Skip to main content
Homepage
OLDER Analysis Report
Sep 3, 2026
34 days ago · 100% complete
This report is 34 days old — newer filings and price moves since then are not reflected.
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Global Payments Inc. (GPN) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-10-07): Designation Watch · Gem Score -5 (−100…+100 Quality+Value blend) · Quality 2 · Value -9 · Sentiment -62 (timing only, not weighted) · Composite fair value $185.33 vs $92.81 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysis — the core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Global Payments Inc.

GPN NYSE
Industrials · Specialty Business Services
Atlanta, GA 30326, United States globalpayments.com Updated Sep 3, 1:00am
Price
$92.81
Market Cap
$24.6B
Employees
26,000
Beta
0.78
Avg Volume
3,038,909
Last Dividend
$1.00
CEO
Mr. Cameron M. Bready CPA

Global Payments Inc. is a payment technology and software company that helps businesses, financial institutions, and other organizations process and manage electronic transactions. Global Payments Inc. provides solutions for card, check, digital, and contactless payments across in-store, online, and mobile channels. Its offerings include payment processing, point-of-sale systems, authorization, settlement, funding, security, dispute management, and reporting tools, along with software designed to support day-to-day business operations. The company serves merchants of different sizes and operates across the Americas, Europe, and the Asia-Pacific region. Global Payments Inc. also provides issuer-focused solutions that support the broader payments ecosystem, making it an important infrastructure provider in modern commerce.

