FIDELITY NATIONAL INFO SERV (FIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FIS - US31620M1062 - Common Stock
65.65 USD
+1.24 (+1.93%)
65.7 USD
+0.05 (+0.08%)
FIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 98 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.
In the past 5 years FIS always reported a positive cash flow from operatings.
1.2 Ratios
FIS's Return On Assets of 0.46% is on the low side compared to the rest of the industry. FIS is outperformed by 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 1.10%, FIS is doing worse than 69.39% of the companies in the same industry.
FIS has a Return On Invested Capital of 4.80%. This is in the better half of the industry: FIS outperforms 63.27% of its industry peers.
FIS had an Average Return On Invested Capital over the past 3 years of 3.09%. This is significantly below the industry average of 8.20%.
The last Return On Invested Capital (4.80%) for FIS is above the 3 year average (3.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 1.1% | ||
| ROIC | 4.8% |
ROA(3y)-11.43%
ROA(5y)-6.72%
ROE(3y)-29.08%
ROE(5y)-17.21%
ROIC(3y)3.09%
ROIC(5y)2.24%
1.3 Margins
Looking at the Profit Margin, with a value of 1.45%, FIS is doing worse than 69.39% of the companies in the same industry.
In the last couple of years the Profit Margin of FIS has grown nicely.
With a decent Operating Margin value of 17.09%, FIS is doing good in the industry, outperforming 60.20% of the companies in the same industry.
In the last couple of years the Operating Margin of FIS has grown nicely.
FIS has a Gross Margin of 36.65%. This is comparable to the rest of the industry: FIS outperforms 53.06% of its industry peers.
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 | 17.09% | ||
| PM (TTM) | 1.45% | ||
| GM | 36.65% |
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.
The debt/assets ratio for FIS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.45, we must say that FIS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FIS (0.45) is comparable to the rest of the industry.
The Debt to FCF ratio of FIS is 6.89, which is on the high side as it means it would take FIS, 6.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.89, FIS is in line with its industry, outperforming 55.10% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that FIS is somewhat dependend on debt financing.
FIS has a Debt to Equity ratio of 0.79. This is comparable to the rest of the industry: FIS outperforms 48.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 0.45 |
ROIC/WACC0.73
WACC6.61%
2.3 Liquidity
FIS has a Current Ratio of 0.53. This is a bad value and indicates that FIS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.53, FIS is doing worse than 63.27% of the companies in the same industry.
FIS has a Quick Ratio of 0.53. 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 (0.53) than 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
FIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.17%, which is quite good.
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 4.24% in the past year.
The Revenue has been decreasing by -0.40% on average over the past years.
EPS 1Y (TTM)14.17%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%7.86%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%5.72%
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 Y10.46%
EPS Next 2Y9.7%
EPS Next 3Y9.45%
EPS Next 5Y7.82%
Revenue Next Year3.63%
Revenue Next 2Y4.04%
Revenue Next 3Y4.16%
Revenue Next 5Y4.18%
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
Based on the Price/Earnings ratio of 11.98, the valuation of FIS can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as FIS.
When comparing the Price/Earnings ratio of FIS to the average of the S&P500 Index (25.65), we can say FIS is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.37, the valuation of FIS can be described as very reasonable.
FIS's Price/Forward Earnings ratio is in line with the industry average.
FIS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FIS.
Based on the Price/Free Cash Flow ratio, FIS is valued a bit cheaper than the industry average as 62.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.16 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y9.7%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.56%, FIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.20, FIS pays a bit more dividend than its industry peers.
FIS's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 547.37% of its income as dividend. This is not a sustainable payout ratio.
