SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - NYSE:FOUR - US82452J1097 - Common Stock
85.68 USD
-1.21 (-1.39%)
86.5 USD
+0.82 (+0.96%)
Taking everything into account, FOUR scores 6 out of 10 in our fundamental rating. FOUR was compared to 101 industry peers in the Financial Services industry. FOUR has only an average score on both its financial health and profitability. 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.
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
Looking at the Return On Assets, with a value of 2.98%, FOUR is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
The Return On Equity of FOUR (13.09%) is better than 69.31% of its industry peers.
FOUR's Return On Invested Capital of 5.38% is fine compared to the rest of the industry. FOUR outperforms 68.32% 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 7.65%.
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.
The Operating Margin of FOUR (10.37%) 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 (30.55%) 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 | 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.
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 1.87. 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 1.87 is fine compared to the rest of the industry. FOUR outperforms 73.27% 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.
The Debt to FCF ratio of FOUR (9.80) is comparable to the rest of the industry.
FOUR has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.91, FOUR is not doing good in the industry: 65.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 9.8 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.76
WACC7.09%
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's Current ratio of 2.53 is fine compared to the rest of the industry. FOUR outperforms 79.21% 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.
Looking at the Quick ratio, with a value of 2.53, FOUR belongs to the top of the industry, outperforming 81.19% 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 48.05% over the past year.
FOUR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 108.37% yearly.
FOUR shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.86%.
FOUR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.42% yearly.
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
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 Y40.64%
EPS Next 2Y32.8%
EPS Next 3Y28.6%
EPS Next 5Y20.91%
Revenue Next Year21.24%
Revenue Next 2Y22.64%
Revenue Next 3Y20.04%
Revenue Next 5Y16.45%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 18.79, which indicates a rather expensive current valuation of FOUR.
FOUR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, FOUR is valued a bit cheaper.
FOUR is valuated correctly with a Price/Forward Earnings ratio of 12.49.
The rest of the industry has a similar Price/Forward Earnings ratio as FOUR.
FOUR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOUR is valued a bit cheaper than 65.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FOUR is valued a bit cheaper than the industry average as 61.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.9 | ||
| EV/EBITDA | 11.68 |
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 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 28.60% in the coming years.
PEG (NY)0.46
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 |
85.68
-1.21 (-1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners133.52%
Inst Owner Change7.42%
Ins Owners2.36%
Ins Owner Change9.84%
Market Cap7.58B
Analysts81.43
Price Target111.47 (30.1%)
Short Float %19.09%
Short Ratio7.31
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)-5.39%
PT rev (3m)-3.78%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)3.05%
Revenue NQ rev (3m)9.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 12.49 | ||
| P/S | 2.1 | ||
| P/FCF | 19.9 | ||
| P/OCF | 13.39 | ||
| P/B | 4.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.68 |
EPS(TTM)4.56
EY5.32%
EPS(NY)6.86
Fwd EY8.01%
FCF(TTM)4.31
FCFY5.02%
OCF(TTM)6.4
OCFY7.47%
SpS40.83
BVpS18.01
TBVpS-10.13
PEG (NY)0.46
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 | 1.87 |
F-Score6
WACC7.09%
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)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 Year21.24%
Revenue Next 2Y22.64%
Revenue Next 3Y20.04%
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%