SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOUR - US82452J1097 - Common Stock
66.88 USD
+0.79 (+1.2%)
66.88 USD
0 (0%)
Taking everything into account, FOUR scores 5 out of 10 in our fundamental rating. FOUR was compared to 98 industry peers in the Financial Services industry. While FOUR is still in line with the averages on profitability rating, there are concerns on its financial health. FOUR is growing strongly while it is still valued neutral. This is a good combination!
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
FOUR has a Return On Assets (1.87%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.06%, FOUR is in line with its industry, outperforming 58.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.95%, FOUR is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
FOUR had an Average Return On Invested Capital over the past 3 years of 5.43%. This is below the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 10.06% | ||
| ROIC | 4.95% |
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
FOUR has a Profit Margin of 4.33%. This is in the lower half of the industry: FOUR underperforms 63.27% of its industry peers.
FOUR has a Operating Margin (11.37%) which is in line with its industry peers.
In the last couple of years the Operating Margin of FOUR has grown nicely.
With a Gross Margin value of 32.61%, FOUR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
FOUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.37% | ||
| PM (TTM) | 4.33% | ||
| GM | 32.61% |
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
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
The debt/assets ratio for FOUR is higher compared to a year ago.
2.2 Solvency
FOUR has an Altman-Z score of 1.13. This is a bad value and indicates that FOUR is not financially healthy and even has some risk of bankruptcy.
FOUR's Altman-Z score of 1.13 is fine compared to the rest of the industry. FOUR outperforms 63.27% of its industry peers.
The Debt to FCF ratio of FOUR is 13.67, which is on the high side as it means it would take FOUR, 13.67 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 13.67, FOUR perfoms like the industry average, outperforming 43.88% of the companies in the same industry.
A Debt/Equity ratio of 2.41 is on the high side and indicates that FOUR has dependencies on debt financing.
The Debt to Equity ratio of FOUR (2.41) is worse than 72.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.69
WACC7.14%
2.3 Liquidity
A Current Ratio of 1.38 indicates that FOUR should not have too much problems paying its short term obligations.
The Current ratio of FOUR (1.38) is better than 65.31% of its industry peers.
FOUR has a Quick Ratio of 1.38. This is a normal value and indicates that FOUR is financially healthy and should not expect problems in meeting its short term obligations.
FOUR has a better Quick ratio (1.38) than 66.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.21% 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
The Revenue has grown by 23.16% in the past year. This is a very strong growth!
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)51.21%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%41.35%
Revenue 1Y (TTM)23.16%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%29.44%
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 20.91% on average per year.
Based on estimates for the next years, FOUR will show a quite strong growth in Revenue. The Revenue will grow by 16.45% on average per year.
EPS Next Y37.19%
EPS Next 2Y31.07%
EPS Next 3Y27.26%
EPS Next 5Y20.91%
Revenue Next Year21.24%
Revenue Next 2Y22.87%
Revenue Next 3Y20.22%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
FOUR is valuated correctly with a Price/Earnings ratio of 13.40.
FOUR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FOUR to the average of the S&P500 Index (27.19), we can say FOUR is valued rather cheaply.
FOUR is valuated reasonably with a Price/Forward Earnings ratio of 10.01.
The rest of the industry has a similar Price/Forward Earnings ratio as FOUR.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, FOUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
FOUR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FOUR is cheaper than 64.29% of the companies in the same industry.
63.27% of the companies in the same industry are more expensive than FOUR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.17 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
FOUR's 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 27.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y31.07%
EPS Next 3Y27.26%
5. Dividend
5.1 Amount
FOUR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
66.88
+0.79 (+1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners129.16%
Inst Owner Change-0.04%
Ins Owners0.94%
Ins Owner Change10.46%
Market Cap5.93B
Revenue(TTM)3.88B
Net Income(TTM)168.00M
Analysts80.69
Price Target96.26 (43.93%)
Short Float %20.12%
Short Ratio6.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-4.6%
Min EPS beat(2)-10.04%
Max EPS beat(2)0.85%
EPS beat(4)3
Avg EPS beat(4)13.41%
Min EPS beat(4)-10.04%
Max EPS beat(4)47%
EPS beat(8)4
Avg EPS beat(8)4.28%
EPS beat(12)8
Avg EPS beat(12)12.87%
EPS beat(16)11
Avg EPS beat(16)13.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-5.52%
Min Revenue beat(4)-13.55%
Max Revenue beat(4)-1.27%
Revenue beat(8)0
Avg Revenue beat(8)-6.52%
Revenue beat(12)1
Avg Revenue beat(12)-5.02%
Revenue beat(16)4
Avg Revenue beat(16)-3.32%
PT rev (1m)0.09%
PT rev (3m)-13.64%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-1.98%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 10.01 | ||
| P/S | 1.53 | ||
| P/FCF | 17.17 | ||
| P/OCF | 10.67 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.1 |
EPS(TTM)4.99
EY7.46%
EPS(NY)6.68
Fwd EY9.99%
FCF(TTM)3.89
FCFY5.82%
OCF(TTM)6.27
OCFY9.38%
SpS43.76
BVpS18.84
TBVpS-43.01
PEG (NY)0.36
PEG (5Y)N/A
Graham Number45.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 10.06% | ||
| ROCE | 6.27% | ||
| ROIC | 4.95% | ||
| ROICexc | 6.31% | ||
| ROICexgc | 886.29% | ||
| OM | 11.37% | ||
| PM (TTM) | 4.33% | ||
| GM | 32.61% | ||
| FCFM | 8.9% |
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-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 13.67 | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 55.1% | ||
| Cap/Sales | 5.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.51% | ||
| Profit Quality | 205.42% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 1.13 |
F-Score5
WACC7.14%
ROIC/WACC0.69
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)51.21%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%41.35%
EPS Next Y37.19%
EPS Next 2Y31.07%
EPS Next 3Y27.26%
EPS Next 5Y20.91%
Revenue 1Y (TTM)23.16%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%29.44%
Revenue Next Year21.24%
Revenue Next 2Y22.87%
Revenue Next 3Y20.22%
Revenue Next 5Y16.45%
EBIT growth 1Y75.45%
EBIT growth 3Y203.36%
EBIT growth 5Y93.23%
EBIT Next Year253.65%
EBIT Next 3Y73.19%
EBIT Next 5Y42.29%
FCF growth 1Y18.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.53%
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 for 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 4 / 10.
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 37.19% in the next year.