Global Payments, Inc.
Fisher Asset: What Are Kenneth Fisher’s Investing Ideas?
At the end of Q3, Fisher Asset’s total portfolio was worth around $91 billion. We’ll focus on Fisher Asset’s top holdings, buys, and sells.
Square Stock Rose Due to UBS Coverage Initiation
Lately, Square (SQ) stock is becoming analysts’ favorite. On Tuesday, UBS analyst Eric Wasserstrom initiated coverage on the stock with a “buy” rating.
How PayPal’s Bottom Line Is Trending
PayPal (PYPL) is expected to report its fourth-quarter earnings on January 17.
What’s Mastercard’s Valuation ahead of Third-Quarter Earnings?
At current market prices, Mastercard (MA) trades at a premium valuation to most of its peers with the exception of PayPal Holdings (PYPL).
Where Visa Does Stand among Its Peers?
Analysts gave Visa a target price of $164.47, which is a 16% increase from the current level of $141.74. In 2017, the stock gained ~46%.
Why Wall Street Loves Mastercard Stock
About 93.0% of the 41 analysts covering Mastercard (MA) stock recommended a “strong buy” or a “buy.”
Do Mastercard’s Valuation Multiples Look Attractive?
Based on Wall Street’s earnings forecast for the next 12 months, Mastercard’s price-to-sales ratio stands at 13.37x.
Mastercard Sees Larger Opportunity in B2B Payment Space
Since 2017, Mastercard has been working to accelerate the adoption of digital payments in the travel industry through its various platforms.
Do Visa’s Multiples Look Attractive?
The price-to-earnings (or PE) ratio is considered to be the best multiple to value financial technology companies like Visa (V).
Square Partners Up to Accelerate Its Australia Expansion
Square (SQ) has teamed up with Australian lender Bank of Queensland in a move that could help accelerate its expansion in the country.
Did PayPal’s Growth Continue in the Second Quarter?
Since separating from eBay in the third quarter of 2015, PayPal has kept its revenue growing at a double-digit percentage rate and has only missed the consensus estimate once.
Discover Financial Services: Assessing Analysts’ Ratings
Five analysts suggested a “hold,” one recommended a “strong sell,” and nine recommended a “strong buy” on DFS stock.
A Look at Discover’s Discounted Valuations
Discover Financial Services (DFS) has a price-to-earnings ratio on an NTM (next-12-months) basis of ~8.9x, which highlights its lower valuations.
Discover Financial’s Cashback Checking Program
Discover’s enterprise-value-to-revenue ratio is ~4.0.
A Look at Discover’s Direct Banking Segment
Discover Financial Services’ (DFS) Direct Banking segment generated pretax income of $3.4 billion in 2017.
What Does Discover Financial Have in Mind for 2018?
Discover’s 4Q17 operating margin stood at ~49.6% on a TTM (trailing-12-months) basis.
Intuit’s Desktop Ecosystem Driven by QuickBooks Enterprise
Intuit’s (INTU) desktop ecosystem has continued to see soft growth in the past few quarters.
What’s Driving Intuit’s Small-Business and Self-Employed Unit
Intuit’s (INTU) small-business and self-employed division has seen double-digit revenue growth in the last five quarters.
Behind Visa’s Total Operating Expenses
In fiscal 2017, Visa (V) incurred total operating expenses of $6.2 billion compared to $7.1 billion in fiscal 2016—a fall of 14%.
What Analysts Recommend for Mastercard
37 analysts are covering Mastercard (MA) in March 2018. Two of these analysts suggest a “hold,” while 17 analysts recommend a “strong buy.”
What’s Mastercard’s Valuation?
Mastercard’s (MA) price-to-earnings ratio stood at 29.10x on an NTM (next-12-month) basis.
Mastercard Is Focusing on These Key Areas
Mastercard (MA) is focusing on improving the customer experience to enhance customer loyalty.
What Are Mastercard’s Growth Strategies?
Over the past few years, Mastercard’s (MA) revenues have remained consistent.
A Look at Mastercard’s Valuations
Wall Street analysts have given a one-year price estimate of $191.40 for Mastercard.
Behind Mastercard’s Gross Dollar Volumes
Mastercard (MA) saw a year-over-year rise of 13.0% in its worldwide gross dollar volumes in 4Q17 on a local currency basis.
Mastercard’s Net Revenues Rose Year-over-Year in 4Q17
Mastercard (MA) generated total net revenues of $3.3 billion in 4Q17 compared to $2.7 billion in 4Q16.
How Mastercard and Visa Are Pricing Cryptocurrency Fees
Coinbase accepts crypto purchases using credit or debit cards, and it transfers a 4.0% credit card transaction fee to the buyer.
