In the world of growth stocks, NYSE:FOUR shines as a value proposition.

Last update: Nov 9, 2023

Discover SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR), an undervalued growth gem identified by our stock screener. NYSE:FOUR is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Understanding NYSE:FOUR's Growth Score

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:FOUR boasts 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.
The Revenue has grown by 34.59% in the past year. This is a very strong growth!
FOUR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.69% yearly.
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.

Valuation Assessment of NYSE:FOUR

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:FOUR, the assigned 5 reflects its valuation:

62.00% of the companies in the same industry are more expensive than FOUR, based on the Enterprise Value to EBITDA ratio.
FOUR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FOUR is cheaper than 62.00% of the companies in the same industry.
FOUR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FOUR's earnings are expected to grow with 46.09% in the coming years.

Evaluating Health: NYSE:FOUR

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 5 for health:

FOUR has a better Altman-Z score (2.19) than 80.00% of its industry peers.
A Current Ratio of 3.24 indicates that FOUR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.24, FOUR belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
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 87.00% of its industry peers.

Evaluating Profitability: NYSE:FOUR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:FOUR has earned a 5 out of 10:

With a decent Return On Assets value of 4.33%, FOUR is doing good in the industry, outperforming 78.00% of the companies in the same industry.
With an excellent Return On Equity value of 31.47%, FOUR belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
FOUR has a better Return On Invested Capital (4.44%) than 77.00% of its industry peers.
In the last couple of years the Operating Margin of FOUR has grown nicely.

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

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

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.