By analyzing existing basic indicators between Global Payments and ABM Industries, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ABM Industries with a short position in Global Payments. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Global Payments has an asset utilization ratio of 71.17 percent. This suggests that the company is making $0.71 for each dollar of assets. An increasing asset utilization means that Global Payments is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Global or Copart is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Global Payments dividends
A dividend is the distribution of a portion of Global Payments earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Global Payments dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Global one year expected dividend income is about USD0.67 per share.
At this time, Global Payments'
Dividends Paid is very stable compared to the past year. As of the 25th of April 2024,
Dividend Yield is likely to grow to 0.01, while
Dividend Payout Ratio is likely to drop 0.16.
Investing in dividend-paying stocks, such as Global Payments is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Global Payments must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Global Payments. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Global Payments's Liquidity
Global Payments
financial leverage refers to using borrowed capital as a funding source to finance Global Payments ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Global Payments financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Global Payments' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Global Payments' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Global Payments's total debt and its cash.
Correlation Between Global and Copart Inc
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Global Payments together with similar or unrelated positions with a negative correlation. For example, you can also add Copart to your portfolio. If Copart is not perfectly correlated to Global Payments it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Global Payments, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Global Payments and Copart in your portfolio? Please note if you are using this as a pair-trade strategy between Global Payments and Copart, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between GPN and CPRT for more information.
Going after Global Financials
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Global Payments revenue. Based on the latest financial disclosure, Global Payments reported 7.48
B of revenue. This is 113.8% higher than that of the Industrials sector and significantly higher than that of the
Specialty Business Services industry. The revenue for all United States stocks is 20.72% higher than that of the entity. As for ABM Industries we see revenue of 5.99
B, which is much higher than that of the Specialty Business Services
| Global | 7.48 Billion |
| Sector | 0.0 |
| ABM Industries | 5.99 Billion |
Possible March correction of Global?
Value At Risk just dropped to -2.56, may entail upcoming price depreciation. Global Payments has relatively low volatility with skewness of 1.64 and kurtosis of 7.69. However, we advise all investors to independently investigate Global Payments to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
Our Conclusion on Global Payments
Whereas some firms within the specialty business services industry are still a little expensive, even after the recent corrections, Global Payments may offer a potential longer-term growth to institutional investors. The bottom line, as of the 7th of February 2021, our analysis shows that Global Payments actively responds to the market. The company is
undervalued and projects
below average chance of financial distress for the next 2 years. Our latest 30 days buy vs. sell advice on the company is
Strong Buy.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Global Payments. Please refer to our
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