Runs with full report Generated: Sep 3, 2026 1:12am
Price Overview
Price at report time
$92.81
as of Sep 3, 1:00am (34d ago)
Change · Sep 3
+2.75 (+3.05%)
Day Range
$89.73 – $93.61
52-Week Range
$61.16 – $95.88
50-Day MA
$83.66
200-Day MA
$75.48
Volume
1,968,200.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 34d).
Share Structure
Outstanding 265,811,863.00
Float 219,622,679.00
Free Float 82.6%
High free float — 82.6% of shares trade freely, ~17.4% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Sep 3, 2026 1:23am (34d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Sep 3, 2026 1:12am (34d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Sep 3, 2026 1:09am
P/E · trailing (TTM) (Price per dollar of earnings over the past year — not a run-rate or forward P/E)
HEX
Stock Price / EPS (Diluted)
16.06
Stock Price: $92.81
EPS (Diluted): 5.78
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
0.94
Stock Price: $92.81
Total Equity: $23.78B
Shares: 242,008,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
11.91
Market Cap: $24.56B
Total Debt: $21.46B
Cash: $8.34B
EBITDA: $2.98B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$35.6B
Market Cap: $24.56B
Total Debt: $21.46B
Cash: $8.34B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
72.6%
Gross Profit: $5.59B
Revenue: $7.71B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
22.8%
Operating Income: $1.75B
Revenue: $7.71B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
18.2%
Net Income: $1.40B
Revenue: $7.71B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
5.9%
Net Income: $1.40B
Total Equity: $23.78B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
3.8%
Operating Income: $1.75B
Tax Rate: 20.0%
Equity: $23.78B
Total Debt: $21.46B
Cash: $8.34B
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
1.69
Current Assets: $12.60B
Current Liabilities: $7.46B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.90
Short-Term Debt: $1.92B
Long-Term Debt: $19.54B
Total Debt: $21.46B
Total Equity: $23.78B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$31.84
Revenue: $7.71B
Shares: 242,008,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$98.26
Total Equity: $23.78B
Shares: 242,008,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$8.42
Operating CF: $2.66B
CapEx: -$617.77M
Shares: 242,008,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
1.1%
Last Dividend: $1.00
Stock Price: $92.81
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
—
Dividends Paid: N/A
Net Income: $1.40B
Dividends paid not available in cash flow statement
Industry Benchmarks
Last run: Sep 3, 2026 1:09am
Compares GPN against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Sep 3, 2026 1:12am (34d ago)
Metric 2021 2022 2023 2024 2025
Revenue $8.5B $9.0B $9.7B $10.1B $7.7B
Cost of Revenue $3.8B $3.8B $3.7B $3.8B $2.1B
Gross Profit $4.8B $5.2B $5.9B $6.3B $5.6B
Operating Expenses $3.4B $4.6B $4.2B $4.0B $3.8B
Operating Income $1.4B $640.2M $1.7B $2.3B $1.8B
Net Income $965.5M $111.5M $986.2M $1.6B $1.4B
EBITDA $3.1B $2.3B $3.5B $4.2B $3.0B
EPS $3.30 $0.41 $3.78 $6.18 $5.79
EPS (Diluted) $3.29 $0.40 $3.77 $6.16 $5.78
Balance Sheet (Annual)
Last updated: Sep 3, 2026 1:00am (34d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $2.0B $2.0B $2.1B $2.5B $8.3B
Total Current Assets $4.7B $6.3B $8.1B $6.0B $12.6B
Total Assets $45.3B $44.8B $50.6B $46.9B $53.3B
Current Liabilities $4.5B $6.9B $8.1B $6.3B $7.5B
Long-Term Debt $11.4B $12.3B $15.7B $15.2B $19.5B
Total Liabilities $19.4B $22.3B $26.8B $23.9B $29.6B
Total Equity $25.9B $22.5B $23.8B $23.0B $23.8B
Retained Earnings $3.0B $2.7B $3.5B $4.8B $5.9B
Cash Flow (Annual)
Last updated: Sep 3, 2026 1:23am (34d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $2.8B $2.2B $2.2B $3.5B $2.7B
Capital Expenditure -$493.2M -$615.7M -$658.1M -$674.9M -$617.8M
Free Cash Flow $2.3B $1.6B $1.6B $2.9B $2.0B
Acquisitions (net) -$1.8B -$65.7M -$4.2B -$487.1M -$352.1M
Net Debt Issued / (Repaid) $2.2B $1.9B $1.2B $1.3B $5.1B
Dividends Paid — — — — —
Stock Buybacks -$2.5B -$2.9B -$418.3M -$1.6B -$1.2B
Net Change in Cash $33.3M $92.6M $41.3M $479.1M $6.4B
Growth Trends (YoY %)
Last updated: Sep 3, 2026 1:12am (34d ago)
Metric 2022 2023 2024 2025
Revenue Growth +5.3% +7.6% +4.7% -23.7%
Gross Profit Growth +9.4% +14.0% +7.1% -11.9%
Operating Income Growth -52.9% +168.1% +36.0% -24.8%
Net Income Growth -88.5% +784.6% +59.2% -10.8%
EBITDA Growth -24.5% +51.7% +20.1% -28.9%
Dividend History (Last 20)
Last updated: Aug 31, 2026 10:36am (37d ago)
Date Dividend Declaration Record Payment
2026-06-12 $0.25 — — —
2026-03-09 $0.25 — — —
2025-12-12 $0.25 — — —
2025-09-12 $0.25 — — —
2025-06-13 $0.25 — — —
2025-03-14 $0.25 — — —
2024-12-13 $0.25 — — —
2024-09-13 $0.25 — — —
2024-06-14 $0.25 — — —
2024-03-14 $0.25 — — —
2023-12-14 $0.25 — — —
2023-09-14 $0.25 — — —
2023-06-14 $0.25 — — —
2023-03-16 $0.25 — — —
2022-12-15 $0.25 — — —
2022-09-15 $0.25 — — —
2022-06-09 $0.25 — — —
2022-03-10 $0.25 — — —
2021-12-15 $0.25 — — —
2021-09-09 $0.25 — — —
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 17 computed · 6 not applicable · 1 not yet run
Risk : Reward — upside vs downside from this company's own quarters
Computed 2026-10-05 02:02
-2.8 : 1 +1σ upside vs −1σ downside, from this company's own quarterly history
A +1σ run of quarters pays -276%; a −1σ run costs 100%. Ratio -2.8:1 (μ 18.5%, σ 45.4% , 16 pairs).
Older method (repeat-worst-quarter): 1.8 : 1
CaseGrowthMarginFair valuevs price ($92.81)
Bull — recovery +49% 17.3% $260.66 +181%
Base — stabilizes +32% 15.0% $143.06 +54%
Bear — keeps slipping +16% 12.8% $72.67 -22%
Stress — last quarter repeats +69% -9.2% $0.00 -100%
Upside — a +1σ run of quarters (v2) +50% -9.6% $-163.36 -276%
Stress — a −1σ run of quarters (v2) -27% -9.2% $0.00 -100%
The next quarters keep the trajectory of the worst recent matched quarter (ending 2026-06-30) — growth stays at 68.6% and margins bend by the same profit-vs-revenue ratio (×0.51). Stress is a trajectory, not a prediction — it answers "what if the ship's current heading simply continues," which history says is the case to respect.
Why this is appearing: this company files quarterly, so its recent trajectory could be measured rather than assumed — the engine matched Jun 2026, Mar 2026 against the same quarters one year earlier and found revenue +66.0% · operating income -58.0% · net income -426.4% year-over-year. That measured heading is what the stress case extends forward. Of those, the stress case extends the worst matched quarter — the one ending Jun 30, 2026 (revenue +68.6%, operating income -14.3% YoY) — not the average. Data measured through Jun 30, 2026 — this card recalculates automatically when the next quarterly filing is ingested. Companies without quarterly filings (many foreign listings) never show this card: with no measured trajectory, there is nothing honest to repeat.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for GPN — it's generated by the pipeline (market-narrative step).
Growth Outlook
Analyzed 2026-09-03 01:34

The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.

