NasdaqGS:FISV

Stock Analysis Report

Executive Summary

Fiserv, Inc., together with its subsidiaries, provides financial services technology worldwide.

Rewards

Trading at 10.4% below its fair value

Earnings are forecast to grow 28.49% per year

Risk Analysis

Debt is not well covered by operating cash flow

Profit margins (8.8%) are lower than last year (20.4%)

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Fiserv's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FISV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

FISV

2.0%

US IT

0.5%

US Market


1 Year Return

45.8%

FISV

39.2%

US IT

20.3%

US Market

Return vs Industry: FISV exceeded the US IT industry which returned 39.2% over the past year.

Return vs Market: FISV exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

FISVIndustryMarket
7 Day2.1%2.0%0.5%
30 Day2.4%5.3%2.0%
90 Day8.5%16.6%9.4%
1 Year45.8%45.8%40.7%39.2%22.8%20.3%
3 Year115.1%115.1%112.1%102.9%50.1%40.4%
5 Year214.2%214.2%151.0%128.7%73.1%54.1%

Price Volatility Vs. Market

How volatile is Fiserv's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fiserv undervalued compared to its fair value and its price relative to the market?

10.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FISV ($123.55) is trading below our estimate of fair value ($137.88)

Significantly Below Fair Value: FISV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FISV is poor value based on its PE Ratio (72.3x) compared to the IT industry average (33.5x).

PE vs Market: FISV is poor value based on its PE Ratio (72.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: FISV is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: FISV is good value based on its PB Ratio (2.6x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Fiserv forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FISV's forecast earnings growth (28.5% per year) is above the savings rate (1.7%).

Earnings vs Market: FISV's earnings (28.5% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FISV's revenue (15.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FISV's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FISV's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Fiserv performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FISV has high quality earnings.

Growing Profit Margin: FISV's current net profit margins (8.8%) are lower than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: FISV's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: FISV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FISV had negative earnings growth (-24.8%) over the past year, making it difficult to compare to the IT industry average (12%).


Return on Equity

High ROE: FISV's Return on Equity (2.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fiserv's financial position?


Financial Position Analysis

Short Term Liabilities: FISV's short term assets ($17.0B) exceed its short term liabilities ($15.7B).

Long Term Liabilities: FISV's short term assets ($17.0B) do not cover its long term liabilities ($27.0B).


Debt to Equity History and Analysis

Debt Level: FISV's debt to equity ratio (60.1%) is considered high.

Reducing Debt: FISV's debt to equity ratio has reduced from 115.1% to 60.1% over the past 5 years.

Debt Coverage: FISV's debt is not well covered by operating cash flow (14%).

Interest Coverage: FISV's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: FISV has a low level of unsold assets or inventory.

Debt Coverage by Assets: FISV's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Fiserv's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate FISV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FISV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FISV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FISV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FISV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Jeff Yabuki (59yo)

14.2yrs

Tenure

US$12,410,769

Compensation

Mr. Jeffery W. Yabuki, also known as Jeff, B.S., has been the Chief Executive Officer and Chairman of Fiserv, Inc. He has been a Director of First Data Corporation since July 29, 2019. He served as the Chi ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD12.41M) is about average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffery Yabuki
Chairman & CEO14.2yrsUS$12.41m0.038% $31.8m
Robert Hau
CFO & Treasurer3.9yrsUS$4.27m0.0025% $2.1m
Lynn McCreary
Chief Legal Officer & Secretary7.1yrsUS$1.70m0.0048% $4.0m
Byron Vielehr
Executive VP & Senior Group President0yrsUS$5.29m0.0037% $3.1m
Devin McGranahan
Executive VP & Senior Group President0yrsUS$4.22m0.0049% $4.1m
Frank Bisignano
President0yrsno data0.20% $168.6m
Cheryl Nash
President of Investment Services Division8.3yrsno datano data
Kenneth Best
Chief Accounting Officer3.9yrsno data0.0046% $3.9m
Marc West
Chief Information Officer2.1yrsno datano data
Guy Chiarello
Chief Administrative Officer0yrsno data0.018% $14.7m

5.5yrs

Average Tenure

59yo

Average Age

Experienced Management: FISV's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffery Yabuki
Chairman & CEO14.2yrsUS$12.41m0.038% $31.8m
Frank Bisignano
President0yrsno data0.20% $168.6m
Heidi Miller
Independent Director0.6yrsno data0.0030% $2.5m
Denis O'Leary
Lead Director0yrsUS$310.04k0.0060% $5.1m
Scott Nuttall
Independent Director0.6yrsno data0.0045% $3.7m
Doyle Simons
Independent Director12.5yrsUS$295.04k0.0061% $5.1m
Dennis Lynch
Independent Director7.6yrsUS$306.11kno data
Alison Davis
Independent Director5.3yrsUS$285.04k0.000020% $16.8k
Henrique De Castro
Independent Director0.6yrsno data0.00099% $831.6k
Harry DiSimone
Independent Director2yrsUS$314.90k0.00069% $579.6k

2.0yrs

Average Tenure

59.5yo

Average Age

Experienced Board: FISV's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FISV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.9%.


Top Shareholders

Company Information

Fiserv, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fiserv, Inc.
  • Ticker: FISV
  • Exchange: NasdaqGS
  • Founded: 1984
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$84.001b
  • Shares outstanding: 679.90m
  • Website: https://www.fiserv.com

Number of Employees


Location

  • Fiserv, Inc.
  • 255 Fiserv Drive
  • Brookfield
  • Wisconsin
  • 53045
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FISVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1986
FIVDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1986
FIVXTRA (XETRA Trading Platform)YesCommon StockDEEURSep 1986
0IP9LSE (London Stock Exchange)YesCommon StockGBUSDSep 1986
FISV *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1986
FISVWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1986
FIVETLX (Eurotlx)YesCommon StockITEURSep 1986
F1IS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLDec 2019

Biography

Fiserv, Inc., together with its subsidiaries, provides financial services technology worldwide. The company’s Payments and Industry Products segment provides electronic bill payment and presentment services; Internet and mobile banking software and services; account-to-account transfers; person-to-person payment services; debit and credit card processing and services; payments infrastructure services; and other electronic payments software and services. This segment also offers card and print personalization services; investment account processing services for separately managed accounts; and fraud and risk management products and services. Its Financial Institution Services segment provides account processing, item processing and source capture, loan origination and servicing products, cash management and consulting services, and other products and services that support various types of financial transactions. This segment also provides ACH and treasury management, case management and resolution, and source capture optimization services to the financial services industry. The company also provides bank payment and liquidity management solutions, as well as Internet based mortgage software and mortgage lending technology solutions. It serves banks, credit unions, investment management firms, leasing and finance companies, billers, retailers, and merchants. The company was founded in 1984 and is headquartered in Brookfield, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:36
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.