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 100 industry peers in the Financial Services industry. While FI has a great profitability rating, there are some minor concerns on its financial health. FI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FI was profitable.
FI had a positive operating cash flow in the past year.
Each year in the past 5 years FI has been profitable.
FI 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 4.04%, FI is in the better half of the industry, outperforming 71.00% of the companies in the same industry.
FI has a Return On Equity of 12.54%. This is in the better half of the industry: FI outperforms 66.00% 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 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FI is below the industry average of 11.84%.
The 3 year average ROIC (7.07%) for FI is below the current ROIC(8.85%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 15.68%, FI is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
FI's Profit Margin has improved in the last couple of years.
FI has a Operating Margin of 29.33%. This is in the better half of the industry: FI outperforms 72.00% of its industry peers.
FI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.97%, FI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
FI's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FI is 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 an Altman-Z score of 1.99. This is not the best score and indicates that FI is in the grey zone with still 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 72.00% 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 has a better Debt to FCF ratio (5.70) than 64.00% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that FI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.04, FI is in line with its industry, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.08
WACC8.17%
2.3 Liquidity
A Current Ratio of 1.10 indicates that FI should not have too much problems paying its short term obligations.
FI has a Current ratio (1.10) which is in line with its industry peers.
A Quick Ratio of 1.10 indicates that FI should not have too much problems paying its short term obligations.
FI has a Quick ratio (1.10) which is comparable to the rest of the industry.
| 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.
Looking at the last year, FI shows a small growth in Revenue. The Revenue has grown by 6.56% in the last year.
The Revenue has been growing by 14.96% on average over the past years. This is quite good.
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 Y19.09%
EPS Next 2Y17.73%
EPS Next 3Y16.81%
EPS Next 5Y16.35%
Revenue Next Year8.44%
Revenue Next 2Y8.42%
Revenue Next 3Y8.34%
Revenue Next 5Y7.6%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 rather expensively with a Price/Earnings ratio of 18.43.
FI's Price/Earnings ratio is in line with the industry average.
FI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.69, which indicates a correct valuation of FI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, FI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
62.00% of the companies in the same industry are more expensive than FI, based on the Enterprise Value to EBITDA ratio.
FI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FI is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 13.09 |
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.
A more expensive valuation may be justified as FI's earnings are expected to grow with 16.81% in the coming years.
PEG (NY)0.97
PEG (5Y)1.01
EPS Next 2Y17.73%
EPS Next 3Y16.81%
5. Dividend
5.1 Amount
No dividends for FI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
167.35
+1.64 (+0.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners93.25%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change0.22%
Market Cap92.78B
Analysts83.48
Price Target225.85 (34.96%)
Short Float %1.31%
Short Ratio1.37
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)0.59%
PT rev (3m)-11.36%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 13.69 | ||
| P/S | 4.48 | ||
| P/FCF | 18.69 | ||
| P/OCF | 14.39 | ||
| P/B | 3.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.09 |
EPS(TTM)9.08
EY5.43%
EPS(NY)12.23
Fwd EY7.31%
FCF(TTM)8.95
FCFY5.35%
OCF(TTM)11.63
OCFY6.95%
SpS37.34
BVpS46.69
TBVpS-38.96
PEG (NY)0.97
PEG (5Y)1.01
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
WACC8.17%
ROIC/WACC1.08
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 Y19.09%
EPS Next 2Y17.73%
EPS Next 3Y16.81%
EPS Next 5Y16.35%
Revenue 1Y (TTM)6.56%
Revenue growth 3Y8.03%
Revenue growth 5Y14.96%
Sales Q2Q%5.41%
Revenue Next Year8.44%
Revenue Next 2Y8.42%
Revenue Next 3Y8.34%
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%