FISERV INC (FI)
US3377381088 - Common Stock
Overall FI gets a fundamental rating of 5 out of 10. We evaluated FI against 102 industry peers in the Financial Services industry. Both the profitability and the financial health of FI get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years FI has always been profitable.
FI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FI has a better Return On Assets (3.50%) than 71.57% of its industry peers.
FI has a Return On Equity (11.25%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.12%, FI is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FI is below the industry average of 7.99%.
The 3 year average ROIC (5.06%) for FI is below the current ROIC(7.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 11.25% | ||
| ROIC | 7.12% |
ROA(3y)2.71%
ROA(5y)2.12%
ROE(3y)7.6%
ROE(5y)5.69%
ROIC(3y)5.06%
ROIC(5y)3.88%
1.3 Margins
With a decent Profit Margin value of 16.68%, FI is doing good in the industry, outperforming 71.57% of the companies in the same industry.
In the last couple of years the Profit Margin of FI has declined.
FI has a Operating Margin of 26.26%. This is in the better half of the industry: FI outperforms 72.55% of its industry peers.
In the last couple of years the Operating Margin of FI has remained more or less at the same level.
FI has a better Gross Margin (60.52%) than 74.51% of its industry peers.
FI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.26% | ||
| PM (TTM) | 16.68% | ||
| GM | 60.52% |
OM growth 3Y35.61%
OM growth 5Y-0.63%
PM growth 3Y35.56%
PM growth 5Y-4.65%
GM growth 3Y8.07%
GM growth 5Y4.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FI is destroying value.
Compared to 1 year ago, FI has less shares outstanding
FI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that FI is in the distress zone and has some risk of bankruptcy.
FI's Altman-Z score of 1.56 is fine compared to the rest of the industry. FI outperforms 67.65% of its industry peers.
The Debt to FCF ratio of FI is 7.20, which is on the high side as it means it would take FI, 7.20 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.20, FI perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that FI is somewhat dependend on debt financing.
FI's Debt to Equity ratio of 0.84 is in line compared to the rest of the industry. FI outperforms 44.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.9
WACC7.93%
2.3 Liquidity
FI has a Current Ratio of 1.06. 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 of 1.06. This is comparable to the rest of the industry: FI outperforms 47.06% of its industry peers.
FI has a Quick Ratio of 1.06. This is a normal value and indicates that FI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.06, FI is in line with its industry, outperforming 50.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.37% over the past year.
The Earnings Per Share has been growing by 19.45% on average over the past years. This is quite good.
Looking at the last year, FI shows a small growth in Revenue. The Revenue has grown by 7.07% in the last year.
FI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.81% yearly.
EPS 1Y (TTM)17.37%
EPS 3Y19.49%
EPS 5Y19.45%
EPS growth Q2Q18.99%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y8.73%
Revenue growth 5Y26.81%
Revenue growth Q2Q7.39%
3.2 Future
The Earnings Per Share is expected to grow by 13.15% on average over the next years. This is quite good.
Based on estimates for the next years, FI will show a quite strong growth in Revenue. The Revenue will grow by 8.45% on average per year.
EPS Next Y17.85%
EPS Next 2Y16.92%
EPS Next 3Y17.11%
EPS Next 5Y13.15%
Revenue Next Year7.61%
Revenue Next 2Y8.1%
Revenue Next 3Y8.45%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.03, the valuation of FI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FI is on the same level as its industry peers.
FI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 14.48 indicates a correct valuation of FI.
The rest of the industry has a similar Price/Forward Earnings ratio as FI.
FI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 14.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FI is valued a bit cheaper than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.72 | ||
| EV/EBITDA | 13.17 |
4.3 Compensation for Growth
FI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 17.11% in the coming years.
PEG (NY)1.07
PEG (5Y)0.98
EPS Next 2Y16.92%
EPS Next 3Y17.11%
5. Dividend
5.1 Amount
FI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FISERV INC
NYSE:FI (5/3/2024, 7:04:00 PM)
After market: 149.22 0 (0%)149.22
+0.05 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap87.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 14.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.07
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 11.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.26% | ||
| PM (TTM) | 16.68% | ||
| GM | 60.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.37%
EPS 3Y19.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.07%
Revenue growth 3Y8.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y