Global Payments (MEX:GPN) Beneish M-Score : -2.66 (As of Jan. 19, 2025)

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What is Global Payments Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Global Payments's Beneish M-Score or its related term are showing as below:

MEX:GPN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15 Med: -2.57 Max: -0.81
Current: -2.66

During the past 13 years, the highest Beneish M-Score of Global Payments was -0.81. The lowest was -3.15. And the median was -2.57.

Global Payments Beneish M-Score Historical Data

The historical data trend for Global Payments's Beneish M-Score 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.

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Global Payments Beneish M-Score Chart

Global Payments Annual Data

Trend

May14

May15

May16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.07

-2.55

-2.61

-2.65

-2.56

Global Payments Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.62	-2.56	-2.66	-2.65	-2.66

Competitive Comparison of Global Payments's Beneish M-Score

For the Specialty Business Services subindustry, Global Payments's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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.

Global Payments's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Global Payments's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Global Payments's Beneish M-Score falls into.

Global Payments Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Global Payments for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1441

0.528 * 0.9632

0.404 * 0.972

0.892 * 1.0549

0.115 * 1.0896

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0224

4.679 * -0.041852

0.327 * 1.0196

-2.52

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN22,660 Mil.
Revenue was 51225.339 + 47060.094 + 40166.041 + 41312.128 = MXN179,764 Mil.
Gross Profit was 32579.708 + 29866.971 + 24857.821 + 25657.051 = MXN112,962 Mil.
Total Current Assets was MXN155,575 Mil.
Total Assets was MXN984,236 Mil.
Property, Plant and Equipment(Net PPE) was MXN45,968 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN33,223 Mil.
Selling, General, & Admin. Expense(SGA) was MXN77,176 Mil.
Total Current Liabilities was MXN167,936 Mil.
Long-Term Debt & Capital Lease Obligation was MXN299,605 Mil.
Net Income was 6204.906 + 6865.642 + 5199.723 + 6132.745 = MXN24,403 Mil.
Non Operating Income was 0 + 0 + 0 + 39.906 = MXN40 Mil.
Cash Flow from Operations was 33986.58 + 13499.754 + 6909.303 + 11159.719 = MXN65,555 Mil.

Total Receivables was MXN18,777 Mil.
Revenue was 43123.807 + 42044.883 + 41321.357 + 43924.176 = MXN170,414 Mil.
Gross Profit was 27176.266 + 25896.152 + 24238.109 + 25833.623 = MXN103,144 Mil.
Total Current Assets was MXN118,106 Mil.
Total Assets was MXN852,213 Mil.
Property, Plant and Equipment(Net PPE) was MXN36,893 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN31,065 Mil.
Selling, General, & Admin. Expense(SGA) was MXN71,557 Mil.
Total Current Liabilities was MXN108,393 Mil.
Long-Term Debt & Capital Lease Obligation was MXN288,646 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(22660.385 / 179763.602)	/	(18776.596 / 170414.223)
	=	0.126057	/	0.110182
	=	1.1441

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(103144.15 / 170414.223)	/	(112961.551 / 179763.602)
	=	0.605256	/	0.628389
	=	0.9632

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (155574.675 + 45968.462) / 984236.284)	/	(1 - (118106.149 + 36893.468) / 852212.655)
	=	0.795229	/	0.818121
	=	0.972

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	179763.602	/	170414.223
	=	1.0549

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(31064.851 / (31064.851 + 36893.468))	/	(33222.749 / (33222.749 + 45968.462))
	=	0.457116	/	0.419526
	=	1.0896

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(77175.594 / 179763.602)	/	(71557.473 / 170414.223)
	=	0.429317	/	0.419903
	=	1.0224

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((299604.592 + 167936.147) / 984236.284)	/	((288645.773 + 108392.797) / 852212.655)
	=	0.475029	/	0.465891
	=	1.0196

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(24403.016 - 39.906	-	65555.356)	/	984236.284
	=	-0.041852

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Global Payments has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.

Global Payments Beneish M-Score Related Terms

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Global Payments Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Global Payments Inc (MEX:GPN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GPN:USA 1GPN:Italy 0IW7:UK GLO:Germany GLO:Germany GPN:Austria

Address

3550 Lenox Road, Atlanta, GA, USA, 30326

Website

https://www.globalpaymentsinc.com

Global Payments is a leading provider of payment processing and software solutions and focuses on serving small and midsize merchants. The company operates in 30 countries and generates about one fourth of its revenue from outside North America, primarily in Europe and Asia. In 2019, Global Payments merged with Total System Services in an all-stock deal that gave Total System Services shareholders 48% of the combined company's shares. The merger added issuer processing operations.