NYSE:FIS

Stock Analysis Report

Fidelity National Information Services

Executive Summary

Fidelity National Information Services, Inc.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Fidelity National Information Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FIS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.1%

FIS

8.3%

US IT

7.2%

US Market


1 Year Return

9.8%

FIS

-2.8%

US IT

-10.4%

US Market

Return vs Industry: FIS exceeded the US IT industry which returned -5% over the past year.

Return vs Market: FIS exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

FISIndustryMarket
7 Day5.1%8.3%7.2%
30 Day-10.3%-12.6%-12.6%
90 Day-9.9%-15.2%-19.4%
1 Year11.0%9.8%-1.8%-2.8%-8.5%-10.4%
3 Year64.1%58.3%63.1%56.0%15.8%8.3%
5 Year97.1%84.5%92.0%75.1%35.8%21.0%

Price Volatility Vs. Market

How volatile is Fidelity National Information Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fidelity National Information Services undervalued compared to its fair value and its price relative to the market?

30.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FIS ($120.1) is trading below our estimate of fair value ($180.43)

Significantly Below Fair Value: FIS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FIS is poor value based on its PE Ratio (179.3x) compared to the IT industry average (23.1x).

PE vs Market: FIS is poor value based on its PE Ratio (179.3x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: FIS is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: FIS is good value based on its PB Ratio (1.5x) compared to the US IT industry average (2.8x).


Next Steps

Future Growth

How is Fidelity National Information Services forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

55.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIS's forecast earnings growth (54.9% per year) is above the savings rate (1.7%).

Earnings vs Market: FIS's earnings (54.9% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: FIS's revenue (11.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FIS's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FIS's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Fidelity National Information Services performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIS has a large one-off loss of $824.0M impacting its December 31 2019 financial results.

Growing Profit Margin: FIS's current net profit margins (2.9%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: FIS's earnings have grown by 7.6% per year over the past 5 years.

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

Earnings vs Industry: FIS had negative earnings growth (-64.8%) over the past year, making it difficult to compare to the IT industry average (13.4%).


Return on Equity

High ROE: FIS's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is Fidelity National Information Services's financial position?


Financial Position Analysis

Short Term Liabilities: FIS's short term assets ($8.7B) do not cover its short term liabilities ($10.4B).

Long Term Liabilities: FIS's short term assets ($8.7B) do not cover its long term liabilities ($24.0B).


Debt to Equity History and Analysis

Debt Level: FIS's debt to equity ratio (40.8%) is considered high.

Reducing Debt: FIS's debt to equity ratio has reduced from 75.5% to 40.8% over the past 5 years.

Debt Coverage: FIS's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: FIS's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: FIS's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Fidelity National Information Services's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FIS's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: FIS's dividend (1.17%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: FIS's dividends per share have been stable in the past 10 years.

Growing Dividend: FIS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (209.1%), FIS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FIS's dividends in 3 years are forecast to be well covered by earnings (19.2% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Gary Norcross (53yo)

5.17s

Tenure

US$18,442,389

Compensation

Mr. Gary Adam Norcross serves as the Executive Chairman, President and Chief Executive Officer of Fidelity National Information Services Inc., since May 30, 2018, March 2012 and January 1, 2015 respectivel ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD18.44M) is above average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Norcross
Executive Chairman5.17yrsUS$18.44m0.11% $86.7m
James Woodall
Corporate EVP & CFO7yrsUS$6.73m0.0092% $7.1m
Marc Mayo
Corporate Executive VP & Chief Legal Officer4.25yrsUS$2.88m0.0032% $2.4m
Bruce Lowthers
President of Banking Solutions2.17yrsUS$4.06m0.0033% $2.5m
Stephanie Ferris
Chief Operating Officer0.67yrno data0.00049% $378.4k
Christopher Thompson
Chief Accounting Officer0.58yrno data0.0012% $949.8k
Ido Gileadi
Chief Information Officer6.17yrsno datano data
Nathan Rozof
Executive Vice President of Corporate Finance and Investor Relationsno datano datano data
Ellyn Raftery
Chief Marketing3.83yrsno datano data
Lenore Williams
Corporate Executive VP & Chief People Officer3.83yrsno data0.00088% $679.5k

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: FIS's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Norcross
Executive Chairman5.17yrsUS$18.44m0.11% $86.7m
Louise Parent
Independent Director2.42yrsUS$358.33k0.00025% $193.0k
James Stallings
Independent Director6.83yrsUS$372.48k0.0012% $911.2k
Lee Adrean
Independent Director0.67yrno data0.0027% $2.1m
Keith Hughes
Director17.58yrsUS$493.71k0.0036% $2.8m
Lisa Hook
Independent Director0.67yrno data0.0011% $849.4k
Jeffrey Stiefler
Lead Independent Director0.67yrno data0.0048% $3.7m
David Hunt
Independent Director18.67yrsUS$407.73k0.0026% $2.0m
Brian Shea
Director1.67yrsUS$209.79k0.00077% $594.6k
Ellen Alemany
Independent Director5.67yrsUS$375.73k0.0018% $1.4m

2.1yrs

Average Tenure

66yo

Average Age

Experienced Board: FIS's board of directors are not considered experienced ( 2.1 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: Insufficient data to determine if insiders have bought more shares than they have sold 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 35.7%.


Top Shareholders

Company Information

Fidelity National Information Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fidelity National Information Services, Inc.
  • Ticker: FIS
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$77.219b
  • Shares outstanding: 616.32m
  • Website: https://www.fisglobal.com

Number of Employees


Location

  • Fidelity National Information Services, Inc.
  • 601 Riverside Avenue
  • Jacksonville
  • Florida
  • 32204
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FISNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2006
ZGYDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2006
FIS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 2006
0ILWLSE (London Stock Exchange)YesCommon StockGBUSDFeb 2006
ZGYBRSE (Berne Stock Exchange)YesCommon StockCHCHFFeb 2006
ZGYETLX (Eurotlx)YesCommon StockITEURFeb 2006
FNISWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 2006
F1NI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 4 COMBRBRLDec 2019

Biography

Fidelity National Information Services, Inc. operates as a financial services technology company in the United States and internationally. It operates through three segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions. The Merchant Solutions segment offers merchant acquiring, integrated payment, and global e-commerce solutions. The Banking Solutions segment provides core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail payment solutions; wealth and retirement solutions; and item processing and output services. The Capital Market Solutions segment offers securities processing and finance, global trading, asset management and insurance, and corporate liquidity solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:44
End of Day Share Price2020/03/30 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.