SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - NYSE:FOUR - US82452J1097 - Common Stock
66.15 USD
-0.67 (-1%)
67.62 USD
+1.47 (+2.22%)
Overall FOUR gets a fundamental rating of 5 out of 10. We evaluated FOUR against 97 industry peers in the Financial Services industry. FOUR has an average financial health and profitability rating. FOUR is growing strongly while it is still valued neutral. This is a good combination!
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.
In the past 5 years FOUR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.98%, FOUR is in the better half of the industry, outperforming 68.37% of the companies in the same industry.
FOUR has a Return On Equity of 13.09%. This is in the better half of the industry: FOUR outperforms 68.37% of its industry peers.
FOUR's Return On Invested Capital of 5.38% is fine compared to the rest of the industry. FOUR outperforms 67.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FOUR is below the industry average of 7.91%.
| 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
With a Profit Margin value of 5.77%, FOUR perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
FOUR has a Operating Margin (10.37%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FOUR has grown nicely.
FOUR's Gross Margin of 30.55% is in line compared to the rest of the industry. FOUR outperforms 50.00% of its industry peers.
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
FOUR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FOUR has more shares outstanding
FOUR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FOUR is higher compared to a year ago.
2.2 Solvency
FOUR has an Altman-Z score of 1.68. This is a bad value and indicates that FOUR is not financially healthy and even 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.
FOUR has a Debt to FCF ratio (9.80) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.91 is on the high side and indicates that FOUR has dependencies on debt financing.
FOUR has a worse Debt to Equity ratio (1.91) than 66.33% of its industry peers.
| 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.
FOUR's Current ratio of 2.53 is fine compared to the rest of the industry. FOUR outperforms 77.55% of its industry peers.
A Quick Ratio of 2.53 indicates that FOUR has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.53, FOUR is doing good in 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.
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.
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%29.44%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.26, FOUR is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as FOUR.
The average S&P500 Price/Earnings ratio is at 26.06. FOUR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.16, the valuation of FOUR can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FOUR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FOUR to the average of the S&P500 Index (32.73), we can say FOUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOUR is valued a bit cheaper than the industry average as 72.45% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FOUR is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 9.24 |
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 26.71% in the coming years. This may justify a more expensive valuation.
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-1.95%
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)-9.13%
EPS NQ rev (1m)-2.33%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)-2.63%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)9.46%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)4.38%
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 | 9.24 |
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%29.44%
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.