Global Payments (GPN) AI Stock Analysis

• Market Cap: $21.00B
• Dividend Yield: 1.15%
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.17
• Revenue Growth: -4.17%
• EPS Growth: 4.76%
• Country: US
• Employees: 27,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 3.10
• Shares Outstanding: 242,607,100
• 10 Day Avg. Volume: 2,626,151
• 30 Day Avg. Volume: 2,330,632
• 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: 1.64
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 5.57
• Enterprise Value/Ebitda: 8.41
• 1Y Price Target: $106.50
• Price Target Upside: 22.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 76 Outperform
• Price Target: $98.00 ▲(12.71% Upside)

Global Payments' strong financial performance and strategic initiatives, including the successful Genius platform launch and share buyback, are key strengths. However, recent revenue decline and macroeconomic uncertainties present challenges. The stock is reasonably valued with moderate income potential.

Positive Factors

Genius Platform Launch

The successful launch of the Genius platform enhances Global Payments' product offerings, driving growth in the restaurant and retail sectors. This strategic move strengthens its competitive position and supports long-term revenue growth.

Cash Flow and Capital Returns

Strong cash flow generation and planned capital returns of $7.5 billion between 2025 and 2027 reflect robust financial health, enabling Global Payments to invest in growth opportunities and enhance shareholder value.

Strategic Acquisitions and Divestitures

Strategic acquisitions and divestitures, such as acquiring Worldpay, position Global Payments for long-term growth by enhancing its service offerings and focusing on core competencies.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining growth, which could impact Global Payments' ability to sustain its market position and profitability in the long term.

Macroeconomic Uncertainty

Ongoing macroeconomic uncertainties may affect consumer spending and transaction volumes, posing risks to Global Payments' revenue growth and financial performance.

Low Return on Equity

A low return on equity suggests inefficiencies in generating shareholder returns, which may hinder Global Payments' attractiveness to investors and its ability to finance future growth.

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 generates revenue primarily through transaction-based fees charged to merchants for processing payments, which includes credit card, debit card, and electronic payments. The company earns additional income from value-added services such as fraud detection and prevention solutions, which help clients mitigate risks associated with payment processing. Furthermore, Global Payments has established significant partnerships with financial institutions, technology providers, and e-commerce platforms, enhancing its service offerings and expanding its customer base. The company's revenue model is bolstered by recurring relationships with clients, enabling consistent cash flow and steady growth through ongoing transaction volumes.

Global Payments Financial Statement Overview

Summary

Global Payments exhibits solid profitability with strong EBIT and EBITDA margins, efficient cash flow management, and a stable balance sheet. However, the recent revenue decline poses a challenge, and there is room for improvement in shareholder returns.

Income Statement

Global Payments shows strong profitability with a solid gross profit margin of 65% and a net profit margin of 15.07% in the TTM. However, the company experienced a revenue decline of 6.06% in the TTM, indicating potential challenges in maintaining growth. The EBIT and EBITDA margins remain robust at 25.12% and 43.48%, respectively, showcasing efficient operational management.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.74, indicating a balanced approach to leveraging. The return on equity is relatively low at 6.36%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 46.56%, indicating a stable capital structure.

Cash Flow

Global Payments demonstrates strong cash flow management with a free cash flow growth rate of 3.57% in the TTM. The operating cash flow to net income ratio is 0.46, and the free cash flow to net income ratio is 0.83, indicating efficient cash conversion and a healthy cash flow position.

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	6.17B	6.35B	5.93B	5.20B	4.75B	3.77B
EBITDA	4.09B	4.37B	3.61B	2.34B	3.07B	2.55B
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	16.65B	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	2.94B	2.86B	1.59B	1.63B	2.29B	1.88B
Operating Cash Flow	3.57B	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	-2.73B	-2.77B	2.14B	-1.38B	-405.37M	-1.55B

Global Payments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.95
• 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 86.95 is above the 20-day moving average (MA) of 86.61, above the 50-day MA of 84.38, and below the 200-day MA of 91.16, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 78.40 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	$21.00B	15.14	6.21%	1.15%	-4.17%	4.76%
CASS	60 Neutral	548.86M	22.30	8.37%	2.99%	-3.57%	-6.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.