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FOUR

Shift4 Payments NYSE:FOUR Stock Report

Last Price

US$43.98

Market Cap

US$3.5b

7D

-7.3%

1Y

-49.3%

Updated

24 Sep, 2022

Data

Company Financials +
FOUR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth6/6
Past Performance0/6
Financial Health2/6
Dividends0/6

FOUR Stock Overview

Shift4 Payments, Inc. provides integrated payment processing and technology solutions in the United States.

Shift4 Payments Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Shift4 Payments
Historical stock prices
Current Share PriceUS$43.98
52 Week HighUS$87.10
52 Week LowUS$29.39
Beta1.72
1 Month Change-9.45%
3 Month Change17.16%
1 Year Change-49.34%
3 Year Changen/a
5 Year Changen/a
Change since IPO31.13%

Recent News & Updates

Sep 11
These 4 Measures Indicate That Shift4 Payments (NYSE:FOUR) Is Using Debt Extensively

These 4 Measures Indicate That Shift4 Payments (NYSE:FOUR) Is Using Debt Extensively

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 23
Returns On Capital At Shift4 Payments (NYSE:FOUR) Have Stalled

Returns On Capital At Shift4 Payments (NYSE:FOUR) Have Stalled

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Aug 05
Should You Think About Buying Shift4 Payments, Inc. (NYSE:FOUR) Now?

Should You Think About Buying Shift4 Payments, Inc. (NYSE:FOUR) Now?

While Shift4 Payments, Inc. ( NYSE:FOUR ) might not be the most widely known stock at the moment, it saw a significant...

Shareholder Returns

FOURUS ITUS Market
7D-7.3%-5.9%-5.2%
1Y-49.3%-39.2%-23.0%

Return vs Industry: FOUR underperformed the US IT industry which returned -39.2% over the past year.

Return vs Market: FOUR underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is FOUR's price volatile compared to industry and market?
FOUR volatility
FOUR Average Weekly Movement7.8%
IT Industry Average Movement8.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: FOUR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: FOUR's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19991,743Jared Isaacmanhttps://www.shift4.com

Shift4 Payments, Inc. provides integrated payment processing and technology solutions in the United States. It provides omni-channel card acceptance and processing solutions, including credit, debit, contactless card, Europay, Mastercard and visa, QR Pay, and mobile wallets, as well as alternative payment methods; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; reporting and analytical tools; and web-store design, hosting, shopping cart management, and fulfillment integration, as well as tokenization, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers VenueNext that provides mobile ordering, countertop POS, and self-service kiosk services, as well as digital wallet to facilitate food and beverage, merchandise, and loyalty for stadium and entertainment venues; and Shift4Shop, which offers eCommerce solutions, including website builder, shopping cart, product catalog, order management, marketing, search engine optimization, secure hosting, and mobile webstores.

Shift4 Payments Fundamentals Summary

How do Shift4 Payments's earnings and revenue compare to its market cap?
FOUR fundamental statistics
Market CapUS$3.54b
Earnings (TTM)-US$16.10m
Revenue (TTM)US$1.69b

1.4x

P/S Ratio

-149.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FOUR income statement (TTM)
RevenueUS$1.69b
Cost of RevenueUS$1.35b
Gross ProfitUS$338.90m
Other ExpensesUS$355.00m
Earnings-US$16.10m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.29
Gross Margin20.10%
Net Profit Margin-0.95%
Debt/Equity Ratio649.9%

How did FOUR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

FOUR 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/Revenue1.9x
Enterprise Value/EBITDA30.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does FOUR's PS Ratio compare to its peers?

FOUR PS Ratio vs Peers
The above table shows the PS ratio for FOUR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.8x
MMS Maximus
0.8x1.6%US$3.6b
MQ Marqeta
5.8x22.3%US$3.7b
WNS WNS (Holdings)
3.3x9.3%US$3.9b
EEFT Euronet Worldwide
1.2x12.0%US$4.0b
FOUR Shift4 Payments
1.4x25.1%US$3.5b

Price-To-Sales vs Peers: FOUR is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (2.8x).


Price to Earnings Ratio vs Industry

How does FOUR's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Sales vs Industry: FOUR is good value based on its Price-To-Sales Ratio (1.4x) compared to the US IT industry average (2.4x)


Price to Sales Ratio vs Fair Ratio

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

FOUR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio3.6x

Price-To-Sales vs Fair Ratio: FOUR is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).


Share Price vs Fair Value

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

Below Fair Value: FOUR ($43.98) is trading below our estimate of fair value ($84.46)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Shift4 Payments forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


46.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FOUR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: FOUR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FOUR is expected to become profitable in the next 3 years.

