FISERV INC (FISV) Stock Fundamental Analysis
NASDAQ:FISV - Nasdaq - US3377381088 - Common Stock - Currency: USD
Overall FISV gets a fundamental rating of 5 out of 10. We evaluated FISV against 100 industry peers in the Financial Services industry. FISV has only an average score on both its financial health and profitability. FISV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FISV had positive earnings in the past year.
In the past year FISV had a positive cash flow from operations.
In the past 5 years FISV has always been profitable.
In the past 5 years FISV always reported a positive cash flow from operatings.
1.2 Ratios
FISV has a Return On Assets of 3.17%. This is in the better half of the industry: FISV outperforms 74.49% of its industry peers.
The Return On Equity of FISV (8.06%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 5.42%, FISV is doing good in the industry, outperforming 77.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FISV is significantly below the industry average of 11.84%.
The last Return On Invested Capital (5.42%) for FISV is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 8.06% | ||
| ROIC | 5.42% |
ROA(3y)2.02%
ROA(5y)3.55%
ROE(3y)5.16%
ROE(5y)13.99%
ROIC(3y)3.43%
ROIC(5y)5.11%
1.3 Margins
Looking at the Profit Margin, with a value of 13.36%, FISV is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
In the last couple of years the Profit Margin of FISV has declined.
The Operating Margin of FISV (21.71%) is better than 68.37% of its industry peers.
FISV's Operating Margin has declined in the last couple of years.
FISV has a Gross Margin of 55.78%. This is in the better half of the industry: FISV outperforms 79.59% of its industry peers.
In the last couple of years the Gross Margin of FISV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.71% | ||
| PM (TTM) | 13.36% | ||
| GM | 55.78% |
OM growth 3Y8.98%
OM growth 5Y-4.83%
PM growth 3Y17.62%
PM growth 5Y-8.2%
GM growth 3Y4.35%
GM growth 5Y3.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FISV is destroying value.
The number of shares outstanding for FISV has been reduced compared to 1 year ago.
Compared to 1 year ago, FISV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that FISV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FISV (1.67) is better than 70.41% of its industry peers.
FISV has a debt to FCF ratio of 6.50. This is a slightly negative value and a sign of low solvency as FISV would need 6.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.50, FISV is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
FISV has a Debt/Equity ratio of 0.73. This is a neutral value indicating FISV is somewhat dependend on debt financing.
The Debt to Equity ratio of FISV (0.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.73
WACC7.41%
2.3 Liquidity
FISV has a Current Ratio of 1.08. This is a normal value and indicates that FISV is financially healthy and should not expect problems in meeting its short term obligations.
FISV has a Current ratio of 1.08. This is comparable to the rest of the industry: FISV outperforms 46.94% of its industry peers.
A Quick Ratio of 1.08 indicates that FISV should not have too much problems paying its short term obligations.
The Quick ratio of FISV (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.97% over the past year.
Measured over the past years, FISV shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.49% on average per year.
Looking at the last year, FISV shows a quite strong growth in Revenue. The Revenue has grown by 9.25% in the last year.
FISV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.51% yearly.
EPS 1Y (TTM)14.97%
EPS 3Y19.49%
EPS 5Y20.49%
EPS Q2Q%12.86%
Revenue 1Y (TTM)9.25%
Revenue growth 3Y20.3%
Revenue growth 5Y25.51%
Sales Q2Q%9.88%
3.2 Future
Based on estimates for the next years, FISV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.52% on average per year.
FISV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
EPS Next Y15.18%
EPS Next 2Y14.42%
EPS Next 3Y13.91%
EPS Next 5Y10.52%
Revenue Next Year6.97%
Revenue Next 2Y7.36%
Revenue Next 3Y7.27%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.10, which indicates a rather expensive current valuation of FISV.
FISV's Price/Earnings ratio is in line with the industry average.
FISV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.51.
