NYSE:FOUR, a strong growth stock, setting up for a breakout.

Last update: Sep 28, 2023

In this article we will dive into SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR) as a possible candidate for growth investing. Investors should always do their own research, but we noticed SHIFT4 PAYMENTS INC-CLASS A showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Examination for NYSE:FOUR

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:FOUR has received a 8 out of 10:

FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 163.41%, which is quite impressive.
Looking at the last year, FOUR shows a very strong growth in Revenue. The Revenue has grown by 34.59%.
The Revenue has been growing by 39.69% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 31.86% on average over the next years. This is a very strong growth
Based on estimates for the next years, FOUR will show a very strong growth in Revenue. The Revenue will grow by 28.47% on average per year.

Evaluating Health: NYSE:FOUR

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:FOUR has earned a 6 out of 10:

FOUR has a better Altman-Z score (1.97) than 77.78% of its industry peers.
The Debt to FCF ratio of FOUR (6.84) is better than 61.62% of its industry peers.
FOUR has a Current Ratio of 3.24. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.24, FOUR belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
FOUR has a Quick Ratio of 3.23. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.23, FOUR belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.

Understanding NYSE:FOUR's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:FOUR was assigned a score of 5 for profitability:

FOUR has a Return On Assets of 4.33%. This is in the better half of the industry: FOUR outperforms 78.79% of its industry peers.
Looking at the Return On Equity, with a value of 31.47%, FOUR belongs to the top of the industry, outperforming 92.93% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.44%, FOUR is doing good in the industry, outperforming 77.78% of the companies in the same industry.
FOUR's Operating Margin has improved in the last couple of years.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:FOUR this score is currently 8:

FOUR has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 54.40, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of FOUR

Check the latest full technical report of FOUR for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.