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Fiserv Inc FI

Morningstar Rating
$159.94 +3.93 (2.52%)
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Company Report

Fiserv Earnings: Strong Growth and Margin Expansion Continue; Maintaining Fair Value Estimate

Fiserv has been performing well recently, and the second quarter continued that trend, with results largely mirroring the first quarter. Year-over-year reported and organic revenue growth were 7% and 18%, respectively. The company is also seeing solid margin expansion this year. While we are pleased with recent results, we will maintain our $158 fair value estimate for the narrow-moat company, and we see shares as about fairly valued.

Price vs Fair Value

FI is trading at a 325% premium.
Price
$159.94
Fair Value
$538.00
Uncertainty
Medium
1-Star Price
$764.40
5-Star Price
$243.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The bank technology business is very stable, characterized by high amounts of recurring revenue and long-term contracts.

Bears

Since it was built through acquisitions, Fiserv has to maintain multiple core processing platforms, which could limit margins and hamper the quality of its offerings.

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News

Trading Information

Previous Close Price
$156.01
Day Range
$156.89160.16
52-Week Range
$109.12162.47
Bid/Ask
$148.47 / $163.24
Market Cap
$92.08 Bil
Volume/Avg
3.3 Mil / 2.5 Mil

Key Statistics

Price/Earnings (Normalized)
19.60
Price/Sales
4.84
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
5.81%

Company Profile

Fiserv is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing, for us banks and credit unions, with a focus on small and midsize banks. Through the merger with First Data in 2019, Fiserv also provides payment processing services for merchants. About 10% of the company’s revenue is generated internationally.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Large Core
Total Number of Employees
42,000

Competitors

Valuation

Metric
FI
JKHY
FIS
Price/Earnings (Normalized)
19.6031.4716.78
Price/Book Value
3.286.982.36
Price/Sales
4.845.683.96
Price/Cash Flow
14.8821.3910.67
Price/Earnings
FI
JKHY
FIS

Financial Strength

Metric
FI
JKHY
FIS
Quick Ratio
0.120.781.14
Current Ratio
1.061.391.52
Interest Coverage
4.8627.23−9.88
Quick Ratio
FI
JKHY
FIS

Profitability

Metric
FI
JKHY
FIS
Return on Assets (Normalized)
5.56%14.79%5.17%
Return on Equity (Normalized)
16.66%24.28%12.86%
Return on Invested Capital (Normalized)
10.65%20.64%8.06%
Return on Assets
FI
JKHY
FIS
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1-Day Chart
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Economic Moat
Market Cap
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