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%

FDC

-1.3%

US IT

0.4%

US Market


1 Year Return

36.2%

FDC

21.8%

US IT

6.9%

US Market


Shareholder returns

FDCIndustryMarket
7 Day10.5%-1.3%0.4%
30 Day17.1%-1.7%-1.2%
90 Day24.0%-4.0%-0.4%
1 Year36.2%36.2%23.0%21.8%9.3%6.9%
3 Year142.3%142.3%94.5%86.6%45.8%36.4%
5 Yearn/a149.1%126.3%62.9%45.1%

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 compared to its fair value and its price relative to the market?

29.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FDC ($31.69) is trading above our estimate of fair value ($26.94)

Significantly Undervalued: FDC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FDC is good value based on its PE Ratio (29.5x) compared to the IT industry average (36.9x).

PE vs Market: FDC is poor value based on its PE Ratio (29.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: FDC is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: FDC is overvalued based on its PB Ratio (6.4x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is First Data forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDC's forecast earnings growth (18.3% per year) is above the savings rate (2.7%).

Earnings vs Market: FDC's earnings (18.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: FDC's earnings are forecast to grow, but not significantly.

Revenue vs Market: FDC's revenue (6.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FDC's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


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

Earnings Trend: FDC's earnings have grown significantly by 57.5% per year over the past 5 years.

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

Earnings vs Industry: FDC had negative earnings growth (-40.3%) over the past year, making it difficult to compare to the IT industry average (8.4%).


Return on Equity

High ROE: FDC's Return on Equity (16.1%) is considered low.


Return on Assets

ROA vs Industry: FDC's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: FDC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is First Data's financial position?


Financial Position Analysis

Short Term Liabilities: FDC's short term assets ($27.0B) exceeds its short term liabilities ($26.8B)

Long Term Liabilities: FDC's short term assets (27.0B) exceeds its long term liabilities (16.7B)


Debt to Equity History and Analysis

Debt Level: FDC's debt to equity ratio (225.8%) is considered high

Reducing Debt: FDC's debt to equity ratio has reduced from 1523.7% to 225.8% over the past 5 years.

Debt Coverage: FDC's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: FDC's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if FDC'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 FDC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


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

Information is not available.

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


Management Age and Tenure

5.0yrs

Average Tenure

59yo

Average Age

Experienced Management: FDC's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

67yo

Average Age

Experienced Board: FDC's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: FDC 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.