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SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis

NYSE:FOUR - New York Stock Exchange, Inc. - US82452J1097 - Common Stock - Currency: USD

88.72  -4.59 (-4.92%)

After market: 88.89 +0.17 (+0.19%)

Fundamental Rating

5

Taking everything into account, FOUR scores 5 out of 10 in our fundamental rating. FOUR was compared to 99 industry peers in the Financial Services industry. While FOUR is still in line with the averages on profitability rating, there are concerns on its financial health. FOUR is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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5

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.
In the past 5 years FOUR always reported a positive cash flow from operatings.
FOUR Yearly Net Income VS EBIT VS OCF VS FCFFOUR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

1.2 Ratios

FOUR's Return On Assets of 4.48% is fine compared to the rest of the industry. FOUR outperforms 73.74% of its industry peers.
With an excellent Return On Equity value of 27.82%, FOUR belongs to the best of the industry, outperforming 89.90% of the companies in the same industry.
FOUR has a Return On Invested Capital of 7.41%. This is in the better half of the industry: FOUR outperforms 73.74% of its industry peers.
FOUR had an Average Return On Invested Capital over the past 3 years of 5.00%. This is significantly below the industry average of 11.83%.
The 3 year average ROIC (5.00%) for FOUR is below the current ROIC(7.41%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.48%
ROE 27.82%
ROIC 7.41%
ROA(3y)3.33%
ROA(5y)1.36%
ROE(3y)21%
ROE(5y)8.17%
ROIC(3y)5%
ROIC(5y)N/A
FOUR Yearly ROA, ROE, ROICFOUR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 -100 -200 -300 -400

1.3 Margins

FOUR's Profit Margin of 6.45% is on the low side compared to the rest of the industry. FOUR is outperformed by 60.61% of its industry peers.
The Operating Margin of FOUR (9.86%) is worse than 62.63% of its industry peers.
In the last couple of years the Operating Margin of FOUR has grown nicely.
FOUR has a Gross Margin of 30.02%. This is comparable to the rest of the industry: FOUR outperforms 49.49% of its industry peers.
In the last couple of years the Gross Margin of FOUR has grown nicely.
Industry RankSector Rank
OM 9.86%
PM (TTM) 6.45%
GM 30.02%
OM growth 3Y125.47%
OM growth 5Y42.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.8%
GM growth 5Y3.61%
FOUR Yearly Profit, Operating, Gross MarginsFOUR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 10 20

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FOUR is still creating some value.
FOUR has more shares outstanding than it did 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.
FOUR Yearly Shares OutstandingFOUR Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
FOUR Yearly Total Debt VS Total AssetsFOUR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 2.15 indicates that FOUR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FOUR (2.15) is better than 76.77% of its industry peers.
The Debt to FCF ratio of FOUR is 7.97, which is on the high side as it means it would take FOUR, 7.97 years of fcf income to pay off all of its debts.
FOUR has a Debt to FCF ratio of 7.97. This is comparable to the rest of the industry: FOUR outperforms 55.56% of its industry peers.
FOUR has a Debt/Equity ratio of 2.68. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.68, FOUR is not doing good in the industry: 68.69% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.68
Debt/FCF 7.97
Altman-Z 2.15
ROIC/WACC1.01
WACC7.34%
FOUR Yearly LT Debt VS Equity VS FCFFOUR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 1.36 indicates that FOUR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.36, FOUR is doing good in the industry, outperforming 63.64% of the companies in the same industry.
FOUR has a Quick Ratio of 1.36. This is a normal value and indicates that FOUR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.36, FOUR is in the better half of the industry, outperforming 65.66% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.36
FOUR Yearly Current Assets VS Current LiabilitesFOUR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 54.55% over the past year.
Measured over the past years, FOUR shows a very strong growth in Earnings Per Share. The EPS has been growing by 108.37% on average per year.
The Revenue has grown by 27.39% in the past year. This is a very strong growth!
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)54.55%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%98.15%
Revenue 1Y (TTM)27.39%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%19.92%

3.2 Future

The Earnings Per Share is expected to grow by 20.91% on average over the next years. This is a very strong growth
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 Y39.57%
EPS Next 2Y29.83%
EPS Next 3Y26.73%
EPS Next 5Y20.91%
Revenue Next Year16.38%
Revenue Next 2Y18.64%
Revenue Next 3Y15.49%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
FOUR Yearly Revenue VS EstimatesFOUR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
FOUR Yearly EPS VS EstimatesFOUR Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 20.07 indicates a rather expensive valuation of FOUR.
62.63% of the companies in the same industry are cheaper than FOUR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, FOUR is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.53, which indicates a correct valuation of FOUR.
FOUR's Price/Forward Earnings ratio is in line with the industry average.
FOUR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.07
Fwd PE 13.53
FOUR Price Earnings VS Forward Price EarningsFOUR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FOUR is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as FOUR.
Industry RankSector Rank
P/FCF 22.04
EV/EBITDA 15.12
FOUR Per share dataFOUR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

