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 101 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FIS had positive earnings in the past year.
FIS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FIS reported negative net income in multiple years.
Each year in the past 5 years FIS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.29%, FIS is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
FIS's Return On Equity of 9.24% is in line compared to the rest of the industry. FIS outperforms 47.52% of its industry peers.
FIS has a better Return On Invested Capital (4.61%) than 69.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FIS is below the industry average of 7.75%.
The 3 year average ROIC (3.09%) for FIS is below the current ROIC(4.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 9.24% | ||
| ROIC | 4.61% |
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
With a decent Profit Margin value of 14.32%, FIS is doing good in the industry, outperforming 61.39% of the companies in the same industry.
In the last couple of years the Profit Margin of FIS has grown nicely.
Looking at the Operating Margin, with a value of 17.39%, FIS is in line with its industry, outperforming 59.41% of the companies in the same industry.
FIS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 37.56%, FIS perfoms like the industry average, outperforming 54.46% 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 | 17.39% | ||
| PM (TTM) | 14.32% | ||
| GM | 37.56% |
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.
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.
FIS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that FIS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FIS (0.76) is comparable to the rest of the industry.
FIS has a debt to FCF ratio of 9.00. This is a negative value and a sign of low solvency as FIS would need 9.00 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.00, FIS perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
FIS has a Debt/Equity ratio of 0.66. This is a neutral value indicating FIS is somewhat dependend on debt financing.
FIS's Debt to Equity ratio of 0.66 is in line compared to the rest of the industry. FIS outperforms 49.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 9 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.38
WACC12.03%
2.3 Liquidity
FIS has a Current Ratio of 0.85. 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 0.85, FIS is in line with its industry, outperforming 41.58% of the companies in the same industry.
FIS has a Quick Ratio of 0.85. 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 Quick ratio value of 0.85, FIS perfoms like the industry average, outperforming 43.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for FIS have decreased by -3.13% in the last 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 3.04% in the last year.
The Revenue has been decreasing by -0.40% on average over the past years.
EPS 1Y (TTM)-3.13%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%48.94%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%3.55%
3.2 Future
Based on estimates for the next years, FIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.46% on average per year.
Based on estimates for the next years, FIS will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y10.15%
EPS Next 2Y9.56%
EPS Next 3Y9.31%
EPS Next 5Y9.46%
Revenue Next Year2.92%
Revenue Next 2Y3.69%
Revenue Next 3Y3.91%
Revenue Next 5Y4.21%
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
A Price/Earnings ratio of 13.28 indicates a correct valuation of FIS.
FIS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, FIS is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.06, FIS is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as FIS.
When comparing the Price/Forward Earnings ratio of FIS to the average of the S&P500 Index (22.68), we can say FIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
FIS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FIS is cheaper than 65.35% of the companies in the same industry.
FIS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.99 | ||
| EV/EBITDA | 13.56 |
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)1.31
PEG (5Y)N/A
EPS Next 2Y9.56%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
FIS has a Yearly Dividend Yield of 2.30%.
FIS's Dividend Yield is a higher than the industry average which is at 3.84.
Compared to an average S&P500 Dividend Yield of 2.29, FIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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.
FIS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.76%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
FIS pays out 55.17% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP55.17%
EPS Next 2Y9.56%
EPS Next 3Y9.31%
69.85
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98%
Inst Owner Change-0.21%
Ins Owners0.05%
Ins Owner Change2.05%
Market Cap37.60B
Analysts73.89
Price Target85.7 (22.69%)
Short Float %2.5%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend1.44
Dividend Growth(5Y)-1.76%
DP55.17%
Div Incr Years3
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.65%
Min EPS beat(2)2.16%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)8.25%
Min EPS beat(4)2.16%
Max EPS beat(4)14.42%
EPS beat(8)7
Avg EPS beat(8)5.86%
EPS beat(12)8
Avg EPS beat(12)3.75%
EPS beat(16)12
Avg EPS beat(16)3.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)-0.12%
Revenue beat(8)2
Avg Revenue beat(8)-4.39%
Revenue beat(12)3
Avg Revenue beat(12)-13.8%
Revenue beat(16)5
Avg Revenue beat(16)-17.98%
PT rev (1m)-0.69%
PT rev (3m)7.54%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 12.06 | ||
| P/S | 3.71 | ||
| P/FCF | 29.99 | ||
| P/OCF | 18.16 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.56 |
EPS(TTM)5.26
EY7.53%
EPS(NY)5.79
Fwd EY8.29%
FCF(TTM)2.33
FCFY3.33%
OCF(TTM)3.85
OCFY5.51%
SpS18.81
BVpS29.16
TBVpS-10.04
PEG (NY)1.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 9.24% | ||
| ROCE | 6.36% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.75% | ||
| ROICexgc | 20.45% | ||
| OM | 17.39% | ||
| PM (TTM) | 14.32% | ||
| GM | 37.56% | ||
| FCFM | 12.38% |
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)3.17%
ROICexc(5y)2.31%
ROICexgc(3y)23.15%
ROICexgc(5y)N/A
ROCE(3y)4.44%
ROCE(5y)3.22%
ROICexcg growth 3Y-21.11%
ROICexcg growth 5Y-24.04%
ROICexc growth 3Y54%
ROICexc growth 5Y34.37%
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-Score8
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 9 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 47.04% | ||
| Cap/Sales | 8.07% | ||
| Interest Coverage | 4.45 | ||
| Cash Conversion | 59.21% | ||
| Profit Quality | 86.48% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 0.76 |
F-Score8
WACC12.03%
ROIC/WACC0.38
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)-3.13%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%48.94%
EPS Next Y10.15%
EPS Next 2Y9.56%
EPS Next 3Y9.31%
EPS Next 5Y9.46%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%3.55%
Revenue Next Year2.92%
Revenue Next 2Y3.69%
Revenue Next 3Y3.91%
Revenue Next 5Y4.21%
EBIT growth 1Y12.52%
EBIT growth 3Y12.59%
EBIT growth 5Y10.77%
EBIT Next Year44.48%
EBIT Next 3Y15.98%
EBIT Next 5Y13.79%
FCF growth 1Y-64.73%
FCF growth 3Y-29.37%
FCF growth 5Y-4.54%
OCF growth 1Y-52.23%
OCF growth 3Y-24.49%
OCF growth 5Y-2.99%