Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, payroll services specialist Total System Services
With that in mind, let's take a closer look at Total Systems' business and see what CAPS investors are saying about the stock right now.
Total Systems facts
Headquarters (Founded) |
Columbus, Ga. (1982) |
Market Cap |
$2.8 billion |
Industry |
Data processing and outsourced services |
Trailing-12-Month Revenue |
$1.72 billion |
Management |
CEO Philip Tomlinson (since 2003) CFO James Lipham (since 1995) |
Return on Equity (Average, Past 3 Years) |
20.9% |
Cash/Debt |
$388 million / $240.25 million |
Dividend Yield |
2% |
Competitors |
Heartland Payment Systems
Fidelity National Information Services |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 91% of the 177 members who have rated Total Systems believe the stock will outperform the S&P 500 going forward. These bulls include blesto and TMF42.
Two months ago, blesto tapped Total Systems as a "boring behind the scenes business that provides a much needed service to its clients." Our CAPS member adds: "A 2% dividend not bad in today's environment."
In fact, Total Systems processes about 40% of the domestic credit card market, with its two largest customers, Bank of America
CAPS member TMF42 elaborates:
The company benefits from recurring revenue streams, reasonably sticky client relationships, a great reputation and generates impressive returns on capital and free cash flow. Its CUP Data ownership is a hidden asset that plays as a nice kicker to its stable domestic processing business. Growth through acquisitions will help diversify domestic revenue and international presence should continue to expand. With an EV/EBITDA multiple of 5.4, mid-teen returns on capital and $300 MM FCF run rate shares of [Total Systems] are CHEAP.
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