SHIFT4 PAYMENTS INC-CLASS A (FOUR)
US82452J1097 - Common Stock
FOUR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 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.
1. Profitability
1.1 Basic Checks
FOUR had positive earnings in the past year.
In the past year FOUR had a positive cash flow from operations.
In multiple years FOUR reported negative net income over the last 5 years.
FOUR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.51%, FOUR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.63%, FOUR is in the better half of the industry, outperforming 77.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.67%, FOUR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FOUR is below the industry average of 7.54%.
The last Return On Invested Capital (4.67%) for FOUR is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 15.63% | ||
| ROIC | 4.67% |
ROA(3y)1.13%
ROA(5y)-1.14%
ROE(3y)5.63%
ROE(5y)-86.97%
ROIC(3y)3.16%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of FOUR (4.03%) is worse than 63.00% of its industry peers.
The Operating Margin of FOUR (8.15%) is worse than 64.00% of its industry peers.
In the last couple of years the Operating Margin of FOUR has grown nicely.
FOUR has a Gross Margin (28.01%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FOUR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.15% | ||
| PM (TTM) | 4.03% | ||
| GM | 28.01% |
OM growth 3YN/A
OM growth 5Y16.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.97%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
FOUR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FOUR has been increased compared to 1 year ago.
The number of shares outstanding for FOUR has been increased compared to 5 years ago.
FOUR has a better debt/assets ratio than last year.
2.2 Solvency
FOUR has an Altman-Z score of 2.35. 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 (2.35) is better than 80.00% of its industry peers.
FOUR has a debt to FCF ratio of 9.52. This is a negative value and a sign of low solvency as FOUR would need 9.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.52, FOUR is in line with its industry, outperforming 53.00% of the companies in the same industry.
A Debt/Equity ratio of 3.50 is on the high side and indicates that FOUR has dependencies on debt financing.
FOUR has a worse Debt to Equity ratio (3.50) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 9.52 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.59
WACC7.85%
2.3 Liquidity
A Current Ratio of 2.98 indicates that FOUR has no problem at all paying its short term obligations.
The Current ratio of FOUR (2.98) is better than 85.00% of its industry peers.
FOUR has a Quick Ratio of 2.97. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FOUR (2.97) is better than 87.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.92% over the past year.
Looking at the last year, FOUR shows a very strong growth in Revenue. The Revenue has grown by 31.37%.
Measured over the past years, FOUR shows a very strong growth in Revenue. The Revenue has been growing by 35.54% on average per year.
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%-45.94%
3.2 Future
The Earnings Per Share is expected to grow by 21.52% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 28.31% on average over the next years. This is a very strong growth
EPS Next Y35.17%
EPS Next 2Y31.66%
EPS Next 3Y27.16%
EPS Next 5Y21.52%
Revenue Next Year35.67%
Revenue Next 2Y33.03%
Revenue Next 3Y27.97%
Revenue Next 5Y28.31%
3.3 Evolution
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
With a Price/Earnings ratio of 33.12, FOUR can be considered very expensive at the moment.
65.00% of the companies in the same industry are cheaper than FOUR, based on the Price/Earnings ratio.
FOUR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.65.
Based on the Price/Forward Earnings ratio of 22.28, the valuation of FOUR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FOUR indicates a slightly more expensive valuation: FOUR is more expensive than 65.00% of the companies listed in the same industry.
FOUR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.12 | ||
| Fwd PE | 22.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FOUR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FOUR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.03 | ||
| EV/EBITDA | 19.92 |
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 27.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y31.66%
EPS Next 3Y27.16%
5. Dividend
5.1 Amount
FOUR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHIFT4 PAYMENTS INC-CLASS A
NYSE:FOUR (11/21/2024, 5:16:26 PM)
After market: 109.3 +0.02 (+0.02%)109.28
+7.38 (+7.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.12 | ||
| Fwd PE | 22.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 15.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.15% | ||
| PM (TTM) | 4.03% | ||
| GM | 28.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.92%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y35.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.37%
Revenue growth 3Y49.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y