FIDELITY NATIONAL INFO SERV (FIS)

US31620M1062 - Common Stock

74.18  +0.72 (+0.98%)

After market: 74.9999 +0.82 (+1.11%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to FIS. FIS was compared to 102 industry peers in the Financial Services industry. FIS may be in some trouble as it scores bad on both profitability and health. FIS has a decent growth rate and is not valued too expensively.



3

1. Profitability

1.1 Basic Checks

In the past year FIS was profitable.
In the past year FIS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FIS reported negative net income in multiple years.
Each year in the past 5 years FIS had a positive operating cash flow.

1.2 Ratios

FIS's Return On Assets of -11.82% is on the low side compared to the rest of the industry. FIS is outperformed by 86.27% of its industry peers.
FIS has a worse Return On Equity (-34.12%) than 88.24% of its industry peers.
With a Return On Invested Capital value of 3.27%, FIS perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
FIS had an Average Return On Invested Capital over the past 3 years of 1.92%. This is significantly below the industry average of 7.81%.
The 3 year average ROIC (1.92%) for FIS is below the current ROIC(3.27%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -11.82%
ROE -34.12%
ROIC 3.27%
ROA(3y)-12.67%
ROA(5y)-7.49%
ROE(3y)-31.8%
ROE(5y)-18.9%
ROIC(3y)1.92%
ROIC(5y)1.48%

1.3 Margins

With a Operating Margin value of 14.38%, FIS perfoms like the industry average, outperforming 55.88% of the companies in the same industry.
In the last couple of years the Operating Margin of FIS has declined.
FIS has a Gross Margin (37.63%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FIS has grown nicely.
Industry RankSector Rank
OM 14.38%
PM (TTM) N/A
GM 37.63%
OM growth 3Y43.18%
OM growth 5Y-2.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.77%
GM growth 5Y2.01%

2

2. Health

2.1 Basic Checks

FIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FIS has been reduced compared to 1 year ago.
FIS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FIS is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.39, we must say that FIS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FIS (0.39) is comparable to the rest of the industry.
FIS has a debt to FCF ratio of 5.94. This is a neutral value as FIS would need 5.94 years to pay back of all of its debts.
FIS has a better Debt to FCF ratio (5.94) than 62.75% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that FIS is somewhat dependend on debt financing.
FIS has a Debt to Equity ratio (0.93) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.93
Debt/FCF 5.94
Altman-Z 0.39
ROIC/WACC0.47
WACC6.94%

2.3 Liquidity

A Current Ratio of 0.75 indicates that FIS may have some problems paying its short term obligations.
FIS's Current ratio of 0.75 is on the low side compared to the rest of the industry. FIS is outperformed by 62.75% of its industry peers.
FIS has a Quick Ratio of 0.75. This is a bad value and indicates that FIS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.75, FIS is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.75
Quick Ratio 0.75

5

3. Growth

3.1 Past

The earnings per share for FIS have decreased strongly by -18.35% in the last year.
Measured over the past 5 years, FIS shows a small growth in Earnings Per Share. The EPS has been growing by 0.68% on average per year.
Looking at the last year, FIS shows a decrease in Revenue. The Revenue has decreased by -8.25% in the last year.
The Revenue has been growing slightly by 3.12% on average over the past years.
EPS 1Y (TTM)-18.35%
EPS 3Y-0.24%
EPS 5Y0.68%
EPS growth Q2Q-45.03%
Revenue 1Y (TTM)-8.25%
Revenue growth 3Y-7.85%
Revenue growth 5Y3.12%
Revenue growth Q2Q-32.42%

3.2 Future

The Earnings Per Share is expected to grow by 11.97% on average over the next years. This is quite good.
Based on estimates for the next years, FIS will show a quite strong growth in Revenue. The Revenue will grow by 14.90% on average per year.
EPS Next Y-12.24%
EPS Next 2Y-0.71%
EPS Next 3Y3.08%
EPS Next 5Y11.97%
Revenue Next Year2.97%
Revenue Next 2Y3.39%
Revenue Next 3Y3.61%
Revenue Next 5Y14.9%

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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.66, FIS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of FIS indicates a somewhat cheap valuation: FIS is cheaper than 65.69% of the companies listed in the same industry.
FIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 15.57 indicates a correct valuation of FIS.
The rest of the industry has a similar Price/Forward Earnings ratio as FIS.
When comparing the Price/Forward Earnings ratio of FIS to the average of the S&P500 Index (22.79), we can say FIS is valued slightly cheaper.
Industry RankSector Rank
PE 13.66
Fwd PE 15.57

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FIS is valued a bit cheaper than the industry average as 71.57% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FIS indicates a somewhat cheap valuation: FIS is cheaper than 71.57% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.31
EV/EBITDA 12.33

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)20.19
EPS Next 2Y-0.71%
EPS Next 3Y3.08%

5

5. Dividend

5.1 Amount

FIS has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, FIS pays a bit more dividend than its industry peers.
FIS's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.99%

5.2 History

On average, the dividend of FIS grows each year by 10.45%, which is quite nice.
FIS has paid a dividend for at least 10 years, which is a reliable track record.
FIS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.45%
Div Incr Years3
Div Non Decr Years14

5.3 Sustainability

The earnings of FIS are negative and hence is the payout ratio. FIS will probably not be able to sustain this dividend level.
The dividend of FIS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-18.9%
EPS Next 2Y-0.71%
EPS Next 3Y3.08%

FIDELITY NATIONAL INFO SERV

NYSE:FIS (3/28/2024, 8:09:57 PM)

After market: 74.9999 +0.82 (+1.11%)

74.18

+0.72 (+0.98%)

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 Cap42.76B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.99%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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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 RankSector Rank
PE 13.66
Fwd PE 15.57
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)N/A
PEG (5Y)20.19
Profitability
Industry RankSector Rank
ROA -11.82%
ROE -34.12%
ROCE
ROIC
ROICexc
ROICexgc
OM 14.38%
PM (TTM) N/A
GM 37.63%
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 Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.93
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.75
Quick Ratio 0.75
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)-18.35%
EPS 3Y-0.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.25%
Revenue growth 3Y-7.85%
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