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FISERV INC (FISV) Stock Fundamental Analysis

NASDAQ:FISV - Nasdaq - US3377381088 - Common Stock - Currency: USD

114.23  +2 (+1.78%)

After market: 114.65 +0.42 (+0.37%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to FISV. FISV was compared to 101 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year FISV was profitable.
FISV had a positive operating cash flow in the past year.
Each year in the past 5 years FISV has been profitable.
Each year in the past 5 years FISV had a positive operating cash flow.
FISV Yearly Net Income VS EBIT VS OCF VS FCFFISV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

1.2 Ratios

The Return On Assets of FISV (3.17%) is better than 74.49% of its industry peers.
FISV's Return On Equity of 8.06% is in line compared to the rest of the industry. FISV outperforms 57.14% of its industry peers.
With a decent Return On Invested Capital value of 5.42%, FISV is doing good in the industry, outperforming 77.55% of the companies in the same industry.
FISV had an Average Return On Invested Capital over the past 3 years of 3.43%. This is significantly below the industry average of 11.76%.
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 RankSector 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%
FISV Yearly ROA, ROE, ROICFISV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

1.3 Margins

FISV's Profit Margin of 13.36% is fine compared to the rest of the industry. FISV outperforms 66.33% of its industry peers.
FISV's Profit Margin has declined in the last couple of years.
FISV has a better Operating Margin (21.71%) than 68.37% of its industry peers.
FISV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 55.78%, FISV is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
In the last couple of years the Gross Margin of FISV has grown nicely.
Industry RankSector 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%
FISV Yearly Profit, Operating, Gross MarginsFISV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FISV is destroying value.
Compared to 1 year ago, FISV has less shares outstanding
The debt/assets ratio for FISV has been reduced compared to a year ago.
FISV Yearly Shares OutstandingFISV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
FISV Yearly Total Debt VS Total AssetsFISV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 20B 40B 60B 80B

2.2 Solvency

FISV has an Altman-Z score of 1.67. This is a bad value and indicates that FISV is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.67, FISV is in the better half of the industry, outperforming 70.41% of the companies in the same industry.
FISV has a debt to FCF ratio of 6.50. This is a slightly negative value and a sign of low solvency as FISV would need 6.50 years to pay back of all of its debts.
FISV has a better Debt to FCF ratio (6.50) than 66.33% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that FISV is somewhat dependend on debt financing.
The Debt to Equity ratio of FISV (0.73) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 6.5
Altman-Z 1.67
ROIC/WACC0.73
WACC7.41%
FISV Yearly LT Debt VS Equity VS FCFFISV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B

2.3 Liquidity

A Current Ratio of 1.08 indicates that FISV should not have too much problems paying its short term obligations.
FISV has a Current ratio (1.08) which is comparable to the rest of the industry.
FISV has a Quick 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.
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 RankSector Rank
Current Ratio 1.08
Quick Ratio 1.08
FISV Yearly Current Assets VS Current LiabilitesFISV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

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6

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.
Measured over the past years, FISV shows a very strong growth in Revenue. The Revenue has been growing by 25.51% on average per year.
EPS 1Y (TTM)14.97%
EPS 3Y19.49%
EPS 5Y20.49%
EPS Q2Q%12.86%
Revenue 1Y (TTM)9.25%
Revenue growth 3Y20.3%
Revenue growth 5Y25.51%
Sales Q2Q%9.88%

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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FISV Yearly Revenue VS EstimatesFISV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B
FISV Yearly EPS VS EstimatesFISV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.10 indicates a rather expensive valuation of FISV.
The rest of the industry has a similar Price/Earnings ratio as FISV.
Compared to an average S&P500 Price/Earnings ratio of 24.95, FISV is valued a bit cheaper.
FISV is valuated correctly with a Price/Forward Earnings ratio of 13.42.
The rest of the industry has a similar Price/Forward Earnings ratio as FISV.
FISV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.1
Fwd PE 13.42
FISV Price Earnings VS Forward Price EarningsFISV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FISV is valued a bit 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 62.24% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.52
EV/EBITDA 12.69
FISV Per share dataFISV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

