We believe the market is concerned about disruption to incumbent payment players like Global Payments. In our view, though, Global Payments continues to benefit from a strong competitive position and is successfully adapting to a changing industry. While Worldpay struggled under FIS' roof, we think that was due to underinvestment, an issue that we don't believe applies to Global Payments.
The merger with Total System Services bulked up Global Payments' acquiring business and strengthened its moat, given the importance of scale in the business.
The focus on small merchants increases Global Payments' macro sensitivity.
|
Metric
|
GPN
|
JKHY
|
FIS
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.11 | 30.23 | 16.81 |
Price/Book Value | 1.11 | 6.70 | 2.37 |
Price/Sales | 2.57 | 5.46 | 3.97 |
Price/Cash Flow | 8.32 | 20.55 | 10.69 |
|
Metric
|
GPN
|
JKHY
|
FIS
|
|---|---|---|---|
Quick Ratio | 0.31 | 0.78 | 1.14 |
Current Ratio | 0.92 | 1.39 | 1.52 |
Interest Coverage | 3.02 | 27.23 | −9.88 |
|
Metric
|
GPN
|
JKHY
|
FIS
|
|---|---|---|---|
Return on Assets (Normalized) | 5.57% | 14.79% | 5.17% |
Return on Equity (Normalized) | 12.34% | 24.28% | 12.86% |
Return on Invested Capital (Normalized) | 7.90% | 20.64% | 8.06% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| RELX PLC
RLXXF
| — | Npdk | $85.0 Bil | |||
| RELX PLC ADR
RELX
| Nnzpglznc | Wgrl | $85.0 Bil | |||
| Thomson Reuters Corp
TRI
| Pxnvjzjx | Jnwfqg | $76.3 Bil | |||
| Cintas Corp
CTAS
| Rzfvkbx | Dnwd | $71.3 Bil | |||
| Copart Inc
CPRT
| Gfbrzmjdv | Fcxty | $51.9 Bil | |||
| Wolters Kluwer NV
WOLTF
| — | Xvsg | $39.2 Bil | |||
| Rentokil Initial PLC ADR
RTO
| Zbbthmds | Cggr | $14.9 Bil | |||
| RB Global Inc
RBA
| Dwsphyxwf | Yqpcvd | $14.1 Bil | |||
| UL Solutions Inc Class A common stock
ULS
| Xydjcmzcl | Wlqjx | $8.6 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/da2d065f-39a9-49e3-8551-1d3832fc658a.jpg)