FIDELITY NATIONAL INFO SERV (ZGY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZGY - US31620M1062 - Common Stock
51.32 EUR
-0.89 (-1.7%)
ZGY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 60 industry peers in the Financial Services industry. While ZGY is still in line with the averages on profitability rating, there are concerns on its financial health. ZGY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ZGY was profitable.
- ZGY had a positive operating cash flow in the past year.
- In multiple years ZGY reported negative net income over the last 5 years.
- Each year in the past 5 years ZGY had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.46%, ZGY is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
- ZGY has a Return On Equity of 1.10%. This is comparable to the rest of the industry: ZGY outperforms 41.67% of its industry peers.
- ZGY has a Return On Invested Capital of 4.80%. This is in the better half of the industry: ZGY outperforms 61.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ZGY is significantly below the industry average of 10.51%.
- The last Return On Invested Capital (4.80%) for ZGY is above the 3 year average (3.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 1.1% | ||
| ROIC | 4.8% |
ROA(3y)-11.43%
ROA(5y)-6.72%
ROE(3y)-29.08%
ROE(5y)-17.21%
ROIC(3y)3.09%
ROIC(5y)2.24%
1.3 Margins
- ZGY has a worse Profit Margin (1.45%) than 63.33% of its industry peers.
- In the last couple of years the Profit Margin of ZGY has grown nicely.
- The Operating Margin of ZGY (17.09%) is comparable to the rest of the industry.
- ZGY's Operating Margin has improved in the last couple of years.
- The Gross Margin of ZGY (36.65%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of ZGY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.09% | ||
| PM (TTM) | 1.45% | ||
| GM | 36.65% |
OM growth 3Y9.59%
OM growth 5Y11.22%
PM growth 3Y47.46%
PM growth 5Y37.78%
GM growth 3Y1.56%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
- ZGY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ZGY has less shares outstanding than it did 1 year ago.
- ZGY has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ZGY has an improved debt to assets ratio.
2.2 Solvency
- ZGY has an Altman-Z score of 0.38. This is a bad value and indicates that ZGY is not financially healthy and even has some risk of bankruptcy.
- ZGY has a worse Altman-Z score (0.38) than 65.00% of its industry peers.
- ZGY has a debt to FCF ratio of 6.89. This is a slightly negative value and a sign of low solvency as ZGY would need 6.89 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.89, ZGY is in line with its industry, outperforming 55.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.79 indicates that ZGY is somewhat dependend on debt financing.
- The Debt to Equity ratio of ZGY (0.79) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.68
WACC7.09%
2.3 Liquidity
- A Current Ratio of 0.53 indicates that ZGY may have some problems paying its short term obligations.
- ZGY has a worse Current ratio (0.53) than 73.33% of its industry peers.
- ZGY has a Quick Ratio of 0.53. This is a bad value and indicates that ZGY is not financially healthy enough and could expect problems in meeting its short term obligations.
- ZGY has a Quick ratio of 0.53. This is in the lower half of the industry: ZGY underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- ZGY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.17%, which is quite good.
- Measured over the past years, ZGY shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.91% on average per year.
- Looking at the last year, ZGY shows a small growth in Revenue. The Revenue has grown by 4.24% in the last year.
- The Revenue has been decreasing by -0.40% on average over the past years.
EPS 1Y (TTM)14.17%
EPS 3Y-7.1%
EPS 5Y-3.91%
EPS Q2Q%7.86%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y2.74%
Revenue growth 5Y-0.4%
Sales Q2Q%5.72%
3.2 Future
- Based on estimates for the next years, ZGY will show a small growth in Earnings Per Share. The EPS will grow by 7.82% on average per year.
- Based on estimates for the next years, ZGY will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y10.69%
EPS Next 2Y10.31%
EPS Next 3Y9.97%
EPS Next 5Y7.82%
Revenue Next Year4.39%
Revenue Next 2Y4.47%
Revenue Next 3Y4.45%
Revenue Next 5Y4.18%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.97, the valuation of ZGY can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of ZGY indicates a somewhat cheap valuation: ZGY is cheaper than 66.67% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ZGY to the average of the S&P500 Index (27.21), we can say ZGY is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.39 indicates a reasonable valuation of ZGY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ZGY indicates a somewhat cheap valuation: ZGY is cheaper than 71.67% of the companies listed in the same industry.
- ZGY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
- ZGY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ZGY is cheaper than 63.33% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ZGY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.48 | ||
| EV/EBITDA | 11.35 |
4.3 Compensation for Growth
- ZGY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y10.31%
EPS Next 3Y9.97%
5. Dividend
5.1 Amount
- ZGY has a Yearly Dividend Yield of 2.52%.
- ZGY's Dividend Yield is a higher than the industry average which is at 1.95.
- ZGY's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
- The dividend of ZGY decreases each year by -1.76%.
Dividend Growth(5Y)-1.76%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- ZGY pays out 547.37% of its income as dividend. This is not a sustainable payout ratio.
DP547.37%
EPS Next 2Y10.31%
EPS Next 3Y9.97%
FIDELITY NATIONAL INFO SERV / ZGY.DE FAQ
Can you provide the ChartMill fundamental rating for FIDELITY NATIONAL INFO SERV?
ChartMill assigns a fundamental rating of 4 / 10 to ZGY.DE.
Can you provide the valuation status for FIDELITY NATIONAL INFO SERV?
ChartMill assigns a valuation rating of 5 / 10 to FIDELITY NATIONAL INFO SERV (ZGY.DE). This can be considered as Fairly Valued.
How profitable is FIDELITY NATIONAL INFO SERV (ZGY.DE) stock?
FIDELITY NATIONAL INFO SERV (ZGY.DE) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for ZGY stock?
The Price/Earnings (PE) ratio for FIDELITY NATIONAL INFO SERV (ZGY.DE) is 10.97 and the Price/Book (PB) ratio is 2.24.
What is the expected EPS growth for FIDELITY NATIONAL INFO SERV (ZGY.DE) stock?
The Earnings per Share (EPS) of FIDELITY NATIONAL INFO SERV (ZGY.DE) is expected to grow by 10.69% in the next year.