SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - NYSE:FOUR - US82452J1097 - Common Stock
66.15 USD
-0.67 (-1%)
67 USD
+0.85 (+1.28%)
Taking everything into account, FOUR scores 5 out of 10 in our fundamental rating. FOUR was compared to 98 industry peers in the Financial Services industry. Both the profitability and the financial health of FOUR get a neutral evaluation. Nothing too spectacular is happening here. FOUR is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year FOUR was profitable.
FOUR had a positive operating cash flow in the past year.
In multiple years FOUR reported negative net income over the last 5 years.
FOUR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FOUR's Return On Assets of 2.98% is fine compared to the rest of the industry. FOUR outperforms 68.37% of its industry peers.
The Return On Equity of FOUR (13.09%) is better than 68.37% of its industry peers.
With a decent Return On Invested Capital value of 5.38%, FOUR is doing good in the industry, outperforming 67.35% of the companies in the same industry.
FOUR had an Average Return On Invested Capital over the past 3 years of 5.43%. This is below the industry average of 7.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 13.09% | ||
| ROIC | 5.38% |
ROA(3y)3.33%
ROA(5y)1.36%
ROE(3y)21%
ROE(5y)8.17%
ROIC(3y)5.43%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of FOUR (5.77%) is comparable to the rest of the industry.
The Operating Margin of FOUR (10.37%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FOUR has grown nicely.
The Gross Margin of FOUR (30.55%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FOUR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.37% | ||
| PM (TTM) | 5.77% | ||
| GM | 30.55% |
OM growth 3Y125.47%
OM growth 5Y42.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.8%
GM growth 5Y3.61%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FOUR is destroying value.
The number of shares outstanding for FOUR has been increased compared to 1 year ago.
The number of shares outstanding for FOUR has been increased compared to 5 years ago.
FOUR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that FOUR is in the distress zone and has some risk of bankruptcy.
FOUR has a Altman-Z score of 1.68. This is in the better half of the industry: FOUR outperforms 68.37% of its industry peers.
FOUR has a debt to FCF ratio of 9.80. This is a negative value and a sign of low solvency as FOUR would need 9.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.80, FOUR is in line with its industry, outperforming 53.06% of the companies in the same industry.
FOUR has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.91, FOUR is doing worse than 66.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 9.8 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.83
WACC6.52%
2.3 Liquidity
A Current Ratio of 2.53 indicates that FOUR has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.53, FOUR is doing good in the industry, outperforming 77.55% of the companies in the same industry.
A Quick Ratio of 2.53 indicates that FOUR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.53, FOUR is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.21% over the past year.
FOUR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 108.37% yearly.
Looking at the last year, FOUR shows a very strong growth in Revenue. The Revenue has grown by 29.86%.
Measured over the past years, FOUR shows a very strong growth in Revenue. The Revenue has been growing by 35.42% on average per year.
EPS 1Y (TTM)51.21%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%41.35%
Revenue 1Y (TTM)29.86%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%-35.2%
3.2 Future
FOUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.91% yearly.
Based on estimates for the next years, FOUR will show a quite strong growth in Revenue. The Revenue will grow by 16.45% on average per year.
EPS Next Y36.95%
EPS Next 2Y29.4%
EPS Next 3Y26.71%
EPS Next 5Y20.91%
Revenue Next Year21.9%
Revenue Next 2Y24.15%
Revenue Next 3Y20.76%
Revenue Next 5Y16.45%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.26, the valuation of FOUR can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as FOUR.
FOUR is valuated rather cheaply when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.16, the valuation of FOUR can be described as reasonable.
