FISERV INC (FI)
US3377381088 - Common Stock
FI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 99 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
With a decent Return On Assets value of 3.84%, FI is doing good in the industry, outperforming 68.69% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.04%, FI is in line with its industry, outperforming 52.53% of the companies in the same industry.
FI has a Return On Invested Capital of 8.04%. This is amongst the best in the industry. FI outperforms 80.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FI is below the industry average of 7.84%.
The last Return On Invested Capital (8.04%) for FI is above the 3 year average (5.06%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 15.22%, FI is in the better half of the industry, outperforming 63.64% 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 71.72% 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.
Looking at the Gross Margin, with a value of 61.06%, FI is in the better half of the industry, outperforming 73.74% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FI is destroying value.
Compared to 1 year ago, FI has less shares outstanding
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 2.26. 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 has a better Altman-Z score (2.26) than 76.77% 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.
FI has a Debt to FCF ratio of 5.64. This is in the better half of the industry: FI outperforms 61.62% of its industry peers.
FI has a Debt/Equity ratio of 0.90. This is a neutral value indicating FI is somewhat dependend on debt financing.
FI has a Debt to Equity ratio (0.90) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.97
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.07 indicates that FI should not have too much problems paying its short term obligations.
The Current ratio of FI (1.07) is comparable to the rest of the industry.
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 (1.07) which is in line with 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.
The Earnings Per Share has been growing by 19.45% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.99% in the past 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.
FI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.91% yearly.
EPS Next Y19.86%
EPS Next 2Y18.06%
EPS Next 3Y17.62%
EPS Next 5Y15.09%
Revenue Next Year6.08%
Revenue Next 2Y7.27%
Revenue Next 3Y7.62%
Revenue Next 5Y7.91%
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 24.24 indicates a rather expensive valuation of FI.
FI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, FI is valued at the same level.
With a Price/Forward Earnings ratio of 19.61, FI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, FI is valued a bit more expensive than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, FI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.24 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
FI's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as FI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.16 | ||
| EV/EBITDA | 15.74 |
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.
A more expensive valuation may be justified as FI's earnings are expected to grow with 17.62% in the coming years.
PEG (NY)1.22
PEG (5Y)1.25
EPS Next 2Y18.06%
EPS Next 3Y17.62%
5. Dividend
5.1 Amount
No dividends for FI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FISERV INC
NYSE:FI (12/20/2024, 8:11:16 PM)
After market: 206.05 0 (0%)206.05
+3.79 (+1.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change-4.76%
Ins Owners0.62%
Ins Owner Change-0.18%
Market Cap117.23B
Analysts83.91
Price Target228.85 (11.07%)
Short Float %1.48%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)15%
PT rev (3m)27.19%
EPS NQ rev (1m)0.02%
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)-0.05%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.24 | ||
| Fwd PE | 19.61 | ||
| P/S | 5.83 | ||
| P/FCF | 26.16 | ||
| P/OCF | 19.52 | ||
| P/B | 4.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.74 |
EPS(TTM)8.5
EY4.13%
EPS(NY)10.51
Fwd EY5.1%
FCF(TTM)7.88
FCFY3.82%
OCF(TTM)10.56
OCFY5.12%
SpS35.37
BVpS48.78
TBVpS-34.63
PEG (NY)1.22
PEG (5Y)1.25
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 | 2.26 |
F-Score7
WACC8.25%
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 2Y7.27%
Revenue Next 3Y7.62%
Revenue Next 5Y7.91%
EBIT growth 1Y24.38%
EBIT growth 3Y47.45%
EBIT growth 5Y26%
EBIT Next Year37.44%
EBIT Next 3Y17.91%
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%