SHIFT4 PAYMENTS INC-CLASS A (FOUR)
US82452J1097 - Common Stock
We assign a fundamental rating of 5 out of 10 to FOUR. FOUR was compared to 102 industry peers in the Financial Services industry. FOUR has only an average score on both its financial health and profitability. FOUR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
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
The Return On Assets of FOUR (2.54%) is better than 61.76% of its industry peers.
With a decent Return On Equity value of 13.19%, FOUR is doing good in the industry, outperforming 61.76% of the companies in the same industry.
The Return On Invested Capital of FOUR (5.45%) is better than 74.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FOUR is below the industry average of 7.95%.
The 3 year average ROIC (3.15%) for FOUR is below the current ROIC(5.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 13.19% | ||
| ROIC | 5.45% |
ROA(3y)1.13%
ROA(5y)-1.14%
ROE(3y)5.63%
ROE(5y)-86.97%
ROIC(3y)3.15%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 3.36%, FOUR is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
With a Operating Margin value of 7.22%, FOUR perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
FOUR's Operating Margin has improved in the last couple of years.
FOUR has a Gross Margin (26.82%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FOUR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.22% | ||
| PM (TTM) | 3.36% | ||
| GM | 26.82% |
OM growth 3YN/A
OM growth 5Y15.97%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.97%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
FOUR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FOUR has been increased compared to 1 year ago.
The number of shares outstanding for FOUR has been increased compared to 5 years ago.
The debt/assets ratio for FOUR has been reduced compared to a year ago.
2.2 Solvency
FOUR has an Altman-Z score of 2.05. 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 has a better Altman-Z score (2.05) than 76.47% of its industry peers.
The Debt to FCF ratio of FOUR is 6.98, which is on the high side as it means it would take FOUR, 6.98 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.98, FOUR perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
FOUR has a Debt/Equity ratio of 2.68. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.68, FOUR is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.76
WACC7.16%
2.3 Liquidity
FOUR has a Current Ratio of 1.64. 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 1.64. This is in the better half of the industry: FOUR outperforms 68.63% of its industry peers.
FOUR has a Quick Ratio of 1.63. This is a normal value and indicates that FOUR is financially healthy and should not expect problems in meeting its short term obligations.
FOUR's Quick ratio of 1.63 is fine compared to the rest of the industry. FOUR outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 103.60% over the past year.
Looking at the last year, FOUR shows a very strong growth in Revenue. The Revenue has grown by 28.65%.
Measured over the past years, FOUR shows a very strong growth in Revenue. The Revenue has been growing by 35.54% on average per year.
EPS 1Y (TTM)103.6%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q61.7%
Revenue 1Y (TTM)28.65%
Revenue growth 3Y49.54%
Revenue growth 5Y35.54%
Revenue growth Q2Q31.19%
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 27.22% on average per year.
FOUR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.90% yearly.
EPS Next Y31.58%
EPS Next 2Y30.61%
EPS Next 3Y27.22%
EPS Next 5YN/A
Revenue Next Year43.16%
Revenue Next 2Y34.79%
Revenue Next 3Y30.27%
Revenue Next 5Y28.9%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.62, which indicates a rather expensive current valuation of FOUR.
The rest of the industry has a similar Price/Earnings ratio as FOUR.
The average S&P500 Price/Earnings ratio is at 28.06. FOUR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.67, FOUR is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as FOUR.
FOUR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.62 | ||
| Fwd PE | 15.67 |
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.
Based on the Price/Free Cash Flow ratio, FOUR is valued a bit cheaper than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.06 | ||
| EV/EBITDA | 15.72 |
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 27.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y30.61%
EPS Next 3Y27.22%
5. Dividend
5.1 Amount
FOUR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHIFT4 PAYMENTS INC-CLASS A
NYSE:FOUR (5/2/2024, 7:04:00 PM)
After market: 59.04 +0.69 (+1.18%)58.35
+0.46 (+0.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.62 | ||
| Fwd PE | 15.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 13.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.22% | ||
| PM (TTM) | 3.36% | ||
| GM | 26.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)103.6%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y31.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.65%
Revenue growth 3Y49.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y