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FISERV INC (FISV) Stock Fundamental Analysis

NASDAQ:FISV - Nasdaq - US3377381088 - Common Stock - Currency: USD

114.23  +2 (+1.78%)

After market: 114.65 +0.42 (+0.37%)

Fundamental Rating

5

Taking everything into account, FISV scores 5 out of 10 in our fundamental rating. FISV was compared to 101 industry peers in the Financial Services industry. Both the profitability and the financial health of FISV get a neutral evaluation. Nothing too spectacular is happening here. 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

In the past year FISV was profitable.
In the past year FISV had a positive cash flow from operations.
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

FISV's Return On Assets of 3.17% is fine compared to the rest of the industry. FISV outperforms 74.49% of its industry peers.
FISV has a Return On Equity (8.06%) which is in line with its industry peers.
FISV has a better Return On Invested Capital (5.42%) than 77.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FISV is significantly below the industry average of 11.97%.
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

With a decent Profit Margin value of 13.36%, FISV is doing good in 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.
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.
With a decent Gross Margin value of 55.78%, FISV is doing good in the industry, outperforming 79.59% of the companies in the same industry.
In the last couple of years the Gross Margin of FISV has grown nicely.
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.
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 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.
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.
FISV has a Quick 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.
Looking at the Quick ratio, with a value of 1.08, FISV is in line with its industry, outperforming 50.00% of the companies in the same industry.
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.
FISV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.49% yearly.
The Revenue has grown by 9.25% in the past year. This is quite good.
The Revenue has been growing by 25.51% on average over the past years. This is a very strong growth!
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

With a Price/Earnings ratio of 17.10, FISV is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of FISV is on the same level as its industry peers.
FISV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.63.
FISV is valuated correctly with a Price/Forward Earnings ratio of 13.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FISV is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FISV to the average of the S&P500 Index (20.85), we can say FISV is valued slightly cheaper.
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 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FISV indicates a somewhat cheap valuation: FISV is cheaper than 71.43% of the companies listed in the same industry.
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

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FISV may justify a higher PE ratio.
FISV's earnings are expected to grow with 13.91% in the coming years. This may justify a more expensive valuation.
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

No dividends for FISV!.
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 Change0.7%
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%