FOUR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of FOUR to the average of the S&P500 Index (31.86), we can say FOUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
FOUR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FOUR is cheaper than 72.45% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FOUR indicates a somewhat cheap valuation: FOUR is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FOUR's earnings are expected to grow with 26.71% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y29.4%
EPS Next 3Y26.71%
5. Dividend
5.1 Amount
No dividends for FOUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
66.15
-0.67 (-1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners133.52%
Inst Owner Change-1.17%
Ins Owners2.36%
Ins Owner Change9.84%
Market Cap5.85B
Revenue(TTM)3.33B
Net Income(TTM)208.40M
Analysts80.71
Price Target107.06 (61.84%)
Short Float %18.72%
Short Ratio7.11
Dividend
| Industry Rank | Sector 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)1
Avg EPS beat(2)18.48%
Min EPS beat(2)-10.04%
Max EPS beat(2)47%
EPS beat(4)2
Avg EPS beat(4)12.07%
Min EPS beat(4)-10.04%
Max EPS beat(4)47%
EPS beat(8)4
Avg EPS beat(8)6.21%
EPS beat(12)8
Avg EPS beat(12)12.83%
EPS beat(16)11
Avg EPS beat(16)13.68%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-4.2%
Max Revenue beat(2)-3.07%
Revenue beat(4)0
Avg Revenue beat(4)-7.2%
Min Revenue beat(4)-13.55%
Max Revenue beat(4)-3.07%
Revenue beat(8)0
Avg Revenue beat(8)-7.09%
Revenue beat(12)1
Avg Revenue beat(12)-5.12%
Revenue beat(16)4
Avg Revenue beat(16)-3.67%
PT rev (1m)-3.95%
PT rev (3m)-8%
EPS NQ rev (1m)-1.93%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)-2.15%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)9.35%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)5.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 10.16 | ||
| P/S | 1.62 | ||
| P/FCF | 15.37 | ||
| P/OCF | 10.34 | ||
| P/B | 3.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.32 |
EPS(TTM)4.99
EY7.54%
EPS(NY)6.51
Fwd EY9.85%
FCF(TTM)4.31
FCFY6.51%
OCF(TTM)6.4
OCFY9.68%
SpS40.83
BVpS18.01
TBVpS-10.13
PEG (NY)0.36
PEG (5Y)N/A
Graham Number44.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 13.09% | ||
| ROCE | 6.81% | ||
| ROIC | 5.38% | ||
| ROICexc | 11.99% | ||
| ROICexgc | N/A | ||
| OM | 10.37% | ||
| PM (TTM) | 5.77% | ||
| GM | 30.55% | ||
| FCFM | 10.54% |
ROA(3y)3.33%
ROA(5y)1.36%
ROE(3y)21%
ROE(5y)8.17%
ROIC(3y)5.43%
ROIC(5y)N/A
ROICexc(3y)7.63%
ROICexc(5y)N/A
ROICexgc(3y)655.2%
ROICexgc(5y)N/A
ROCE(3y)6.87%
ROCE(5y)N/A
ROICexgc growth 3Y605.46%
ROICexgc growth 5YN/A
ROICexc growth 3Y119.45%
ROICexc growth 5Y48.4%
OM growth 3Y125.47%
OM growth 5Y42.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.8%
GM growth 5Y3.61%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 9.8 | ||
| Debt/EBITDA | 4.29 | ||
| Cap/Depr | 55.41% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.83% | ||
| Profit Quality | 182.68% | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 1.68 |
F-Score6
WACC6.52%
ROIC/WACC0.83
Cap/Depr(3y)64.28%
Cap/Depr(5y)59.84%
Cap/Sales(3y)5.28%
Cap/Sales(5y)5.02%
Profit Quality(3y)204.33%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.21%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%41.35%
EPS Next Y36.95%
EPS Next 2Y29.4%
EPS Next 3Y26.71%
EPS Next 5Y20.91%
Revenue 1Y (TTM)29.86%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%-35.2%
Revenue Next Year21.9%
Revenue Next 2Y24.15%
Revenue Next 3Y20.76%
Revenue Next 5Y16.45%
EBIT growth 1Y78.38%
EBIT growth 3Y203.36%
EBIT growth 5Y93.23%
EBIT Next Year255.68%
EBIT Next 3Y74.64%
EBIT Next 5Y42.29%
FCF growth 1Y49.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.57%
OCF growth 3Y450.43%
OCF growth 5Y79.7%
SHIFT4 PAYMENTS INC-CLASS A / FOUR FAQ
Can you provide the ChartMill fundamental rating for SHIFT4 PAYMENTS INC-CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to FOUR.
What is the valuation status of SHIFT4 PAYMENTS INC-CLASS A (FOUR) stock?
ChartMill assigns a valuation rating of 6 / 10 to SHIFT4 PAYMENTS INC-CLASS A (FOUR). This can be considered as Fairly Valued.
How profitable is SHIFT4 PAYMENTS INC-CLASS A (FOUR) stock?
SHIFT4 PAYMENTS INC-CLASS A (FOUR) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SHIFT4 PAYMENTS INC-CLASS A (FOUR) stock?
The Price/Earnings (PE) ratio for SHIFT4 PAYMENTS INC-CLASS A (FOUR) is 13.26 and the Price/Book (PB) ratio is 3.67.
Can you provide the expected EPS growth for FOUR stock?
The Earnings per Share (EPS) of SHIFT4 PAYMENTS INC-CLASS A (FOUR) is expected to grow by 36.95% in the next year.