FIDELITY NATIONAL INFO SERV (FIS) Stock Fundamental Analysis
NYSE:FIS - New York Stock Exchange, Inc. - US31620M1062 - Common Stock
FIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate.
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.
In multiple years FIS reported negative net income over the last 5 years.
FIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FIS has a better Return On Assets (4.13%) than 72.28% of its industry peers.
Looking at the Return On Equity, with a value of 8.57%, FIS is in line with its industry, outperforming 47.52% of the companies in the same industry.
FIS has a Return On Invested Capital of 4.04%. This is in the better half of the industry: FIS outperforms 60.40% of its industry peers.
FIS had an Average Return On Invested Capital over the past 3 years of 1.92%. This is significantly below the industry average of 7.84%.
The 3 year average ROIC (1.92%) for FIS is below the current ROIC(4.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 8.57% | ||
| ROIC | 4.04% |
ROA(3y)-12.67%
ROA(5y)-7.49%
ROE(3y)-31.8%
ROE(5y)-18.9%
ROIC(3y)1.92%
ROIC(5y)1.48%
1.3 Margins
Looking at the Profit Margin, with a value of 14.15%, FIS is in the better half of the industry, outperforming 61.39% of the companies in the same industry.
With a Operating Margin value of 16.65%, FIS perfoms like the industry average, outperforming 58.42% of the companies in the same industry.
FIS's Operating Margin has declined in the last couple of years.
FIS has a Gross Margin (37.89%) which is comparable to the rest of the industry.
FIS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.65% | ||
| PM (TTM) | 14.15% | ||
| GM | 37.89% |
OM growth 3Y43.18%
OM growth 5Y-2.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.77%
GM growth 5Y2.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FIS is destroying value.
The number of shares outstanding for FIS has been reduced compared to 1 year ago.
The number of shares outstanding for FIS has been increased compared to 5 years ago.
Compared to 1 year ago, FIS has a worse debt to assets ratio.
2.2 Solvency
FIS has an Altman-Z score of 1.01. This is a bad value and indicates that FIS is not financially healthy and even has some risk of bankruptcy.
FIS has a better Altman-Z score (1.01) than 61.39% of its industry peers.
FIS has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as FIS would need 6.26 years to pay back of all of its debts.
FIS has a Debt to FCF ratio of 6.26. This is comparable to the rest of the industry: FIS outperforms 56.44% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that FIS is somewhat dependend on debt financing.
FIS has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: FIS outperforms 50.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.56
WACC7.17%
2.3 Liquidity
A Current Ratio of 1.18 indicates that FIS should not have too much problems paying its short term obligations.
The Current ratio of FIS (1.18) is comparable to the rest of the industry.
A Quick Ratio of 1.18 indicates that FIS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, FIS is in line with its industry, outperforming 59.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for FIS have decreased strongly by -22.58% in the last year.
The Earnings Per Share has been growing slightly by 0.68% on average over the past years.
Looking at the last year, FIS shows a small growth in Revenue. The Revenue has grown by 1.98% in the last year.
The Revenue has been growing slightly by 3.12% on average over the past years.
EPS 1Y (TTM)-22.58%
EPS 3Y-0.24%
EPS 5Y0.68%
EPS Q2Q%-15.15%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-7.85%
Revenue growth 5Y3.12%
Sales Q2Q%3.25%
3.2 Future
The Earnings Per Share is expected to grow by 6.31% on average over the next years.
FIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
EPS Next Y-3.46%
EPS Next 2Y3.03%
EPS Next 3Y5.44%
EPS Next 5Y6.31%
Revenue Next Year3.29%
Revenue Next 2Y3.81%
Revenue Next 3Y4.03%
Revenue Next 5Y4.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 16.44, FIS is valued correctly.
FIS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FIS is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.69 indicates a correct 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 24.44, FIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
FIS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FIS is cheaper than 70.30% of the companies in the same industry.
60.40% of the companies in the same industry are more expensive than FIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.34 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)24.3
EPS Next 2Y3.03%
EPS Next 3Y5.44%
5. Dividend
5.1 Amount
FIS has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 3.66, FIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, FIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
On average, the dividend of FIS grows each year by 10.45%, which is quite nice.
