FISERV INC (FI) Stock Fundamental Analysis
NYSE:FI - New York Stock Exchange, Inc. - US3377381088 - Common Stock - Currency: USD
Overall FI gets a fundamental rating of 5 out of 10. We evaluated FI against 101 industry peers in the Financial Services industry. While FI has a great profitability rating, there are some minor concerns on its financial health. FI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FI had positive earnings in the past year.
FI had a positive operating cash flow in the past year.
FI had positive earnings in each of the past 5 years.
Each year in the past 5 years FI had a positive operating cash flow.
1.2 Ratios
FI has a Return On Assets of 4.14%. This is in the better half of the industry: FI outperforms 72.28% of its industry peers.
Looking at the Return On Equity, with a value of 13.40%, FI is in the better half of the industry, outperforming 68.32% of the companies in the same industry.
FI's Return On Invested Capital of 9.23% is amongst the best of the industry. FI outperforms 81.19% of its industry peers.
FI had an Average Return On Invested Capital over the past 3 years of 7.07%. This is in line with the industry average of 7.76%.
The last Return On Invested Capital (9.23%) for FI is above the 3 year average (7.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 13.4% | ||
| ROIC | 9.23% |
ROA(3y)3.48%
ROA(5y)2.7%
ROE(3y)10.02%
ROE(5y)7.46%
ROIC(3y)7.07%
ROIC(5y)5.33%
1.3 Margins
With a decent Profit Margin value of 16.01%, FI is doing good in the industry, outperforming 68.32% of the companies in the same industry.
In the last couple of years the Profit Margin of FI has grown nicely.
With a decent Operating Margin value of 30.05%, FI is doing good in the industry, outperforming 73.27% of the companies in the same industry.
FI's Operating Margin has improved in the last couple of years.
FI has a Gross Margin of 61.14%. This is in the better half of the industry: FI outperforms 74.26% of its industry peers.
In the last couple of years the Gross Margin of FI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.05% | ||
| PM (TTM) | 16.01% | ||
| GM | 61.14% |
OM growth 3Y26.51%
OM growth 5Y12.26%
PM growth 3Y23.02%
PM growth 5Y11.79%
GM growth 3Y6.82%
GM growth 5Y4.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FI is still creating some value.
The number of shares outstanding for FI has been reduced compared to 1 year ago.
Compared to 5 years ago, FI has less shares outstanding
FI has a worse debt/assets ratio than last year.
2.2 Solvency
FI has a debt to FCF ratio of 5.74. This is a neutral value as FI would need 5.74 years to pay back of all of its debts.
FI has a Debt to FCF ratio of 5.74. This is in the better half of the industry: FI outperforms 64.36% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that FI has dependencies on debt financing.
FI has a Debt to Equity ratio (1.11) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | N/A |
ROIC/WACC1.2
WACC7.69%
2.3 Liquidity
FI has a Current Ratio of 1.09. This is a normal value and indicates that FI is financially healthy and should not expect problems in meeting its short term obligations.
FI's Current ratio of 1.09 is in line compared to the rest of the industry. FI outperforms 50.49% of its industry peers.
A Quick Ratio of 1.09 indicates that FI should not have too much problems paying its short term obligations.
FI has a Quick ratio (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.44% over the past year.
The Earnings Per Share has been growing by 18.28% on average over the past years. This is quite good.
FI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.73%.
The Revenue has been growing by 14.96% on average over the past years. This is quite good.
EPS 1Y (TTM)15.44%
EPS 3Y16.49%
EPS 5Y18.28%
EPS Q2Q%15.96%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y8.03%
Revenue growth 5Y14.96%
Sales Q2Q%8.39%
3.2 Future
Based on estimates for the next years, FI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.35% on average per year.
FI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.60% yearly.
EPS Next Y19.09%
EPS Next 2Y17.73%
EPS Next 3Y16.81%
EPS Next 5Y16.35%
Revenue Next Year8.36%
Revenue Next 2Y8.22%
Revenue Next 3Y8%
Revenue Next 5Y7.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FI is valuated correctly with a Price/Earnings ratio of 14.09.
FI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.54. FI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.85, the valuation of FI can be described as very reasonable.
FI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, FI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
FI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FI is cheaper than 65.35% of the companies in the same industry.
