SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOUR - US82452J1097 - Common Stock
69.36 USD
-0.73 (-1.04%)
69.2235 USD
-0.14 (-0.2%)
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. While FOUR is still in line with the averages on profitability rating, there are concerns on its financial health. FOUR is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year FOUR was profitable.
FOUR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FOUR reported negative net income in multiple years.
In the past 5 years FOUR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FOUR (1.87%) is comparable to the rest of the industry.
With a Return On Equity value of 10.06%, FOUR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.95%, FOUR is doing good in the industry, outperforming 66.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FOUR is below the industry average of 8.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 10.06% | ||
| ROIC | 4.95% |
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
FOUR has a worse Profit Margin (4.33%) than 63.27% of its industry peers.
FOUR has a Operating Margin (11.37%) which is comparable to the rest of the industry.
FOUR's Operating Margin has improved in the last couple of years.
FOUR has a Gross Margin (32.61%) which 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 | 11.37% | ||
| PM (TTM) | 4.33% | ||
| GM | 32.61% |
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.
The debt/assets ratio for FOUR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that FOUR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FOUR (1.16) is better than 61.22% of its industry peers.
FOUR has a debt to FCF ratio of 13.67. This is a negative value and a sign of low solvency as FOUR would need 13.67 years to pay back of all of its debts.
FOUR has a Debt to FCF ratio of 13.67. This is comparable to the rest of the industry: FOUR outperforms 44.90% of its industry peers.
FOUR has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.41, FOUR is doing worse than 72.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.76
WACC6.56%
2.3 Liquidity
A Current Ratio of 1.38 indicates that FOUR should not have too much problems paying its short term obligations.
FOUR's Current ratio of 1.38 is fine compared to the rest of the industry. FOUR outperforms 64.29% of its industry peers.
A Quick Ratio of 1.38 indicates that FOUR should not have too much problems paying its short term obligations.
FOUR's Quick ratio of 1.38 is fine compared to the rest of the industry. FOUR outperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.21% over the past year.
The Earnings Per Share has been growing by 108.37% on average over the past years. This is a very strong growth
Looking at the last year, FOUR shows a very strong growth in Revenue. The Revenue has grown by 23.16%.
The Revenue has been growing by 35.42% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)51.21%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%41.35%
Revenue 1Y (TTM)23.16%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%29.44%
3.2 Future
Based on estimates for the next years, FOUR will show a very strong growth in Earnings Per Share. The EPS will grow by 20.91% on average per year.
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
FOUR is valuated correctly with a Price/Earnings ratio of 13.90.
FOUR's Price/Earnings ratio is in line with the industry average.
FOUR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.65, the valuation of FOUR can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FOUR is on the same level as its industry peers.
FOUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
61.22% of the companies in the same industry are more expensive than FOUR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FOUR is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 11.44 |
4.3 Compensation for Growth
FOUR's 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)0.38
PEG (5Y)N/A
EPS Next 2Y29.4%
EPS Next 3Y26.71%
5. Dividend
5.1 Amount
FOUR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
69.36
-0.73 (-1.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners133.52%
Inst Owner Change-1.76%
Ins Owners2.36%
Ins Owner Change9.81%
Market Cap6.15B
Revenue(TTM)3.88B
Net Income(TTM)168.00M
Analysts80.71
Price Target97.42 (40.46%)
Short Float %21.3%
Short Ratio5.86
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)-4.6%
Min EPS beat(2)-10.04%
Max EPS beat(2)0.85%
EPS beat(4)3
Avg EPS beat(4)13.41%
Min EPS beat(4)-10.04%
Max EPS beat(4)47%
EPS beat(8)4
Avg EPS beat(8)4.28%
EPS beat(12)8
Avg EPS beat(12)12.87%
EPS beat(16)11
Avg EPS beat(16)13.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-5.52%
Min Revenue beat(4)-13.55%
Max Revenue beat(4)-1.27%
Revenue beat(8)0
Avg Revenue beat(8)-6.52%
Revenue beat(12)1
Avg Revenue beat(12)-5.02%
Revenue beat(16)4
Avg Revenue beat(16)-3.32%
PT rev (1m)-12.6%
PT rev (3m)-12.6%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-2.52%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)4.54%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 10.65 | ||
| P/S | 1.58 | ||
| P/FCF | 17.81 | ||
| P/OCF | 11.06 | ||
| P/B | 3.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.44 |
EPS(TTM)4.99
EY7.19%
EPS(NY)6.51
Fwd EY9.39%
FCF(TTM)3.89
FCFY5.61%
OCF(TTM)6.27
OCFY9.04%
SpS43.76
BVpS18.84
TBVpS-43.01
PEG (NY)0.38
PEG (5Y)N/A
Graham Number45.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 10.06% | ||
| ROCE | 6.27% | ||
| ROIC | 4.95% | ||
| ROICexc | 6.31% | ||
| ROICexgc | 886.29% | ||
| OM | 11.37% | ||
| PM (TTM) | 4.33% | ||
| GM | 32.61% | ||
| FCFM | 8.9% |
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-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 13.67 | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 55.1% | ||
| Cap/Sales | 5.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.51% | ||
| Profit Quality | 205.42% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 1.16 |
F-Score5
WACC6.56%
ROIC/WACC0.76
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)23.16%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%29.44%
Revenue Next Year21.9%
Revenue Next 2Y24.15%
Revenue Next 3Y20.76%
Revenue Next 5Y16.45%
EBIT growth 1Y75.45%
EBIT growth 3Y203.36%
EBIT growth 5Y93.23%
EBIT Next Year255.68%
EBIT Next 3Y74.64%
EBIT Next 5Y42.29%
FCF growth 1Y18.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.53%
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 4 / 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 13.9 and the Price/Book (PB) ratio is 3.68.
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.