SHIFT4 PAYMENTS INC-CLASS A (FOUR)
US82452J1097 - Common Stock
Taking everything into account, FOUR scores 5 out of 10 in our fundamental rating. FOUR was compared to 99 industry peers in the Financial Services industry. FOUR has only an average score on both its financial health and profitability. FOUR is valued quite expensive, but it does show an excellent growth.
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.
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 each of the past 5 years.
1.2 Ratios
FOUR's Return On Assets of 2.51% is in line compared to the rest of the industry. FOUR outperforms 57.58% of its industry peers.
Looking at the Return On Equity, with a value of 15.63%, FOUR is in the better half of the industry, outperforming 73.74% of the companies in the same industry.
FOUR has a better Return On Invested Capital (4.67%) than 69.70% of its industry peers.
FOUR had an Average Return On Invested Capital over the past 3 years of 3.16%. This is below the industry average of 7.84%.
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
FOUR has a worse Profit Margin (4.03%) than 65.66% of its industry peers.
Looking at the Operating Margin, with a value of 8.15%, FOUR is doing worse than 61.62% of the companies in the same industry.
FOUR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 28.01%, FOUR is in line with its industry, outperforming 50.51% of the companies in the same industry.
FOUR's Gross Margin has been stable in the last couple of years.
| 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
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
The number of shares outstanding for FOUR has been increased compared to 5 years ago.
Compared to 1 year ago, FOUR has an improved debt to assets ratio.
2.2 Solvency
FOUR has an Altman-Z score of 2.34. 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.
FOUR has a Altman-Z score of 2.34. This is in the better half of the industry: FOUR outperforms 79.80% of its industry peers.
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.
The Debt to FCF ratio of FOUR (9.52) 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.
FOUR has a worse Debt to Equity ratio (3.50) than 79.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 9.52 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.59
WACC7.93%
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 84.85% of its industry peers.
A Quick Ratio of 2.97 indicates that FOUR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.97, FOUR belongs to the top of the industry, outperforming 85.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.97 |
3. Growth
3.1 Past
FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.92%, which is quite impressive.
The Revenue has grown by 31.37% in the past year. This is a very strong growth!
FOUR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.54% yearly.
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%34.62%
3.2 Future
The Earnings Per Share is expected to grow by 18.74% on average over the next years. This is quite good.
Based on estimates for the next years, FOUR will show a very strong growth in Revenue. The Revenue will grow by 22.34% on average per year.
EPS Next Y32.54%
EPS Next 2Y29.05%
EPS Next 3Y25.78%
EPS Next 5Y18.74%
Revenue Next Year31.47%
Revenue Next 2Y30.84%
Revenue Next 3Y27.62%
Revenue Next 5Y22.34%
3.3 Evolution
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
With a Price/Earnings ratio of 31.37, FOUR can be considered very expensive at the moment.
FOUR's Price/Earnings ratio is a bit more expensive when compared to the industry. FOUR is more expensive than 64.65% of the companies in the same industry.
FOUR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 21.97, which indicates a rather expensive current valuation of FOUR.
Based on the Price/Forward Earnings ratio, FOUR is valued a bit more expensive than the industry average as 68.69% of the companies are valued more cheaply.
FOUR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.37 | ||
| Fwd PE | 21.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FOUR.
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 | 31.29 | ||
| EV/EBITDA | 19.81 |
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.
A more expensive valuation may be justified as FOUR's earnings are expected to grow with 25.78% in the coming years.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y29.05%
EPS Next 3Y25.78%
5. Dividend
5.1 Amount
No dividends for FOUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHIFT4 PAYMENTS INC-CLASS A
NYSE:FOUR (12/20/2024, 8:12:31 PM)
After market: 103.5 -0.02 (-0.02%)103.52
+2.26 (+2.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners107.87%
Inst Owner Change5.87%
Ins Owners1.67%
Ins Owner Change-1.58%
Market Cap9.33B
Analysts83.23
Price Target115.44 (11.51%)
Short Float %11.57%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)17.58%
PT rev (3m)27.55%
EPS NQ rev (1m)-7.63%
EPS NQ rev (3m)-7.63%
EPS NY rev (1m)-1.95%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)-5.64%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-3.09%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.37 | ||
| Fwd PE | 21.97 | ||
| P/S | 2.96 | ||
| P/FCF | 31.29 | ||
| P/OCF | 20.27 | ||
| P/B | 11.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.81 |
EPS(TTM)3.3
EY3.19%
EPS(NY)4.71
Fwd EY4.55%
FCF(TTM)3.31
FCFY3.2%
OCF(TTM)5.11
OCFY4.93%
SpS34.95
BVpS9.01
TBVpS-15.7
PEG (NY)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 15.63% | ||
| ROCE | 5.91% | ||
| ROIC | 4.67% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 29.3% | ||
| OM | 8.15% | ||
| 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)3.16%
ROIC(5y)N/A
ROICexc(3y)4.27%
ROICexc(5y)N/A
ROICexgc(3y)38.85%
ROICexgc(5y)N/A
ROCE(3y)4%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y22.39%
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%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.5 | ||
| Debt/FCF | 9.52 | ||
| Debt/EBITDA | 5.34 | ||
| Cap/Depr | 58.95% | ||
| Cap/Sales | 5.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.54% | ||
| Profit Quality | 234.91% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.97 | ||
| Altman-Z | 2.34 |
F-Score6
WACC7.93%
ROIC/WACC0.59
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)29.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.83%
EPS Next Y32.54%
EPS Next 2Y29.05%
EPS Next 3Y25.78%
EPS Next 5Y18.74%
Revenue 1Y (TTM)31.37%
Revenue growth 3Y49.54%
Revenue growth 5Y35.54%
Sales Q2Q%34.62%
Revenue Next Year31.47%
Revenue Next 2Y30.84%
Revenue Next 3Y27.62%
Revenue Next 5Y22.34%
EBIT growth 1Y67.62%
EBIT growth 3YN/A
EBIT growth 5Y57.27%
EBIT Next Year265.68%
EBIT Next 3Y76.83%
EBIT Next 5Y48.54%
FCF growth 1Y776.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y306.18%
OCF growth 3Y359.59%
OCF growth 5Y72.4%