Global Payments Inc - bryanseiler.com

Stock: GPN

Rating: Buy

Author: Waleed M. Tariq

Global Payments provides businesses of all sizes with the world’s leading full commerce environment.
This unique, integrated infrastructure handles billions of transactions annually safely and seamlessly.
Global Payments works in 100 countries and services 3.5 million merchants and 1,300 banks.

There are strong fundamentals and steady growth tendencies in the company.
Due to collaborations and acquisitions, GPN has built a forward-looking ecosystem with a lot of upside potential.
In the long run, GPN is a strong investment because of its solid foundations and growth forecasts.

The stock market is dry due to poor investor sentiment toward GPN’s financials. This is bearish.

GPN provides payment technologies. It has three parts.
Merchant Solutions: Global payments software and technology provider. Quarterly revenue was $1.5 billion (67 percent of total revenue).
Issuer Solutions: Enables financial service organizations to manage card portfolios, reduce complexity, and offer a seamless cardholder experience on a single platform. Quarterly revenue was $522m (24 percent of total revenue).
Business & Consumer Solutions: Netspend offers underbanked Americans and companies reloadable debit and payroll cards, demand deposit accounts, and other financial services. Quarterly revenue was $208m (9 percent of total revenue).

GPN’s long-term growth is based on its intrinsic strength, not market emotion.
GPN’s most current quarter (MRQ) sales was $2.2 billion, up from $1.92 billion last year.
GPN’s adjusted EPS trend shows it has exceeded analyst forecasts each qtr for over three years.
EPS for Q4 2021 is $2.15. GPN’s EPS rose 27.38% on average and 21.34% on median in the past four quarters. If that continues, the company will beat projections.

The current quarter’s $0.25 dividend per share (DPS) is a key distribution determinant and financial barometer for the corporation.
A dividend payment ratio of 25% means that 75% of the company’s earnings are still being reinvested to fuel growth.
With an expanding EPS and a stable dividend payment ratio, the firm looks like an excellent income alternative.

GPN’s stock will benefit in the future if its financial performance meets investor expectations, despite previous issues.
The company is leveraging their B2B initiatives by expanding relationships with Citigroup, Amazon, Google, PayPal, and CIBC.

The unique agreement with Virgin Money will allow GPN access to additional clients. Virgin Money has around 6.5 million U.K. customers.

GPN will automate back-office procedures, asset tracking, accounting records, and employee management at Mercedes-Benz Stadium.
This will increase income and give the organization more marketing opportunities.

GPN is making progress on multiple fronts to meet market demand. They’ve enlarged their PayPal partnership to $2.38 trillion cryptocurrencies.
GPN bought Zego for $830 million to expand into property-management software.
GPN bought MineralTree for $500 million to strengthen its B2B growth strategy.

The company’s expanding EPS, dividends, and aggressive collaborations and acquisition with industry behemoths and innovation indicate to a bright future.