FOUR

Shift4 PaymentsNYSE:FOUR Stock Report

Market Cap

US$6.8b

7D

3.5%

1Y

83.6%

Updated

18 Sep, 2021

Data

Company Financials +
FOUR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance0/6
Financial Health2/6
Dividends0/6

FOUR 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$81.48
52 Week HighUS$43.35
52 Week LowUS$104.11
Beta0
1 Month Change3.94%
3 Month Change-17.26%
1 Year Change83.60%
3 Year Changen/a
5 Year Changen/a
Change since IPO142.93%

Recent News & Updates

Jul 13
Is Shift4 Payments (NYSE:FOUR) Using Too Much Debt?

Is Shift4 Payments (NYSE:FOUR) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 12

Shift4 Payments: Back In Growth Mode

Shift4 Payments has hit a double top at $100 after a big rally from the COVID-19 lows. The company has major catalysts moving into venues, gambling and e-commerce verticals while the traditional restaurant and hospitality businesses rebound. The stock already holds a premium multiple when correctly viewing Shift4 based on adjusted revenues and EBITDA.

Shareholder Returns

FOURUS ITUS Market
7D3.5%-0.9%-0.6%
1Y83.6%25.7%33.8%

Return vs Industry: FOUR exceeded the US IT industry which returned 25.7% over the past year.

Return vs Market: FOUR exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is FOUR's price volatile compared to industry and market?
FOUR volatility
FOUR Beta0
Industry Beta1.18
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
19981,308Jared Isaacmanhttps://www.shift4.com

Shift4 Payments, Inc. provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers suite of technology solutions, such as Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; integrated POS for merchants business; and Skytab, a mobile payment solution.

Valuation

Is Shift4 Payments undervalued compared to its fair value and its price relative to the market?

22.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FOUR ($81.48) is trading above our estimate of fair value ($34.13)

Significantly Below Fair Value: FOUR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FOUR is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: FOUR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FOUR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FOUR is overvalued based on its PB Ratio (22.9x) compared to the US IT industry average (5.2x).


Future Growth

How is Shift4 Payments forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

111.1%

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 (2%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: FOUR's revenue (30.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: FOUR's revenue (30.9% 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 high in 3 years time (21.6%)


Past Performance

How has Shift4 Payments performed over the past 5 years?

-33.9%

Last years 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: Insufficient data to determine if FOUR's year-on-year earnings growth rate was positive over the past 5 years.

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 (28%).


Return on Equity

High ROE: FOUR has a negative Return on Equity (-17.48%), as it is currently unprofitable.


Financial Health

How is Shift4 Payments's financial position?


Financial Position Analysis

Short Term Liabilities: FOUR's short term assets ($893.3M) exceed its short term liabilities ($164.6M).

Long Term Liabilities: FOUR's short term assets ($893.3M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: FOUR's debt to equity ratio (250.5%) 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.


Dividend

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


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.


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 FOUR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jared Isaacman (38 yo)

1.83yrs

Tenure

US$744,765

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 ($USD744.77K) is below average for companies of similar size in the US market ($USD6.44M).

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


Leadership Team

Experienced Management: FOUR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: FOUR's board of directors are not considered experienced ( 1.3 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 15.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Shift4 Payments, Inc.
  • Ticker: FOUR
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: US$6.754b
  • Market Cap: US$4.453b
  • Shares outstanding: 82.90m
  • Website: https://www.shift4.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:16
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.