Global Payments (GPN) AI Stock Analysis

• Market Cap: $19.12B
• Dividend Yield: 1.22%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.08
• Revenue Growth: -4.17%
• EPS Growth: 4.71%
• Country: US
• Employees: 27,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): 3.10
• Shares Outstanding: 243,880,020
• 10 Day Avg. Volume: 2,518,299
• 30 Day Avg. Volume: 2,239,532
• PEG Ratio: 0.29
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 9.99
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 9.12
• 1Y Price Target: $105.64
• Price Target Upside: 28.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 77 Outperform
• Price Target: $93.00 ▲(13.39% Upside)

Global Payments' strong financial performance and positive earnings call are the most significant factors driving the score. The company's strategic initiatives and efficient cash flow management support its potential for future growth. Technical analysis and valuation also contribute positively, though macroeconomic uncertainties present some risks.

Positive Factors

Sales Performance

Global is slowly improving merchant sales performance and seeing modest early uplift from a revamped sales compensation plan and benefits from its Genius offering.

Strategic Decisions

The management's plan to sell Issuer Solutions to Fidelity and purchase the remaining stake in Worldpay is seen as a move to simplify the business and potentially boost shares.

Negative Factors

Competitive Market

The domestic software-integrated POS market is getting more competitive and valuations of traditional fintechs are converging.

Technology Challenges

Worldpay does little to solve what is viewed as Global’s technology debt.

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. The company maintains impressive margins and a stable balance sheet, although revenue growth exhibits slight fluctuations. Debt is well-managed but requires monitoring to prevent leverage risks.

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	9.49B	10.11B	9.65B	8.98B	8.52B	7.42B
Gross Profit	4.71B	6.35B	5.93B	5.20B	4.75B	3.77B
EBITDA	3.77B	4.40B	3.61B	2.43B	3.23B	2.51B
Net Income	1.43B	1.57B	986.23M	111.49M	965.46M	584.52M
Balance Sheet
Total Assets	48.52B	46.89B	50.57B	44.81B	45.28B	44.20B
Cash, Cash Equivalents and Short-Term Investments	2.61B	2.54B	2.09B	2.00B	1.98B	1.95B
Total Debt	16.02B	16.82B	17.38B	14.29B	12.08B	9.76B
Total Liabilities	25.10B	23.87B	26.78B	22.27B	19.41B	16.71B
Stockholders Equity	22.59B	22.28B	23.00B	22.30B	25.63B	27.33B
Cash Flow
Free Cash Flow	3.12B	2.86B	1.59B	1.63B	2.29B	1.88B
Operating Cash Flow	3.75B	3.53B	2.25B	2.24B	2.78B	2.31B
Investing Cash Flow	46.60M	-173.89M	-4.36B	-675.54M	-2.29B	-438.34M
Financing Cash Flow	-2.92B	-2.77B	2.14B	-1.38B	-405.37M	-1.55B

Global Payments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 82.02 is above the 20-day moving average (MA) of 81.69, above the 50-day MA of 79.48, and below the 200-day MA of 94.98, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 48.79 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	77 Outperform	$19.12B	12.66	6.21%	1.22%	-4.17%	4.71%
Sector *	71 Outperform	¥258.28B	14.57	8.48%	2.82%	6.30%	11.95%
CASS	61 Neutral	$551.57M	22.19	9.03%	2.98%	-1.70%	-29.97%

Global Payments Corporate Events

Global Payments Launches $500 Million Share Buyback

On August 6, 2025, Global Payments Inc. initiated an accelerated share repurchase program to buy back $500 million of its common stock, as part of its ongoing share repurchase initiative. This move is expected to impact the company’s stock valuation positively, with the final settlement of the repurchase anticipated by September 30, 2025, reflecting a strategic effort to enhance shareholder value.

The most recent analyst rating on (GPN) stock is a Hold with a $118.00 price target. To see the full list of analyst forecasts on Global Payments stock, see the GPN Stock Forecast page.

Global Payments Awaits Regulatory Approval for Acquisitions

On April 17, 2025, Global Payments Inc. announced its intention to acquire Worldpay Holdco, LLC from Fidelity National Information Services, Inc. and certain affiliates of GTCR LLC, while divesting its Issuer Solutions business to FIS. The Hart-Scott-Rodino Antitrust Improvements Act waiting periods expired on July 18, 2025, but the completion of these transactions is still pending other regulatory approvals and customary closing conditions.

The most recent analyst rating on (GPN) stock is a Hold with a $118.00 price target. To see the full list of analyst forecasts on Global Payments stock, see the GPN Stock Forecast page.

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.