SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - NYSE:FOUR - US82452J1097 - Common Stock
76.26 USD
+0.27 (+0.36%)
77.78 USD
+1.52 (+1.99%)
Overall FOUR gets a fundamental rating of 5 out of 10. We evaluated FOUR against 99 industry peers in the Financial Services industry. FOUR has only an average score on both its financial health and profitability. FOUR is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
FOUR had positive earnings in the past year.
FOUR had a positive operating cash flow in the past year.
In multiple years FOUR reported negative net income over the last 5 years.
Each year in the past 5 years FOUR had a positive operating cash flow.
1.2 Ratios
FOUR has a better Return On Assets (2.98%) than 69.70% of its industry peers.
FOUR has a better Return On Equity (13.09%) than 68.69% of its industry peers.
The Return On Invested Capital of FOUR (5.38%) is better than 67.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FOUR is below the industry average of 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 13.09% | ||
| ROIC | 5.38% |
ROA(3y)3.33%
ROA(5y)1.36%
ROE(3y)21%
ROE(5y)8.17%
ROIC(3y)5.43%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of FOUR (5.77%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 10.37%, FOUR is in line with its industry, outperforming 42.42% of the companies in the same industry.
In the last couple of years the Operating Margin of FOUR has grown nicely.
FOUR has a Gross Margin (30.55%) which is in line with its industry peers.
FOUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.37% | ||
| PM (TTM) | 5.77% | ||
| GM | 30.55% |
OM growth 3Y125.47%
OM growth 5Y42.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.8%
GM growth 5Y3.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FOUR is destroying value.
Compared to 1 year ago, FOUR has more shares outstanding
The number of shares outstanding for FOUR has been increased compared to 5 years ago.
Compared to 1 year ago, FOUR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that FOUR is in the distress zone and has some risk of bankruptcy.
FOUR has a better Altman-Z score (1.77) than 71.72% of its industry peers.
FOUR has a debt to FCF ratio of 9.80. This is a negative value and a sign of low solvency as FOUR would need 9.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.80, FOUR is in line with its industry, outperforming 56.57% of the companies in the same industry.
A Debt/Equity ratio of 1.91 is on the high side and indicates that FOUR has dependencies on debt financing.
FOUR has a worse Debt to Equity ratio (1.91) than 65.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 9.8 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.81
WACC6.67%
2.3 Liquidity
FOUR has a Current Ratio of 2.53. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.53, FOUR is doing good in the industry, outperforming 77.78% of the companies in the same industry.
A Quick Ratio of 2.53 indicates that FOUR has no problem at all paying its short term obligations.
FOUR's Quick ratio of 2.53 is fine compared to the rest of the industry. FOUR outperforms 79.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.05%, which is quite impressive.
Measured over the past years, FOUR shows a very strong growth in Earnings Per Share. The EPS has been growing by 108.37% on average per year.
FOUR shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.86%.
Measured over the past years, FOUR shows a very strong growth in Revenue. The Revenue has been growing by 35.42% on average per year.
EPS 1Y (TTM)48.05%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%14.58%
Revenue 1Y (TTM)23.86%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%16.83%
3.2 Future
FOUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.91% yearly.
FOUR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.45% yearly.
EPS Next Y40.64%
EPS Next 2Y32.8%
EPS Next 3Y28.6%
EPS Next 5Y20.91%
Revenue Next Year21.19%
Revenue Next 2Y22.63%
Revenue Next 3Y20.03%
Revenue Next 5Y16.45%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.72 indicates a correct valuation of FOUR.
