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. 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
In the past year FI was profitable.
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's Return On Assets of 4.06% is fine compared to the rest of the industry. FI outperforms 71.29% of its industry peers.
Looking at the Return On Equity, with a value of 11.57%, FI is in line with its industry, outperforming 52.48% of the companies in the same industry.
FI has a Return On Invested Capital of 8.91%. This is amongst the best in the industry. FI outperforms 80.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FI is below the industry average of 11.97%.
The last Return On Invested Capital (8.91%) for FI is above the 3 year average (7.07%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 15.31%, FI is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
FI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.80%, FI is in the better half of the industry, outperforming 70.30% of the companies in the same industry.
FI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.83%, FI is in the better half of the industry, outperforming 76.24% 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 | 28.8% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
An Altman-Z score of 2.36 indicates that FI is not a great score, but indicates only limited risk for bankruptcy at the moment.
FI has a Altman-Z score of 2.36. This is amongst the best in the industry. FI outperforms 80.20% of its industry peers.
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 better Debt to FCF ratio (4.91) than 65.35% 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.
With a Debt to Equity ratio value of 0.88, FI perfoms like the industry average, outperforming 47.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.64
WACC13.9%
2.3 Liquidity
FI has a Current 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.
FI's Current ratio of 1.06 is in line compared to the rest of the industry. FI outperforms 53.47% of its industry peers.
A Quick Ratio of 1.06 indicates that FI should not have too much problems paying its short term obligations.
FI has a Quick ratio (1.06) which is comparable to the rest of the 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.
Measured over the past years, FI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.28% on average per year.
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
The Earnings Per Share is expected to grow by 16.54% on average over the next years. This is quite good.
Based on estimates for the next years, FI will show a small growth in Revenue. The Revenue will grow by 7.88% on average per year.
EPS Next Y19.41%
EPS Next 2Y18.15%
EPS Next 3Y17.26%
EPS Next 5Y16.54%
Revenue Next Year8.57%
Revenue Next 2Y8.72%
Revenue Next 3Y8.74%
Revenue Next 5Y7.88%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
FI is valuated rather expensively with a Price/Earnings ratio of 23.66.
Compared to the rest of the industry, the Price/Earnings ratio of FI indicates a slightly more expensive valuation: FI is more expensive than 64.36% of the companies listed in the same industry.
FI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 19.81, the valuation of FI can be described as rather expensive.
60.40% of the companies in the same industry are cheaper than FI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, FI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FI is on the same level as its industry peers.
FI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.02 | ||
| EV/EBITDA | 15.6 |
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 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 17.26% in the coming years.
PEG (NY)1.22
PEG (5Y)1.29
EPS Next 2Y18.15%
EPS Next 3Y17.26%
5. Dividend
5.1 Amount
No dividends for FI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
208.66
-1.45 (-0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.74%
Inst Owner Change0.73%
Ins Owners0.13%
Ins Owner Change0.15%
Market Cap116.55B
Analysts84.44
Price Target254.79 (22.11%)
Short Float %1.51%
Short Ratio2.73
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)-0.12%
PT rev (3m)9.14%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-3.3%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 19.81 | ||
| P/S | 5.7 | ||
| P/FCF | 23.02 | ||
| P/OCF | 17.58 | ||
| P/B | 4.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.6 |
EPS(TTM)8.82
EY4.23%
EPS(NY)10.53
Fwd EY5.05%
FCF(TTM)9.06
FCFY4.34%
OCF(TTM)11.87
OCFY5.69%
SpS36.62
BVpS48.46
TBVpS-34.83
PEG (NY)1.22
PEG (5Y)1.29
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 | 5.11 | ||
| Cash Conversion | 73.79% | ||
| Profit Quality | 161.67% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.36 |
F-Score8
WACC13.9%
ROIC/WACC0.64
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 Y19.41%
EPS Next 2Y18.15%
EPS Next 3Y17.26%
EPS Next 5Y16.54%
Revenue 1Y (TTM)7.14%
Revenue growth 3Y8.03%
Revenue growth 5Y14.96%
Sales Q2Q%5.65%
Revenue Next Year8.57%
Revenue Next 2Y8.72%
Revenue Next 3Y8.74%
Revenue Next 5Y7.88%
EBIT growth 1Y21.54%
EBIT growth 3Y36.67%
EBIT growth 5Y29.06%
EBIT Next Year36.65%
EBIT Next 3Y18.26%
EBIT Next 5Y13.46%
FCF growth 1Y34.13%
FCF growth 3Y20.77%
FCF growth 5Y19.54%
OCF growth 1Y28.46%
OCF growth 3Y18.02%
OCF growth 5Y18.86%