Despite its growth, NYSE:FOUR remains within the realm of affordability.

Take a closer look at SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR), an affordable growth stock uncovered by our stock screener. NYSE:FOUR boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

How We Gauge Growth for NYSE:FOUR

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:FOUR has received a 8 out of 10:

• FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 163.41%, which is quite impressive.
• Looking at the last year, FOUR shows a very strong growth in Revenue. The Revenue has grown by 34.59%.
• The Revenue has been growing by 39.69% on average over the past years. This is a very strong growth!
• FOUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.86% yearly.
• FOUR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.47% yearly.

Deciphering NYSE:FOUR's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:FOUR scores a 5 out of 10:

• FOUR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 18.74.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FOUR indicates a somewhat cheap valuation: FOUR is cheaper than 60.40% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, FOUR is valued a bit cheaper than 62.38% of the companies in the same industry.
• The 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 46.49% in the coming years.

ChartMill's Evaluation of Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:FOUR, the assigned 6 reflects its health status:

• FOUR has a Altman-Z score of 2.28. This is amongst the best in the industry. FOUR outperforms 82.18% of its industry peers.
• The Debt to FCF ratio of FOUR (6.84) is better than 61.39% of its industry peers.
• FOUR has a Current Ratio of 3.24. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 3.24, FOUR belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
• FOUR has a Quick Ratio of 3.23. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
• FOUR has a better Quick ratio (3.23) than 87.13% of its industry peers.

Profitability Analysis for NYSE:FOUR

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:FOUR has achieved a 5:

• FOUR's Return On Assets of 4.33% is fine compared to the rest of the industry. FOUR outperforms 78.22% of its industry peers.
• FOUR's Return On Equity of 31.47% is amongst the best of the industry. FOUR outperforms 93.07% of its industry peers.
• FOUR's Return On Invested Capital of 4.44% is fine compared to the rest of the industry. FOUR outperforms 77.23% of its industry peers.
• In the last couple of years the Operating Margin of FOUR has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of FOUR contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.