Why NYSE:FOUR Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Oct 2, 2023

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted SHIFT4 PAYMENTS INC-CLASS A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Assessing Growth 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:

The Earnings Per Share has grown by an impressive 163.41% over the past year.
FOUR shows a strong growth in Revenue. In the last year, 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.

Understanding NYSE:FOUR's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:FOUR was assigned a score of 6 for health:

Looking at the Altman-Z score, with a value of 2.36, FOUR belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
FOUR has a Debt to FCF ratio of 6.84. This is in the better half of the industry: FOUR outperforms 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.
The Current ratio of FOUR (3.24) is better than 87.88% of its industry peers.
A Quick Ratio of 3.23 indicates that FOUR has no problem at all paying its short term obligations.
FOUR has a Quick ratio of 3.23. This is amongst the best in the industry. FOUR outperforms 88.89% of its industry peers.

Profitability Assessment of NYSE:FOUR

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:FOUR scores a 5 out of 10:

With a decent Return On Assets value of 4.33%, FOUR is doing good in the industry, outperforming 78.79% of the companies in the same industry.
FOUR has a Return On Equity of 31.47%. This is amongst the best in the industry. FOUR outperforms 92.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.44%, FOUR is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of FOUR has grown nicely.

How do we evaluate the setup for NYSE:FOUR?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:FOUR scores a 8 out of 10:

Although the technical rating is bad, FOUR does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 54.40, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of FOUR contains the most current fundamental analsysis.

Our latest full technical report of FOUR contains the most current technical analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.