Total Debt	16.92B	16.82B	17.38B	14.29B	12.08B	9.76B
Total Liabilities	24.59B	23.87B	26.78B	22.27B	19.41B	16.71B
Stockholders Equity	22.25B	22.28B	23.00B	22.30B	25.63B	27.33B
Cash Flow
Free Cash Flow	3.01B	2.86B	1.59B	1.63B	2.29B	1.88B
Operating Cash Flow	3.67B	3.53B	2.25B	2.24B	2.78B	2.31B
Investing Cash Flow	-196.95M	-173.89M	-4.36B	-675.54M	-2.29B	-438.34M
Financing Cash Flow	-2.64B	-2.77B	2.14B	-1.38B	-405.37M	-1.55B

Global Payments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPN, the sentiment is Positive. The current price of 78.24 is above the 20-day moving average (MA) of 76.91, above the 50-day MA of 77.13, and below the 200-day MA of 98.15, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 72.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GPN.

Global Payments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPN	76 Outperform	$18.95B	12.75	7.03%	1.29%	3.23%	22.96%
Sector *	71 Outperform	¥249.80B	12.82	8.49%	3.14%	6.31%	12.92%
CASS	61 Neutral	$572.34M	27.77	8.87%	2.92%	-1.70%	-29.97%

Global Payments Corporate Events

Global Payments Secures $7.25 Billion Credit Facility

On May 15, 2025, Global Payments Inc. entered into a Revolving Credit Agreement with Bank of America and other lenders, establishing a $7.25 billion unsecured revolving credit facility. This agreement, which replaces a previous credit agreement, allows for borrowings in multiple currencies and includes provisions for an additional $1.5 billion upon the acquisition of Worldpay Holdco, LLC. The facility will mature five years from the closing date, with options for extensions, and is subject to various covenants and conditions. Additionally, the company reduced its commitments related to a bridge loan facility with JPMorgan Chase from $7.7 billion to $6.2 billion.

The most recent analyst rating on (GPN) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Global Payments stock, see the GPN Stock Forecast page.

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.

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.