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

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

94.99  -3.9 (-3.94%)

After market: 95.1 +0.11 (+0.12%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to FOUR. FOUR was compared to 101 industry peers in the Financial Services industry. Both the profitability and the financial health of FOUR get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, FOUR is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year FOUR was profitable.
In the past year FOUR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FOUR reported negative net income in multiple years.
FOUR had a positive operating cash flow in 4 of the past 5 years.
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

Looking at the Return On Assets, with a value of 2.51%, FOUR is in line with its industry, outperforming 58.42% of the companies in the same industry.
FOUR has a Return On Equity of 15.63%. This is in the better half of the industry: FOUR outperforms 72.28% 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 68.32% 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 7.75%.
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 has a Profit Margin of 4.03%. This is in the lower half of the industry: FOUR underperforms 66.34% of its industry peers.
With a Operating Margin value of 8.03%, FOUR is not doing good in the industry: 61.39% of the companies in the same industry are doing better.
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 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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FOUR is destroying value.
There is no outstanding debt for FOUR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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 2.31. 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.
Looking at the Altman-Z score, with a value of 2.31, FOUR is in the better half of the industry, outperforming 78.22% of the companies in the same industry.
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 comparable to the rest of the industry.
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 2.31
ROIC/WACC0.34
WACC13.56%
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

A Current Ratio of 2.98 indicates that FOUR has no problem at all paying its short term obligations.
FOUR has a Current ratio of 2.98. This is amongst the best in the industry. FOUR outperforms 86.14% of its industry peers.
A Quick Ratio of 2.97 indicates that FOUR has no problem at all paying its short term obligations.
FOUR has a Quick ratio of 2.97. This is amongst the best in the industry. FOUR outperforms 87.13% of its industry peers.
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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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 37.46% over the past year.
The Earnings Per Share has been growing by 108.37% on average over the past years. This is a very strong growth
EPS 1Y (TTM)37.46%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%77.63%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-42.59%

3.2 Future

Based on estimates for the next years, FOUR will show a very strong growth in Earnings Per Share. The EPS will grow by 23.11% on average per year.
The Revenue is expected to grow by 21.15% on average over the next years. This is a very strong growth
EPS Next Y19.89%
EPS Next 2Y21.36%
EPS Next 3Y20.06%
EPS Next 5Y23.11%
Revenue Next Year30.38%
Revenue Next 2Y25.5%
Revenue Next 3Y19.85%
Revenue Next 5Y21.15%

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.
FOUR Yearly Revenue VS EstimatesFOUR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 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 2029 2030 0 2 4 6 8

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 24.42, the valuation of FOUR can be described as rather expensive.
FOUR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, FOUR is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.37, the valuation of FOUR can be described as rather expensive.
FOUR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FOUR to the average of the S&P500 Index (22.68), we can say FOUR is valued inline with the index average.
Industry RankSector Rank
PE 24.42
Fwd PE 20.37
FOUR Price Earnings VS Forward Price EarningsFOUR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 28.71
EV/EBITDA 19.55
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

FOUR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FOUR's earnings are expected to grow with 20.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y21.36%
EPS Next 3Y20.06%

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0

5. Dividend

5.1 Amount

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

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SHIFT4 PAYMENTS INC-CLASS A

NYSE:FOUR (2/21/2025, 8:20:21 PM)

After market: 95.1 +0.11 (+0.12%)

94.99

-3.9 (-3.94%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-18 2025-02-18/amc
Earnings (Next)05-07 2025-05-07/bmo
Inst Owners107.87%
Inst Owner Change8.58%
Ins Owners1.67%
Ins Owner Change-2.16%
Market Cap8.56B
Analysts81.38
Price Target124.85 (31.43%)
Short Float %10.46%
Short Ratio4.71
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)0.76%
PT rev (3m)19.66%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)-6.37%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)-5.18%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-2.38%
Valuation
Industry RankSector Rank
PE 24.42
Fwd PE 20.37
P/S 2.72
P/FCF 28.71
P/OCF 18.6
P/B 10.54
P/tB N/A
EV/EBITDA 19.55
EPS(TTM)3.89
EY4.1%
EPS(NY)4.66
Fwd EY4.91%
FCF(TTM)3.31
FCFY3.48%
OCF(TTM)5.11
OCFY5.38%
SpS34.95
BVpS9.01
TBVpS-15.7
PEG (NY)1.23
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 2.31
F-Score6
WACC13.56%
ROIC/WACC0.34
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)37.46%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%77.63%
EPS Next Y19.89%
EPS Next 2Y21.36%
EPS Next 3Y20.06%
EPS Next 5Y23.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-42.59%
Revenue Next Year30.38%
Revenue Next 2Y25.5%
Revenue Next 3Y19.85%
Revenue Next 5Y21.15%
EBIT growth 1Y65.08%
EBIT growth 3YN/A
EBIT growth 5Y53.51%
EBIT Next Year266.27%
EBIT Next 3Y77.12%
EBIT Next 5Y50.34%
FCF growth 1Y776.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y306.18%
OCF growth 3Y359.59%
OCF growth 5Y72.4%