Holding Reported revenue is exploding on the Worldpay-for-Issuer-Solutions swap, but underneath sits a low-single-digit organic merchant acquirer in a slowing category — earnings power holds via synergies and buybacks rather than demand. conf 6/10
Share loss Category growing · Category is growing slowly and decelerating (industry 4.8% CAGR, category median recent growth 3.6%, sector phase 'slowdown'). GPN's headline -23.8% recent YoY is a divestiture artifact, not demand loss; adjusted for the portfolio swap the franchise is running roughly at-or-slightly-below category growth, with the value pool inside the category migrating to software-led and orchestration players.
Next 2 quarters
Growing
Reported revenue carries the full Worldpay consolidation step-up, and management has hit the last three prints. Early synergy capture plus a simplified merchant-only portfolio should produce clean double-digit reported growth and EPS in line with the recent +1% to +5% beat cadence, even with GAAP income distorted by deal accounting.
≈ inline with expectations
Year 1
Growing
A full year of consolidated Worldpay plus the first tranche of cost synergies makes FY reported revenue and adjusted EPS growth close to certain on arithmetic alone. Organic constant-currency growth is the soft spot — likely low-single-digit against a 3.6% category — so the growth is composition and cost, not demand.
≈ inline with expectations
Years 2–3
Holding
By year three the acquisition math is lapped and the true question is organic: a mature, slowing category, real yield compression from software-led competitors, offset by scale economics, remaining synergies and share count reduction. Net earnings power holds to modestly grows; it does not compound and it does not obviously erode.
↑ above expectations
The creme: each rung's call measured against what's already printed (vs analyst estimates · vs guidance / FY consensus · vs price-implied growth) — expectations in print are already in the price, so only the variant margin can pay. Hover a rung's chip for the margin read.
Growth drivers
65 Worldpay consolidation reshapes the P&L — The +66.0% matched-quarter revenue and the -23.8% multi-year print are two sides of one portfolio swap (Issuer Solutions out, Worldpay in). Mechanically, the next several prints carry a large reported revenue step-up and a scaled pure-play merchant acquiring franchise with e-comm and enterprise reach GPN previously lacked.
53 Cost-synergy and margin self-help — Industry net margins expanding +7.7pp over 3 years confirms the sector's operating-leverage backdrop, and the integration gives management a large, controllable cost pool. This is the main mechanism by which EPS can grow while organic revenue runs low-single-digit.
32 Consistent delivery against estimates — Last three sizeable prints beat by +1%, +5%, +1% — the model is calibrated and management is hitting it. Suggests near-term guidance is credible and the reported ramp is already understood by the sell side.
26 Secular transaction-volume floor — Card/digital acceptance volume still compounds above GDP; a scaled acquirer with embedded merchant relationships and settlement infrastructure captures some of that even while pricing compresses. This is a floor, not an accelerant.
Growth risks
61 Structural share leakage to software-led competitors — Stripe, Adyen, Toast and Shift4 win at the point of software, not the point of processing. GPN's legacy rails are the commoditizing layer; net revenue yield and SMB attrition are the pressure points. Worldpay itself entered with a weak organic growth record — buying scale does not buy growth.
54 Integration execution — TSYS precedent — The last large deal produced years of messy integration and eroded trust in the growth story. Reported operating income -58% and net income -426.4% show the accounting cost of the current transaction; a repeat of slipped synergies would convert Holding into Stalling.
42 Category slowdown plus macro headwinds — Sector phase 'slowdown', demand score -1, category median growth only 3.6%, industry CAGR 4.8% — a mature, flat market. With 10y at 4.79% and macro headwinds flagged, SMB formation and discretionary spend volumes are the swing factor GPN cannot control.
31 Leverage and interest cost against a low-growth base — A large cash acquisition in a 4.79% rate environment means debt service competes with buybacks — the very lever the EPS story depends on. Deleveraging priority can mute per-share growth even if EBITDA holds.
23 Poor organic visibility — Portfolio reshuffling makes reported YoY figures nearly uninterpretable for at least a year; the -28.3pp 'share loss' gap is largely a divestiture artifact, which cuts both ways — it also hides genuine organic softness.
Electronic payment volumes keep compounding, but the economics are moving up the stack — from authorization and settlement (commoditizing, price-competed) toward embedded software, orchestration and vertical POS. GPN's answer is scale plus own software; the world's answer so far has been to reward the developer-first and vertical-SaaS entrants. Simultaneously the macro is unhelpful: high long rates compress SMB formation and raise the cost of the leverage funding the consolidation, while a slowing services cycle caps volume upside. The realistic shape is a large, cash-generative processor growing volumes with the economy, defending yield, and converting scale into per-share earnings rather than into top-line acceleration.
Growth position composite -6
ShrinkingStallingHoldingGrowingAccelerating
70Next 2 quarters · Growing
70Year 1 · Growing
50Years 2–3 · Holding
-6Composite (−100…+100)
A research prediction, not advice. Forward-graded: each rung is scored against the prints that follow it. Not an input to the GEM designation — track record first.
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-09-03 01:22:25
Verdict Fairly valued near $92 — synthesis's $197 anchor is a pre-deal artifact; realistic range is $85-$110 with $125 upside only if Worldpay synergies land; no edge at current price.

