| 2013 | 2014 | 2015 | 2018 | 2019 (projected) | Total System Cost of Revenue | 1,369,438,000 | 1,668,892,000 | 1,855,181,000 | 1,669,662,900 | 1,478,196,895 | Total System Consolidated Income | 256,597,000 | 329,406,000 | 369,041,000 | 332,136,900 | 267,691,933 |
Will Total System recoup in June?
 | By Vlad Skutelnik | Macroaxis Story |
In this article I will sum up Total System. I will go over what exactly are Total System shareholders getting in June. This firm Piotroski F Score is 6 - Healthy. Considering 30-days investment horizon, Total System is expected to generate 3.59 times more return on investment than the market. However, the company is 3.59 times more volatile than its market benchmark. It trades about 0.21 of its potential returns per unit of risk. The market is currently generating roughly 0.04 per unit of risk. Total System Services has current Real Value of $93.4974 per share. The regular price of the company is $113.37. At this time the company appears to be overvalued. Macroaxis measures value of Total System Services from inspecting the company fundamentals such as Operating Margin of 28.13%, Shares Outstanding of 176.94M and Return On Equity of 24.48% as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend to buy undervalued stocks and to dispose of overvalued stocks since at some point securities prices and their ongoing real values will draw towards each other.
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Reviewed by Michael Smolkin
TOTAL SYSTEM SVC has roughly 494.65M in cash with 677.88M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.8. Total System dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.25 per share. The company has Net Profit Margin of 14.63 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is very large. In the same way, it shows Net Operating Margin of 28.13 % which entails that for every 100 dollars of revenue it generated 0.28 of operating income.
How important is Total System's Liquidity
Total System financial leverage refers to using borrowed capital as a funding source to finance Total System Services ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Total System 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 Total System's 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 Total System's 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 Total System's total debt and its cash.
Another Deeper Perspective
The latest price spikes of Total System has created some momentum for investors as it was traded today as low as 107.6 and as high as 117.44 per share. The company management were quite successful positioning the company components to exploit market volatility in June 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.3115. The current volatility is consistent with the ongoing market swings in April 2019 as well as with Total System Services unsystematic, company specific events. Total System preserves 176.94m of shares outstanding. Total System is trading at 113.37 which is 13.80% increase. Today lowest is 107.6. Total System Total Assets is increasing over the last 5 years. The previous year value of Total System Total Assets was 779,493,324. Also, Total System Net Current Assets as percentage of Total Assets is decreasing over the last 5 years.
In closing, we believe that at this point Total System is overvalued with very small probability of financial unrest within the next 2 years. Our primary buy-hold-sell recommendation on the enterprise is Strong Buy.
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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 Vlad Skutelnik do not own shares of Total System Services. Please refer to our Terms of Use for any information regarding our disclosure principles.