FISERV INC (FI)
US3377381088 - Common Stock
We assign a fundamental rating of 5 out of 10 to FI. FI was compared to 100 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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years FI has been profitable.
In the past 5 years FI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FI (3.84%) is better than 72.00% of its industry peers.
FI has a Return On Equity (11.04%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 8.04%, FI belongs to the top of the industry, outperforming 81.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FI is below the industry average of 7.54%.
The 3 year average ROIC (5.06%) for FI is below the current ROIC(8.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 11.04% | ||
| ROIC | 8.04% |
ROA(3y)2.71%
ROA(5y)2.12%
ROE(3y)7.6%
ROE(5y)5.69%
ROIC(3y)5.06%
ROIC(5y)3.88%
1.3 Margins
With a decent Profit Margin value of 15.22%, FI is doing good in the industry, outperforming 64.00% of the companies in the same industry.
FI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 28.20%, FI is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Operating Margin of FI has remained more or less at the same level.
FI's Gross Margin of 61.06% is fine compared to the rest of the industry. FI outperforms 73.00% of its industry peers.
In the last couple of years the Gross Margin of FI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.2% | ||
| PM (TTM) | 15.22% | ||
| GM | 61.06% |
OM growth 3Y35.61%
OM growth 5Y-0.63%
PM growth 3Y35.56%
PM growth 5Y-4.65%
GM growth 3Y8.07%
GM growth 5Y4.81%
2. Health
2.1 Basic Checks
FI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FI has less shares outstanding than it did 1 year ago.
FI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FI has an improved debt to assets ratio.
2.2 Solvency
FI has an Altman-Z score of 2.34. This is not the best score and indicates that FI is in the grey zone with still only limited risk for bankruptcy at the moment.
FI's Altman-Z score of 2.34 is fine compared to the rest of the industry. FI outperforms 78.00% of its industry peers.
FI has a debt to FCF ratio of 5.64. This is a neutral value as FI would need 5.64 years to pay back of all of its debts.
The Debt to FCF ratio of FI (5.64) is better than 63.00% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that FI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.90, FI perfoms like the industry average, outperforming 43.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.98
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.07 indicates that FI should not have too much problems paying its short term obligations.
FI has a Current ratio (1.07) which is in line with its industry peers.
A Quick Ratio of 1.07 indicates that FI should not have too much problems paying its short term obligations.
FI has a Quick ratio of 1.07. This is comparable to the rest of the industry: FI outperforms 53.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.08% over the past year.
FI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.45% yearly.
FI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.99%.
FI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.81% yearly.
EPS 1Y (TTM)17.08%
EPS 3Y19.49%
EPS 5Y19.45%
EPS Q2Q%17.35%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y8.73%
Revenue growth 5Y26.81%
Sales Q2Q%5.83%
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 13.15% yearly.
FI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.
EPS Next Y19.86%
EPS Next 2Y17.98%
EPS Next 3Y17.59%
EPS Next 5Y13.15%
Revenue Next Year6.13%
Revenue Next 2Y7.27%
Revenue Next 3Y7.6%
Revenue Next 5Y7.95%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
A Price/Earnings ratio of 25.58 indicates a quite expensive valuation of FI.
FI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.96. FI is around the same levels.
Based on the Price/Forward Earnings ratio of 20.72, the valuation of FI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, FI is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, FI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 20.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FI.
FI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.6 | ||
| EV/EBITDA | 16.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FI has a very decent profitability rating, which may justify a higher PE ratio.
FI's earnings are expected to grow with 17.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)1.31
EPS Next 2Y17.98%
EPS Next 3Y17.59%
5. Dividend
5.1 Amount
FI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FISERV INC
NYSE:FI (11/21/2024, 8:04:00 PM)
After market: 217.41 0 (0%)217.41
-0.53 (-0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap123.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 20.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.29
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 11.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.2% | ||
| PM (TTM) | 15.22% | ||
| GM | 61.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.08%
EPS 3Y19.49%
EPS 5Y
EPS Q2Q%
EPS Next Y19.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.99%
Revenue growth 3Y8.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y