Compared to the rest of the industry, the Price/Earnings ratio of FOUR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.91. FOUR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.12, the valuation of FOUR can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FOUR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, FOUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOUR is valued a bit cheaper than 67.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FOUR is valued a bit cheaper than the industry average as 62.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FOUR's earnings are expected to grow with 28.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y32.8%
EPS Next 3Y28.6%
5. Dividend
5.1 Amount
No dividends for FOUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.26
+0.27 (+0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners133.52%
Inst Owner Change-0.24%
Ins Owners2.36%
Ins Owner Change9.84%
Market Cap6.74B
Revenue(TTM)3.61B
Net Income(TTM)208.40M
Analysts81.43
Price Target111.47 (46.17%)
Short Float %18.79%
Short Ratio7.13
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)1
Avg EPS beat(2)18.48%
Min EPS beat(2)-10.04%
Max EPS beat(2)47%
EPS beat(4)2
Avg EPS beat(4)12.07%
Min EPS beat(4)-10.04%
Max EPS beat(4)47%
EPS beat(8)4
Avg EPS beat(8)6.21%
EPS beat(12)8
Avg EPS beat(12)12.83%
EPS beat(16)11
Avg EPS beat(16)13.68%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-4.2%
Max Revenue beat(2)-3.07%
Revenue beat(4)0
Avg Revenue beat(4)-7.2%
Min Revenue beat(4)-13.55%
Max Revenue beat(4)-3.07%
Revenue beat(8)0
Avg Revenue beat(8)-7.09%
Revenue beat(12)1
Avg Revenue beat(12)-5.12%
Revenue beat(16)4
Avg Revenue beat(16)-3.67%
PT rev (1m)0%
PT rev (3m)-3.19%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)11.67%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)4.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 11.12 | ||
| P/S | 1.87 | ||
| P/FCF | 17.71 | ||
| P/OCF | 11.91 | ||
| P/B | 4.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.47 |
EPS(TTM)4.56
EY5.98%
EPS(NY)6.86
Fwd EY9%
FCF(TTM)4.31
FCFY5.65%
OCF(TTM)6.4
OCFY8.39%
SpS40.83
BVpS18.01
TBVpS-10.13
PEG (NY)0.41
PEG (5Y)N/A
Graham Number42.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 13.09% | ||
| ROCE | 6.81% | ||
| ROIC | 5.38% | ||
| ROICexc | 11.99% | ||
| ROICexgc | N/A | ||
| OM | 10.37% | ||
| PM (TTM) | 5.77% | ||
| GM | 30.55% | ||
| FCFM | 10.54% |
ROA(3y)3.33%
ROA(5y)1.36%
ROE(3y)21%
ROE(5y)8.17%
ROIC(3y)5.43%
ROIC(5y)N/A
ROICexc(3y)7.63%
ROICexc(5y)N/A
ROICexgc(3y)655.2%
ROICexgc(5y)N/A
ROCE(3y)6.87%
ROCE(5y)N/A
ROICexgc growth 3Y605.46%
ROICexgc growth 5YN/A
ROICexc growth 3Y119.45%
ROICexc growth 5Y48.4%
OM growth 3Y125.47%
OM growth 5Y42.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.8%
GM growth 5Y3.61%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 9.8 | ||
| Debt/EBITDA | 4.29 | ||
| Cap/Depr | 55.41% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.83% | ||
| Profit Quality | 182.68% | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 1.77 |
F-Score6
WACC6.67%
ROIC/WACC0.81
Cap/Depr(3y)64.28%
Cap/Depr(5y)59.84%
Cap/Sales(3y)5.28%
Cap/Sales(5y)5.02%
Profit Quality(3y)204.33%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.05%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%14.58%
EPS Next Y40.64%
EPS Next 2Y32.8%
EPS Next 3Y28.6%
EPS Next 5Y20.91%
Revenue 1Y (TTM)23.86%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%16.83%
Revenue Next Year21.19%
Revenue Next 2Y22.63%
Revenue Next 3Y20.03%
Revenue Next 5Y16.45%
EBIT growth 1Y78.38%
EBIT growth 3Y203.36%
EBIT growth 5Y93.23%
EBIT Next Year255.68%
EBIT Next 3Y74.64%
EBIT Next 5Y42.29%
FCF growth 1Y49.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.57%
OCF growth 3Y450.43%
OCF growth 5Y79.7%
SHIFT4 PAYMENTS INC-CLASS A / FOUR FAQ
Can you provide the ChartMill fundamental rating for SHIFT4 PAYMENTS INC-CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to FOUR.
What is the valuation status of SHIFT4 PAYMENTS INC-CLASS A (FOUR) stock?
ChartMill assigns a valuation rating of 6 / 10 to SHIFT4 PAYMENTS INC-CLASS A (FOUR). This can be considered as Fairly Valued.
How profitable is SHIFT4 PAYMENTS INC-CLASS A (FOUR) stock?
SHIFT4 PAYMENTS INC-CLASS A (FOUR) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SHIFT4 PAYMENTS INC-CLASS A (FOUR) stock?
The Price/Earnings (PE) ratio for SHIFT4 PAYMENTS INC-CLASS A (FOUR) is 16.72 and the Price/Book (PB) ratio is 4.23.
Can you provide the expected EPS growth for FOUR stock?
The Earnings per Share (EPS) of SHIFT4 PAYMENTS INC-CLASS A (FOUR) is expected to grow by 40.64% in the next year.