Company Reports

Fidelity National Information Services' acquisition of Worldpay in 2019 was one of three similar transformational deals that took place in short order. But FIS ultimately decided to undo the Worldpay deal as it struggled with operational issues within the Worldpay business.

Fidelity National Information Services' growth was a little weak in the second quarter, leading management to modestly lower its full-year guidance. The market reacted negatively, with the stock falling 5% in Aug. 4 intraday trading.

Early in the first quarter, FIS completed a deal with Global Payments, selling its minority stake in Worldpay in exchange for Global Payments' issuer processing business. In our view, the quarter is a solid start for FIS' new configuration.

Fidelity National Information Services' acquisition of Worldpay in 2019 was one of three similar transformational deals that took place in short order. But FIS ultimately decided to undo the Worldpay deal as it struggled with operational issues within the Worldpay business.

Fidelity National saw strong growth in the fourth quarter and laid out reasonable 2026 guidance as it realigns the business.

After a slow start to the year, FIS continued to show positive momentum in the third quarter with a solid top-line result and strong free cash flow conversion.

Fidelity National Information Services' acquisition of Worldpay in 2019 was one of three similar transformational deals that took place in short order. But FIS ultimately decided to undo the Worldpay deal as it struggled with operational issues within the Worldpay business.

While the market had a negative reaction to FIS' second-quarter earnings, we view results as mixed, with a good top-line result offset by a lack of margin improvement.

FIS' first-quarter results weren't impressive in an absolute sense, as growth in the bank tech operations remained muted and margins declined. However, nothing in the quarter was a major surprise.

Fidelity National Information Services' acquisition of Worldpay in 2019 was one of three similar transformational deals that took place in short order. But FIS has more recently decided to undo the Worldpay deal as it struggled with operational issues within the Worldpay business.

Fidelity National Information Service's fourth-quarter results were solid overall, but revenue growth in the banking segment and free cash flow conversion came in a bit soft, and management pointed to some of these issues potentially stretching into the first quarter. While these issues bear watching, in our view, they do not have a material impact on our long-term view. We will maintain our $88 fair value estimate for the narrow-moat company. However, we think the market is very sensitive to any negative surprises given the recent history of the company, and the strong negative reaction has pushed the shares into undervalued territory.

Fidelity National Information Services' acquisition of Worldpay in 2019 was one of three similar transformational deals that took place in short order. But FIS has more recently decided to undo the Worldpay deal as it struggled with operational issues within the Worldpay business.

FIS underwent a major change at the beginning of the year, selling off a majority stake in its Worldpay acquiring operations and refocusing on its bank tech roots. While this move created some uncertainty, we thought the resulting business would be more stable but also generate more modest growth. So far, that seems to be playing out, and management appears to be managing the transition without any major hiccups. We will maintain our $83 fair value estimate for the narrow-moat company and see the shares as about fairly valued at the moment.

Fidelity National Information Services underwent a major change at the beginning of the year, as it sold a majority stake in Worldpay, and refocused on its bank technology and capital-market operations. Second-quarter results suggest this shift continues to progress relatively smoothly. We think the company is now more stable, but has lower long-term growth prospects. We will maintain our $83 per share fair value estimate for the narrow-moat company and see shares as modestly undervalued at the moment.

Fidelity National Information Services' acquisition of Worldpay in 2019 was one of three similar transformational deals that took place in short order. But FIS has more recently decided to undo the Worldpay deal as it struggled with operational issues within the Worldpay business.

Following the sale of a majority interest in the Worldpay business in January, FIS has returned to a focus on its legacy operations. We think the new FIS will be a more stable operation with lower long-term growth prospects. The first quarter marked a fairly strong start to this new direction. We will maintain our $80 fair value estimate for the narrow-moat company and see the shares as modestly undervalued.

Fidelity National Information Services' acquisition of Worldpay in 2019 was one of three similar transformational deals that took place in short order. But FIS has since decided to undo the Worldpay deal as it struggled with operational issues within the Worldpay business.

FIS didn’t finish 2023 on an impressive note, but with its having recently completed the sale of a majority interest in the Worldpay business, the end of the year was more about setting the stage for what comes next, and the company’s expectations are roughly in line with our own. We will maintain our $78 fair value estimate for the narrow-moat company and see the shares as modestly undervalued.

Fidelity National Information Services' acquisition of WorldPay in 2019 was one of three similar transformational deals that took place in short order. But FIS decided to undo the WorldPay deal as it struggles with operational issues within the WorldPay business.

Fidelity National Information Services’ third-quarter results provided a look at how the company will perform following the sale of Worldpay operations, as it is now reporting Worldpay as discontinued operations. Overall, the company should see lower growth but also become a more stable and predictable company that focuses on capital return. While we think the course management chose for Worldpay was not optimal, this is not an unattractive proposition. We will maintain our $76 fair value estimate for the narrow-moat company and see shares as undervalued.