FISERV INC (FI) Stock Fundamental Analysis
NYSE:FI - New York Stock Exchange, Inc. - US3377381088 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FI. FI was compared to 101 industry peers in the Financial Services industry. While FI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FI was profitable.
In the past year FI had a positive cash flow from operations.
FI had positive earnings in each of the past 5 years.
Each year in the past 5 years FI had a positive operating cash flow.
1.2 Ratios
FI has a Return On Assets of 4.06%. This is in the better half of the industry: FI outperforms 71.29% of its industry peers.
FI's Return On Equity of 11.57% is in line compared to the rest of the industry. FI outperforms 52.48% of its industry peers.
FI has a better Return On Invested Capital (8.91%) than 83.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FI is in line with the industry average of 7.75%.
The 3 year average ROIC (7.07%) for FI is below the current ROIC(8.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.57% | ||
| ROIC | 8.91% |
ROA(3y)3.48%
ROA(5y)2.7%
ROE(3y)10.02%
ROE(5y)7.46%
ROIC(3y)7.07%
ROIC(5y)5.33%
1.3 Margins
FI has a better Profit Margin (15.31%) than 63.37% of its industry peers.
In the last couple of years the Profit Margin of FI has grown nicely.
Looking at the Operating Margin, with a value of 28.80%, FI is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
In the last couple of years the Operating Margin of FI has grown nicely.
Looking at the Gross Margin, with a value of 60.83%, FI is in the better half of the industry, outperforming 74.26% of the companies in the same industry.
FI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.8% | ||
| PM (TTM) | 15.31% | ||
| GM | 60.83% |
OM growth 3Y26.51%
OM growth 5Y12.26%
PM growth 3Y23.02%
PM growth 5Y11.79%
GM growth 3Y6.82%
GM growth 5Y4.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FI is destroying value.
FI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FI has been reduced compared to 5 years ago.
FI has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of FI is 4.91, which is a neutral value as it means it would take FI, 4.91 years of fcf income to pay off all of its debts.
FI has a Debt to FCF ratio of 4.91. This is in the better half of the industry: FI outperforms 64.36% of its industry peers.
FI has a Debt/Equity ratio of 0.88. This is a neutral value indicating FI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, FI is in line with its industry, outperforming 45.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.62
WACC14.27%
2.3 Liquidity
A Current Ratio of 1.06 indicates that FI should not have too much problems paying its short term obligations.
FI's Current ratio of 1.06 is in line compared to the rest of the industry. FI outperforms 51.49% of its industry peers.
FI has a Quick Ratio of 1.06. This is a normal value and indicates that FI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.06, FI perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
FI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.98%, which is quite good.
FI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.28% yearly.
FI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.14%.
Measured over the past years, FI shows a quite strong growth in Revenue. The Revenue has been growing by 14.96% on average per year.
EPS 1Y (TTM)16.98%
EPS 3Y16.49%
EPS 5Y18.28%
EPS Q2Q%14.61%
Revenue 1Y (TTM)7.14%
Revenue growth 3Y8.03%
Revenue growth 5Y14.96%
Sales Q2Q%5.65%
3.2 Future
FI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.18% yearly.
FI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.66% yearly.
EPS Next Y19.53%
EPS Next 2Y18.35%
EPS Next 3Y17.53%
EPS Next 5Y15.18%
Revenue Next Year8.39%
Revenue Next 2Y8.37%
Revenue Next 3Y7.91%
Revenue Next 5Y8.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FI is valuated quite expensively with a Price/Earnings ratio of 26.34.
Compared to the rest of the industry, the Price/Earnings ratio of FI is on the same level as its industry peers.
FI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 22.04 indicates a rather expensive valuation of FI.
FI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FI is more expensive than 60.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, FI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 22.04 |
4.2 Price Multiples
FI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FI is valued a bit cheaper than 61.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.11 | ||
| EV/EBITDA | 17.47 |
4.3 Compensation for Growth
FI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FI may justify a higher PE ratio.