Revenue vs Market: FOUR's revenue (25.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FOUR's revenue (25.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FOUR's Return on Equity is forecast to be very high in 3 years time (43.5%).


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Past Performance

How has Shift4 Payments performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FOUR is currently unprofitable.

Growing Profit Margin: FOUR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FOUR is unprofitable, but has reduced losses over the past 5 years at a rate of 16.1% per year.

Accelerating Growth: Unable to compare FOUR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FOUR is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (20.5%).


Return on Equity

High ROE: FOUR has a negative Return on Equity (-9.61%), as it is currently unprofitable.


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Financial Health

How is Shift4 Payments's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: FOUR's short term assets ($1.3B) exceed its short term liabilities ($275.3M).

Long Term Liabilities: FOUR's short term assets ($1.3B) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: FOUR's net debt to equity ratio (269.1%) is considered high.

Reducing Debt: Insufficient data to determine if FOUR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FOUR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FOUR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Shift4 Payments's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FOUR has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure


CEO

Jared Isaacman (39 yo)

24.67yrs

Tenure

US$6,194,309

Compensation

Mr. Jared Isaacman is the Founder of Shift4 Payments, Inc. and has been its Chief Executive Officer and Executive Director since November 5, 2019. Mr. Isaacman has been the Chairman of Shift4 Payments, Inc...


CEO Compensation Analysis

Compensation vs Market: Jared's total compensation ($USD6.19M) is about average for companies of similar size in the US market ($USD6.95M).

Compensation vs Earnings: Jared's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: FOUR's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: FOUR's board of directors are not considered experienced ( 2.5 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

NYSE:FOUR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Jun 22BuyUS$876,205Jared IsaacmanIndividual27,728US$31.60
14 Mar 22BuyUS$1,739,758Jared IsaacmanIndividual35,958US$49.62
10 Mar 22BuyUS$4,050,439Jared IsaacmanIndividual82,000US$50.25
09 Mar 22BuyUS$5,523,206Jared IsaacmanIndividual120,000US$46.80

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 93.64% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.47%
Wellington Management Group LLP
7,372,796$324.3m20.87%0.06%
10.03%
Macquarie Investment Management Business Trust
5,491,538$241.5m-5.08%0.27%
8.66%
The Vanguard Group, Inc.
4,740,915$208.5m5.5%no data
7.58%
Jared Isaacman
4,150,583$182.5m-14.67%no data
6.55%
BlackRock, Inc.
3,583,928$157.6m1.08%no data
5.79%
Durable Capital Partners, LP
3,170,633$139.4m37.5%1.53%
5.7%
AllianceBernstein L.P.
3,121,931$137.3m5.12%0.06%
5.4%
FMR LLC
2,956,003$130.0m-2.86%0.01%
2.95%
Jennison Associates LLC
1,615,993$71.1m4.09%0.07%
2.87%
ClearBridge Investments, LLC
1,572,989$69.2m0.11%0.07%
2.29%
Citadel Advisors LLC
1,254,255$55.2m433.53%0.09%
2.12%
Tremblant Capital Group
1,158,730$51.0m-3.03%3.07%
2.03%
Frontier Capital Management Co LLC
1,109,047$48.8m25.05%0.49%
2.02%
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
1,108,438$48.7m-14.2%0.02%
1.83%
Senator Investment Group LP
1,000,000$44.0m-20%3.31%
1.69%
Columbia Management Investment Advisers, LLC
926,108$40.7m-45.89%0.01%
1.57%
BNY Mellon Asset Management
861,361$37.9m-17%0.01%
1.56%
Emerald Advisers, LLC
856,419$37.7m7.99%1.04%
1.54%
Westfield Capital Management Company, L.P.
841,065$37.0m33.37%0.3%
1.53%
Franklin Resources, Inc.
836,183$36.8m-0.21%0.02%
1.51%
Adage Capital Management, L.P.
827,977$36.4m83.71%0.09%
1.4%
State Street Global Advisors, Inc.
765,513$33.7m9%no data
1.21%
Geode Capital Management, LLC
661,615$29.1m9.43%no data
1.17%
JPMorgan Chase & Co, Brokerage and Securities Investments
639,129$28.1m-7.14%0.03%
1.16%
Public Sector Pension Investment Board
636,400$28.0m47.11%0.23%

Company Information

Shift4 Payments, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Shift4 Payments, Inc.
  • Ticker: FOUR
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: US$3.544b
  • Market Cap: US$2.408b
  • Shares outstanding: 80.57m
  • Website: https://www.shift4.com

Number of Employees


Location

  • Shift4 Payments, Inc.
  • 2202 North Irving Street
  • Allentown
  • Pennsylvania
  • 18109
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FOURNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.