FIDELITY NATIONAL INFO SERV (FIS) Stock Fundamental Analysis
NYSE:FIS - New York Stock Exchange, Inc. - US31620M1062 - Common Stock - Currency: USD
FIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. There are concerns on the financial health of FIS while its profitability can be described as average. FIS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FIS had positive earnings in the past year.
FIS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FIS reported negative net income in multiple years.
In the past 5 years FIS always reported a positive cash flow from operatings.
1.2 Ratios
FIS's Return On Assets of 2.45% is fine compared to the rest of the industry. FIS outperforms 62.00% of its industry peers.
With a Return On Equity value of 5.33%, FIS is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
FIS's Return On Invested Capital of 4.77% is fine compared to the rest of the industry. FIS outperforms 62.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FIS is significantly below the industry average of 11.84%.
The last Return On Invested Capital (4.77%) for FIS is above the 3 year average (3.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.33% | ||
| ROIC | 4.77% |
ROA(3y)-11.43%
ROA(5y)-6.72%
ROE(3y)-29.08%
ROE(5y)-17.21%
ROIC(3y)3.09%
ROIC(5y)2.24%
1.3 Margins
Looking at the Profit Margin, with a value of 7.88%, FIS is in line with its industry, outperforming 45.00% of the companies in the same industry.
In the last couple of years the Profit Margin of FIS has grown nicely.
FIS has a better Operating Margin (17.02%) than 61.00% of its industry peers.
FIS's Operating Margin has improved in the last couple of years.
FIS has a Gross Margin (36.97%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.02% | ||
| PM (TTM) | 7.88% | ||
| GM | 36.97% |
OM growth 3Y9.59%
OM growth 5Y11.22%
PM growth 3Y47.46%
PM growth 5Y37.78%
GM growth 3Y1.56%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
FIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FIS has been reduced compared to 1 year ago.
FIS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FIS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that FIS is in the distress zone and has some risk of bankruptcy.
FIS has a Altman-Z score (0.87) which is in line with its industry peers.
FIS has a debt to FCF ratio of 5.96. This is a neutral value as FIS would need 5.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.96, FIS is in the better half of the industry, outperforming 63.00% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that FIS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, FIS perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.64
WACC7.48%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FIS may have some problems paying its short term obligations.
The Current ratio of FIS (0.63) is worse than 60.00% of its industry peers.
A Quick Ratio of 0.63 indicates that FIS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, FIS is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.48% over the past year.
Measured over the past years, FIS shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.91% on average per year.
The Revenue has been growing slightly by 2.97% in the past year.
Measured over the past years, FIS shows a decrease in Revenue. The Revenue has been decreasing by -0.40% on average per year.
EPS 1Y (TTM)2.48%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%10%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%2.63%
3.2 Future
Based on estimates for the next years, FIS will show a small growth in Earnings Per Share. The EPS will grow by 7.82% on average per year.
Based on estimates for the next years, FIS will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y10.34%
EPS Next 2Y9.54%
EPS Next 3Y9.39%
EPS Next 5Y7.82%
Revenue Next Year3.13%
Revenue Next 2Y3.81%
Revenue Next 3Y4.03%
Revenue Next 5Y6.07%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.96, FIS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of FIS is on the same level as its industry peers.
FIS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.73, FIS is valued correctly.
FIS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.44. FIS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 12.73 |
4.2 Price Multiples
FIS's Enterprise Value to EBITDA ratio is in line with the industry average.
FIS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FIS is cheaper than 63.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.91 | ||
| EV/EBITDA | 14.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FIS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)N/A
EPS Next 2Y9.54%
EPS Next 3Y9.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, FIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.86, FIS pays a bit more dividend than its industry peers.
FIS's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of FIS decreases each year by -1.76%.
FIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FIS pays out 101.00% of its income as dividend. This is not a sustainable payout ratio.
DP101%
EPS Next 2Y9.54%
EPS Next 3Y9.39%
80.33
-0.41 (-0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.44%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change4.24%
Market Cap42.21B
Analysts76.36
Price Target89.97 (12%)
Short Float %2.76%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend1.44
Dividend Growth(5Y)-1.76%
DP101%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.09%
Min EPS beat(2)0.02%
Max EPS beat(2)2.16%
EPS beat(4)4
Avg EPS beat(4)4.65%
Min EPS beat(4)0.02%
Max EPS beat(4)9.27%
EPS beat(8)7
Avg EPS beat(8)5.11%
EPS beat(12)8
Avg EPS beat(12)3.75%
EPS beat(16)12
Avg EPS beat(16)3.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-4.62%
Revenue beat(12)2
Avg Revenue beat(12)-13.85%
Revenue beat(16)4
Avg Revenue beat(16)-18.04%
PT rev (1m)-0.23%
PT rev (3m)6.03%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 12.73 | ||
| P/S | 4.14 | ||
| P/FCF | 20.91 | ||
| P/OCF | 14.73 | ||
| P/B | 2.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.67 |
EPS(TTM)5.37
EY6.68%
EPS(NY)6.31
Fwd EY7.86%
FCF(TTM)3.84
FCFY4.78%
OCF(TTM)5.45
OCFY6.79%
SpS19.4
BVpS28.67
TBVpS-11.49
PEG (NY)1.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.33% | ||
| ROCE | 6.7% | ||
| ROIC | 4.77% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 28.57% | ||
| OM | 17.02% | ||
| PM (TTM) | 7.88% | ||
| GM | 36.97% | ||
| FCFM | 19.8% |
ROA(3y)-11.43%
ROA(5y)-6.72%
ROE(3y)-29.08%
ROE(5y)-17.21%
ROIC(3y)3.09%
ROIC(5y)2.24%
ROICexc(3y)3.21%
ROICexc(5y)2.33%
ROICexgc(3y)27.77%
ROICexgc(5y)N/A
ROCE(3y)4.44%
ROCE(5y)3.22%
ROICexcg growth 3Y-19.6%
ROICexcg growth 5Y-23.17%
ROICexc growth 3Y54.67%
ROICexc growth 5Y34.72%
OM growth 3Y9.59%
OM growth 5Y11.22%
PM growth 3Y47.46%
PM growth 5Y37.78%
GM growth 3Y1.56%
GM growth 5Y0.84%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.96 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 48.05% | ||
| Cap/Sales | 8.32% | ||
| Interest Coverage | 5.71 | ||
| Cash Conversion | 81.89% | ||
| Profit Quality | 251.31% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.87 |
F-Score7
WACC7.48%
ROIC/WACC0.64
Cap/Depr(3y)48.27%
Cap/Depr(5y)41.27%
Cap/Sales(3y)8.75%
Cap/Sales(5y)9.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.48%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%10%
EPS Next Y10.34%
EPS Next 2Y9.54%
EPS Next 3Y9.39%
EPS Next 5Y7.82%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%2.63%
Revenue Next Year3.13%
Revenue Next 2Y3.81%
Revenue Next 3Y4.03%
Revenue Next 5Y6.07%
EBIT growth 1Y6.51%
EBIT growth 3Y12.59%
EBIT growth 5Y10.77%
EBIT Next Year42.97%
EBIT Next 3Y16.93%
EBIT Next 5Y13.83%
FCF growth 1Y-19.41%
FCF growth 3Y-29.37%
FCF growth 5Y-4.54%
OCF growth 1Y-22.01%
OCF growth 3Y-24.49%
OCF growth 5Y-2.99%