GPN
Global Payments, Inc.
Finance/Real Estate, TMT
08/29/2023
Presented
| Date | 08/21/2023 |
| Price | $123.64 |
| Market Cap | $32.15B |
| Ent Value | $41.96B |
| P/E Ratio | 41.23x |
| Book Value | $85.29 |
| Div Yield | 0.81% |
| Shares O/S | 259.99M |
| Ave Daily Vol | 2,420,494 |
| Short Int | 1.23% |
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: Automatic Data Processing Inc (ADP), Global Payments Inc (GPN), Fidelity National Information Services Inc (FIS), Fiserv Inc (FI), Paychex Inc (PAYX)
Highlights
The presenter is long shares of Global Payments Inc (GPN), one of the three main transaction processor platforms along with Fiserv and FIS. The market is seemingly viewing these three businesses as legacy fintech losers. Adding to the negativity, longtime CEO Jeff Sloan stepped down effective June 1st. Sloan was well-regarded, and the presenter states that he did a good job until the last three years when the stock price went backwards. Sloan also sold his GPN stock after leaving the company, further impacting market sentiment. However, the presenter believes that the market is mischaracterizing the story, as GPN trades where it traded five years ago despite EPS doubling in that timeframe and his outlook for the strong earnings growth to continue.
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