SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
NYSE:FOUR - New York Stock Exchange, Inc. - US82452J1097 - Common Stock - Currency: USD
Taking everything into account, FOUR scores 5 out of 10 in our fundamental rating. FOUR was compared to 100 industry peers in the Financial Services industry. FOUR has a medium profitability rating, but doesn't score so well on its financial health evaluation. FOUR is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
FOUR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.48%, FOUR is doing good in the industry, outperforming 73.00% of the companies in the same industry.
With an excellent Return On Equity value of 27.82%, FOUR belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
FOUR has a better Return On Invested Capital (7.41%) than 74.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FOUR is significantly below the industry average of 11.84%.
The last Return On Invested Capital (7.41%) for FOUR is above the 3 year average (5.00%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of FOUR (6.45%) is worse than 60.00% of its industry peers.
The Operating Margin of FOUR (9.86%) is worse than 62.00% of its industry peers.
In the last couple of years the Operating Margin of FOUR has grown nicely.
FOUR has a Gross Margin of 30.02%. This is comparable to the rest of the industry: FOUR outperforms 49.00% of its industry peers.
FOUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for FOUR has been increased compared to 5 years ago.
FOUR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.25 indicates that FOUR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.25, FOUR is doing good in the industry, outperforming 77.00% of the companies in the same industry.
The Debt to FCF ratio of FOUR is 7.97, which is on the high side as it means it would take FOUR, 7.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.97, FOUR is in line with its industry, outperforming 56.00% of the companies in the same industry.
A Debt/Equity ratio of 2.68 is on the high side and indicates that FOUR has dependencies on debt financing.
With a Debt to Equity ratio value of 2.68, FOUR is not doing good in the industry: 69.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.01
WACC7.33%
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 63.00% 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 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
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
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.
The Revenue is expected to grow by 16.45% on average over the next years. This is quite good.
EPS Next Y37.47%
EPS Next 2Y28.57%
EPS Next 3Y24.18%
EPS Next 5Y20.91%
Revenue Next Year16.35%
Revenue Next 2Y18.64%
Revenue Next 3Y15.27%
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
Based on the Price/Earnings ratio of 23.03, the valuation of FOUR can be described as rather expensive.
63.00% of the companies in the same industry are cheaper than FOUR, based on the Price/Earnings ratio.
FOUR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.83, FOUR is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as FOUR.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, FOUR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.03 | ||
| Fwd PE | 15.83 |
4.2 Price Multiples
FOUR's Enterprise Value to EBITDA is on the same level as 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.29 | ||
| EV/EBITDA | 16.26 |
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 24.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y28.57%
EPS Next 3Y24.18%
5. Dividend
5.1 Amount
No dividends for FOUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.8
+3.26 (+3.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners120.88%
Inst Owner Change4%
Ins Owners1.77%
Ins Owner Change5.36%
Market Cap9.02B
Analysts82.07
Price Target115.14 (13.1%)
Short Float %17.46%
Short Ratio6.4
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)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)-0.42%
PT rev (3m)-12.18%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)10.2%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)14.66%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.03 | ||
| Fwd PE | 15.83 | ||
| P/S | 2.6 | ||
| P/FCF | 25.29 | ||
| P/OCF | 16.7 | ||
| P/B | 11.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.26 |
EPS(TTM)4.42
EY4.34%
EPS(NY)6.43
Fwd EY6.32%
FCF(TTM)4.03
FCFY3.95%
OCF(TTM)6.1
OCFY5.99%
SpS39.17
BVpS9.09
TBVpS-18.47
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.25 |
F-Score6
WACC7.33%
ROIC/WACC1.01
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 Y37.47%
EPS Next 2Y28.57%
EPS Next 3Y24.18%
EPS Next 5Y20.91%
Revenue 1Y (TTM)27.39%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%19.92%
Revenue Next Year16.35%
Revenue Next 2Y18.64%
Revenue Next 3Y15.27%
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%