Fidelity National Information Services (NYSE:FIS) - Share price, News & Analysis

FIS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	2/6
Financial Health	4/6
Dividends	4/6

FIS Stock Overview

Fidelity National Information Services, Inc.

Rewards

Trading at 52.9% below our estimate of its fair value

Earnings are forecast to grow 24.92% per year

Became profitable this year

Risk Analysis

Dividend of 2.02% is not well covered by earnings

Fidelity National Information Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fidelity National Information Services
Historical stock prices
Current Share Price	US$92.93
52 Week High	US$152.20
52 Week Low	US$85.00
Beta	0.70
1 Month Change	-7.54%
3 Month Change	-4.64%
1 Year Change	-36.25%
3 Year Change	-23.41%
5 Year Change	9.57%
Change since IPO	137.25%

Recent News & Updates

Jun 21

Fidelity National Information Services: Even Cheaper, And Beating The Index

I wrote about Fidelity National Information over half a year ago back in November of 2021. Since that article, the company may be down - but less than index. Despite what seems like a negative trend, Fidelity National Information has a not-insignificant upside based on some real appealing fundamentals. I will clarify the upside here - and show you why I'm LONG FIS - aside from why it's fallen less than index.

Shareholder Returns

	FIS	US IT	US Market
7D	2.5%	5.7%	4.0%
1Y	-36.2%	-34.7%	-20.5%

Return vs Industry: FIS matched the US IT industry which returned -35.5% over the past year.

Return vs Market: FIS underperformed the US Market which returned -20.8% over the past year.

Price Volatility

Is FIS's price volatile compared to industry and market?
FIS volatility
FIS Average Weekly Movement	5.0%
IT Industry Average Movement	9.8%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.5%
10% least volatile stocks in US Market	3.1%

Stable Share Price: FIS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FIS's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1968	65,000	Gary Norcross	https://www.fisglobal.com

Fidelity National Information Services, Inc. provides technology solutions for merchants, banks, and capital markets firms worldwide. It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments. The Merchant Solutions segment offers enterprise acquiring, software-led small- to medium-sized businesses acquiring, and global e-commerce solutions.

Fidelity National Information Services Fundamentals Summary

How do Fidelity National Information Services's earnings and revenue compare to its market cap?
FIS fundamental statistics
Market Cap	US$56.50b
Earnings (TTM)	US$910.00m
Revenue (TTM)	US$14.15b

62.1x

P/E Ratio

4.0x

P/S Ratio

Is FIS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FIS income statement (TTM)
Revenue	US$14.15b
Cost of Revenue	US$8.81b
Gross Profit	US$5.34b
Other Expenses	US$4.43b
Earnings	US$910.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.50
Gross Margin	37.75%
Net Profit Margin	6.43%
Debt/Equity Ratio	40.7%

How did FIS perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

111%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is FIS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FIS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FIS. This is calculated by dividing FIS's market cap by their current preferred multiple.
What is FIS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$56.50b

FIS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.3x
Enterprise Value/EBITDA	18.1x
PEG Ratio	2.5x

Price to Earnings Ratio vs Peers

How does FIS's PE Ratio compare to its peers?

FIS PE Ratio vs Peers

The above table shows the PE ratio for FIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	30x

Forward PE

Price-To-Earnings vs Peers: FIS is expensive based on its Price-To-Earnings Ratio (62.1x) compared to the peer average (30x).

Price to Earnings Ratio vs Industry

How does FIS's PE Ratio compare vs other companies in the U.S. IT Industry?

Price-To-Earnings vs Industry: FIS is expensive based on its Price-To-Earnings Ratio (62.1x) compared to the US IT industry average (27.5x)

Price to Earnings Ratio vs Fair Ratio

What is FIS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	62.1x
Fair PE Ratio	43.1x

Price-To-Earnings vs Fair Ratio: FIS is expensive based on its Price-To-Earnings Ratio (62.1x) compared to the estimated Fair Price-To-Earnings Ratio (43.1x).

Share Price vs Fair Value

What is the Fair Price of FIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FIS ($92.93) is trading below our estimate of fair value ($197.44)

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

Price to Earnings Growth Ratio

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

Discover undervalued companies

Future Growth

How is Fidelity National Information Services forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIS's forecast earnings growth (24.9% per year) is above the savings rate (1.9%).

Earnings vs Market: FIS's earnings (24.9% per year) are forecast to grow faster than the US market (13.8% per year).

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

Revenue vs Market: FIS's revenue (6.7% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: FIS's revenue (6.7% 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 (10.8%).

Discover growth companies

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-30.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FIS has high quality earnings.

Growing Profit Margin: FIS became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: FIS's earnings have declined by 30.1% per year over the past 5 years.

Accelerating Growth: FIS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FIS has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (21.4%).

Return on Equity

High ROE: FIS's Return on Equity (1.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Fidelity National Information Services's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FIS's short term assets ($10.1B) do not cover its short term liabilities ($13.8B).

Long Term Liabilities: FIS's short term assets ($10.1B) do not cover its long term liabilities ($20.2B).

Debt to Equity History and Analysis

Debt Level: FIS's net debt to equity ratio (37.4%) is considered satisfactory.

Reducing Debt: FIS's debt to equity ratio has reduced from 95.2% to 40.7% over the past 5 years.

Debt Coverage: FIS's debt is well covered by operating cash flow (25.3%).

Interest Coverage: FIS's interest payments on its debt are well covered by EBIT (7.7x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.02%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FIS's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: FIS's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (4.34%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (110.5%), FIS's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (32.6%), FIS's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.1yrs

Average management tenure

CEO

Gary Norcross (55 yo)

7.42yrs

Tenure

US$25,023,771

Compensation

Mr. Gary Adam Norcross serves as the Executive Chairman and Chief Executive Officer of Fidelity National Information Services Inc., since May 30, 2018 and January 1, 2015 respectively and served as its Pre...

CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD25.02M) is above average for companies of similar size in the US market ($USD13.69M).

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

Leadership Team

Experienced Management: FIS's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: FIS's board of directors are considered experienced (3.5 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/23 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31