The raw numbers tell a discontinuity story that the models are papering over. Quarterly revenue jumped from ~$1.9-2.0B in the four quarters through Q3 2025 to $2.97B in Q1 2026 and $3.32B in Q2 2026 — that's not organic acceleration, that's an acquisition or reconsolidation (almost certainly the Worldpay deal closing, paired with the earlier Issuer Solutions divestiture that gutted 2025 quarterly comps). The -$1.80B net loss in Q1 2026 is consistent with deal-related writedowns/purchase accounting. So the "revenue_cagr: -10.7%" and "recent_revenue_yoy: -23.8%" are structurally misleading — you're comparing a post-divestiture stub to a pre-divestiture full company. Any model leaning on those CAGRs (Market Forces calling GPN "shrinking," momentum signals) is anchored to a corporate-action artifact, not a business trend.

The synthesis "fair value $270 → adjusted $197 vs $92.81" is where I part ways hard. That gap is too clean and too large for a mature payments processor generating $2.04B FCF on a $24.6B market cap (≈8.3% FCF yield) — a genuinely respectable but not screaming number given $21.5B of debt against $8.3B cash, so EV/FCF is closer to ~18x. ROIC of 3.8% and ROE of 5.9% are the tell: this business is earning below its cost of capital post-Worldpay, and a DCF that spits out $270 is almost certainly extrapolating pre-deal margins onto a now-larger, more-levered, lower-return entity. P/B of 0.94 isn't a bargain when ROE is 5.9% — it's the market correctly pricing sub-cost-of-capital returns. The "53% discount to intrinsic" narrative is the classic fallen-angel trap: cheap on trailing multiples, expensive on returns-on-incremental-capital.

The bear case from Market Forces is directionally right but sloppily argued. GPN isn't "shrinking" — it's reshuffling. The real problem is competitive: Stripe/Adyen/Block are compounding volumes at 20%+ while GPN's underlying merchant business grows mid-single-digits at best, and the Worldpay reunion is a defensive scale play, not an offensive one. Gross margin of 72.6% looks great but operating margin of 22.8% and net margin of 18.2% (annual) versus Adyen's ~50% EBITDA margins tells you where the pricing power actually sits. Insider activity is neutral-to-mildly-negative — the "net insider buying" tag is generous given most of the recent prints are F-InKind (tax withholding on vests) and option exercises, not open-market conviction buys. The A-Awards on 2026-05-01 are grants, not purchases.

I dissent from the "fair value" synthesis and from the $197 anchor. My read: GPN is roughly fairly valued to modestly undervalued in the $85-$105 range. At 8x forward EBITDA on a pro-forma ~$4.5-5B EBITDA base post-Worldpay, EV of ~$36-40B implies equity of $15-19B after net debt — actually *below* current market cap, which suggests the market is already giving credit for synergies. If Worldpay integration delivers the promised $600M+ synergies and ROIC climbs back toward 8-9%, fair value moves to $110-125. If integration follows the TSYS playbook (messy, dilutive, multi-year), $75 is on the table. The contrarian argument against every bull here: payments consolidation via debt-funded mega-deals has a poor track record (FIS/Worldpay 1.0, Fiserv/First Data), and GPN is now betting the company on doing it again. That's not a 53% discount — that's a fair discount for execution risk on a levered rollup. I'd want to see two clean quarters of pro-forma organic growth above 5% and evidence of margin stability before paying up.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-09-03 01:22:43
Verdict Fairly valued to slightly overvalued at $92.81 — the cash flow floor matters, but the collapse in recent profitability makes any $120+ bull case premature and the $190+ model output implausible.

The first thing that jumps out is that the data set is not describing a clean “mature earner”; it is describing a business in the middle of a structural reset, and the annual and quarterly figures do not reconcile into a simple steady-state valuation case. Annual revenue fell from $10.11B in 2024 to $7.71B in 2025, a 23.7% decline, while the latest quarterly pattern is bizarrely lumpy: $1.82B, $1.97B, $2.01B, then $1.91B in late 2025, followed by $2.97B and $3.32B in the first half of 2026. Net income is even noisier, with a massive -$1.80B loss in 1Q26 and only $13M of profit in 2Q26 on $3.32B of revenue, a margin of 0.4%. That makes the headline P/E of 16x and net margin of 18.2% on the 2025 annuals look backward-looking to the point of being misleading. If I annualize the first half of 2026 mechanically, I get roughly $6.29B of revenue and a loss of about $1.79B, which is obviously distorted by whatever hit 1Q26, but it underlines the central point: the current earnings base is not stable enough to support a complacent “cheap compounder” thesis.

Cash generation is the reason the stock is not a full-blown avoid. In 2025, operating cash flow was $2.66B and free cash flow was $2.04B, which means the shares trade at about a 12x FCF multiple on a $24.56B market cap, or an 8.3% FCF yield. For a payment processor with gross margin of 72.6%, operating margin of 22.8%, and a current ratio of 1.69, that is not expensive. Net debt is also less frightening than the gross debt number suggests: $21.46B debt against $8.34B cash leaves roughly $13.1B net debt, so enterprise value is around $37.7B. On 2025 operating income of $1.75B, leverage is meaningful but not necessarily existential if cash conversion stays intact. The market is paying about 2.9x sales and 11.9x EBITDA, which would be compelling if the revenue line were merely sluggish rather than shrinking and if returns were healthier than a 3.8% ROIC and 5.9% ROE. Those return metrics are poor for a company that should benefit from scale and software-like economics, and they suggest the balance sheet and past capital allocation still weigh heavily on equity value.

