Global Payments Intrinsic Stock Value – The Trade Desk Surpasses Global Payments in Value at Over $29 Billion
November 18, 2023
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Global Payments ($NYSE:GPN) Inc. is a leading provider of payments technology and software solutions, delivering innovative services to merchants and businesses worldwide.
However, Global Payments’ market value is far surpassed by The Trade Desk, a software company that provides advertising technology solutions, which is now worth over $29 Billion. The Trade Desk’s success is due to its unique approach to programmatic advertising, which has enabled it to capture a significant portion of the global online advertising market. It has managed to secure business from some of the world’s biggest companies, including Google, Facebook, and Amazon, which has helped to drive its exceptional growth. Global Payments, meanwhile, has been slower to adapt to the changing payments landscape. Despite continuing to innovate and expand their services, they have been unable to keep up with the rapid growth of The Trade Desk. This has resulted in The Trade Desk overtaking Global Payments in terms of market value.
Stock Price
On Tuesday, Global Payments saw its stock value rise significantly, opening at $111.0 and closing at $111.8, up by 2.9% from previous closing price of 108.7. This puts Global Payments in a strong position for future growth, and the company is expected to capitalize on the increased demand for digital payments solutions in the coming years. Global Payments is well-positioned to benefit from the shift towards digital payments, and its stock’s performance has reflected this optimism. The company’s market value now sits firmly above The Trade Desk’s, furthering its success in the digital payments industry. 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 |
| 9.47k | 874.24 | 10.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Global Payments. More…
| Operations | Investing | Financing |
| 2.3k | -4.31k | 1.89k |
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 |
| 48.92k | 25.77k | 86.18 |
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 |
| 8.2% | 28.1% | 18.0% |
| FCF Margin | ROE | ROA |
| 17.4% | 4.8% | 2.2% |
Analysis – Global Payments Intrinsic Stock Value
GoodWhale has conducted an in-depth analysis of GLOBAL PAYMENTS‘s wellbeing and have concluded that the fair value of its share is around $170.6, according to our proprietary Valuation Line. Currently, GLOBAL PAYMENTS stock is trading at $111.8, which means it is undervalued by 34.5%. This presents an attractive opportunity for investors, as they can purchase the stock at a discounted price and reap the rewards when the stock rises to its true value. More…
Peers
The company operates in three segments: Merchant Services, Issuer Solutions and Card Services. Global Payments Inc’s main competitors are The Brink’s Co, Thomson Reuters Corp and BLS International Services Ltd.
– The Brink’s Co ($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 is a leading provider of payment technology and software solutions for consumer and business customers across multiple industries, including retail, travel, restaurant, hospitality, healthcare, financial services, and more. The company’s strong balance sheet and solid cash flow make it an attractive investment opportunity. In general, Global Payments has a good track record of revenue growth and profit margins in the past five years. Moreover, the company has a strong market position with its wide product range and presence in many international markets.
With its strong management team and well-diversified portfolio of products and services, Global Payments is well-positioned to capitalize on opportunities in the payments industry. Investors should also consider the company’s commitment to developing new products and services and expanding its global reach to drive future growth.
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