FISERV INC (FI) Stock Fundamental Analysis
NYSE:FI - New York Stock Exchange, Inc. - US3377381088 - Common Stock
Overall FI gets a fundamental rating of 5 out of 10. We evaluated FI against 101 industry peers in the Financial Services industry. FI scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, FI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
FI had positive earnings in the past year.
FI had a positive operating cash flow in the past year.
Each year in the past 5 years FI has been profitable.
Each year in the past 5 years FI had a positive operating cash flow.
1.2 Ratios
FI has a Return On Assets of 3.84%. This is in the better half of the industry: FI outperforms 69.31% of its industry peers.
The Return On Equity of FI (11.04%) is comparable to the rest of the industry.
The Return On Invested Capital of FI (8.04%) is better than 81.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FI is below the industry average of 7.84%.
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
FI has a better Profit Margin (15.22%) than 64.36% of its industry peers.
FI's Profit Margin has declined in the last couple of years.
FI's Operating Margin of 28.20% is fine compared to the rest of the industry. FI outperforms 72.28% of its industry peers.
FI's Operating Margin has been stable in the last couple of years.
FI's Gross Margin of 61.06% is fine compared to the rest of the industry. FI outperforms 74.26% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FI is destroying value.
The number of shares outstanding for FI has been reduced compared to 1 year ago.
Compared to 5 years ago, FI has more shares outstanding
The debt/assets ratio for FI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.28 indicates that FI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FI (2.28) is better than 77.23% of its industry peers.
The Debt to FCF ratio of FI is 5.64, which is a neutral value as it means it would take FI, 5.64 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.64, FI is doing good in the industry, outperforming 62.38% of the companies in the same industry.
FI has a Debt/Equity ratio of 0.90. This is a neutral value indicating FI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, FI is in line with its industry, outperforming 42.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.97
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.07 indicates that FI should not have too much problems paying its short term obligations.
FI's Current ratio of 1.07 is in line compared to the rest of the industry. FI outperforms 52.48% of its industry peers.
FI has a Quick Ratio of 1.07. This is a normal value and indicates that FI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, FI is in line with its industry, outperforming 54.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
FI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.08%, which is quite good.
Measured over the past years, FI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.45% on average per year.
Looking at the last year, FI shows a small growth in Revenue. The Revenue has grown by 6.99% in the last year.
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 15.09% yearly.
Based on estimates for the next years, FI will show a small growth in Revenue. The Revenue will grow by 7.91% on average per year.
EPS Next Y19.86%
EPS Next 2Y18.06%
EPS Next 3Y17.62%
EPS Next 5Y15.09%
Revenue Next Year6.08%
Revenue Next 2Y7.26%
Revenue Next 3Y7.61%
Revenue Next 5Y7.91%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FI is valuated rather expensively with a Price/Earnings ratio of 24.59.
FI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of FI to the average of the S&P500 Index (28.29), we can say FI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.89, 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 63.37% of the companies are valued more cheaply.
FI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.59 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FI is valued a bit cheaper than 60.40% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.53 | ||
| EV/EBITDA | 15.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FI may justify a higher PE ratio.
A more expensive valuation may be justified as FI's earnings are expected to grow with 17.62% in the coming years.
PEG (NY)1.24
PEG (5Y)1.26
EPS Next 2Y18.06%
EPS Next 3Y17.62%
5. Dividend
5.1 Amount
FI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FISERV INC
NYSE:FI (1/21/2025, 8:04:00 PM)
After market: 208.98 0 (0%)208.98
+0.4 (+0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change-9.45%
Ins Owners0.62%
Ins Owner Change-0.18%
Market Cap118.89B
Analysts84.78
Price Target233.45 (11.71%)
Short Float %1.26%
Short Ratio2.61
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)-1.36%
Min EPS beat(2)-1.51%
Max EPS beat(2)-1.22%
EPS beat(4)1
Avg EPS beat(4)-0.44%
Min EPS beat(4)-1.51%
Max EPS beat(4)2.18%
EPS beat(8)1
Avg EPS beat(8)-1.26%
EPS beat(12)2
Avg EPS beat(12)-1.76%
EPS beat(16)4
Avg EPS beat(16)-1.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.37%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-3.31%
Revenue beat(4)0
Avg Revenue beat(4)-3.55%
Min Revenue beat(4)-3.91%
Max Revenue beat(4)-3.31%
Revenue beat(8)2
Avg Revenue beat(8)-1.46%
Revenue beat(12)6
Avg Revenue beat(12)0.34%
Revenue beat(16)9
Avg Revenue beat(16)0.85%
PT rev (1m)2.01%
PT rev (3m)28.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.59 | ||
| Fwd PE | 19.89 | ||
| P/S | 5.91 | ||
| P/FCF | 26.53 | ||
| P/OCF | 19.8 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.9 |
EPS(TTM)8.5
EY4.07%
EPS(NY)10.51
Fwd EY5.03%
FCF(TTM)7.88
FCFY3.77%
OCF(TTM)10.56
OCFY5.05%
SpS35.37
BVpS48.78
TBVpS-34.63
PEG (NY)1.24
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 11.04% | ||
| ROCE | 10.09% | ||
| ROIC | 8.04% | ||
| ROICexc | 8.56% | ||
| ROICexgc | 74.38% | ||
| OM | 28.2% | ||
| PM (TTM) | 15.22% | ||
| GM | 61.06% | ||
| FCFM | 22.27% |
ROA(3y)2.71%
ROA(5y)2.12%
ROE(3y)7.6%
ROE(5y)5.69%
ROIC(3y)5.06%
ROIC(5y)3.88%
ROICexc(3y)5.15%
ROICexc(5y)3.95%
ROICexgc(3y)38.32%
ROICexgc(5y)30.32%
ROCE(3y)6.29%
ROCE(5y)4.82%
ROICexcg growth 3Y36.96%
ROICexcg growth 5Y-17.33%
ROICexc growth 3Y48.86%
ROICexc growth 5Y-13.08%
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%
F-Score7
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.64 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 49.1% | ||
| Cap/Sales | 7.57% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 68.41% | ||
| Profit Quality | 146.29% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.28 |
F-Score7
WACC8.29%
ROIC/WACC0.97
Cap/Depr(3y)42.48%
Cap/Depr(5y)39.83%
Cap/Sales(3y)7.59%
Cap/Sales(5y)7.18%
Profit Quality(3y)154.18%
Profit Quality(5y)206.74%
High Growth Momentum
Growth
EPS 1Y (TTM)17.08%
EPS 3Y19.49%
EPS 5Y19.45%
EPS Q2Q%17.35%
EPS Next Y19.86%
EPS Next 2Y18.06%
EPS Next 3Y17.62%
EPS Next 5Y15.09%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y8.73%
Revenue growth 5Y26.81%
Sales Q2Q%5.83%
Revenue Next Year6.08%
Revenue Next 2Y7.26%
Revenue Next 3Y7.61%
Revenue Next 5Y7.91%
EBIT growth 1Y24.38%
EBIT growth 3Y47.45%
EBIT growth 5Y26%
EBIT Next Year37.29%
EBIT Next 3Y17.94%
EBIT Next 5Y13.27%
FCF growth 1Y58.12%
FCF growth 3Y5.14%
FCF growth 5Y26.07%
OCF growth 1Y38.75%
OCF growth 3Y7.57%
OCF growth 5Y27.29%