FIDELITY NATIONAL INFO SERV (FIS) Stock Fundamental Analysis
NYSE:FIS - New York Stock Exchange, Inc. - US31620M1062 - Common Stock - Currency: USD
Taking everything into account, FIS scores 4 out of 10 in our fundamental rating. FIS was compared to 100 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FIS was profitable.
In the past year FIS had a positive cash flow from operations.
In multiple years FIS reported negative net income over the last 5 years.
In the past 5 years FIS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.45%, FIS is doing good in the industry, outperforming 62.00% of the companies in the same industry.
FIS's Return On Equity of 5.33% is on the low side compared to the rest of the industry. FIS is outperformed by 65.00% of its industry peers.
FIS has a better Return On Invested Capital (4.77%) than 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 3 year average ROIC (3.09%) for FIS is below the current ROIC(4.77%), indicating increased profibility in the last year.
| 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
FIS's Profit Margin of 7.88% is in line compared to the rest of the industry. FIS outperforms 45.00% of its industry peers.
FIS's Profit Margin has improved in the last couple of years.
The Operating Margin of FIS (17.02%) is better than 61.00% of its industry peers.
FIS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.97%, FIS is in line with its industry, outperforming 53.00% of the companies in the same industry.
FIS's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, FIS has less shares outstanding
FIS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FIS has been reduced compared to a year ago.
2.2 Solvency
FIS has an Altman-Z score of 0.89. 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 0.89, FIS perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
The Debt to FCF ratio of FIS is 5.96, which is a neutral value as it means it would take FIS, 5.96 years of fcf income to pay off all of its debts.
FIS's Debt to FCF ratio of 5.96 is fine compared to the rest of the industry. FIS outperforms 63.00% of its industry peers.
FIS has a Debt/Equity ratio of 0.65. This is a neutral value indicating FIS is somewhat dependend on debt financing.
FIS has a Debt to Equity ratio (0.65) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.65
WACC7.39%
2.3 Liquidity
FIS has a Current Ratio of 0.63. This is a bad value and indicates that FIS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.63, FIS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that FIS may have some problems paying its short term obligations.
The Quick ratio of FIS (0.63) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
FIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.48%.
FIS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.91% yearly.
The Revenue has been growing slightly by 2.97% in the past year.
FIS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.40% yearly.
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.
FIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y10.34%
EPS Next 2Y9.53%
EPS Next 3Y9.34%
EPS Next 5Y7.82%
Revenue Next Year3.12%
Revenue Next 2Y3.79%
Revenue Next 3Y3.96%
Revenue Next 5Y6.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.23 indicates a correct valuation of FIS.
The rest of the industry has a similar Price/Earnings ratio as FIS.
Compared to an average S&P500 Price/Earnings ratio of 27.45, FIS is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.96, which indicates a correct valuation of FIS.
FIS's Price/Forward Earnings is on the same level as the industry average.
FIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FIS is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as FIS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.29 | ||
| EV/EBITDA | 14.83 |
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 FIS may justify a higher PE ratio.
PEG (NY)1.47
PEG (5Y)N/A
EPS Next 2Y9.53%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
FIS has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
FIS's Dividend Yield is a higher than the industry average which is at 4.87.
FIS's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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 2Y9.53%
EPS Next 3Y9.34%
81.77
+0.5 (+0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.44%
Inst Owner Change-43.55%
Ins Owners0.05%
Ins Owner Change4.24%
Market Cap42.96B
Analysts76.36
Price Target89.97 (10.03%)
Short Float %2.99%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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)2.53%
PT rev (3m)6.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.7%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 12.96 | ||
| P/S | 4.22 | ||
| P/FCF | 21.29 | ||
| P/OCF | 14.99 | ||
| P/B | 2.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.83 |
EPS(TTM)5.37
EY6.57%
EPS(NY)6.31
Fwd EY7.72%
FCF(TTM)3.84
FCFY4.7%
OCF(TTM)5.45
OCFY6.67%
SpS19.4
BVpS28.67
TBVpS-11.49
PEG (NY)1.47
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 | 0.89 |
F-Score7
WACC7.39%
ROIC/WACC0.65
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 2Y9.53%
EPS Next 3Y9.34%
EPS Next 5Y7.82%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%2.63%
Revenue Next Year3.12%
Revenue Next 2Y3.79%
Revenue Next 3Y3.96%
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%