FISERV INC (FISV)
US3377381088 - Common Stock
FISV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. Both the profitability and the financial health of FISV get a neutral evaluation. Nothing too spectacular is happening here. FISV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FISV had positive earnings in the past year.
In the past year FISV had a positive cash flow from operations.
In the past 5 years FISV has always been profitable.
Each year in the past 5 years FISV had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.17%, FISV is doing good in the industry, outperforming 74.49% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.06%, FISV is in line with its industry, outperforming 57.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.42%, FISV is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FISV is below the industry average of 7.91%.
The last Return On Invested Capital (5.42%) for FISV is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 8.06% | ||
| ROIC | 5.42% |
ROA(3y)2.02%
ROA(5y)3.55%
ROE(3y)5.16%
ROE(5y)13.99%
ROIC(3y)3.43%
ROIC(5y)5.11%
1.3 Margins
FISV has a better Profit Margin (13.36%) than 66.33% of its industry peers.
FISV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.71%, FISV is in the better half of the industry, outperforming 68.37% of the companies in the same industry.
FISV's Operating Margin has declined in the last couple of years.
FISV has a better Gross Margin (55.78%) than 79.59% of its industry peers.
In the last couple of years the Gross Margin of FISV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.71% | ||
| PM (TTM) | 13.36% | ||
| GM | 55.78% |
OM growth 3Y8.98%
OM growth 5Y-4.83%
PM growth 3Y17.62%
PM growth 5Y-8.2%
GM growth 3Y4.35%
GM growth 5Y3.21%
2. Health
2.1 Basic Checks
FISV 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 FISV has been reduced compared to 1 year ago.
Compared to 5 years ago, FISV has more shares outstanding
Compared to 1 year ago, FISV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that FISV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FISV (1.67) is better than 70.41% of its industry peers.
The Debt to FCF ratio of FISV is 6.50, which is on the high side as it means it would take FISV, 6.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.50, FISV is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
FISV has a Debt/Equity ratio of 0.73. This is a neutral value indicating FISV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, FISV is in line with its industry, outperforming 44.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.73
WACC7.41%
2.3 Liquidity
FISV has a Current Ratio of 1.08. This is a normal value and indicates that FISV is financially healthy and should not expect problems in meeting its short term obligations.
FISV's Current ratio of 1.08 is in line compared to the rest of the industry. FISV outperforms 46.94% of its industry peers.
A Quick Ratio of 1.08 indicates that FISV should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, FISV perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FISV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.97%, which is quite good.
Measured over the past years, FISV shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.49% on average per year.
The Revenue has grown by 9.25% in the past year. This is quite good.
FISV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.51% yearly.
EPS 1Y (TTM)14.97%
EPS 3Y19.49%
EPS 5Y20.49%
EPS growth Q2Q12.86%
Revenue 1Y (TTM)9.25%
Revenue growth 3Y20.3%
Revenue growth 5Y25.51%
Revenue growth Q2Q9.88%
3.2 Future
Based on estimates for the next years, FISV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.52% on average per year.
Based on estimates for the next years, FISV will show a small growth in Revenue. The Revenue will grow by 7.27% on average per year.
EPS Next Y15.18%
EPS Next 2Y14.42%
EPS Next 3Y13.91%
EPS Next 5Y10.52%
Revenue Next Year6.97%
Revenue Next 2Y7.36%
Revenue Next 3Y7.27%
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.
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 17.10, the valuation of FISV can be described as rather expensive.
FISV's Price/Earnings ratio is in line with the industry average.
FISV is valuated rather cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.42 indicates a correct valuation of FISV.
FISV's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.35. FISV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
FISV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FISV is cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FISV is valued a bit cheaper than the industry average as 62.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.52 | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
FISV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FISV may justify a higher PE ratio.
A more expensive valuation may be justified as FISV's earnings are expected to grow with 13.91% in the coming years.
PEG (NY)1.13
PEG (5Y)0.83
EPS Next 2Y14.42%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
FISV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FISERV INC
NASDAQ:FISV (6/6/2023, 7:10:12 PM)
After market: 114.65 +0.42 (+0.37%)114.23
+2 (+1.78%)
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 Cap70.71B
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.42 | ||
| 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)1.13
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 8.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.71% | ||
| PM (TTM) | 13.36% | ||
| GM | 55.78% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| 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)14.97%
EPS 3Y19.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.25%
Revenue growth 3Y20.3%
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