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.
FOUR's earnings are expected to grow with 26.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y29.83%
EPS Next 3Y26.73%

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0

5. Dividend

5.1 Amount

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

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SHIFT4 PAYMENTS INC-CLASS A

NYSE:FOUR (6/13/2025, 8:04:00 PM)

After market: 88.89 +0.17 (+0.19%)

88.72

-4.59 (-4.92%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners113.37%
Inst Owner Change4%
Ins Owners1.51%
Ins Owner Change3.89%
Market Cap7.86B
Analysts82.07
Price Target115.84 (30.57%)
Short Float %18.49%
Short Ratio6.04
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)2
Avg EPS beat(2)31.42%
Min EPS beat(2)15.85%
Max EPS beat(2)47%
EPS beat(4)3
Avg EPS beat(4)16.78%
Min EPS beat(4)-4.53%
Max EPS beat(4)47%
EPS beat(8)5
Avg EPS beat(8)12.36%
EPS beat(12)9
Avg EPS beat(12)16.39%
EPS beat(16)12
Avg EPS beat(16)17.39%
Revenue beat(2)0
Avg Revenue beat(2)-8.87%
Min Revenue beat(2)-13.55%
Max Revenue beat(2)-4.2%
Revenue beat(4)0
Avg Revenue beat(4)-7.83%
Min Revenue beat(4)-13.55%
Max Revenue beat(4)-4.2%
Revenue beat(8)0
Avg Revenue beat(8)-6.81%
Revenue beat(12)2
Avg Revenue beat(12)-4.56%
Revenue beat(16)5
Avg Revenue beat(16)-2.87%
PT rev (1m)0.19%
PT rev (3m)-7.21%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)10.42%
EPS NY rev (1m)18.42%
EPS NY rev (3m)16.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.74%
Valuation
Industry RankSector Rank
PE 20.07
Fwd PE 13.53
P/S 2.26
P/FCF 22.04
P/OCF 14.55
P/B 9.76
P/tB N/A
EV/EBITDA 15.12
EPS(TTM)4.42
EY4.98%
EPS(NY)6.56
Fwd EY7.39%
FCF(TTM)4.03
FCFY4.54%
OCF(TTM)6.1
OCFY6.87%
SpS39.17
BVpS9.09
TBVpS-18.47
PEG (NY)0.51
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.48%
ROE 27.82%
ROCE 9.38%
ROIC 7.41%
ROICexc 10.9%
ROICexgc 715.18%
OM 9.86%
PM (TTM) 6.45%
GM 30.02%
FCFM 10.28%
ROA(3y)3.33%
ROA(5y)1.36%
ROE(3y)21%
ROE(5y)8.17%
ROIC(3y)5%
ROIC(5y)N/A
ROICexc(3y)6.99%
ROICexc(5y)N/A
ROICexgc(3y)647.63%
ROICexgc(5y)N/A
ROCE(3y)6.33%
ROCE(5y)N/A
ROICexcg growth 3Y605.46%
ROICexcg 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 Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 2.68
Debt/FCF 7.97
Debt/EBITDA 3.28
Cap/Depr 58.12%
Cap/Sales 5.29%
Interest Coverage 250
Cash Conversion 82.11%
Profit Quality 159.24%
Current Ratio 1.36
Quick Ratio 1.36
Altman-Z 2.15
F-Score6
WACC7.34%
ROIC/WACC1.01
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)54.55%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%98.15%
EPS Next Y39.57%
EPS Next 2Y29.83%
EPS Next 3Y26.73%
EPS Next 5Y20.91%
Revenue 1Y (TTM)27.39%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%19.92%
Revenue Next Year16.38%
Revenue Next 2Y18.64%
Revenue Next 3Y15.49%
Revenue Next 5Y16.45%
EBIT growth 1Y79.63%
EBIT growth 3Y203.36%
EBIT growth 5Y93.23%
EBIT Next Year208.95%
EBIT Next 3Y62.61%
EBIT Next 5Y42.29%
FCF growth 1Y69.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.73%
OCF growth 3Y450.43%
OCF growth 5Y79.7%