Global Payments Intrinsic Value Calculator – Global Payments Reports Positive Earnings Results for Q2 FY2023
August 22, 2023
☀️Earnings Overview
On August 1 2023, GLOBAL PAYMENTS ($NYSE:GPN) reported their second quarter earnings results for the fiscal year 2023, ending June 30 2023. They saw total revenue of USD 2452.5 million, which was a 7.5% increase from the same quarter of the prior year. Net income for this period jumped by 140.7%, amounting to USD 274.2 million.
Price History
On Tuesday, GLOBAL PAYMENTS reported its earnings results for Q2 FY2023, and the stock opened at $117.2 and closed at $120.8, representing a 9.5% increase from its last closing price of 110.2. This gain in GLOBAL PAYMENTS’ stock price is indicative of the positive results the company reported for its second quarter of fiscal year 2023. GLOBAL PAYMENTS’ CEO, Jeff Sloan, expressed his satisfaction with the company’s performance in Q2 of FY2023, noting that the company’s “strong financial performance demonstrates the ongoing execution of our strategy.” He also lauded the company’s commitment to continuing to invest in technology and innovation, which he believes will serve as the foundation for future growth.
The positive earnings results reported by GLOBAL PAYMENTS demonstrate that the company is in a strong position to capitalize on growth opportunities in the coming quarters. With a strong balance sheet and ongoing investments in technology and innovation, GLOBAL PAYMENTS looks well-positioned to continue to build on its success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Global Payments. More…
| Total Revenues | Net Income | Net Margin |
| 9.28k | 802.87 | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Global Payments. More…
| Operations | Investing | Financing |
| 2.21k | -4.31k | 2.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Global Payments. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 48.15k | 25.24k | 85.29 |
Key Ratios Snapshot
Some of the financial key ratios for Global Payments are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | 31.5% | 16.4% |
| FCF Margin | ROE | ROA |
| 17.1% | 4.3% | 2.0% |
Analysis – Global Payments Intrinsic Value Calculator
At GoodWhale, we recently conducted a comprehensive analysis of GLOBAL PAYMENTS‘ financials. According to our proprietary Valuation Line, the fair value of GLOBAL PAYMENTS shares is approximately $177.9. However, the current market price of GLOBAL PAYMENTS stock is only $120.8, representing an undervaluation of 32.1%. Thus, there may be an opportunity for investors to purchase GLOBAL PAYMENTS shares at a discount. More…
Peers
The company operates in three segments: Merchant Services, Issuer Solutions and Card Services. Global Payments Inc’s main competitors are The Brink’s Co, Thomson Reuters Corp and BLS International Services Ltd.
– The Brink’s Co ($NYSE:BCO)
Brink’s Company is a provider of security and logistics services. The company operates in more than 50 countries and employs over 70,000 people. The company has a market cap of 2.85B as of 2022 and a ROE of 97.45%. Brink’s provides a broad range of services including cash management, ATM servicing, armored car transportation, and security solutions for businesses and governments.
– Thomson Reuters Corp ($TSX:TRI)
Thomson Reuters Corp is a large Canadian multinational media and information company with a market cap of 67.4 billion as of 2022. It has a wide range of businesses including news, information and analytics, and tax and accounting software. Its return on equity was 7.59% in 2020.
– BLS International Services Ltd ($BSE:540073)
BLS International Services Ltd is a market leader in the provision of outsourced visa and passport processing services. The company has a strong focus on customer service and has a proven track record in the delivery of high quality services. BLS International Services Ltd has a market capitalisation of 68.62B as of 2022 and a return on equity of 13.87%. The company offers a wide range of services including visa processing, passport processing, identity management and biometric services.
Summary
Global Payments reported strong revenue and net income growth in the second quarter of FY2023, with total revenue of USD 2452.5 million, up 7.5% from the same quarter of the previous year, and net income of USD 274.2 million, an increase of 140.7%. The stock price responded favorably to the news and rose on the same day. Investors may view this as a sign of positive momentum and a strong sign of future growth potential for Global Payments. It is also worth noting that the company has announced plans to invest in new technology, which could provide further opportunities for growth in the future.
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