FIS has been paying a dividend for at least 10 years, so it has a reliable track record.
FIS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.45%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
64.30% of the earnings are spent on dividend by FIS. This is not a sustainable payout ratio.
FIS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.3%
EPS Next 2Y3.03%
EPS Next 3Y5.44%
FIDELITY NATIONAL INFO SERV
NYSE:FIS (1/21/2025, 8:04:00 PM)
After market: 78.96 +0.05 (+0.06%)78.91
+0.13 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98%
Inst Owner Change0.1%
Ins Owners0.05%
Ins Owner Change2.05%
Market Cap42.48B
Analysts75.56
Price Target95.57 (21.11%)
Short Float %2.14%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend2.1
Dividend Growth(5Y)10.45%
DP64.3%
Div Incr Years3
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.2%
Min EPS beat(2)7.13%
Max EPS beat(2)9.27%
EPS beat(4)3
Avg EPS beat(4)7.46%
Min EPS beat(4)-0.98%
Max EPS beat(4)14.42%
EPS beat(8)6
Avg EPS beat(8)5.56%
EPS beat(12)8
Avg EPS beat(12)3.59%
EPS beat(16)12
Avg EPS beat(16)3.37%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)-0.12%
Revenue beat(8)2
Avg Revenue beat(8)-8.13%
Revenue beat(12)3
Avg Revenue beat(12)-23.87%
Revenue beat(16)5
Avg Revenue beat(16)-17.95%
PT rev (1m)0.21%
PT rev (3m)12.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.11%
EPS NY rev (1m)0%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 13.69 | ||
| P/S | 4.23 | ||
| P/FCF | 24.34 | ||
| P/OCF | 14.59 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.05 |
EPS(TTM)4.8
EY6.08%
EPS(NY)5.76
Fwd EY7.3%
FCF(TTM)3.24
FCFY4.11%
OCF(TTM)5.41
OCFY6.85%
SpS18.65
BVpS30.78
TBVpS-7.63
PEG (NY)N/A
PEG (5Y)24.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 8.57% | ||
| ROCE | 5.72% | ||
| ROIC | 4.04% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 16.19% | ||
| OM | 16.65% | ||
| PM (TTM) | 14.15% | ||
| GM | 37.89% | ||
| FCFM | 17.38% |
ROA(3y)-12.67%
ROA(5y)-7.49%
ROE(3y)-31.8%
ROE(5y)-18.9%
ROIC(3y)1.92%
ROIC(5y)1.48%
ROICexc(3y)1.96%
ROICexc(5y)1.53%
ROICexgc(3y)29.35%
ROICexgc(5y)N/A
ROCE(3y)2.97%
ROCE(5y)2.26%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-44.59%
ROICexc growth 3Y56.81%
ROICexc growth 5Y-13.55%
OM growth 3Y43.18%
OM growth 5Y-2.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.77%
GM growth 5Y2.01%
F-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 44.15% | ||
| Cap/Sales | 11.63% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 67.5% | ||
| Profit Quality | 122.89% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.01 |
F-Score8
WACC7.17%
ROIC/WACC0.56
Cap/Depr(3y)36.41%
Cap/Depr(5y)34.7%
Cap/Sales(3y)13.04%
Cap/Sales(5y)11.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.58%
EPS 3Y-0.24%
EPS 5Y0.68%
EPS Q2Q%-15.15%
EPS Next Y-3.46%
EPS Next 2Y3.03%
EPS Next 3Y5.44%
EPS Next 5Y6.31%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-7.85%
Revenue growth 5Y3.12%
Sales Q2Q%3.25%
Revenue Next Year3.29%
Revenue Next 2Y3.81%
Revenue Next 3Y4.03%
Revenue Next 5Y4.12%
EBIT growth 1Y9.57%
EBIT growth 3Y31.93%
EBIT growth 5Y0.35%
EBIT Next Year81.21%
EBIT Next 3Y26.62%
EBIT Next 5Y19.89%
FCF growth 1Y-28.89%
FCF growth 3Y-1.02%
FCF growth 5Y18.57%
OCF growth 1Y-25.54%
OCF growth 3Y-0.81%
OCF growth 5Y16.81%