FISERV INC (FI) Stock Fundamental Analysis
NYSE:FI - New York Stock Exchange, Inc. - US3377381088 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FI. FI was compared to 99 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 correct valuation and a medium growth rate.
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.
Each year in the past 5 years FI has been profitable.
Each year in the past 5 years FI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FI (4.04%) is better than 71.72% of its industry peers.
FI has a Return On Equity of 12.54%. This is in the better half of the industry: FI outperforms 65.66% of its industry peers.
FI has a Return On Invested Capital of 8.85%. This is in the better half of the industry: FI outperforms 79.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FI is below the industry average of 11.83%.
The last Return On Invested Capital (8.85%) for FI is above the 3 year average (7.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 12.54% | ||
| ROIC | 8.85% |
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 15.68%, FI is doing good in the industry, outperforming 68.69% of the companies in the same industry.
In the last couple of years the Profit Margin of FI has grown nicely.
The Operating Margin of FI (29.33%) is better than 71.72% of its industry peers.
FI's Operating Margin has improved in the last couple of years.
The Gross Margin of FI (60.97%) is better than 75.76% of its industry peers.
In the last couple of years the Gross Margin of FI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.33% | ||
| PM (TTM) | 15.68% | ||
| GM | 60.97% |
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.
FI has less shares outstanding than it did 1 year ago.
FI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.99 indicates that FI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.99, FI is in the better half of the industry, outperforming 73.74% of the companies in the same industry.
FI has a debt to FCF ratio of 5.70. This is a neutral value as FI would need 5.70 years to pay back of all of its debts.
FI's Debt to FCF ratio of 5.70 is fine compared to the rest of the industry. FI outperforms 63.64% of its industry peers.
FI has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.04, FI perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.09
WACC8.12%
2.3 Liquidity
FI has a Current Ratio of 1.10. This is a normal value and indicates that FI is financially healthy and should not expect problems in meeting its short term obligations.
FI has a Current ratio (1.10) which is in line with its industry peers.
FI has a Quick Ratio of 1.10. 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 Quick ratio of 1.10 is in line compared to the rest of the industry. FI outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.82% over the past year.
Measured over the past years, FI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.28% on average per year.
The Revenue has been growing slightly by 6.56% in the past year.
Measured over the past years, FI shows a quite strong growth in Revenue. The Revenue has been growing by 14.96% on average per year.
EPS 1Y (TTM)15.82%
EPS 3Y16.49%
EPS 5Y18.28%
EPS Q2Q%13.83%
Revenue 1Y (TTM)6.56%
Revenue growth 3Y8.03%
Revenue growth 5Y14.96%
Sales Q2Q%5.41%
3.2 Future
FI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.35% yearly.
FI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.60% yearly.
EPS Next Y19.23%
EPS Next 2Y17.97%
EPS Next 3Y17.3%
EPS Next 5Y16.35%
Revenue Next Year8.8%
Revenue Next 2Y8.64%
Revenue Next 3Y8.69%
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
Based on the Price/Earnings ratio of 17.95, the valuation of FI can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as FI.
When comparing the Price/Earnings ratio of FI to the average of the S&P500 Index (26.31), we can say FI is valued slightly cheaper.
FI is valuated correctly with a Price/Forward Earnings ratio of 13.28.
The rest of the industry has a similar Price/Forward Earnings ratio as FI.
FI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 13.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FI is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FI is valued a bit cheaper than 62.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.21 | ||
| EV/EBITDA | 13.13 |
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.
The decent profitability rating of FI may justify a higher PE ratio.
FI's earnings are expected to grow with 17.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)0.98
EPS Next 2Y17.97%
EPS Next 3Y17.3%
5. Dividend
5.1 Amount
No dividends for FI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
163.02
-5 (-2.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners92.74%
Inst Owner Change226.69%
Ins Owners0.13%
Ins Owner Change0.22%
Market Cap90.38B
Analysts83.64
Price Target224.53 (37.73%)
Short Float %1.33%
Short Ratio1.41
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)-0.81%
Min EPS beat(2)-1.7%
Max EPS beat(2)0.09%
EPS beat(4)1
Avg EPS beat(4)-1.08%
Min EPS beat(4)-1.7%
Max EPS beat(4)0.09%
EPS beat(8)2
Avg EPS beat(8)-0.86%
EPS beat(12)2
Avg EPS beat(12)-1.77%
EPS beat(16)4
Avg EPS beat(16)-1.28%
Revenue beat(2)0
Avg Revenue beat(2)-4.01%
Min Revenue beat(2)-4.07%
Max Revenue beat(2)-3.95%
Revenue beat(4)0
Avg Revenue beat(4)-3.69%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)-3.31%
Revenue beat(8)0
Avg Revenue beat(8)-3.58%
Revenue beat(12)4
Avg Revenue beat(12)-0.93%
Revenue beat(16)8
Avg Revenue beat(16)0.22%
PT rev (1m)-9.32%
PT rev (3m)-11.98%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 13.28 | ||
| P/S | 4.37 | ||
| P/FCF | 18.21 | ||
| P/OCF | 14.02 | ||
| P/B | 3.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.13 |
EPS(TTM)9.08
EY5.57%
EPS(NY)12.28
Fwd EY7.53%
FCF(TTM)8.95
FCFY5.49%
OCF(TTM)11.63
OCFY7.13%
SpS37.34
BVpS46.69
TBVpS-38.96
PEG (NY)0.93
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 12.54% | ||
| ROCE | 10.63% | ||
| ROIC | 8.85% | ||
| ROICexc | 9.04% | ||
| ROICexgc | 59.83% | ||
| OM | 29.33% | ||
| PM (TTM) | 15.68% | ||
| GM | 60.97% | ||
| FCFM | 23.98% |
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 | 1.04 | ||
| Debt/FCF | 5.7 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 48.04% | ||
| Cap/Sales | 7.17% | ||
| Interest Coverage | 4.77 | ||
| Cash Conversion | 70.38% | ||
| Profit Quality | 152.88% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.99 |
F-Score8
WACC8.12%
ROIC/WACC1.09
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)15.82%
EPS 3Y16.49%
EPS 5Y18.28%
EPS Q2Q%13.83%
EPS Next Y19.23%
EPS Next 2Y17.97%
EPS Next 3Y17.3%
EPS Next 5Y16.35%
Revenue 1Y (TTM)6.56%
Revenue growth 3Y8.03%
Revenue growth 5Y14.96%
Sales Q2Q%5.41%
Revenue Next Year8.8%
Revenue Next 2Y8.64%
Revenue Next 3Y8.69%
Revenue Next 5Y7.6%
EBIT growth 1Y19.03%
EBIT growth 3Y36.67%
EBIT growth 5Y29.06%
EBIT Next Year37.17%
EBIT Next 3Y18.07%
EBIT Next 5Y13.21%
FCF growth 1Y44.05%
FCF growth 3Y20.77%
FCF growth 5Y19.54%
OCF growth 1Y30.71%
OCF growth 3Y18.02%
OCF growth 5Y18.86%