GPN - Embedded Expectations Analysis - 2020 02 06
ï€ Global Payments Inc. (GPN:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 34.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their growth, opportunities in Canada, and global UCP rolloutï€ Specifically, management is confident that their TSYS integrated business had strong double-digit growth and that their legacy Global Payments business had 13% net revenue plus network fee growth. In addition, they are confident that their combined company has the same presence and number of opportunities in Canada as in Europe. Moreover, they are confident that the next phase of their global UCP rollout will support the momentum for their pan-European omnichannel offering, and they are confident that they have increased their expected total expense savings to more than $325mn on an annual run rate basis
Global Payments is a pure play payment technology company providing payments and software solutions to merchants and financial institutions. The company has three segments: Merchant Solutions, which includes authorization services, chargeback resolution, and payment security services; Issuer Solutions, which provides solutions that enable financial institutions and other financial service providers to manage their card portfolios and reduces technical difficulty and overhead on a single platform; and Business and Consumer Solutions, which provides general purpose reloadable prepaid debit and payroll cards, demand deposit accounts and other financial service solutions through its Netspend? brand.
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