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. FIS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
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.
Each year in the past 5 years FIS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FIS (2.45%) is better than 62.00% of its industry peers.
FIS has a worse Return On Equity (5.33%) than 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 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
FIS has a Profit Margin (7.88%) which is comparable to the rest of the industry.
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.
In the last couple of years the Operating Margin of FIS has grown nicely.
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.
Compared to 1 year ago, FIS has less shares outstanding
FIS has more shares outstanding than it did 5 years ago.
FIS has a better debt/assets ratio than last year.
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 comparable to the rest of the 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.
The Debt to FCF ratio of FIS (5.96) is better than 63.00% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that FIS is somewhat dependend on debt financing.
The Debt to Equity ratio of FIS (0.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.64
WACC7.43%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FIS may have some problems paying its short term obligations.
FIS has a Current ratio of 0.63. This is in the lower half of the industry: FIS underperforms 60.00% of its industry peers.
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
The Earnings Per Share has been growing slightly by 2.48% over the past year.
The Earnings Per Share has been decreasing by -3.91% on average over the past years.
Looking at the last year, FIS shows a small growth in Revenue. The Revenue has grown by 2.97% in the last year.
The Revenue has been decreasing by -0.40% on average over the past years.
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.
The Revenue is expected to grow by 6.07% on average over the next years.
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
The Price/Earnings ratio is 15.05, which indicates a correct valuation of FIS.
FIS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.29. FIS is valued slightly cheaper when compared to this.
FIS is valuated correctly with a Price/Forward Earnings ratio of 12.81.
FIS's Price/Forward Earnings is on the same level as the industry average.
FIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 12.81 |
4.2 Price Multiples
FIS's Enterprise Value to EBITDA is on the same level as the industry average.
61.00% 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 | 21.05 | ||
| EV/EBITDA | 14.69 |
4.3 Compensation for Growth
FIS's 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)1.46
PEG (5Y)N/A
EPS Next 2Y9.53%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, FIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.00, FIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, FIS has a dividend comparable with the average S&P500 company.
| 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
101.00% of the earnings are spent on dividend by FIS. This is not a sustainable payout ratio.
DP101%
EPS Next 2Y9.53%
EPS Next 3Y9.34%
80.84
-0.93 (-1.14%)
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 Cap42.47B
Analysts76.36
Price Target89.97 (11.29%)
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 | 15.05 | ||
| Fwd PE | 12.81 | ||
| P/S | 4.17 | ||
| P/FCF | 21.05 | ||
| P/OCF | 14.82 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.69 |
EPS(TTM)5.37
EY6.64%
EPS(NY)6.31
Fwd EY7.81%
FCF(TTM)3.84
FCFY4.75%
OCF(TTM)5.45
OCFY6.75%
SpS19.4
BVpS28.67
TBVpS-11.49
PEG (NY)1.46
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
WACC7.43%
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 2Y9.53%
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%