FIDELITY NATIONAL INFO SERV (FIS) Stock Fundamental Analysis
NYSE:FIS - New York Stock Exchange, Inc. - US31620M1062 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to FIS. FIS was compared to 99 industry peers in the Financial Services industry. There are concerns on the financial health of FIS while its profitability can be described as average. FIS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FIS had positive earnings in the past year.
In the past year FIS had a positive cash flow from operations.
In multiple years FIS reported negative net income over the last 5 years.
Each year in the past 5 years FIS had a positive operating cash flow.
1.2 Ratios
FIS's Return On Assets of 2.45% is fine compared to the rest of the industry. FIS outperforms 61.62% of its industry peers.
FIS has a Return On Equity of 5.33%. This is in the lower half of the industry: FIS underperforms 65.66% of its industry peers.
With a decent Return On Invested Capital value of 4.77%, FIS is doing good in the industry, outperforming 61.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FIS is significantly below the industry average of 11.83%.
The last Return On Invested Capital (4.77%) for FIS is above the 3 year average (3.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.33% | ||
| ROIC | 4.77% |
ROA(3y)-11.43%
ROA(5y)-6.72%
ROE(3y)-29.08%
ROE(5y)-17.21%
ROIC(3y)3.09%
ROIC(5y)2.24%
1.3 Margins
FIS has a Profit Margin (7.88%) which is in line with its industry peers.
FIS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.02%, FIS is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
FIS's Operating Margin has improved in the last couple of years.
FIS's Gross Margin of 36.97% is in line compared to the rest of the industry. FIS outperforms 53.54% of its industry peers.
In the last couple of years the Gross Margin of FIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.02% | ||
| PM (TTM) | 7.88% | ||
| GM | 36.97% |
OM growth 3Y9.59%
OM growth 5Y11.22%
PM growth 3Y47.46%
PM growth 5Y37.78%
GM growth 3Y1.56%
GM growth 5Y0.84%
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.
The number of shares outstanding for FIS has been increased compared to 5 years ago.
FIS has a better debt/assets ratio than last year.
2.2 Solvency
FIS has an Altman-Z score of 0.87. This is a bad value and indicates that FIS is not financially healthy and even has some risk of bankruptcy.
FIS has a Altman-Z score (0.87) which is comparable to the rest of the industry.
FIS has a debt to FCF ratio of 5.96. This is a neutral value as FIS would need 5.96 years to pay back of all of its debts.
FIS has a better Debt to FCF ratio (5.96) than 62.63% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that FIS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, FIS is in line with its industry, outperforming 56.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.64
WACC7.46%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FIS may have some problems paying its short term obligations.
FIS's Current ratio of 0.63 is in line compared to the rest of the industry. FIS outperforms 40.40% of its industry peers.
FIS has a Quick Ratio of 0.63. This is a bad value and indicates that FIS is not financially healthy enough and could expect problems in meeting its short term obligations.
FIS has a Quick ratio of 0.63. This is comparable to the rest of the industry: FIS outperforms 40.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.48% over the past year.
FIS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.91% yearly.
Looking at the last year, FIS shows a small growth in Revenue. The Revenue has grown by 2.97% in the last year.
Measured over the past years, FIS shows a decrease in Revenue. The Revenue has been decreasing by -0.40% on average per year.
EPS 1Y (TTM)2.48%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%10%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%2.63%
3.2 Future
Based on estimates for the next years, FIS will show a small growth in Earnings Per Share. The EPS will grow by 7.82% on average per year.
The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y10.38%
EPS Next 2Y9.56%
EPS Next 3Y9.28%
EPS Next 5Y7.82%
Revenue Next Year3.11%
Revenue Next 2Y3.78%
Revenue Next 3Y3.95%
Revenue Next 5Y6.07%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.05 indicates a correct valuation of FIS.
FIS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.60, FIS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.80, the valuation of FIS can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as FIS.
FIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FIS.
FIS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.04 | ||
| EV/EBITDA | 14.72 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FIS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)N/A
EPS Next 2Y9.56%
EPS Next 3Y9.28%
5. Dividend
5.1 Amount
FIS has a Yearly Dividend Yield of 1.99%.