That is why I do not buy the model’s “fair value $197” conclusion. To get to anything close to a double from $92.81, I would need confidence that 2025 was a one-time trough, 2026’s first-quarter collapse was a discrete accounting or impairment event with little operating read-through, and the business can re-establish something like $2B+ of annual earnings power. The data here do not show that. What they show is a company whose reported revenue base has stepped down hard, whose recent quarterly profitability has evaporated, and whose valuation optically looks cheap mainly because the denominator is stale. Price-to-book below 1.0x is not a bargain by itself when the business earns subpar returns on that book. In a quality franchise, sub-1x book plus 16x earnings can be a screaming buy; in a business with shrinking sales and erratic earnings, it can just be the market refusing to capitalize old margins.

The best counterargument is straightforward and serious: the stock may already discount too much bad news. Even after the 2025 revenue decline, net income was still $1.40B, only down 11% from $1.57B in 2024, and free cash flow of $2.04B more than covered the dividend and gives management room to delever. The sequential revenue rebound from $1.91B in 4Q25 to $2.97B and then $3.32B in the first two quarters of 2026 suggests the business mix may have changed rather than simply deteriorated, and if the 1Q26 loss was largely a one-off charge, then 2Q26’s near-breakeven earnings may understate normalized profitability during a transition period. On that view, 11.9x EV/EBITDA and an 8%+ FCF yield are too low for a scaled payments asset, especially if the annual 2025 margin structure is closer to reality than the latest quarter implies. I weigh that case less heavily because the burden of proof is on management to show that the post-reset earnings power is real, and right now the freshest reported profits are terrible.

What would change my mind is not a narrative about “synergies” or “digital payments tailwinds,” but a few hard numbers. If the next two quarters show revenue holding above $3.2B while net margin recovers to even 8-10%, that would imply a materially better earnings base than the current tape suggests and make the stock look genuinely cheap below $100. Likewise, if debt comes down meaningfully from $21.46B gross without impairing FCF, the equity can rerate despite low growth. On the other hand, if revenue growth in 2026 is being bought with permanently lower margins, or if another large impairment/restructuring charge appears and annual FCF falls below about $1.5B, then even $92 is not obviously safe. My base case is that this is not the deep-value mispricing the models imply; it is a discounted stock for good reason, with modest upside at best until normalized earnings become visible.

Grok Reading
Independent reading · grok-4.5 · generated 2026-09-03 01:23:19
Verdict Modestly undervalued on 8%+ FCF yield and 0.94x book, but $197 model targets ignore the 2026 margin collapse and 3.8% ROIC—fair value closer to $115-130

Global Payments at $92.81 is a cash-flow machine wearing a distressed multiple, but the distress is earned. The 2025 annual print of $7.71B revenue and $1.40B net income looks respectable until you notice it is a $2.4B revenue cliff from 2024’s $10.11B; the -10.7% revenue CAGR and -23.8% recent YoY are not noise, they are the post-divestiture baseline. Against that smaller top line the company still threw off $2.66B operating cash and $2.04B FCF, an 8.3% free-cash-flow yield on the $24.56B market cap that would be attractive for a mature processor if returns on capital were not so poor. ROIC of 3.8% and ROE of 5.9% with $21.46B of debt and only $8.34B cash mean the equity is levered into a low-teens EV/EBITDA of 11.9x and a sub-1.0x P/B of 0.94—cheap only if the cash engine is durable. The two most recent quarters shatter that assumption: Q1 2026 net income of -$1.80B (margin -60.6%) followed by Q2’s $13M on $3.32B revenue (0.4% margin) show either large one-time charges or a sudden collapse in conversion. Either way, the trailing PE of 16x and the model composite pointing to $197 are looking through a rear-view mirror that no longer matches the windshield.

The strongest counter-argument is that the valuation gap is real and the market is simply refusing to pay for a fallen-angel payments franchise that still prints mid-70s gross margins and $2B-plus FCF. A smart opponent cites the $197 signal-adjusted fair value, the 53% discount to DCF, Berkshire’s small holding, and the fact that earnings CAGR of 19% and FCF CAGR of 13% over the longer window still look healthy once divestitures are normalized. They would also note P/B below book and net debt that, while large, is serviceable against $2.66B of operating cash if rates stabilize. I weigh those points but discount them because the same data set shows ROIC stuck at 3.8%, revenue still shrinking into a market that Stripe and Adyen are taking share from, and two consecutive quarters of near-zero or deeply negative profitability that the annual 2025 18% net margin does not explain. Cheap on yesterday’s cash flows is not the same as undervalued when the run-rate has cracked.

