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 101 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 is still valued neutral. This is a good combination!
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.
Each year in the past 5 years FOUR had a positive operating cash flow.
1.2 Ratios
FOUR has a Return On Assets of 4.48%. This is in the better half of the industry: FOUR outperforms 76.24% of its industry peers.
FOUR's Return On Equity of 27.82% is amongst the best of the industry. FOUR outperforms 90.10% of its industry peers.
FOUR's Return On Invested Capital of 7.41% is fine compared to the rest of the industry. FOUR outperforms 74.26% 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 11.69%.
The 3 year average ROIC (5.00%) for FOUR is below the current ROIC(7.41%), indicating increased profibility in the last year.
| 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
FOUR has a Profit Margin (6.45%) which is in line with its industry peers.
The Operating Margin of FOUR (9.86%) is worse than 62.38% of its industry peers.
FOUR's Operating Margin has improved in the last couple of years.
FOUR has a Gross Margin (30.02%) 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 | 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 2.07 indicates that FOUR is not a great score, but indicates only limited risk for bankruptcy at the moment.
FOUR has a Altman-Z score of 2.07. This is in the better half of the industry: FOUR outperforms 78.22% of its industry peers.
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.
The Debt to FCF ratio of FOUR (7.97) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.68 is on the high side and indicates that FOUR has dependencies on debt financing.
The Debt to Equity ratio of FOUR (2.68) is worse than 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.02
WACC7.25%
2.3 Liquidity
FOUR has a Current 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 Current ratio of 1.36. This is in the better half of the industry: FOUR outperforms 64.36% of its industry peers.
A Quick Ratio of 1.36 indicates that FOUR should not have too much problems paying its short term obligations.
The Quick ratio of FOUR (1.36) is better than 66.34% 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.
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 27.39%.
FOUR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.42% yearly.
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
FOUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.51% yearly.
FOUR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.57% yearly.
EPS Next Y39.57%
EPS Next 2Y29.83%
EPS Next 3Y26.73%
EPS Next 5Y22.51%
Revenue Next Year16.38%
Revenue Next 2Y18.64%
Revenue Next 3Y15.49%
Revenue Next 5Y17.57%
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 19.76, which indicates a rather expensive current valuation of FOUR.
Based on the Price/Earnings ratio, FOUR is valued a bit more expensive than 60.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of FOUR to the average of the S&P500 Index (26.03), we can say FOUR is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.32 indicates a correct valuation of FOUR.
FOUR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FOUR to the average of the S&P500 Index (21.94), we can say FOUR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 13.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FOUR is on the same level as its industry peers.
FOUR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.7 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
FOUR's 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.
FOUR's earnings are expected to grow with 26.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y29.83%
EPS Next 3Y26.73%
5. Dividend
5.1 Amount
No dividends for FOUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.34
-2.92 (-3.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.37%
Inst Owner Change3.98%
Ins Owners1.51%
Ins Owner Change3.73%
Market Cap7.74B
Analysts82.07
Price Target115.62 (32.38%)
Short Float %14.55%
Short Ratio4.49
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)-9.67%
PT rev (3m)-1.59%
EPS NQ rev (1m)15.07%
EPS NQ rev (3m)15.56%
EPS NY rev (1m)18.42%
EPS NY rev (3m)16.34%
Revenue NQ rev (1m)-2.62%
Revenue NQ rev (3m)-10.46%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-10.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 13.32 | ||
| P/S | 2.23 | ||
| P/FCF | 21.7 | ||
| P/OCF | 14.33 | ||
| P/B | 9.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
EPS(TTM)4.42
EY5.06%
EPS(NY)6.56
Fwd EY7.51%
FCF(TTM)4.03
FCFY4.61%
OCF(TTM)6.1
OCFY6.98%
SpS39.17
BVpS9.09
TBVpS-18.47
PEG (NY)0.5
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 | 2.07 |
F-Score6
WACC7.25%
ROIC/WACC1.02
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 Y39.57%
EPS Next 2Y29.83%
EPS Next 3Y26.73%
EPS Next 5Y22.51%
Revenue 1Y (TTM)27.39%
Revenue growth 3Y34.54%
Revenue growth 5Y35.42%
Sales Q2Q%19.92%
Revenue Next Year16.38%
Revenue Next 2Y18.64%
Revenue Next 3Y15.49%
Revenue Next 5Y17.57%
EBIT growth 1Y79.63%
EBIT growth 3Y203.36%
EBIT growth 5Y93.23%
EBIT Next Year210.39%
EBIT Next 3Y63.35%
EBIT Next 5Y42.61%
FCF growth 1Y69.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.73%
OCF growth 3Y450.43%
OCF growth 5Y79.7%