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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

101.94  -1.06 (-1.03%)

After market: 101.94 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to FOUR. FOUR was compared to 101 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.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

FOUR had positive earnings in the past year.
In the past year FOUR had a positive cash flow from operations.
In multiple years FOUR reported negative net income over the last 5 years.
Each year in the past 5 years FOUR had a positive operating cash flow.
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 has a Return On Assets of 4.48%. This is in the better half of the industry: FOUR outperforms 73.27% of its industry peers.
Looking at the Return On Equity, with a value of 27.82%, FOUR belongs to the top of the industry, outperforming 90.10% of the companies in the same industry.
FOUR's Return On Invested Capital of 7.41% is fine compared to the rest of the industry. FOUR outperforms 75.25% 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 11.84%.
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 in line compared to the rest of the industry. FOUR outperforms 40.59% of its industry peers.
The Operating Margin of FOUR (9.86%) is worse than 60.40% of its industry peers.
In the last couple of years the Operating Margin of FOUR has grown nicely.
FOUR has a Gross Margin (30.02%) which is comparable to the rest of the industry.
FOUR's Gross Margin has improved in the last couple of years.
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

FOUR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FOUR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FOUR has more shares outstanding
The debt/assets ratio for FOUR is higher compared to a year ago.
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

FOUR has an Altman-Z score of 2.24. This is not the best score and indicates that FOUR is in the grey zone with still only limited risk for bankruptcy at the moment.
FOUR's Altman-Z score of 2.24 is fine compared to the rest of the industry. FOUR outperforms 78.22% of its industry peers.
FOUR has a debt to FCF ratio of 7.97. This is a slightly negative value and a sign of low solvency as FOUR would need 7.97 years to pay back of 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 56.44% 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.
FOUR has a Debt to Equity ratio of 2.68. This is in the lower half of the industry: FOUR underperforms 70.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.68
Debt/FCF 7.97
Altman-Z 2.24
ROIC/WACC1.03
WACC7.22%
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.
FOUR has a Current ratio of 1.36. This is in the better half of the industry: FOUR outperforms 62.38% of its industry peers.
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.
FOUR has a better Quick ratio (1.36) than 64.36% of its industry peers.
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

FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.55%, which is quite impressive.
The Earnings Per Share has been growing by 108.37% on average over the past years. This is a very strong growth
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
FOUR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.45% yearly.
EPS Next Y35.51%
EPS Next 2Y28.18%
EPS Next 3Y24.72%
EPS Next 5Y20.91%
Revenue Next Year16.78%
Revenue Next 2Y19.37%
Revenue Next 3Y16.36%
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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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 23.06, the valuation of FOUR can be described as rather expensive.
FOUR's Price/Earnings ratio is a bit more expensive when compared to the industry. FOUR is more expensive than 60.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, FOUR is valued at the same level.
With a Price/Forward Earnings ratio of 15.95, FOUR is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as FOUR.
FOUR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
Industry RankSector Rank
PE 23.06
Fwd PE 15.95
FOUR Price Earnings VS Forward Price EarningsFOUR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

FOUR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FOUR is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 25.01
EV/EBITDA 16.11
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

FOUR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FOUR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FOUR's earnings are expected to grow with 24.72% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y28.18%
EPS Next 3Y24.72%

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0

5. Dividend

5.1 Amount

FOUR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SHIFT4 PAYMENTS INC-CLASS A

NYSE:FOUR (8/1/2025, 8:04:00 PM)

After market: 101.94 0 (0%)

101.94

-1.06 (-1.03%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)08-05 2025-08-05/bmo
Inst Owners120.88%
Inst Owner Change-1.06%
Ins Owners1.77%
Ins Owner Change5.27%
Market Cap8.92B
Analysts82.07
Price Target116.38 (14.17%)
Short Float %18.91%
Short Ratio9.64
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)1.07%
PT rev (3m)-0.83%
EPS NQ rev (1m)-4.67%
EPS NQ rev (3m)7.9%
EPS NY rev (1m)-1.42%
EPS NY rev (3m)14.98%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-3.13%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-0.53%
Valuation
Industry RankSector Rank
PE 23.06
Fwd PE 15.95
P/S 2.57
P/FCF 25.01
P/OCF 16.52
P/B 11.08
P/tB N/A
EV/EBITDA 16.11
EPS(TTM)4.42
EY4.34%
EPS(NY)6.39
Fwd EY6.27%
FCF(TTM)4.08
FCFY4%
OCF(TTM)6.17
OCFY6.05%
SpS39.67
BVpS9.2
TBVpS-18.71
PEG (NY)0.65
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 2.24
F-Score6
WACC7.22%
ROIC/WACC1.03
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 Y35.51%
EPS Next 2Y28.18%
EPS Next 3Y24.72%
EPS Next 5Y20.91%
Revenue 1Y (TTM)27.39%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%19.92%
Revenue Next Year16.78%
Revenue Next 2Y19.37%
Revenue Next 3Y16.36%
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%