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SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis

NYSE:FOUR - New York Stock Exchange, Inc. - US82452J1097 - Common Stock

116.13  +1.89 (+1.65%)

After market: 116.13 0 (0%)

Fundamental Rating

5

Overall FOUR gets a fundamental rating of 5 out of 10. We evaluated FOUR against 101 industry peers in the Financial Services industry. FOUR has an average financial health and profitability rating. FOUR is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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4

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.
The reported net income has been mixed in the past 5 years: FOUR reported negative net income in multiple years.
Each year in the past 5 years FOUR had a positive operating cash flow.
FOUR Yearly Net Income VS EBIT VS OCF VS FCFFOUR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

1.2 Ratios

FOUR has a Return On Assets of 2.51%. This is comparable to the rest of the industry: FOUR outperforms 58.42% of its industry peers.
FOUR has a better Return On Equity (15.63%) than 74.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.60%, FOUR is in the better half of the industry, outperforming 70.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FOUR is below the industry average of 7.84%.
The 3 year average ROIC (2.93%) for FOUR is below the current ROIC(4.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.51%
ROE 15.63%
ROIC 4.6%
ROA(3y)1.13%
ROA(5y)-1.14%
ROE(3y)5.63%
ROE(5y)-86.97%
ROIC(3y)2.93%
ROIC(5y)N/A
FOUR Yearly ROA, ROE, ROICFOUR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 -100 -200 -300 -400

1.3 Margins

FOUR's Profit Margin of 4.03% is on the low side compared to the rest of the industry. FOUR is outperformed by 64.36% of its industry peers.
FOUR's Operating Margin of 8.03% is on the low side compared to the rest of the industry. FOUR is outperformed by 60.40% of its industry peers.
In the last couple of years the Operating Margin of FOUR has grown nicely.
Looking at the Gross Margin, with a value of 28.01%, FOUR is in line with its industry, outperforming 50.49% of the companies in the same industry.
In the last couple of years the Gross Margin of FOUR has remained more or less at the same level.
Industry RankSector Rank
OM 8.03%
PM (TTM) 4.03%
GM 28.01%
OM growth 3YN/A
OM growth 5Y13.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.97%
GM growth 5Y-0.01%
FOUR Yearly Profit, Operating, Gross MarginsFOUR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 20

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FOUR is destroying value.
Compared to 1 year ago, FOUR has more shares outstanding
Compared to 5 years ago, FOUR has more shares outstanding
FOUR has a better debt/assets ratio than last year.
FOUR Yearly Shares OutstandingFOUR Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
FOUR Yearly Total Debt VS Total AssetsFOUR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

FOUR has an Altman-Z score of 2.51. This is not the best score and indicates that FOUR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of FOUR (2.51) is better than 82.18% of its industry peers.
The Debt to FCF ratio of FOUR is 9.52, which is on the high side as it means it would take FOUR, 9.52 years of fcf income to pay off all of its debts.
FOUR has a Debt to FCF ratio (9.52) which is in line with its industry peers.
FOUR has a Debt/Equity ratio of 3.50. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FOUR (3.50) is worse than 79.21% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.5
Debt/FCF 9.52
Altman-Z 2.51
ROIC/WACC0.57
WACC8.08%
FOUR Yearly LT Debt VS Equity VS FCFFOUR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

FOUR has a Current Ratio of 2.98. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of FOUR (2.98) is better than 85.15% of its industry peers.
A Quick Ratio of 2.97 indicates that FOUR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.97, FOUR belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.98
Quick Ratio 2.97
FOUR Yearly Current Assets VS Current LiabilitesFOUR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 500M 1B

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8

3. Growth

3.1 Past

FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.92%, which is quite impressive.
Looking at the last year, FOUR shows a very strong growth in Revenue. The Revenue has grown by 31.37%.
FOUR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.54% yearly.
EPS 1Y (TTM)29.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.83%
Revenue 1Y (TTM)31.37%
Revenue growth 3Y49.54%
Revenue growth 5Y35.54%
Sales Q2Q%34.62%

3.2 Future

The Earnings Per Share is expected to grow by 18.74% on average over the next years. This is quite good.
FOUR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.34% yearly.
EPS Next Y32.68%
EPS Next 2Y28.87%
EPS Next 3Y26.34%
EPS Next 5Y18.74%
Revenue Next Year32.3%
Revenue Next 2Y31.21%
Revenue Next 3Y27.9%
Revenue Next 5Y22.34%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
FOUR Yearly Revenue VS EstimatesFOUR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
FOUR Yearly EPS VS EstimatesFOUR Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 35.19, which means the current valuation is very expensive for FOUR.
FOUR's Price/Earnings ratio is a bit more expensive when compared to the industry. FOUR is more expensive than 68.32% of the companies in the same industry.
FOUR's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 24.71, which indicates a rather expensive current valuation of FOUR.
Based on the Price/Forward Earnings ratio, FOUR is valued a bit more expensive than the industry average as 69.31% of the companies are valued more cheaply.
FOUR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
Industry RankSector Rank
PE 35.19
Fwd PE 24.71
FOUR Price Earnings VS Forward Price EarningsFOUR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

