SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOUR - US82452J1097 - Common Stock
70.15 USD
+0.53 (+0.76%)
70.15 USD
0 (0%)
Overall FOUR gets a fundamental rating of 5 out of 10. We evaluated FOUR against 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year FOUR was profitable.
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.
In the past 5 years FOUR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.87%, FOUR perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
FOUR has a Return On Equity (10.06%) which is in line with its industry peers.
The Return On Invested Capital of FOUR (4.95%) is better than 66.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FOUR is below the industry average of 8.20%.
| 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.
The Operating Margin of FOUR (11.37%) is comparable to the rest of the industry.
FOUR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.61%, FOUR perfoms like the industry average, outperforming 51.02% of the companies in the same industry.
In the last couple of years the Gross Margin of FOUR has grown nicely.
| 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
FOUR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that FOUR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FOUR (1.15) is better than 61.22% 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.
FOUR's Debt to FCF ratio of 13.67 is in line compared to the rest of the industry. FOUR outperforms 44.90% of its industry peers.
FOUR has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
FOUR has a worse Debt to Equity ratio (2.41) than 72.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.76
WACC6.56%
2.3 Liquidity
FOUR has a Current 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.
Looking at the Current ratio, with a value of 1.38, FOUR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that FOUR should not have too much problems paying its short term obligations.
The Quick ratio of FOUR (1.38) is better than 65.31% 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.
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 23.16%.
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
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 Y36.95%
EPS Next 2Y29.4%
EPS Next 3Y26.71%
EPS Next 5Y20.91%
Revenue Next Year21.9%
Revenue Next 2Y24.15%
Revenue Next 3Y20.76%
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
With a Price/Earnings ratio of 14.06, FOUR is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as FOUR.
The average S&P500 Price/Earnings ratio is at 25.98. FOUR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.77, the valuation of FOUR can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as FOUR.
The average S&P500 Price/Forward Earnings ratio is at 35.79. FOUR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOUR is valued a bit cheaper than the industry average as 61.22% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FOUR is valued a bit cheaper than the industry average as 61.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.01 | ||
| EV/EBITDA | 11.39 |
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 26.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y29.4%
EPS Next 3Y26.71%
5. Dividend
5.1 Amount
FOUR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.15
+0.53 (+0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners133.52%
Inst Owner Change-1.7%
Ins Owners2.36%
Ins Owner Change9.81%
Market Cap6.22B
Revenue(TTM)3.88B
Net Income(TTM)168.00M
Analysts80.71
Price Target97.42 (38.87%)
Short Float %18.69%
Short Ratio5.28
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)-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)-12.6%
PT rev (3m)-17.32%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)5.32%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 10.77 | ||
| P/S | 1.6 | ||
| P/FCF | 18.01 | ||
| P/OCF | 11.19 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.39 |
EPS(TTM)4.99
EY7.11%
EPS(NY)6.51
Fwd EY9.29%
FCF(TTM)3.89
FCFY5.55%
OCF(TTM)6.27
OCFY8.94%
SpS43.76
BVpS18.84
TBVpS-43.01
PEG (NY)0.38
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 | 1.15 |
F-Score5
WACC6.56%
ROIC/WACC0.76
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 Y36.95%
EPS Next 2Y29.4%
EPS Next 3Y26.71%
EPS Next 5Y20.91%
Revenue 1Y (TTM)23.16%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%29.44%
Revenue Next Year21.9%
Revenue Next 2Y24.15%
Revenue Next 3Y20.76%
Revenue Next 5Y16.45%
EBIT growth 1Y75.45%
EBIT growth 3Y203.36%
EBIT growth 5Y93.23%
EBIT Next Year255.68%
EBIT Next 3Y74.64%
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 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 4 / 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 14.06 and the Price/Book (PB) ratio is 3.72.
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 36.95% in the next year.