DP547.37%
EPS Next 2Y9.7%
EPS Next 3Y9.45%
65.65
+1.24 (+1.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.13%
Inst Owner Change-2.85%
Ins Owners0.07%
Ins Owner Change2.79%
Market Cap34.29B
Revenue(TTM)10.46B
Net Income(TTM)152.00M
Analysts76.13
Price Target82.83 (26.17%)
Short Float %2.21%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend1.44
Dividend Growth(5Y)-1.76%
DP547.37%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.22%
Min EPS beat(2)-1.03%
Max EPS beat(2)0.58%
EPS beat(4)3
Avg EPS beat(4)0.43%
Min EPS beat(4)-1.03%
Max EPS beat(4)2.16%
EPS beat(8)6
Avg EPS beat(8)3.95%
EPS beat(12)9
Avg EPS beat(12)3.85%
EPS beat(16)11
Avg EPS beat(16)2.8%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.46%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)1.23%
Revenue beat(8)2
Avg Revenue beat(8)-0.48%
Revenue beat(12)4
Avg Revenue beat(12)-5.46%
Revenue beat(16)5
Avg Revenue beat(16)-17.94%
PT rev (1m)-4.97%
PT rev (3m)-5.21%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.37 | ||
| P/S | 3.28 | ||
| P/FCF | 18.16 | ||
| P/OCF | 12.51 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.9 |
EPS(TTM)5.48
EY8.35%
EPS(NY)6.33
Fwd EY9.64%
FCF(TTM)3.61
FCFY5.51%
OCF(TTM)5.25
OCFY7.99%
SpS20.03
BVpS26.53
TBVpS-14.89
PEG (NY)1.15
PEG (5Y)N/A
Graham Number57.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 1.1% | ||
| ROCE | 6.99% | ||
| ROIC | 4.8% | ||
| ROICexc | 4.95% | ||
| ROICexgc | 25.79% | ||
| OM | 17.09% | ||
| PM (TTM) | 1.45% | ||
| GM | 36.65% | ||
| FCFM | 18.04% |
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%
ROICexgc growth 3Y-19.6%
ROICexgc 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.89 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 45.84% | ||
| Cap/Sales | 8.15% | ||
| Interest Coverage | 4.91 | ||
| Cash Conversion | 75.12% | ||
| Profit Quality | 1242.11% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.45 |
F-Score6
WACC6.61%
ROIC/WACC0.73
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)14.17%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%7.86%
EPS Next Y10.46%
EPS Next 2Y9.7%
EPS Next 3Y9.45%
EPS Next 5Y7.82%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%5.72%
Revenue Next Year3.63%
Revenue Next 2Y4.04%
Revenue Next 3Y4.16%
Revenue Next 5Y4.18%
EBIT growth 1Y7%
EBIT growth 3Y12.59%
EBIT growth 5Y10.77%
EBIT Next Year43.13%
EBIT Next 3Y17.13%
EBIT Next 5Y13.83%
FCF growth 1Y-38.32%
FCF growth 3Y-29.37%
FCF growth 5Y-4.54%
OCF growth 1Y-30.64%
OCF growth 3Y-24.49%
OCF growth 5Y-2.99%
FIDELITY NATIONAL INFO SERV / FIS FAQ
Can you provide the ChartMill fundamental rating for FIDELITY NATIONAL INFO SERV?
ChartMill assigns a fundamental rating of 4 / 10 to FIS.
What is the valuation status for FIS stock?
ChartMill assigns a valuation rating of 5 / 10 to FIDELITY NATIONAL INFO SERV (FIS). This can be considered as Fairly Valued.
What is the profitability of FIS stock?
FIDELITY NATIONAL INFO SERV (FIS) has a profitability rating of 5 / 10.
What is the valuation of FIDELITY NATIONAL INFO SERV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FIDELITY NATIONAL INFO SERV (FIS) is 11.98 and the Price/Book (PB) ratio is 2.47.
How sustainable is the dividend of FIDELITY NATIONAL INFO SERV (FIS) stock?
The dividend rating of FIDELITY NATIONAL INFO SERV (FIS) is 3 / 10 and the dividend payout ratio is 547.37%.