A Look at the Trend in American Express’s Total Revenues
American Express’s (AXP) total revenues (net of interest expense) were $8.8 billion in 4Q17 compared to $8 billion in 4Q16.
Understanding American Express’s Global Merchant Services Segment
American Express’s (AXP) Global Merchant Services segment saw a rise in non-interest revenues from $1.06 billion in 4Q16 to $1.14 billion in 4Q17.
American Express’s Global Commercial Services: Net Income in 4Q17
American Express’s (AXP) Global Commercial Services segment saw a substantial rise of 52% in net income, from $382 million in 4Q16 to $580 million in 4Q17.
Why Mastercard’s General and Administrative Expenses Rose
In the first three quarters of 2017, Mastercard incurred general and administrative expenses of ~$3.2 billion compared to ~$2.7 billion in the first three quarters of 2016.
Behind Mastercard’s Higher Valuations
Mastercard has a price-to-cash-flow ratio of ~33.9x on an LTM (last-12-months) basis.
Mastercard’s Positive View of QR Technology
Mastercard’s (MA) 3Q17 profit margin stands at 38.7%.
A Look at Mastercard’s Dividends
In 1H16, Mastercard (MA) used net cash of $2.3 billion for its financing purposes. In 1H17, it was $2.5 billion for the same purpose.
Mastercard Witnesses Rise in Net Income
In 1H16, Mastercard (MA) reported net income of $1.9 billion. In 1H17, it was $2.3 billion, reflecting a substantial rise of 16.5%.
How Did Verifone Systems Perform in 4Q16?
Verifone Systems (PAY) reported fiscal 4Q16 total net revenues of $464.2 million, a fall of 9.7% compared to total net revenues of $514.1 million in fiscal 4Q15.
Stifel Downgrades VeriFone Systems to ‘Hold’
VeriFone Systems (PAY) reported total 3Q16 net revenues of $488.1 million, a fall of 4.3% compared to its total net revenues of $509.9 million in 3Q15.
Why Leveraged Loan Funds Saw Outflows after 3 Weeks of Inflows
Collateralized loan obligation (or CLO) deals worth $451 million were priced last week. Year-to-date CLO issuance stands at $7.1 billion.
Leveraged Loan Funds Continue to Witness Inflows
According to data from Lipper, leveraged loan funds saw an inflow for the third consecutive week. The inflows came totaled $126 million last week.
Parsing the Heartland–Global Payments MAE Clause, Part 3
Let’s continue our discussion on the Heartland–Global Payments merger. The MAE clause is one of the first things that arbitrageurs look at in a merger agreement.
Parsing the Heartland–Global Payments MAE Clause, Part 1
In the case of the Heartland–Global Payments merger, the MAE clause lays out the circumstances where Global Payments can back out of its merger with Heartland.
Basics of Global Payments: Merchant Services, Payment Processing
Global Payments generally has two models. Under the sponsorship model, Global Payments routes transactions but doesn’t perform settlement services.
The Heartland–Global Payments Merger and the Basics of Heartland
This is our second in-depth series related to the Heartland–Global Payments merger. Here we’ll discuss the background of the two companies, as well as the MAE clause.
The Heartland–Global Payments Merger’s Path to Approval
Global Payments discusses its competitors, who are large financial institutions. It’s unlikely that this transaction will generate much antitrust scrutiny.
What’s the Rationale for the Heartland–Global Payments Merger?
The two companies anticipate that the merger will deliver $50 million in synergies in fiscal 2017 and $125 million in annual synergies after that.
Heartland–Global Payments Merger: Basics and Conditions Precedent
For the Heartland–Global Payments merger to close, Global Payment has to file a PNR to comply with the Hart-Scott-Rodino Antitrust Improvements Act.
Payment Processing Growth: The Heartland–Global Payments Merger
If you assume a closing date of May 30, 2016, then the Heartland–Global Payments merger spread is trading at an annualized return of about 4%.
How Western Union Benefited from Hedge Gains and Cost Savings
Western Union benefited from hedge gains and cost savings that were offset by rises in technology expense and the negative impact of foreign exchange.
Western Union Generated 80% Revenues from One Segment
In 3Q15, the consumer-to-consumer segment comprised 80% of Western Union’s overall revenues. The segment’s revenues fell by 3% year-over-year.
Why Western Union’s 3Q15 Revenues Fell Below Estimates
On October 29, Western Union released its 3Q15 results with revenues of $1.39 billion, a 3% year-over-year fall compared to $1.44 billion in 3Q14.
How Does Global Payments Compare to Its Peers?
The peers outperformed Global Payments based on the current ratio and PE ratio. Global Payments is way ahead of its peers based on EPS and the PBV ratio.