SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - NYSE:FOUR - US82452J1097 - Common Stock
77.78 USD
+1.29 (+1.69%)
77.78 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to FOUR. FOUR was compared to 99 industry peers in the Financial Services industry. FOUR has an average financial health and profitability rating. FOUR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
The reported net income has been mixed in the past 5 years: FOUR reported negative net income in multiple years.
FOUR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FOUR has a better Return On Assets (2.98%) than 67.68% of its industry peers.
FOUR has a Return On Equity of 13.09%. This is in the better half of the industry: FOUR outperforms 68.69% of its industry peers.
FOUR has a better Return On Invested Capital (5.38%) than 67.68% of its industry peers.
FOUR had an Average Return On Invested Capital over the past 3 years of 5.00%. This is below the industry average of 7.72%.
The last Return On Invested Capital (5.38%) for FOUR is above the 3 year average (5.00%), which is a sign of increasing profitability.
| 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%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of FOUR (5.77%) is comparable to the rest of the industry.
FOUR has a Operating Margin of 10.37%. This is comparable to the rest of the industry: FOUR outperforms 41.41% of its industry peers.
FOUR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 30.55%, FOUR perfoms like the industry average, outperforming 47.47% of the companies in the same industry.
FOUR's Gross Margin has improved in the last couple of years.
| 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.
FOUR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FOUR has more shares outstanding
Compared to 1 year ago, FOUR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that FOUR is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.78, FOUR is doing good in the industry, outperforming 71.72% of the companies in the same industry.
The Debt to FCF ratio of FOUR is 9.80, which is on the high side as it means it would take FOUR, 9.80 years of fcf income to pay off 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.
The Debt to Equity ratio of FOUR (1.91) is worse than 65.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 9.8 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.8
WACC6.72%
2.3 Liquidity
FOUR has a Current Ratio of 2.53. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
FOUR has a Current ratio of 2.53. This is in the better half of the industry: FOUR outperforms 77.78% of its industry peers.
FOUR has a Quick Ratio of 2.53. This indicates that FOUR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FOUR (2.53) is better than 79.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
FOUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.05%, which is quite impressive.
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 23.86% 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)48.05%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%14.58%
Revenue 1Y (TTM)23.86%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%16.83%
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
The Revenue is expected to grow by 16.45% on average over the next years. This is quite good.
EPS Next Y40.64%
EPS Next 2Y32.8%
EPS Next 3Y28.6%
EPS Next 5Y20.91%
Revenue Next Year21.19%
Revenue Next 2Y22.63%
Revenue Next 3Y20.03%
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 17.06, FOUR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of FOUR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.50, FOUR is valued a bit cheaper.
FOUR is valuated reasonably with a Price/Forward Earnings ratio of 11.34.
FOUR's Price/Forward Earnings ratio is in line with the industry average.
FOUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
FOUR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FOUR is cheaper than 66.67% of the companies in the same industry.
61.62% of the companies in the same industry are more expensive than FOUR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.07 | ||
| EV/EBITDA | 10.53 |
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.
The decent profitability rating of FOUR may justify a higher PE ratio.
A more expensive valuation may be justified as FOUR's earnings are expected to grow with 28.60% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y32.8%
EPS Next 3Y28.6%
5. Dividend
5.1 Amount
No dividends for FOUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
77.78
+1.29 (+1.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners133.52%
Inst Owner Change-0.38%
Ins Owners2.36%
Ins Owner Change9.84%
Market Cap6.88B
Analysts81.43
Price Target111.47 (43.31%)
Short Float %18.2%
Short Ratio6.28
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)0%
PT rev (3m)-3.19%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.11%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)9.84%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 11.34 | ||
| P/S | 1.9 | ||
| P/FCF | 18.07 | ||
| P/OCF | 12.15 | ||
| P/B | 4.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.53 |
EPS(TTM)4.56
EY5.86%
EPS(NY)6.86
Fwd EY8.82%
FCF(TTM)4.31
FCFY5.53%
OCF(TTM)6.4
OCFY8.23%
SpS40.83
BVpS18.01
TBVpS-10.13
PEG (NY)0.42
PEG (5Y)N/A
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%
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 Turnover0.52
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 | 1.78 |
F-Score6
WACC6.72%
ROIC/WACC0.8
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)48.05%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%14.58%
EPS Next Y40.64%
EPS Next 2Y32.8%
EPS Next 3Y28.6%
EPS Next 5Y20.91%
Revenue 1Y (TTM)23.86%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%16.83%
Revenue Next Year21.19%
Revenue Next 2Y22.63%
Revenue Next 3Y20.03%
Revenue Next 5Y16.45%
EBIT growth 1Y69.89%
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%