I would flip to a clear buy if the next two reported quarters restore operating margins above 15% and sequential revenue growth turns positive without another large non-cash charge, or if management materially deleverages below 0.6x debt-to-equity while holding FCF above $1.8B. A further 10%+ revenue decline or another nine-figure loss would push me to overvalued at any price near $90.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 6.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 5.0
GPT gpt-5.4 5.0
fairly valued · conviction 4/5 · Δ -1.0 vs panel · self: 4.0
Grok grok-4.5 8.0
undervalued · conviction 3/5 · Δ +2.0 vs panel · self: 6.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-09-03 01:37:04
Delvantic - Cairn AI
Modestly cheap - wait for a better entry 6/10
Modestly cheap fallen-angel processor with real cash generation but a levered balance sheet and an unexplained revenue break - interesting in the low 80s, not here at 92.81.
The cruxWhether the 2025 revenue drop is a divestiture/reclassification (fine) or genuine share loss to Stripe/Adyen/Square (thesis-killer) - that single question determines if the 20% discount is real or a value trap.
Forensic checks Derived mechanically from GPN's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionShare Count Shrinking
Earnings QualityGood Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+2
Solid
edge √Σ 106 · risk √Σ 103 · conf 6/10

Global Payments generates real cash: FCF of $2.04B in 2025 on OCF/NI of 5.89x and accruals of -3.6% of assets point to high earnings integrity. Buybacks dwarf SBC nearly 10x, shrinking diluted share count from 293.7M in 2021 to 242.0M in 2025 (-4.7% CAGR), so per-share value is being concentrated rather than diluted. Reported margins improved dramatically - gross margin from 55.7% to 72.6% and operating margin from 15.9% to 22.8% - which, taken at face value, suggests operating leverage in a mature payments platform. The concerns are structural and non-trivial. Net debt is $13.13B against $8.34B liquid cash, and Altman Z at 1.02 sits in the distress zone (though the model is calibrated for asset-heavy firms and is less reliable for a fee-based processor). More puzzling is 2025 revenue collapsing to $7.71B from $10.11B in 2024 - a 24% decline that is inconsistent with a healthy mature earner and likely reflects divestiture, reclassification (net vs gross), or a segment sale, but the raw data alone does not explain it. Insider activity is essentially neutral: the sole 'buy' was $99K, and the tape is dominated by F-InKind tax withholdings and A-Awards - not directional signal. This is a durable cash machine with a leveraged balance sheet and an unexplained revenue break that keeps it out of the top tier.

Strengths 3
m70
Strong cash conversion
OCF/NI of 5.89x, accruals -3.6% of assets, Beneish M -3.04, and $2.04B FCF in 2025 indicate reported earnings are backed by cash.
m65
Aggressive per-share concentration
Diluted shares fell from 293.7M to 242.0M (-17% over four years); buyback/SBC ratio near 989% shows capital return dominates dilution.
m45
Margin expansion
GM rose from 55.7% (2021) to 72.6% (2025); OpM from 15.9% to 22.8%, consistent with scale/mix improvement in payments.
Concerns 4
m70
Heavy net debt
Net debt of $13.13B vs $24.6B market cap and Altman Z of 1.02 in distress zone; balance sheet is a constraint, and interest burden limits flexibility even with $2B FCF.
m65
Unexplained 2025 revenue drop
Revenue fell from $10.11B (2024) to $7.71B (2025), a 24% decline while margins jumped - suggests a divestiture or accounting reclassification that materially changes the business footprint.
m30
Insider signal is essentially absent
One $99K buy against a tape of tax-withholding F-InKind and director A-Awards; no meaningful conviction buying by named operators.
m25
2022 net income anomaly
Net income collapsed to $111.5M in 2022 with OpM at 7.1% before rebounding - suggests episodic impairments or one-offs that recur in this business.
This looks like a genuinely cash-generative payments franchise executing textbook capital return - buybacks materially outrun SBC, and the earnings-quality diagnostics are clean. But I cannot ignore two things: the balance sheet is levered enough that Altman flags distress, and a 24% top-line drop in a single year in a supposedly mature processor is not something a quality lens can wave away without an explanation. Until I know whether 2025's revenue break is a strategic divestiture (fine) or an operational deterioration (not fine), I hold this at solid-but-not-strong. The insider tape gives me no additional conviction either way.
Verify before trusting this (6)
  • What drove the $10.11B to $7.71B revenue decline in 2025 - divestiture (Worldpay/Netspend/etc.), reclassification to net revenue presentation, or organic loss?
  • Debt maturity schedule and weighted interest rate on the ~$13B net debt position, and covenant headroom
  • Whether reported 72.6% GM in 2025 reflects a genuine mix shift or a presentation change following a business disposal
  • Cause of the 2022 operating margin collapse to 7.1% - impairment, litigation, or integration charges
  • Organic vs acquired growth in the payments merchant/issuer segments
  • Customer/vertical concentration and take-rate trends in the core merchant business
Valuation / Mispricing
-9
Modestly Cheap
edge √Σ 71 · risk √Σ 80 · conf 5/10
price $92.81 vs my quality-adjusted deserved ~$115, roughly 20% discount - modestly cheap, not a screaming bargain despite the 112% headline upside attractive below $82.00