FOUR's Enterprise Value to EBITDA is on the same level as the industry average.
FOUR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 35.1
EV/EBITDA 22.17
FOUR Per share dataFOUR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as FOUR's earnings are expected to grow with 26.34% in the coming years.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y28.87%
EPS Next 3Y26.34%

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0

5. Dividend

5.1 Amount

No dividends for FOUR!.
Industry RankSector Rank
Dividend Yield N/A

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SHIFT4 PAYMENTS INC-CLASS A

NYSE:FOUR (1/21/2025, 8:04:00 PM)

After market: 116.13 0 (0%)

116.13

+1.89 (+1.65%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)N/A N/A
Inst Owners107.87%
Inst Owner Change-0.19%
Ins Owners1.67%
Ins Owner Change-2.16%
Market Cap10.46B
Analysts80.65
Price Target116.6 (0.4%)
Short Float %10.35%
Short Ratio3.61
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)1
Avg EPS beat(2)2.13%
Min EPS beat(2)-4.53%
Max EPS beat(2)8.8%
EPS beat(4)1
Avg EPS beat(4)-4.85%
Min EPS beat(4)-14.86%
Max EPS beat(4)8.8%
EPS beat(8)5
Avg EPS beat(8)12.6%
EPS beat(12)8
Avg EPS beat(12)13.61%
EPS beat(16)10
Avg EPS beat(16)-174.51%
Revenue beat(2)0
Avg Revenue beat(2)-6.78%
Min Revenue beat(2)-8%
Max Revenue beat(2)-5.56%
Revenue beat(4)0
Avg Revenue beat(4)-7.52%
Min Revenue beat(4)-8.74%
Max Revenue beat(4)-5.56%
Revenue beat(8)1
Avg Revenue beat(8)-4.76%
Revenue beat(12)4
Avg Revenue beat(12)-2.58%
Revenue beat(16)5
Avg Revenue beat(16)-2.03%
PT rev (1m)1.01%
PT rev (3m)27.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.4%
Valuation
Industry RankSector Rank
PE 35.19
Fwd PE 24.71
P/S 3.32
P/FCF 35.1
P/OCF 22.74
P/B 12.89
P/tB N/A
EV/EBITDA 22.17
EPS(TTM)3.3
EY2.84%
EPS(NY)4.7
Fwd EY4.05%
FCF(TTM)3.31
FCFY2.85%
OCF(TTM)5.11
OCFY4.4%
SpS34.95
BVpS9.01
TBVpS-15.7
PEG (NY)1.08
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.51%
ROE 15.63%
ROCE 5.82%
ROIC 4.6%
ROICexc 6.84%
ROICexgc 28.85%
OM 8.03%
PM (TTM) 4.03%
GM 28.01%
FCFM 9.47%
ROA(3y)1.13%
ROA(5y)-1.14%
ROE(3y)5.63%
ROE(5y)-86.97%
ROIC(3y)2.93%
ROIC(5y)N/A
ROICexc(3y)4%
ROICexc(5y)N/A
ROICexgc(3y)36.73%
ROICexgc(5y)N/A
ROCE(3y)3.71%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y19.47%
OM growth 3YN/A
OM growth 5Y13.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.97%
GM growth 5Y-0.01%
F-Score6
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 3.5
Debt/FCF 9.52
Debt/EBITDA 5.38
Cap/Depr 58.95%
Cap/Sales 5.15%
Interest Coverage 250
Cash Conversion 87.18%
Profit Quality 234.91%
Current Ratio 2.98
Quick Ratio 2.97
Altman-Z 2.51
F-Score6
WACC8.08%
ROIC/WACC0.57
Cap/Depr(3y)68.71%
Cap/Depr(5y)59.29%
Cap/Sales(3y)5.37%
Cap/Sales(5y)4.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.83%
EPS Next Y32.68%
EPS Next 2Y28.87%
EPS Next 3Y26.34%
EPS Next 5Y18.74%
Revenue 1Y (TTM)31.37%
Revenue growth 3Y49.54%
Revenue growth 5Y35.54%
Sales Q2Q%34.62%
Revenue Next Year32.3%
Revenue Next 2Y31.21%
Revenue Next 3Y27.9%
Revenue Next 5Y22.34%
EBIT growth 1Y65.08%
EBIT growth 3YN/A
EBIT growth 5Y53.51%
EBIT Next Year266.23%
EBIT Next 3Y76.89%
EBIT Next 5Y48.54%
FCF growth 1Y776.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y306.18%
OCF growth 3Y359.59%
OCF growth 5Y72.4%