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FISERV INC (FISV) Stock Fundamental Analysis

USA - NASDAQ:FISV - US3377381088 - Common Stock

114.23 USD
+2 (+1.78%)
Last: 6/6/2023, 8:10:12 PM
114.65 USD
+0.42 (+0.37%)
After Hours: 6/6/2023, 8:10:12 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to FISV. FISV was compared to 101 industry peers in the Financial Services industry. FISV has only an average score on both its financial health and profitability. FISV has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

FISV had positive earnings in the past year.
FISV had a positive operating cash flow in the past year.
In the past 5 years FISV has always been profitable.
FISV had a positive operating cash flow in each of the past 5 years.
FISV Yearly Net Income VS EBIT VS OCF VS FCFFISV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

1.2 Ratios

With a decent Return On Assets value of 3.17%, FISV is doing good in the industry, outperforming 74.49% of the companies in the same industry.
With a Return On Equity value of 8.06%, FISV perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
FISV has a better Return On Invested Capital (5.42%) than 77.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FISV is below the industry average of 7.65%.
The 3 year average ROIC (3.43%) for FISV is below the current ROIC(5.42%), indicating increased profibility in the last year.
Industry RankSector 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%
FISV Yearly ROA, ROE, ROICFISV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

1.3 Margins

FISV has a better Profit Margin (13.36%) than 66.33% of its industry peers.
FISV's Profit Margin has declined in the last couple of years.
FISV has a Operating Margin of 21.71%. This is in the better half of the industry: FISV outperforms 68.37% of its industry peers.
In the last couple of years the Operating Margin of FISV has declined.
FISV's Gross Margin of 55.78% is fine compared to the rest of the industry. FISV outperforms 79.59% of its industry peers.
FISV's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
FISV Yearly Profit, Operating, Gross MarginsFISV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FISV is destroying value.
Compared to 1 year ago, FISV has less shares outstanding
Compared to 1 year ago, FISV has an improved debt to assets ratio.
FISV Yearly Shares OutstandingFISV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
FISV Yearly Total Debt VS Total AssetsFISV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 20B 40B 60B 80B

2.2 Solvency

FISV has an Altman-Z score of 1.67. This is a bad value and indicates that FISV is not financially healthy and even has some risk of bankruptcy.
FISV has a Altman-Z score of 1.67. This is in the better half of the industry: FISV outperforms 70.41% of its industry peers.
The Debt to FCF ratio of FISV is 6.50, which is on the high side as it means it would take FISV, 6.50 years of fcf income to pay off all of its debts.
FISV has a Debt to FCF ratio of 6.50. This is in the better half of the industry: FISV outperforms 66.33% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that FISV is somewhat dependend on debt financing.
FISV has a Debt to Equity ratio (0.73) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 6.5
Altman-Z 1.67
ROIC/WACC0.73
WACC7.41%
FISV Yearly LT Debt VS Equity VS FCFFISV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B

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.
The Current ratio of FISV (1.08) is comparable to the rest of the industry.
A Quick Ratio of 1.08 indicates that FISV should not have too much problems paying its short term obligations.
FISV has a Quick ratio (1.08) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 1.08
FISV Yearly Current Assets VS Current LiabilitesFISV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.97% over the past year.
The Earnings Per Share has been growing by 20.49% on average over the past years. This is a very strong growth
Looking at the last year, FISV shows a quite strong growth in Revenue. The Revenue has grown by 9.25% in the last year.
Measured over the past years, FISV shows a very strong growth in Revenue. The Revenue has been growing by 25.51% on average per year.
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

FISV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.52% yearly.
Based on estimates for the next years, FISV will show a small growth in Revenue. The Revenue will grow by 7.27% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FISV Yearly Revenue VS EstimatesFISV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B
FISV Yearly EPS VS EstimatesFISV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.10 indicates a rather expensive valuation of FISV.
The rest of the industry has a similar Price/Earnings ratio as FISV.
The average S&P500 Price/Earnings ratio is at 27.38. FISV is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.42 indicates a correct valuation of FISV.
FISV's Price/Forward Earnings ratio is in line with the industry average.
FISV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.1
Fwd PE 13.42
FISV Price Earnings VS Forward Price EarningsFISV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FISV is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
FISV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FISV is cheaper than 62.24% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.52
EV/EBITDA 12.69
FISV Per share dataFISV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

FISV's 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%

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0

5. Dividend

5.1 Amount

FISV does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FISERV INC

NASDAQ:FISV (6/6/2023, 8:10:12 PM)

After market: 114.65 +0.42 (+0.37%)

114.23

+2 (+1.78%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)04-25 2023-04-25/bmo
Earnings (Next)07-24 2023-07-24/bmo
Inst Owners82.48%
Inst Owner Change-8.59%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%