FI's earnings are expected to grow with 17.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)1.44
EPS Next 2Y18.35%
EPS Next 3Y17.53%
5. Dividend
5.1 Amount
No dividends for FI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
232.34
-2.09 (-0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change-83.9%
Ins Owners0.62%
Ins Owner Change0.1%
Market Cap132.18B
Analysts84.89
Price Target235.08 (1.18%)
Short Float %1.13%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.46%
Min EPS beat(2)-1.7%
Max EPS beat(2)-1.22%
EPS beat(4)1
Avg EPS beat(4)-0.56%
Min EPS beat(4)-1.7%
Max EPS beat(4)2.18%
EPS beat(8)1
Avg EPS beat(8)-1.15%
EPS beat(12)2
Avg EPS beat(12)-1.73%
EPS beat(16)4
Avg EPS beat(16)-1.24%
Revenue beat(2)0
Avg Revenue beat(2)-3.69%
Min Revenue beat(2)-4.07%
Max Revenue beat(2)-3.31%
Revenue beat(4)0
Avg Revenue beat(4)-3.59%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)-3.31%
Revenue beat(8)1
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)-0.21%
Revenue beat(16)9
Avg Revenue beat(16)0.6%
PT rev (1m)0.7%
PT rev (3m)18.13%
EPS NQ rev (1m)-3.02%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)-1.42%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 22.04 | ||
| P/S | 6.46 | ||
| P/FCF | 26.11 | ||
| P/OCF | 19.93 | ||
| P/B | 4.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.47 |
EPS(TTM)8.82
EY3.8%
EPS(NY)10.54
Fwd EY4.54%
FCF(TTM)8.9
FCFY3.83%
OCF(TTM)11.66
OCFY5.02%
SpS35.96
BVpS47.58
TBVpS-34.2
PEG (NY)1.35
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.57% | ||
| ROCE | 10.71% | ||
| ROIC | 8.91% | ||
| ROICexc | 9.11% | ||
| ROICexgc | 67.53% | ||
| OM | 28.8% | ||
| PM (TTM) | 15.31% | ||
| GM | 60.83% | ||
| FCFM | 24.75% |
ROA(3y)3.48%
ROA(5y)2.7%
ROE(3y)10.02%
ROE(5y)7.46%
ROIC(3y)7.07%
ROIC(5y)5.33%
ROICexc(3y)7.22%
ROICexc(5y)5.43%
ROICexgc(3y)52.66%
ROICexgc(5y)40.98%
ROCE(3y)8.53%
ROCE(5y)6.42%
ROICexcg growth 3Y34.49%
ROICexcg growth 5Y29.52%
ROICexc growth 3Y39.63%
ROICexc growth 5Y32.38%
OM growth 3Y26.51%
OM growth 5Y12.26%
PM growth 3Y23.02%
PM growth 5Y11.79%
GM growth 3Y6.82%
GM growth 5Y4.7%
F-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 4.91 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 50.69% | ||
| Cap/Sales | 7.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.79% | ||
| Profit Quality | 161.67% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | N/A |
F-Score8
WACC14.27%
ROIC/WACC0.62
Cap/Depr(3y)47.28%
Cap/Depr(5y)41.23%
Cap/Sales(3y)7.76%
Cap/Sales(5y)7.3%
Profit Quality(3y)136.25%
Profit Quality(5y)192.63%
High Growth Momentum
Growth
EPS 1Y (TTM)16.98%
EPS 3Y16.49%
EPS 5Y18.28%
EPS Q2Q%14.61%
EPS Next Y19.53%
EPS Next 2Y18.35%
EPS Next 3Y17.53%
EPS Next 5Y15.18%
Revenue 1Y (TTM)7.14%
Revenue growth 3Y8.03%
Revenue growth 5Y14.96%
Sales Q2Q%5.65%
Revenue Next Year8.39%
Revenue Next 2Y8.37%
Revenue Next 3Y7.91%
Revenue Next 5Y8.66%
EBIT growth 1Y21.54%
EBIT growth 3Y36.67%
EBIT growth 5Y29.06%
EBIT Next Year34.54%
EBIT Next 3Y15.83%
EBIT Next 5Y13.99%
FCF growth 1Y34.13%
FCF growth 3Y20.77%
FCF growth 5Y19.54%
OCF growth 1Y28.46%
OCF growth 3Y18.02%
OCF growth 5Y18.86%