Compared to an average industry Dividend Yield of 4.93, FIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, FIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of FIS decreases each year by -1.76%.
FIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FIS pays out 101.00% of its income as dividend. This is not a sustainable payout ratio.
DP101%
EPS Next 2Y9.56%
EPS Next 3Y9.28%
80.82
-0.24 (-0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners97.99%
Inst Owner Change2.18%
Ins Owners0.05%
Ins Owner Change3.61%
Market Cap42.46B
Analysts76.97
Price Target90.17 (11.57%)
Short Float %2.61%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend1.44
Dividend Growth(5Y)-1.76%
DP101%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.09%
Min EPS beat(2)0.02%
Max EPS beat(2)2.16%
EPS beat(4)4
Avg EPS beat(4)4.65%
Min EPS beat(4)0.02%
Max EPS beat(4)9.27%
EPS beat(8)7
Avg EPS beat(8)5.11%
EPS beat(12)8
Avg EPS beat(12)3.75%
EPS beat(16)12
Avg EPS beat(16)3.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-4.62%
Revenue beat(12)2
Avg Revenue beat(12)-13.85%
Revenue beat(16)4
Avg Revenue beat(16)-18.04%
PT rev (1m)2.77%
PT rev (3m)5.22%
EPS NQ rev (1m)-4.61%
EPS NQ rev (3m)-4.62%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 12.8 | ||
| P/S | 4.17 | ||
| P/FCF | 21.04 | ||
| P/OCF | 14.82 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.72 |
EPS(TTM)5.37
EY6.64%
EPS(NY)6.31
Fwd EY7.81%
FCF(TTM)3.84
FCFY4.75%
OCF(TTM)5.45
OCFY6.75%
SpS19.4
BVpS28.67
TBVpS-11.49
PEG (NY)1.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.33% | ||
| ROCE | 6.7% | ||
| ROIC | 4.77% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 28.57% | ||
| OM | 17.02% | ||
| PM (TTM) | 7.88% | ||
| GM | 36.97% | ||
| FCFM | 19.8% |
ROA(3y)-11.43%
ROA(5y)-6.72%
ROE(3y)-29.08%
ROE(5y)-17.21%
ROIC(3y)3.09%
ROIC(5y)2.24%
ROICexc(3y)3.21%
ROICexc(5y)2.33%
ROICexgc(3y)27.77%
ROICexgc(5y)N/A
ROCE(3y)4.44%
ROCE(5y)3.22%
ROICexcg growth 3Y-19.6%
ROICexcg growth 5Y-23.17%
ROICexc growth 3Y54.67%
ROICexc growth 5Y34.72%
OM growth 3Y9.59%
OM growth 5Y11.22%
PM growth 3Y47.46%
PM growth 5Y37.78%
GM growth 3Y1.56%
GM growth 5Y0.84%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.96 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 48.05% | ||
| Cap/Sales | 8.32% | ||
| Interest Coverage | 5.71 | ||
| Cash Conversion | 81.89% | ||
| Profit Quality | 251.31% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.87 |
F-Score7
WACC7.46%
ROIC/WACC0.64
Cap/Depr(3y)48.27%
Cap/Depr(5y)41.27%
Cap/Sales(3y)8.75%
Cap/Sales(5y)9.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.48%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%10%
EPS Next Y10.38%
EPS Next 2Y9.56%
EPS Next 3Y9.28%
EPS Next 5Y7.82%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%2.63%
Revenue Next Year3.11%
Revenue Next 2Y3.78%
Revenue Next 3Y3.95%
Revenue Next 5Y6.07%
EBIT growth 1Y6.51%
EBIT growth 3Y12.59%
EBIT growth 5Y10.77%
EBIT Next Year42.97%
EBIT Next 3Y16.93%
EBIT Next 5Y13.83%
FCF growth 1Y-19.41%
FCF growth 3Y-29.37%
FCF growth 5Y-4.54%
OCF growth 1Y-22.01%
OCF growth 3Y-24.49%
OCF growth 5Y-2.99%