68.32% of the companies in the same industry are more expensive than FI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.99 | ||
| EV/EBITDA | 10.66 |
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.
FI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FI's earnings are expected to grow with 16.81% in the coming years.
PEG (NY)0.74
PEG (5Y)0.77
EPS Next 2Y17.73%
EPS Next 3Y16.81%
5. Dividend
5.1 Amount
FI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
132.7
-1.34 (-1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners93.25%
Inst Owner Change2.95%
Ins Owners0.11%
Ins Owner Change0.22%
Market Cap72.13B
Analysts83.48
Price Target219.57 (65.46%)
Short Float %1.14%
Short Ratio1.01
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)-0.62%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.09%
EPS beat(4)1
Avg EPS beat(4)-1.04%
Min EPS beat(4)-1.7%
Max EPS beat(4)0.09%
EPS beat(8)2
Avg EPS beat(8)-0.77%
EPS beat(12)2
Avg EPS beat(12)-1.65%
EPS beat(16)3
Avg EPS beat(16)-1.6%
Revenue beat(2)0
Avg Revenue beat(2)-3.42%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)-2.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.56%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)-2.9%
Revenue beat(8)0
Avg Revenue beat(8)-3.48%
Revenue beat(12)3
Avg Revenue beat(12)-1.67%
Revenue beat(16)7
Avg Revenue beat(16)-0.3%
PT rev (1m)-2.78%
PT rev (3m)-11.32%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 10.85 | ||
| P/S | 3.42 | ||
| P/FCF | 13.99 | ||
| P/OCF | 10.65 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.66 |
EPS(TTM)9.42
EY7.1%
EPS(NY)12.23
Fwd EY9.21%
FCF(TTM)9.49
FCFY7.15%
OCF(TTM)12.46
OCFY9.39%
SpS38.84
BVpS46.39
TBVpS-41.7
PEG (NY)0.74
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 13.4% | ||
| ROCE | 11.09% | ||
| ROIC | 9.23% | ||
| ROICexc | 9.39% | ||
| ROICexgc | 63.37% | ||
| OM | 30.05% | ||
| PM (TTM) | 16.01% | ||
| GM | 61.14% | ||
| FCFM | 24.43% |
ROA(3y)3.48%
ROA(5y)2.7%
ROE(3y)10.02%
ROE(5y)7.46%
ROIC(3y)7.07%
ROIC(5y)5.33%
ROICexc(3y)7.22%
ROICexc(5y)5.43%
ROICexgc(3y)52.66%
ROICexgc(5y)40.98%
ROCE(3y)8.53%
ROCE(5y)6.42%
ROICexcg growth 3Y34.49%
ROICexcg growth 5Y29.52%
ROICexc growth 3Y39.63%
ROICexc growth 5Y32.38%
OM growth 3Y26.51%
OM growth 5Y12.26%
PM growth 3Y23.02%
PM growth 5Y11.79%
GM growth 3Y6.82%
GM growth 5Y4.7%
F-Score8
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.74 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 52% | ||
| Cap/Sales | 7.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.66% | ||
| Profit Quality | 152.62% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | N/A |
F-Score8
WACC7.69%
ROIC/WACC1.2
Cap/Depr(3y)47.28%
Cap/Depr(5y)41.23%
Cap/Sales(3y)7.76%
Cap/Sales(5y)7.3%
Profit Quality(3y)136.25%
Profit Quality(5y)192.63%
High Growth Momentum
Growth
EPS 1Y (TTM)15.44%
EPS 3Y16.49%
EPS 5Y18.28%
EPS Q2Q%15.96%
EPS Next Y19.09%
EPS Next 2Y17.73%
EPS Next 3Y16.81%
EPS Next 5Y16.35%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y8.03%
Revenue growth 5Y14.96%
Sales Q2Q%8.39%
Revenue Next Year8.36%
Revenue Next 2Y8.22%
Revenue Next 3Y8%
Revenue Next 5Y7.6%
EBIT growth 1Y17.5%
EBIT growth 3Y36.67%
EBIT growth 5Y29.06%
EBIT Next Year37.17%
EBIT Next 3Y18.07%
EBIT Next 5Y13.21%
FCF growth 1Y52.53%
FCF growth 3Y20.77%
FCF growth 5Y19.54%
OCF growth 1Y40.47%
OCF growth 3Y18.02%
OCF growth 5Y18.86%