The e2e composite FV of $270 and signal-adjusted $197 imply 100%+ upside from $92.81, but that math leans on a DCF of $395 that fails the sanity check for a business that just posted a ~24% revenue drop and carries an Altman-flagged debt load. The EPV floor of $20.70 is the other extreme and also non-credible. Triangulating: a mid-teens FCF-yield payments franchise with mid-single-digit organic growth and heavy leverage deserves something in the $110-130 range, meaning $92.81 offers a modest 15-30% discount rather than a 100% one. What is priced in at $92.81 looks like permanent margin compression from Stripe/Adyen/Square and a failed TSYS integration - a fallen-angel discount. That is not heroic to overcome; stabilizing revenue and holding buybacks would re-rate this. But the leverage means the margin of safety is thinner than the headline gap suggests, so this is 'modestly cheap' not 'deep value.'

Cheap signals 2
m55
Discount to reasonable deserved value
Even discounting the $395 DCF heavily, a payments processor of this scale with recurring revenue and aggressive buybacks should trade closer to $110-130; $92.81 implies ~20% margin of safety.
m45
Fallen-angel setup
Stock is priced as if margin compression and share loss are permanent; any stabilization plus continued buyback (which already outruns SBC) creates re-rating optionality.
Rich / priced-in 3
m60
Composite FV is not credible
A $270 composite and $395 DCF for a business that just shrank revenue 24% is a runaway model output; anchoring on it would be a mistake and it should be discounted heavily.
m40
Leverage narrows the margin of safety
Altman-distress flag on the debt load means the deserved multiple should be haircut versus unlevered peers; the apparent gap to fair value is thinner in risk-adjusted terms.
m35
Revenue trajectory unresolved
A 24% single-year revenue drop in a 'mature' processor is unexplained by the quality lens; until the cause is understood, the deserved multiple stays compressed.
The headline 112% upside is a mirage driven by a DCF that clearly hasn't digested the revenue shock. Strip that out and I still get to a modest 15-25% discount on any reasonable multiple, which is real but not fat given the leverage. I'd call it modestly cheap - interesting, not compelling. I want it in the low 80s before I'd size up, or I need evidence the revenue drop was a one-time reclassification rather than share loss.
Verify before trusting this (5)
  • Whether the 2025 revenue drop reflects a divestiture/reclassification or true organic decline
  • Organic revenue growth ex-M&A in the last two quarters
  • Net leverage ratio and covenant headroom post-buybacks
  • Management guidance on margin trajectory and Worldpay-related transaction economics
  • Take-rate trends versus Adyen/Stripe in merchant acquiring
General Sentiment
-62
Headwind
tail √Σ 39 · head √Σ 112 · conf 7/10

The market tape is neutral-to-mildly-positive (VIX 15.2, S&P near highs), and GPN's low beta of 0.78 means the macro backdrop is not the dominant force here. What IS dominant is a stock-specific narrative problem: GPN carries the 'fallen-angel' archetype with moderate intensity and moderate durability, and the tape confirms it - down 23.8% recently versus a -10.7% longer-run CAGR, meaning selling has accelerated. The story the market is pricing is TSYS integration fatigue plus fintech disruption from Stripe, Square, and Adyen eating legacy payment rails. That is a narrative pressing DOWN on the multiple regardless of what the DCF says. Analyst tone and news flow in payments have skewed cautious as the fintech-disruption frame gained traction across the cohort (FIS, FISV/FI, GPN all de-rated). The 10y at 4.79% and a market PE of 25.8 add a mild general headwind, but the specific press on GPN is the narrative, not rates. Cult coefficient is low, so there is no fanbase to defend the tape - no reflexive dip buyers, no story to rally around. That asymmetry (weak narrative defense, active bear frame) is what keeps the pressure one-sided.