The 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%

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0

5. Dividend

5.1 Amount

No dividends for FISV!.
Industry RankSector Rank
Dividend Yield N/A

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FISERV INC

NASDAQ:FISV (6/6/2023, 8:10:12 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)04-25 2023-04-25/bmo
Earnings (Next)07-24 2023-07-24/bmo
Inst Owners82.48%
Inst Owner Change0.38%
Ins Owners0.77%
Ins Owner Change0%
Market Cap70.71B
Analysts78.54
Price Target135.78 (18.87%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-1.46%
Min EPS beat(2)-1.67%
Max EPS beat(2)-1.26%
EPS beat(4)0
Avg EPS beat(4)-2.64%
Min EPS beat(4)-5.86%
Max EPS beat(4)-1.26%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)5.5%
Min Revenue beat(2)4.56%
Max Revenue beat(2)6.44%
Revenue beat(4)4
Avg Revenue beat(4)5.4%
Min Revenue beat(4)3.55%
Max Revenue beat(4)7.05%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.46%
PT rev (3m)4.39%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 17.1
Fwd PE 13.42
P/S 3.9
P/FCF 20.52
P/OCF 14.33
P/B 2.35
P/tB N/A
EV/EBITDA 12.69
EPS(TTM)6.68
EY5.85%
EPS(NY)8.51
Fwd EY7.45%
FCF(TTM)5.57
FCFY4.87%
OCF(TTM)7.97
OCFY6.98%
SpS29.32
BVpS48.59
TBVpS-30.59
PEG (NY)1.13
PEG (5Y)0.83
Profitability
Industry RankSector Rank
ROA 3.17%
ROE 8.06%
ROCE N/A
ROIC 5.42%
ROICexc 5.7%
ROICexgc 52.06%
OM 21.71%
PM (TTM) 13.36%
GM 55.78%
FCFM N/A
ROA(3y)2.02%
ROA(5y)3.55%
ROE(3y)5.16%
ROE(5y)13.99%
ROIC(3y)3.43%
ROIC(5y)5.11%
ROICexc(3y)3.49%
ROICexc(5y)5.27%
ROICexgc(3y)28.11%
ROICexgc(5y)44.91%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y30.56%
ROICexcg growth 5Y-29.03%
ROICexc growth 3Y34.38%
ROICexc growth 5Y-19.22%
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%
F-Score8
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 6.5
Debt/EBITDA 3.16
Cap/Depr 47.13%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 142.16%
Current Ratio 1.08
Quick Ratio 1.08
Altman-Z 1.67
F-Score8
WACC7.41%
ROIC/WACC0.73
Cap/Depr(3y)37%
Cap/Depr(5y)43.88%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)226.15%
Profit Quality(5y)202.11%
High Growth Momentum
Growth
EPS 1Y (TTM)14.97%
EPS 3Y19.49%
EPS 5Y20.49%
EPS Q2Q%12.86%
EPS Next Y15.18%
EPS Next 2Y14.42%
EPS Next 3Y13.91%
EPS Next 5Y10.52%
Revenue 1Y (TTM)9.25%
Revenue growth 3Y20.3%
Revenue growth 5Y25.51%
Sales Q2Q%9.88%
Revenue Next Year6.97%
Revenue Next 2Y7.36%
Revenue Next 3Y7.27%
Revenue Next 5YN/A
EBIT growth 1Y56.19%
EBIT growth 3Y31.1%
EBIT growth 5Y19.44%
EBIT Next Year35.88%
EBIT Next 3Y17.46%
EBIT Next 5Y10.88%
FCF growth 1Y3.7%
FCF growth 3Y14.81%
FCF growth 5Y20.9%
OCF growth 1Y17.15%
OCF growth 3Y18.22%
OCF growth 5Y25.19%