NYSE:FDC

Stock Analysis Report

Executive Summary

First Data Corporation provides commerce enabled technology and solutions for merchants, financial institutions, and card issuers in the United States, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific.

Snowflake

Fundamentals

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.5%

NYSE:FDC

-0.5%

US IT

1.1%

US Market


1 Year Return

36.2%

NYSE:FDC

15.6%

US IT

2.1%

US Market

FDC outperformed the IT industry which returned 28.9% over the past year.

FDC outperformed the Market in United States of America which returned 5.5% over the past year.


Share holder returns

FDCIndustryMarket
7 Day10.5%-0.5%1.1%
30 Day17.1%-0.01%3.7%
90 Day24.0%2.3%2.3%
1 Year36.2%36.2%16.9%15.6%4.4%2.1%
3 Year142.3%142.3%98.5%90.1%47.0%37.4%
5 Yearn/a142.0%117.4%61.6%43.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Data undervalued based on future cash flows and its price relative to the stock market?

29.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

First Data's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

First Data's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

First Data is good value based on earnings compared to the US IT industry average.

First Data is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

First Data is poor value based on expected growth next year.


Price Based on Value of Assets

First Data is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is First Data expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

First Data's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).

First Data's earnings are expected to grow by 18.3% yearly, however this is not considered high growth (20% yearly).

First Data's revenue growth is positive but not above the United States of America market average.

First Data's earnings growth is expected to exceed the United States of America market average.

First Data's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

First Data is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has First Data performed over the past 5 years?

57.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

First Data has delivered over 20% year on year earnings growth in the past 5 years.

First Data's 1-year earnings growth is negative, it can't be compared to the 5-year average.

First Data's 1-year earnings growth is negative, it can't be compared to the US IT industry average.


Return on Equity

First Data has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

First Data used its assets less efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

First Data has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is First Data's financial position?


Financial Position Analysis

First Data is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

First Data's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

First Data's level of debt (225.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (1523.7% vs 225.8% today).

Debt is not well covered by operating cash flow (14.7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate First Data's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate First Data's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as First Data has not reported any payouts.

Unable to verify if First Data's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as First Data has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of First Data's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of First Data's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Frank Bisignano (60yo)

6.3yrs

Tenure

US$12,139,288

Compensation

Mr. Frank J. Bisignano serves as the Chief Executive Officer at FDGS Group, LLC and FundsXpress Financial Network, Inc. Mr. Bisignano has been the Chairman and Chief Executive Officer at First Data Corpora ...


CEO Compensation Analysis

Frank's remuneration is about average for companies of similar size in United States of America.

Frank's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.0yrs

Average Tenure

59yo

Average Age

The average tenure for the First Data management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.2yrs

Average Tenure

67yo

Average Age

The tenure for the First Data board of directors is about average.


Insider Trading

First Data individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,302,80529 May 19
Himanshu Patel
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares89,142
Max PriceUS$25.83
SellUS$154,58428 May 19
Michael Neborak
EntityIndividual
Role
Chief Accounting Officer
Executive VP
Shares6,000
Max PriceUS$25.76
SellUS$33,85625 Mar 19
Thomas Higgins
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares1,327
Max PriceUS$25.51
SellUS$507,15425 Mar 19
Ivo Distelbrink
EntityIndividual
Shares20,000
Max PriceUS$25.36
SellUS$252,90020 Mar 19
Ivo Distelbrink
EntityIndividual
Shares10,000
Max PriceUS$25.29
SellUS$529,74420 Mar 19
Daniel Charron
EntityIndividual
Shares21,000
Max PriceUS$25.23
SellUS$1,350,56418 Mar 19
Anthony Marino
EntityIndividual
Shares52,563
Max PriceUS$25.69
SellUS$649,69118 Mar 19
Bala Janakiraman
EntityIndividual
Shares25,100
Max PriceUS$25.88
SellUS$757,50018 Mar 19
Christopher Foskett
EntityIndividual
Shares30,000
Max PriceUS$25.25
SellUS$3,892,16318 Mar 19
Guy Chiarello
EntityIndividual
Role
President
President
Shares150,569
Max PriceUS$25.85
SellUS$1,910,94418 Mar 19
Daniel Charron
EntityIndividual
Shares74,600
Max PriceUS$25.75
SellUS$16,07528 Jan 19
Kevin Schultz
EntityIndividual
Shares740
Max PriceUS$22.54
BuyUS$1,53728 Jan 19
Kevin Schultz
EntityIndividual
Shares96
Max PriceUS$16.01
SellUS$536,01703 Dec 18
Cynthia Armine-Klein
EntityIndividual
Shares28,215
Max PriceUS$19.00

Ownership Breakdown


Management Team

  • Frank Bisignano (60yo)

    Chairman & CEO

    • Tenure: 6.3yrs
    • Compensation: US$12.14m
  • Jeff Whorley (57yo)

    Executive VP & Head of First Data Education

    • Tenure: 1yrs
    • Compensation: US$4.33m
  • Peter Poillon

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Samir Zabaneh (52yo)

    Executive Vice President

    • Tenure: 1yrs
    • Compensation: US$5.19m
  • Tom Higgins (60yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 5.2yrs
  • Himanshu Patel (43yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$2.19m
  • Mike Neborak (62yo)

    Executive VP

    • Tenure: 0.6yrs
    • Compensation: US$3.95m
  • Guy Chiarello (59yo)

    President

    • Tenure: 6yrs
    • Compensation: US$5.06m
  • Chris Augustin

    Chief Information Officer

    • Tenure: 5yrs
  • Mike Manos

    Chief Technology Officer

    • Tenure: 5.3yrs

Board Members

  • Henry Kravis (75yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$40.00k
  • Heidi Miller (66yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$260.00k
  • Scott Nuttall (46yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$40.00k
  • Tagar Olson (41yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$40.00k
  • R. Sehgal (77yo)

    Member of International Advisory Board

    • Tenure: 4.1yrs
  • Joe Plumeri (75yo)

    Vice Chairman

    • Tenure: 5.2yrs
    • Compensation: US$235.00k
  • Bill Bradley (76yo)

    Chairman of International Advisory Board

    • Tenure: 4.3yrs
  • Frank Bisignano (60yo)

    Chairman & CEO

    • Tenure: 6.3yrs
    • Compensation: US$12.14m
  • Barbara Yastine (60yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$260.00k
  • Jim Nevels (68yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$235.00k

Company Information

First Data Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Data Corporation
  • Ticker: FDC
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$29.972b
  • Shares outstanding: 945.77m
  • Website: https://www.firstdata.com

Number of Employees


Location

  • First Data Corporation
  • 5565 Glenridge Connector NE
  • Suite 2000
  • Atlanta
  • Georgia
  • 30342
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDCNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2015
1DTDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2015
FDC *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNOct 2015
0TKCLSE (London Stock Exchange)YesClass A Common StockGBUSDOct 2015

Biography

First Data Corporation provides commerce enabled technology and solutions for merchants, financial institutions, and card issuers in the United States, Canada, Europe, the Middle East, Africa, Latin Americ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/30 00:39
End of Day Share Price2019/07/26 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.