Heartland Payment Systems (Heartland Payment Systems) Net-Net Working Capital : $-25.38 (As of Dec. 2015)

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What is Heartland Payment Systems Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Heartland Payment Systems's Net-Net Working Capital for the quarter that ended in Dec. 2015 was $-25.38.

The industry rank for Heartland Payment Systems's Net-Net Working Capital or its related term are showing as below:

HPY's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Business Services industry.
Industry Median: 6.32
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Heartland Payment Systems Net-Net Working Capital Historical Data

The historical data trend for Heartland Payment Systems's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Heartland Payment Systems Net-Net Working Capital Chart

Heartland Payment Systems Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Net-Net Working Capital

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-5.18

-11.23

-11.05

-24.08

-25.38

Heartland Payment Systems Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
Net-Net Working Capital	Get a 7-Day Free Trial															-24.08	-26.73	-24.84	-24.31	-25.38

Competitive Comparison of Heartland Payment Systems's Net-Net Working Capital

For the Specialty Business Services subindustry, Heartland Payment Systems's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Heartland Payment Systems's Price-to-Net-Net-Working-Capital Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Heartland Payment Systems's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Heartland Payment Systems's Price-to-Net-Net-Working-Capital falls into.

Heartland Payment Systems Net-Net Working Capital Calculation

Heartland Payment Systems's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2015 is calculated as

	Net-Net Working Capital		(A: Dec. 2015 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(56.592	+	0.75 * 267.292	+	0.5 * 12.856	-	1200.857
-	0	-	0)	/	36.9338
=	-25.38

Heartland Payment Systems's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2015 is calculated as

	Net-Net Working Capital		(Q: Dec. 2015 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(56.592	+	0.75 * 267.292	+	0.5 * 12.856	-	1200.857
-	0	-	0)	/	36.9338
=	-25.38

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Heartland Payment Systems (NYSE:HPY) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Heartland Payment Systems Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Heartland Payment Systems's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.

Heartland Payment Systems (Heartland Payment Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Heartland Payment Systems Inc (NYSE:HPY) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.heartlandpaymentsystems.com

Heartland Payment Systems Inc was incorporated in the state of Delaware on June 2000. The Company provides Card Payment Processing services to merchants in the United States which involves providing end-to-end electronic payment processing services to merchants. For this the Company undertakes merchant set-up and training, transaction authorization and electronic draft capture, clearing and settlement, merchant accounting, merchant assistance and support, and risk management. The Company sells and rents point-of-sale devices. The Company's customers fall into two categories: small and mid-sized merchants, or SME merchants and Network Services merchants, which are predominately petroleum industry merchants of all sizes. Further, the Company provides additional services such as Heartland School Solutions, Heartland Ovation Payroll, Campus Solutions, Micropayments, and Heartland Marketing Solutions. As of December 31, 2013, the Company provided card payment processing services to 166,697 active SME merchants located across the United States. In addition to settling card transactions, Network Services processes a wide range of payment transactions for its predominantly petroleum customer base, including providing 2.3 billion transaction authorizations through its front-end card processing systems in 2013. The Card Payment Processing revenue from SME merchants and Network Services merchants is recurring in nature. The Company enters into three year service contracts with its SME merchants and three to five year agreements with Network Services merchants. The Company's merchant base include restaurants, brick and mortar retailers, hotel and lodgings, automotive sales and repair shops, convenience and liquor stores, professional service providers and gas stations. As of December 31, 2013 the Company served 42,069 independent restaurants and had partner agreements with approximatley 250 trade associations. The Company has developed number of payment processing systems to increase the operating efficiencies such as HPS Exchange, VAPS and NWS and Passport. The Company undertakes procedures such as Merchant Monitoring, Investigation and Loss Prevention, Underwriting and Collateral to minimize the transaction fraud. The Company's marketing efforts are focused on industries in which its direct sales model is effective on merchants who are typically on location, interact with customers, value a local sales presence, and consult with trade associations and other civic groups to make purchasing decisions.

Executives

Maureen Breakiron-evans	director	C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Robert H Niehaus	director	4747 GAILLARDIA PARKWAY, OKLAHOMA CITY OK 73142
Baldwin Robert H B Jr	officer: Vice Chairman	C/O HEARTLAND PAYMENT SYSTEMS, INC., 90 NASSAU STREET, PRINCETON NJ 08542
Mitchell L Hollin	director	TWO GREENVILLE CROSSING, 4005 KENNETH PIKE, SUITE 220, GREENVILLE DE 19807
David L Gilbert	officer: President - Hospitality Group	305 HARTMANN DR, LEBANON TN 37087
Charles Kallenbach	officer: Chief Legal Officer, GC & Sec.	1100 CASSATT ROAD, C/O SUNCOM WIRELESS, BERWYN PA 19312
Greenhill Capital Partners, Llc	other: Shareholder w/ Board Represent	300 PARK AVENUE, 23RD FLOOR, NEW YORK NY 10022
Greenhill & Co Inc	other: Shareholder w/Bd. Rep	1271 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Robert F Greenhill	other: Shareholder w/Bd. Rep
Scott L Bok	other: Shareholder w/Bd. Rep
Gcp 2000, Llc	other: Shareholder w/Bd. Rep	300 PARK AVENUE, 23RD FLOOR, NEW YORK NY 10022
Gcp Managing Partner, L.p.	other: Shareholder w/ Board Represent	300 PARK AVENUE, 23RD FLOOR, NEW YORK NY 10022
L.p. Gcp,	other: Shareholder w/Bd. Rep	300 PARK AVENUE, 23RD FLOOR, NEW YORK NY 10022