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Here's How Much a $1000 Investment in Global Payments Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Global Payments (GPN - Free Report) ten years ago? It may not have been easy to hold on to GPN for all that time, but if you did, how much would your investment be worth today?
Global Payments' Business In-Depth
With that in mind, let's take a look at Global Payments' main business drivers.
Global Payments is headquartered in Atlanta, GA. The company was incorporated in Georgia as Global Payments Inc. in 2000 and spun-off from its former parent company in 2001. Including its time as part of its former parent company, it has been in the payment technology services business since 1967. Since its spin-off, the company has expanded in existing markets and into new markets internationally by pursuing further acquisitions and joint ventures.
The company operates via three reportable segments: Merchant Solutions (68.8% of 2022 adjusted segmental revenues); Issuer Solutions (23.7%); and Consumer Solutions (7.5%).
Merchant Solutions offers payments technology and software solutions to customers globally. The payment technology solutions enable its customers to accept card, check and digital-based payments. Its software solutions streamline business operations for customers in numerous vertical markets. Via this business, the company provides a variety of value-added services including specialty point-of-sale solutions, analytic and customer engagement tools, payroll and human capital management services and reporting that assists its customers with driving demand and operating their businesses more efficiently.
Issuer Solutions provides services that empower financial institutions and other financial service providers to manage their card portfolios, minimize technical complexity and overhead and extend a seamless experience for cardholders on a single platform.
Consumer Solutions provides general-purpose reloadable prepaid debit and payroll cards, demand deposit accounts and other financial service solutions to the underbanked and other consumers along with businesses in the United States through its Netspend and other brands. It has closed the divestiture of Netspend’s consumer assets in late April.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Global Payments ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in July 2013 would be worth $4,506.24, or a gain of 350.62%, as of July 12, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 165.03% and the price of gold increased 44.57% over the same time frame in comparison.
Analysts are forecasting more upside for GPN too.
The growing demand for digital payment methods is expected to support Global Payments' transaction volume growth. The acquisition of Mineral Tree is expected to give it a wide footprint in the cloud-based business-to-business payment market. Solid contributions from GPN's merchant business are aiding its bottom line. Even though its shares have underperformed the industry in a year, things are likely to improve in the future. A favorable 2023 outlook buoys investors’ confidence. Adjusted EPS is forecasted within $10.32-$10.44, suggesting year-over-year growth. Its solid operating cash flow enable business investments. However, despite implementing cost control measures, its operating costs are on the rise, which can strain margins. Also, its ROE is much lower than the industry average. As such, the stock warrants a cautious stance.
The stock is up 7.67% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Global Payments Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Global Payments (GPN - Free Report) ten years ago? It may not have been easy to hold on to GPN for all that time, but if you did, how much would your investment be worth today?
Global Payments' Business In-Depth
With that in mind, let's take a look at Global Payments' main business drivers.
Global Payments is headquartered in Atlanta, GA. The company was incorporated in Georgia as Global Payments Inc. in 2000 and spun-off from its former parent company in 2001. Including its time as part of its former parent company, it has been in the payment technology services business since 1967. Since its spin-off, the company has expanded in existing markets and into new markets internationally by pursuing further acquisitions and joint ventures.
The company operates via three reportable segments: Merchant Solutions (68.8% of 2022 adjusted segmental revenues); Issuer Solutions (23.7%); and Consumer Solutions (7.5%).
Merchant Solutions offers payments technology and software solutions to customers globally. The payment technology solutions enable its customers to accept card, check and digital-based payments. Its software solutions streamline business operations for customers in numerous vertical markets. Via this business, the company provides a variety of value-added services including specialty point-of-sale solutions, analytic and customer engagement tools, payroll and human capital management services and reporting that assists its customers with driving demand and operating their businesses more efficiently.
Issuer Solutions provides services that empower financial institutions and other financial service providers to manage their card portfolios, minimize technical complexity and overhead and extend a seamless experience for cardholders on a single platform.
Consumer Solutions provides general-purpose reloadable prepaid debit and payroll cards, demand deposit accounts and other financial service solutions to the underbanked and other consumers along with businesses in the United States through its Netspend and other brands. It has closed the divestiture of Netspend’s consumer assets in late April.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Global Payments ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in July 2013 would be worth $4,506.24, or a gain of 350.62%, as of July 12, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 165.03% and the price of gold increased 44.57% over the same time frame in comparison.
Analysts are forecasting more upside for GPN too.
The growing demand for digital payment methods is expected to support Global Payments' transaction volume growth. The acquisition of Mineral Tree is expected to give it a wide footprint in the cloud-based business-to-business payment market. Solid contributions from GPN's merchant business are aiding its bottom line. Even though its shares have underperformed the industry in a year, things are likely to improve in the future. A favorable 2023 outlook buoys investors’ confidence. Adjusted EPS is forecasted within $10.32-$10.44, suggesting year-over-year growth. Its solid operating cash flow enable business investments. However, despite implementing cost control measures, its operating costs are on the rise, which can strain margins. Also, its ROE is much lower than the industry average. As such, the stock warrants a cautious stance.
The stock is up 7.67% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.