FIDELITY NATIONAL INFO SERV (FIS) Stock Fundamental Analysis
USA - NYSE:FIS - US31620M1062 - Common Stock
66.84 USD
-0.87 (-1.28%)
68 USD
+1.16 (+1.74%)
Overall FIS gets a fundamental rating of 4 out of 10. We evaluated FIS against 101 industry peers in the Financial Services industry. While FIS is still in line with the averages on profitability rating, there are concerns on its financial health. FIS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FIS had positive earnings in the past year.
In the past year FIS had a positive cash flow from operations.
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
The Return On Assets of FIS (0.34%) is worse than 65.35% of its industry peers.
FIS has a worse Return On Equity (0.79%) than 70.30% of its industry peers.
The Return On Invested Capital of FIS (4.76%) is better than 64.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FIS is below the industry average of 7.64%.
The 3 year average ROIC (3.09%) for FIS is below the current ROIC(4.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 0.79% | ||
| ROIC | 4.76% |
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
FIS has a Profit Margin of 1.09%. This is in the lower half of the industry: FIS underperforms 68.32% of its industry peers.
In the last couple of years the Profit Margin of FIS has grown nicely.
Looking at the Operating Margin, with a value of 17.20%, FIS is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
FIS's Operating Margin has improved in the last couple of years.
FIS has a Gross Margin (36.68%) which is in line with its industry peers.
FIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.2% | ||
| PM (TTM) | 1.09% | ||
| GM | 36.68% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FIS is destroying value.
Compared to 1 year ago, FIS has less shares outstanding
The number of shares outstanding for FIS has been increased compared to 5 years ago.
Compared to 1 year ago, FIS has an improved debt to assets ratio.
2.2 Solvency
FIS has an Altman-Z score of 0.50. This is a bad value and indicates that FIS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.50, FIS perfoms like the industry average, outperforming 50.49% of the companies in the same industry.
The Debt to FCF ratio of FIS is 7.06, which is on the high side as it means it would take FIS, 7.06 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.06, FIS perfoms like the industry average, outperforming 59.41% of the companies in the same industry.
FIS has a Debt/Equity ratio of 0.75. This is a neutral value indicating FIS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, FIS is in line with its industry, outperforming 50.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 7.06 | ||
| Altman-Z | 0.5 |
ROIC/WACC0.67
WACC7.06%
2.3 Liquidity
FIS has a Current Ratio of 0.59. This is a bad value and indicates that FIS is not financially healthy enough and could expect problems in meeting its short term obligations.
FIS's Current ratio of 0.59 is on the low side compared to the rest of the industry. FIS is outperformed by 60.40% of its industry peers.
FIS has a Quick Ratio of 0.59. This is a bad value and indicates that FIS is not financially healthy enough and could expect problems in meeting its short term obligations.
FIS has a worse Quick ratio (0.59) than 60.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.34% 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.
FIS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.58%.
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)6.34%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%0%
Revenue 1Y (TTM)3.58%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%5.1%
3.2 Future
The Earnings Per Share is expected to grow by 7.82% on average over the next years.
Based on estimates for the next years, FIS will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y10.36%
EPS Next 2Y9.8%
EPS Next 3Y9.33%
EPS Next 5Y7.82%
Revenue Next Year3.68%
Revenue Next 2Y4.04%
Revenue Next 3Y4.14%
Revenue Next 5Y4.18%
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 12.45, FIS is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as FIS.
The average S&P500 Price/Earnings ratio is at 27.30. FIS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.54 indicates a reasonable valuation of FIS.
FIS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, FIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FIS is valued a bit cheaper than 64.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FIS is valued a bit cheaper than the industry average as 63.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.1 | ||
| EV/EBITDA | 12.36 |
4.3 Compensation for Growth
FIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y9.8%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
FIS has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of FIS decreases each year by -1.76%.
FIS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-1.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
734.82% of the earnings are spent on dividend by FIS. This is not a sustainable payout ratio.
DP734.82%
EPS Next 2Y9.8%
EPS Next 3Y9.33%
66.84
-0.87 (-1.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.44%
Inst Owner Change0.36%
Ins Owners0.05%
Ins Owner Change2.34%
Market Cap34.92B
Analysts75.86
Price Target87.16 (30.4%)
Short Float %2.83%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend1.44
Dividend Growth(5Y)-1.76%
DP734.82%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.5%
Min EPS beat(2)-1.03%
Max EPS beat(2)0.02%
EPS beat(4)3
Avg EPS beat(4)2.07%
Min EPS beat(4)-1.03%
Max EPS beat(4)7.13%
EPS beat(8)6
Avg EPS beat(8)4.52%
EPS beat(12)8
Avg EPS beat(12)3.67%
EPS beat(16)11
Avg EPS beat(16)2.88%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)0%
Max Revenue beat(2)0.46%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.46%
Revenue beat(8)1
Avg Revenue beat(8)-4.57%
Revenue beat(12)3
Avg Revenue beat(12)-8.37%
Revenue beat(16)4
Avg Revenue beat(16)-18.1%
PT rev (1m)-3.95%
PT rev (3m)-3.34%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 10.54 | ||
| P/S | 3.38 | ||
| P/FCF | 19.1 | ||
| P/OCF | 12.88 | ||
| P/B | 2.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.36 |
EPS(TTM)5.37
EY8.03%
EPS(NY)6.34
Fwd EY9.49%
FCF(TTM)3.5
FCFY5.24%
OCF(TTM)5.19
OCFY7.76%
SpS19.75
BVpS27.12
TBVpS-13.82
PEG (NY)1.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 0.79% | ||
| ROCE | 6.85% | ||
| ROIC | 4.76% | ||
| ROICexc | 4.97% | ||
| ROICexgc | 25.81% | ||
| OM | 17.2% | ||
| PM (TTM) | 1.09% | ||
| GM | 36.68% | ||
| FCFM | 17.72% |
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-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 7.06 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 48.68% | ||
| Cap/Sales | 8.56% | ||
| Interest Coverage | 5.9 | ||
| Cash Conversion | 75.54% | ||
| Profit Quality | 1632.14% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.5 |
F-Score6
WACC7.06%
ROIC/WACC0.67
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)6.34%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%0%
EPS Next Y10.36%
EPS Next 2Y9.8%
EPS Next 3Y9.33%
EPS Next 5Y7.82%
Revenue 1Y (TTM)3.58%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%5.1%
Revenue Next Year3.68%
Revenue Next 2Y4.04%
Revenue Next 3Y4.14%
Revenue Next 5Y4.18%
EBIT growth 1Y7.19%
EBIT growth 3Y12.59%
EBIT growth 5Y10.77%
EBIT Next Year43.13%
EBIT Next 3Y17.04%
EBIT Next 5Y13.83%
FCF growth 1Y-33.02%
FCF growth 3Y-29.37%
FCF growth 5Y-4.54%
OCF growth 1Y-27.47%
OCF growth 3Y-24.49%
OCF growth 5Y-2.99%