Company Reports

Narrow-moat Fiserv posted a strong first quarter, particularly on the acquiring side. Overall revenue was up 7% and 20% year over year on a reported and organic basis, respectively, and the company is seeing solid margin improvement. Fiserv is on pace to modestly exceed our expectations for the year, but the differential is not large enough to meaningfully alter our $158 fair value estimate, which we will maintain. We see the shares as about fairly valued at the moment.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. We don’t believe Fiserv’s move was especially attractive relative to the other two, and we don’t believe the company materially strengthened its competitive position as a result. However, we do think there was a valid strategic rationale for these deals.

Fiserv reported solid fourth-quarter results. While reported results are being positively affected by some transitory factors, we think the company's underlying performance remains encouraging. Excluding passthrough items, revenue grew 6% year over year, or 12% on an organic basis. We will maintain our $145 fair value estimate for the narrow-moat company and see the shares as fairly valued right now.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. We don’t believe Fiserv’s move was especially attractive relative to the other two, and we don’t believe the company materially strengthened its competitive position as a result. However, we do think there was a valid strategic rationale for these deals.

Fiserv produced another strong quarter, with organic growth accelerating a bit sequentially and the company continuing to see strong margin improvement. Revenue grew 8% year over year, or 12% on an organic basis. With Fiserv tracking ahead of expectations, management modestly lifted its 2023 guidance. We will maintain our $135 fair value estimate for the narrow-moat company and see shares as undervalued at the moment.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. We don’t believe Fiserv’s move was especially attractive relative to the other two, and we don’t believe the company materially strengthened its competitive position as a result. However, we do think there was a valid strategic rationale for these deals.

Fiserv saw strong growth and margin improvement in the second quarter. Revenue grew 7%, or 10% on an organic basis. With the company tracking well so far this year, management modestly raised its revenue growth and EPS guidance. We will maintain our $135 fair value estimate and narrow moat rating.

Fiserv reported a strong start to the year, with organic revenue growth of 13% year over year in the first quarter running ahead of expectations. The company also saw solid margin improvement. Management pulled the lower end of its guidance range up as a result but appears to be remaining somewhat cautious, given the uncertain macroeconomic situation. We will maintain our $135 fair value estimate for the narrow-moat company and see the shares as modestly undervalued.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. We don’t believe Fiserv’s move was especially attractive relative to the other two, and we don’t believe the company materially strengthened its competitive position as a result. However, we do think there was a valid strategic rationale for these deals.

Fourth-quarter results showed Fiserv continuing to perform relatively well, with solid growth and margin improvement. Organic year-over-year revenue growth was 12%, a slight acceleration from the previous quarter and ahead of our long-term expectation. We will maintain our $129 fair value estimate for the narrow-moat company and see the shares as modestly undervalued.

Narrow-moat Fiserv continued to enjoy strong growth and margin improvement in the third quarter. Overall year-over-year organic revenue growth for the quarter was 11%, a slight reduction from the previous quarter but still at a level that is better than our long-term expectations. We will maintain our $129 per share fair value estimate, and we continue to see the shares as undervalued.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. We don’t believe Fiserv’s move was especially attractive relative to the other two, and we don’t believe the company materially strengthened its competitive position as a result. However, we do think there is a valid strategic rationale for these deals, and the introduction of First Data’s acquiring business should boost overall long-term growth, given the secular long-term tailwind the business enjoys.

Fiserv reported a solid second quarter with better-than-expected growth. Overall year-over-year organic revenue growth for the quarter was 12%, a level that is well ahead of our long-term expectations. We continue to believe that the shares are undervalued and that the market is underestimating the company's long-term growth prospects. We see this quarter as an additional data point to support our view and will maintain our $129 fair value estimate and narrow moat rating.

Fiserv started the year on a strong note, with overall revenue up 11% year over year on an organic basis, and the company seeing solid margin expansion. The company is tracking a bit ahead of expectations for the year, but we will maintain our $129 fair value estimate. We continue to see the shares as undervalued from a long-term perspective, as we believe the market is overly skeptical about the narrow-moat company’s long-term prospects on the acquiring side.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. We don’t believe Fiserv’s move was especially attractive relative to the other two, and we don’t believe the company materially strengthened its competitive position. However, we do think there is a valid strategic rationale for these deals, and the introduction of First Data’s acquiring business should boost overall long-term growth, given the secular long-term tailwind the business enjoys.

Fiserv continued to see some bounce-back in its acquiring business in the fourth quarter, which led to 11% year-over-year growth for the business overall. We expect results to start to normalize as the company moves into 2022 but believe the narrow moat company continues to demonstrate its ability to adapt to an evolving market and that shares are undervalued from a long-term perspective. We will maintain our $121 fair value estimate.

Despite seeing a fairly strong bounceback from the impact of the pandemic this year, acquirers like Fiserv have materially underperformed the market. We believe the underperformance is at least partially explained by the market’s enthusiasm for payment names that can more easily be branded as financial technology or disruptive. We think the market’s shift in this direction has left some high-quality incumbents relatively undervalued. More recently, concerns about the near-term direction of the pandemic have added pressure.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. We don’t believe Fiserv’s move was especially attractive relative to the other two, and we don’t believe the company materially strengthened its competitive position. However, we do think there is a valid strategic rationale for these deals, and the introduction of First Data’s acquiring business should boost overall long-term growth, given the secular long-term tailwind the business enjoys.

Fiserv continued to show recovery from the impact of the pandemic in the third quarter, although the pace slowed from second quarter of 2021. Overall revenue was up 10% year over year on an organic basis and margins improved. Overall, nothing in the quarter materially alters our long-term view, and we will maintain our $119 per share fair value estimate for the narrow-moat company.

Narrow-moat Fiserv posted strong second-quarter results, with internal revenue (which excludes divestitures, pass-through items, and currency impacts) up 18% year over year and strong margin improvement. While strong year-over-year results were largely due to comparisons against the lowest point of the pandemic, we see some positive signs even after adjusting for this. We will maintain our $119 fair value estimate.