SHIFT4 PAYMENTS INC-CLASS A (FOUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FOUR - US82452J1097 - Common Stock
59.4 USD
-0.58 (-0.97%)
59.4 USD
0 (0%)
Taking everything into account, FOUR scores 5 out of 10 in our fundamental rating. FOUR was compared to 97 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 growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- In the past year FOUR was profitable.
- 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.
1.2 Ratios
- The Return On Assets of FOUR (1.87%) is comparable to the rest of the industry.
- FOUR's Return On Equity of 10.06% is in line compared to the rest of the industry. FOUR outperforms 57.73% of its industry peers.
- FOUR's Return On Invested Capital of 4.95% is fine compared to the rest of the industry. FOUR outperforms 68.04% of its industry peers.
- FOUR had an Average Return On Invested Capital over the past 3 years of 5.43%. This is below the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 10.06% | ||
| ROIC | 4.95% |
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
- FOUR has a Profit Margin of 4.33%. This is in the lower half of the industry: FOUR underperforms 62.89% of its industry peers.
- FOUR has a Operating Margin of 11.37%. This is comparable to the rest of the industry: FOUR outperforms 45.36% of its industry peers.
- FOUR's Operating Margin has improved in the last couple of years.
- The Gross Margin of FOUR (32.61%) is comparable to the rest of the industry.
- FOUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.37% | ||
| PM (TTM) | 4.33% | ||
| GM | 32.61% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
- Based on the Altman-Z score of 1.08, we must say that FOUR is in the distress zone and has some risk of bankruptcy.
- FOUR's Altman-Z score of 1.08 is fine compared to the rest of the industry. FOUR outperforms 60.82% of its industry peers.
- FOUR has a debt to FCF ratio of 13.67. This is a negative value and a sign of low solvency as FOUR would need 13.67 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 13.67, FOUR perfoms like the industry average, outperforming 43.30% of the companies in the same industry.
- FOUR has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.41, FOUR is not doing good in the industry: 73.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.71
WACC6.98%
2.3 Liquidity
- FOUR has a Current Ratio of 1.38. 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 Current ratio of 1.38. This is in the better half of the industry: FOUR outperforms 64.95% of its industry peers.
- A Quick Ratio of 1.38 indicates that FOUR should not have too much problems paying its short term obligations.
- FOUR's Quick ratio of 1.38 is fine compared to the rest of the industry. FOUR outperforms 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
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.
- FOUR shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.16%.
- FOUR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.42% yearly.
EPS 1Y (TTM)51.21%
EPS 3Y108.37%
EPS 5YN/A
EPS Q2Q%41.35%
Revenue 1Y (TTM)23.16%
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 Y37.19%
EPS Next 2Y30.78%
EPS Next 3Y27.19%
EPS Next 5Y20.91%
Revenue Next Year21.19%
Revenue Next 2Y22.84%
Revenue Next 3Y19.96%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.90, the valuation of FOUR can be described as reasonable.
- The rest of the industry has a similar Price/Earnings ratio as FOUR.
- The average S&P500 Price/Earnings ratio is at 28.39. FOUR is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 8.93, which indicates a very decent valuation of FOUR.
- Based on the Price/Forward Earnings ratio, FOUR is valued a bit cheaper than 60.82% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, FOUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FOUR is valued a bit cheaper than 64.95% of the companies in the same industry.
- FOUR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FOUR is cheaper than 62.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 10.29 |
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 27.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y30.78%
EPS Next 3Y27.19%
5. Dividend
5.1 Amount
- FOUR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 for FOUR stock?
ChartMill assigns a valuation rating of 7 / 10 to SHIFT4 PAYMENTS INC-CLASS A (FOUR). This can be considered as Undervalued.
How profitable is SHIFT4 PAYMENTS INC-CLASS A (FOUR) stock?
SHIFT4 PAYMENTS INC-CLASS A (FOUR) has a profitability rating of 4 / 10.
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 37.19% in the next year.