Tailwinds 2
m30
Low beta mutes macro chop
Beta 0.78 in a neutral tape (VIX 15.2, mild tailwind score +19) means the general market is a slight net positive and does not amplify pain here. Macro is not the villain.
m25
Sentiment washout can set up mean-reversion
Extreme narrative pessimism versus DCF gap of 53% creates the setup where any positive datapoint (integration milestone, guide-raise, buyback) forces a violent narrative reset. Not present yet, but the coil is real.
Headwinds 4
m68
Fallen-angel narrative with no cult defense
Moderate-intensity, moderate-durability bear story (TSYS overpay, fintech disruption) with low cult coefficient means no reflexive buyer base to absorb selling. The story is actively de-rating the name.
m60
Payments cohort out of favor
Legacy processors (FIS, FI, GPN) have been under a persistent narrative press as Stripe/Adyen/Square capture the growth story. Sector rotation away from legacy fintech infrastructure lands directly on GPN.
m55
Recent 24% drawdown signals active distribution
Down 23.8% recently versus -10.7% long-run CAGR - selling has accelerated, not stabilized. Momentum tape is strong_negative, meaning tape traders and trend-followers are still pressing.
m35
Rates and market PE add general pressure
10y at 4.79% and market PE 25.8 are a mild systemic drag on discounted-cashflow names, marginally reinforcing the de-rating.
The macro tape is not the problem here - beta is low and the regime is neutral-positive. The problem is stock-specific: an active fallen-angel narrative with no cult to defend it, a payments cohort out of favor to fintech disruptors, and a fresh 24% drawdown that shows selling is still in control. Even if the business and the price are attractive (not my call), the non-fundamental pressure is clearly leaning against the stock right now. Net Headwind, moderate conviction - not catastrophic, but one-sided until a catalyst forces the narrative to reset.
Verify before trusting this (5)
  • Next earnings print - any beat-and-raise or TSYS integration completion language could crack the bear narrative
  • Analyst target revisions - watch for the first upgrade or price-target hike after the drawdown; that inflection often marks the sentiment low
  • Buyback pace acceleration - management leaning in aggressively at these prices would be a narrative counter-punch
  • Stripe/Adyen results and commentary - if they show any deceleration, the 'legacy is dying' story weakens
  • Payments cohort tape (FI, FIS) - a group-wide re-rating would lift GPN with it
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
-6
Holding
edge √Σ 93 · risk √Σ 99 · conf 6/10

Electronic payment volumes keep compounding, but the economics are moving up the stack — from authorization and settlement (commoditizing, price-competed) toward embedded software, orchestration and vertical POS. GPN's answer is scale plus own software; the world's answer so far has been to reward the developer-first and vertical-SaaS entrants. Simultaneously the macro is unhelpful: high long rates compress SMB formation and raise the cost of the leverage funding the consolidation, while a slowing services cycle caps volume upside. The realistic shape is a large, cash-generative processor growing volumes with the economy, defending yield, and converting scale into per-share earnings rather than into top-line acceleration.

Growth drivers 4
m65
Worldpay consolidation reshapes the P&L
The +66.0% matched-quarter revenue and the -23.8% multi-year print are two sides of one portfolio swap (Issuer Solutions out, Worldpay in). Mechanically, the next several prints carry a large reported revenue step-up and a scaled pure-play merchant acquiring franchise with e-comm and enterprise reach GPN previously lacked.
m53
Cost-synergy and margin self-help
Industry net margins expanding +7.7pp over 3 years confirms the sector's operating-leverage backdrop, and the integration gives management a large, controllable cost pool. This is the main mechanism by which EPS can grow while organic revenue runs low-single-digit.
m32
Consistent delivery against estimates
Last three sizeable prints beat by +1%, +5%, +1% — the model is calibrated and management is hitting it. Suggests near-term guidance is credible and the reported ramp is already understood by the sell side.
m26
Secular transaction-volume floor
Card/digital acceptance volume still compounds above GDP; a scaled acquirer with embedded merchant relationships and settlement infrastructure captures some of that even while pricing compresses. This is a floor, not an accelerant.
Growth risks 5
m61
Structural share leakage to software-led competitors
Stripe, Adyen, Toast and Shift4 win at the point of software, not the point of processing. GPN's legacy rails are the commoditizing layer; net revenue yield and SMB attrition are the pressure points. Worldpay itself entered with a weak organic growth record — buying scale does not buy growth.
m54
Integration execution — TSYS precedent
The last large deal produced years of messy integration and eroded trust in the growth story. Reported operating income -58% and net income -426.4% show the accounting cost of the current transaction; a repeat of slipped synergies would convert Holding into Stalling.
m42
Category slowdown plus macro headwinds
Sector phase 'slowdown', demand score -1, category median growth only 3.6%, industry CAGR 4.8% — a mature, flat market. With 10y at 4.79% and macro headwinds flagged, SMB formation and discretionary spend volumes are the swing factor GPN cannot control.
m31
Leverage and interest cost against a low-growth base
A large cash acquisition in a 4.79% rate environment means debt service competes with buybacks — the very lever the EPS story depends on. Deleveraging priority can mute per-share growth even if EBITDA holds.
m23
Poor organic visibility
Portfolio reshuffling makes reported YoY figures nearly uninterpretable for at least a year; the -28.3pp 'share loss' gap is largely a divestiture artifact, which cuts both ways — it also hides genuine organic softness.
vs expectations: ~6m inline · 1y inline · 2-3y above
The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
Please log in to view trade setups
The Augustus trade-setup read is a members feature.
Log in
Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Higher +30.3% v0.6.0 View full prediction →

When we made this prediction on Sep 3, 2026, GPN was $92.13. We expect it to be $120.00 by Mar 2027, and we consider it great value under $82.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Sep 3, 2026.

Price when predicted$92.13
Our estimate for Mar 2027$120.00+30.3%
Great value below$82.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

Community AI Feedback
No community reviews yet for GPN. Be the first — hit How to Contribute, have any AI review this page, and paste its take back here.
My Notes personal — only you see this
v1.1.760 · f4b58a28 · 2026-10-07 20:07:48