GPN
Global Payments, Inc.
TMT, Finance/Real Estate
08/19/2021
Presented
| Date | 08/13/2021 |
| Price | $171.41 |
| Market Cap | $50.35B |
| Ent Value | $64.51B |
| P/E Ratio | 59.23x |
| Book Value | $90.89 |
| Div Yield | 0.46% |
| Shares O/S | 293.75M |
| Ave Daily Vol | 2,047,261 |
| Short Int | 3.21% |
Current
| Price | $102.85 |
| Market Cap | $26.17B |
| Global Payments, Inc. engages in the provision of payment technology and software solutions. It operates through the following segments: Merchant Solutions, Issuer Solutions and Business & Consumer Solutions. The Merchant Solutions segment provides payments technology and software solutions to customers globally. It also provides a variety of value-added services, including specialty point-of-sale solutions, analytic and engagement tools, payroll services and reporting that assist customers with driving demand. The Issuer Solutions segment provides solutions that enable financial institutions and other financial service providers to manage their card portfolios, reduce technical complexity and overhead and offer a seamless experience for cardholders on a single platform. It also provides commercial payments and e Payables solutions that support business-to-business payment processes 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 under banked and other consumers and businesses in the United States through Netspend brand. The company was founded in 1967 by George W. Thorpe and is headquartered in Atlanta, GA. |
Publicly traded companies mentioned herein: Adyen NV (ADYEN NA), Fidelity National Information Services Inc (FIS), Fiserv Inc (FISV), Global Payments Inc (GPN), Home Depot Inc/The (HD), Lowe’s Cos Inc (LOW), PayPal Holdings Inc (PYPL)
Highlights
The presenter is long shares of Global Payments Inc (GPN), which provides payment technology and software solutions for card, electronic, check, and digital-based payments. Market sentiment is fairly negative, as investors point to disruption from next gen players (PYPL, ADYEN, Stripe, Toast, etc.), a lack of positive catalysts for the stock, and poor performance since the start of 2020 (stock is down 13%); bears essentially expect GPN to lose market share and for its multiple to continue rerating downward. The presenter disagrees with this narrative, noting that the stock currently trades at 17x next year’s earnings, which is a discount to the market (20x+). He doesn’t see substantial downside from the current $170 share price and expects 20% EPS growth for the foreseeable future along with valuation upside.
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