SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
NYSE:FOUR - New York Stock Exchange, Inc. - US82452J1097 - Common Stock - Currency: USD
Taking everything into account, FOUR scores 5 out of 10 in our fundamental rating. FOUR was compared to 100 industry peers in the Financial Services industry. FOUR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
FOUR had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 4.48%, FOUR is in the better half of the industry, outperforming 73.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.82%, FOUR belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.41%, FOUR is doing good in the industry, outperforming 74.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FOUR is significantly below the industry average of 11.84%.
The 3 year average ROIC (5.00%) for FOUR is below the current ROIC(7.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 27.82% | ||
| ROIC | 7.41% |
ROA(3y)3.33%
ROA(5y)1.36%
ROE(3y)21%
ROE(5y)8.17%
ROIC(3y)5%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 6.45%, FOUR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
With a Operating Margin value of 9.86%, FOUR is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
FOUR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.02%, FOUR is in line with its industry, outperforming 49.00% of the companies in the same industry.
FOUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.86% | ||
| PM (TTM) | 6.45% | ||
| GM | 30.02% |
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
FOUR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FOUR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FOUR has been increased compared to 5 years ago.
Compared to 1 year ago, FOUR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.25 indicates that FOUR is not a great score, but indicates only limited risk for bankruptcy at the moment.
FOUR's Altman-Z score of 2.25 is fine compared to the rest of the industry. FOUR outperforms 77.00% of its industry peers.
FOUR has a debt to FCF ratio of 7.97. This is a slightly negative value and a sign of low solvency as FOUR would need 7.97 years to pay back of all of its debts.
FOUR has a Debt to FCF ratio of 7.97. This is comparable to the rest of the industry: FOUR outperforms 56.00% of its industry peers.
A Debt/Equity ratio of 2.68 is on the high side and indicates that FOUR has dependencies on debt financing.
FOUR has a worse Debt to Equity ratio (2.68) than 69.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 2.25 |
ROIC/WACC1
WACC7.41%
2.3 Liquidity
FOUR has a Current Ratio of 1.36. 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 1.36, FOUR is in the better half of the industry, outperforming 63.00% of the companies in the same industry.
FOUR has a Quick Ratio of 1.36. 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 Quick ratio, with a value of 1.36, FOUR is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.55%, which is quite impressive.
The Earnings Per Share has been growing by 108.37% on average over the past years. This is a very strong growth
FOUR shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.39%.
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)54.55%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%98.15%
Revenue 1Y (TTM)27.39%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%19.92%
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 Y37.47%
EPS Next 2Y28.57%
EPS Next 3Y24.18%
EPS Next 5Y20.91%
Revenue Next Year16.35%
Revenue Next 2Y18.64%
Revenue Next 3Y15.27%
Revenue Next 5Y16.45%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 23.03, the valuation of FOUR can be described as rather expensive.
Based on the Price/Earnings ratio, FOUR is valued a bit more expensive than 63.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. FOUR is around the same levels.
The Price/Forward Earnings ratio is 15.83, which indicates a correct valuation of FOUR.
FOUR's Price/Forward Earnings ratio is in line with the industry average.
FOUR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.03 | ||
| Fwd PE | 15.83 |
4.2 Price Multiples
FOUR's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 25.29 | ||
| EV/EBITDA | 16.26 |
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 24.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y28.57%
EPS Next 3Y24.18%
5. Dividend
5.1 Amount
No dividends for FOUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.8
+3.26 (+3.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners120.88%
Inst Owner Change4%
Ins Owners1.77%
Ins Owner Change5.36%
Market Cap9.02B
Analysts82.07
Price Target115.14 (13.1%)
Short Float %17.46%
Short Ratio6.4
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)2
Avg EPS beat(2)31.42%
Min EPS beat(2)15.85%
Max EPS beat(2)47%
EPS beat(4)3
Avg EPS beat(4)16.78%
Min EPS beat(4)-4.53%
Max EPS beat(4)47%
EPS beat(8)5
Avg EPS beat(8)12.36%
EPS beat(12)9
Avg EPS beat(12)16.39%
EPS beat(16)12
Avg EPS beat(16)17.39%
Revenue beat(2)0
Avg Revenue beat(2)-8.87%
Min Revenue beat(2)-13.55%
Max Revenue beat(2)-4.2%
Revenue beat(4)0
Avg Revenue beat(4)-7.83%
Min Revenue beat(4)-13.55%
Max Revenue beat(4)-4.2%
Revenue beat(8)0
Avg Revenue beat(8)-6.81%
Revenue beat(12)2
Avg Revenue beat(12)-4.56%
Revenue beat(16)5
Avg Revenue beat(16)-2.87%
PT rev (1m)-0.42%
PT rev (3m)-12.18%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)10.2%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)14.66%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.03 | ||
| Fwd PE | 15.83 | ||
| P/S | 2.6 | ||
| P/FCF | 25.29 | ||
| P/OCF | 16.7 | ||
| P/B | 11.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.26 |
EPS(TTM)4.42
EY4.34%
EPS(NY)6.43
Fwd EY6.32%
FCF(TTM)4.03
FCFY3.95%
OCF(TTM)6.1
OCFY5.99%
SpS39.17
BVpS9.09
TBVpS-18.47
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 27.82% | ||
| ROCE | 9.38% | ||
| ROIC | 7.41% | ||
| ROICexc | 10.9% | ||
| ROICexgc | 715.18% | ||
| OM | 9.86% | ||
| PM (TTM) | 6.45% | ||
| GM | 30.02% | ||
| FCFM | 10.28% |
ROA(3y)3.33%
ROA(5y)1.36%
ROE(3y)21%
ROE(5y)8.17%
ROIC(3y)5%
ROIC(5y)N/A
ROICexc(3y)6.99%
ROICexc(5y)N/A
ROICexgc(3y)647.63%
ROICexgc(5y)N/A
ROCE(3y)6.33%
ROCE(5y)N/A
ROICexcg growth 3Y605.46%
ROICexcg 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-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 7.97 | ||
| Debt/EBITDA | 3.28 | ||
| Cap/Depr | 58.12% | ||
| Cap/Sales | 5.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.11% | ||
| Profit Quality | 159.24% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.25 |
F-Score6
WACC7.41%
ROIC/WACC1
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)54.55%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%98.15%
EPS Next Y37.47%
EPS Next 2Y28.57%
EPS Next 3Y24.18%
EPS Next 5Y20.91%
Revenue 1Y (TTM)27.39%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%19.92%
Revenue Next Year16.35%
Revenue Next 2Y18.64%
Revenue Next 3Y15.27%
Revenue Next 5Y16.45%
EBIT growth 1Y79.63%
EBIT growth 3Y203.36%
EBIT growth 5Y93.23%
EBIT Next Year208.95%
EBIT Next 3Y62.61%
EBIT Next 5Y42.29%
FCF growth 1Y69.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.73%
OCF growth 3Y450.43%
OCF growth 5Y79.7%