With a Price/Forward Earnings ratio of 13.42, FISV is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FISV is on the same level as its industry peers.
FISV is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
FISV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FISV is cheaper than 71.43% of the companies in the same industry.
62.24% of the companies in the same industry are more expensive than FISV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.52 | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FISV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FISV's earnings are expected to grow with 13.91% in the coming years.
PEG (NY)1.13
PEG (5Y)0.83
EPS Next 2Y14.42%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
No dividends for FISV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.23
+2 (+1.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners82.48%
Inst Owner Change0%
Ins Owners0.77%
Ins Owner Change0%
Market Cap70.71B
Analysts78.54
Price Target135.78 (18.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.46%
Min EPS beat(2)-1.67%
Max EPS beat(2)-1.26%
EPS beat(4)0
Avg EPS beat(4)-2.64%
Min EPS beat(4)-5.86%
Max EPS beat(4)-1.26%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)5.5%
Min Revenue beat(2)4.56%
Max Revenue beat(2)6.44%
Revenue beat(4)4
Avg Revenue beat(4)5.4%
Min Revenue beat(4)3.55%
Max Revenue beat(4)7.05%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.46%
PT rev (3m)4.39%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.42 | ||
| P/S | 3.9 | ||
| P/FCF | 20.52 | ||
| P/OCF | 14.33 | ||
| P/B | 2.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.69 |
EPS(TTM)6.68
EY5.85%
EPS(NY)8.51
Fwd EY7.45%
FCF(TTM)5.57
FCFY4.87%
OCF(TTM)7.97
OCFY6.98%
SpS29.32
BVpS48.59
TBVpS-30.59
PEG (NY)1.13
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 8.06% | ||
| ROCE | N/A | ||
| ROIC | 5.42% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 52.06% | ||
| OM | 21.71% | ||
| PM (TTM) | 13.36% | ||
| GM | 55.78% | ||
| FCFM | N/A |
ROA(3y)2.02%
ROA(5y)3.55%
ROE(3y)5.16%
ROE(5y)13.99%
ROIC(3y)3.43%
ROIC(5y)5.11%
ROICexc(3y)3.49%
ROICexc(5y)5.27%
ROICexgc(3y)28.11%
ROICexgc(5y)44.91%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y30.56%
ROICexcg growth 5Y-29.03%
ROICexc growth 3Y34.38%
ROICexc growth 5Y-19.22%
OM growth 3Y8.98%
OM growth 5Y-4.83%
PM growth 3Y17.62%
PM growth 5Y-8.2%
GM growth 3Y4.35%
GM growth 5Y3.21%
F-Score8
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 6.5 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 47.13% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 142.16% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.67 |
F-Score8
WACC7.41%
ROIC/WACC0.73
Cap/Depr(3y)37%
Cap/Depr(5y)43.88%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)226.15%
Profit Quality(5y)202.11%
High Growth Momentum
Growth
EPS 1Y (TTM)14.97%
EPS 3Y19.49%
EPS 5Y20.49%
EPS Q2Q%12.86%
EPS Next Y15.18%
EPS Next 2Y14.42%
EPS Next 3Y13.91%
EPS Next 5Y10.52%
Revenue 1Y (TTM)9.25%
Revenue growth 3Y20.3%
Revenue growth 5Y25.51%
Sales Q2Q%9.88%
Revenue Next Year6.97%
Revenue Next 2Y7.36%
Revenue Next 3Y7.27%
Revenue Next 5YN/A
EBIT growth 1Y56.19%
EBIT growth 3Y31.1%
EBIT growth 5Y19.44%
EBIT Next Year35.88%
EBIT Next 3Y17.46%
EBIT Next 5Y10.88%
FCF growth 1Y3.7%
FCF growth 3Y14.81%
FCF growth 5Y20.9%
OCF growth 1Y17.15%
OCF growth 3Y18.22%
OCF growth 5Y25.19%