Fiserv (FI) AI Stock Analysis

• Market Cap: $124.49B
• Dividend Yield: N/A
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.77
• Revenue Growth: 7.14%
• EPS Growth: 7.91%
• Country: US
• Employees: 38,000
• Sector: Technology
• Sector Strength: 47
• Industry: Software
• EPS (TTM): 5.38
• Shares Outstanding: 561,288,940
• 10 Day Avg. Volume: 3,367,906
• 30 Day Avg. Volume: 3,406,816
• PEG Ratio: 5.13
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.09
• Price to Cash Flow (P/CF): 14.00
• P/FCF Ratio: 12.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $254.14
• Price Target Upside: 16.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

Fiserv's stock score reflects a strong financial performance, driven by revenue growth and profitability, balanced by a high valuation and mixed technical analysis signals. Positive earnings call sentiment and strategic corporate events bolster the score, but the reliance on liabilities and high P/E ratio limit the overall assessment.

Positive Factors

Earnings Growth

The price target for Fiserv has been raised from $222 to $259, helped by strong execution and expected growth in Clover and other initiatives.

Partnerships

The new partnership between Fiserv and ADP creates a unique opportunity to increase client base and cross-sell each other's solutions.

Revenue Growth

Clover revenue grew strongly by 29% year-over-year, driven by increased VAS penetration, which is expected to continue as a key revenue driver.

Negative Factors

Competition

Domestically, competition around contract renewals is expected to intensify as Block steps up product/distribution capacity in key verticals.

Leadership Concerns

Concerns regarding leadership changes and questions on Clover growth sustainability have weighed on share appreciation.

Fiserv Business Overview & Revenue Model

Company Description

Fiserv, Inc. is a technology-based financial services company that provides commerce-enabling technology and solutions for financial institutions, merchants, and card issuers. Further, it offers products and services that facilitate electronic payment transactions. Also, the company provides account processing, loan origination and servicing products, item processing and source capture, cash management and consulting services.

How the Company Makes Money

Fiserv makes money primarily through its comprehensive suite of financial services and technology solutions. The company's revenue streams include transaction fees, subscription fees, and professional services. Fiserv charges transaction fees for processing electronic payments, including credit and debit card transactions. Additionally, it offers digital banking solutions and charges financial institutions subscription fees for using its software-as-a-service (SaaS) platforms. Fiserv also generates revenue from professional services, such as consulting, implementation, and support services. Significant partnerships with financial institutions and merchants enhance Fiserv's market reach and contribute to its earnings by expanding its customer base and increasing transaction volumes.

Fiserv Financial Statement Overview

Summary

Fiserv demonstrates robust financial performance with significant revenue growth and strong operational efficiency. However, the balance sheet indicates a slight risk due to increased reliance on liabilities.

Income Statement

Fiserv has shown impressive revenue growth, with a consistent increase in total revenue from $10.19 billion in 2019 to $20.46 billion in 2024. The gross profit margin remains strong, indicating efficient management of production costs. Net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are robust, showcasing operational efficiency and effective cost management.

Balance Sheet

The debt-to-equity ratio has remained relatively stable, indicating a balanced approach to leveraging debt financing. Return on equity is solid, reflecting effective use of shareholder funds. However, the equity ratio has decreased over the years, suggesting increased reliance on liabilities for asset financing, which could pose potential risks if not managed properly.

Cash Flow

Fiserv exhibits strong operating cash flow, with significant growth over the years, highlighting the company's ability to generate cash from core operations. Free cash flow has also increased, indicating good financial health and capability to fund expansions or pay dividends. The operating and free cash flow to net income ratios suggest efficient cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.46B	19.09B	17.74B	16.23B	14.85B
	Gross Profit
12.44B	11.42B	9.74B	8.10B	7.04B
	EBIT
5.88B	4.85B	3.74B	2.29B	1.42B
	EBITDA
5.88B	7.81B	6.64B	5.39B	4.96B
	Net Income Common Stockholders
3.13B	3.07B	2.53B	1.33B	958.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.24B	1.20B	902.00M	835.00M	906.00M
	Total Assets
77.18B	90.89B	83.87B	76.25B	74.62B
	Total Debt
24.84B	23.90B	21.42B	21.24B	20.68B
	Net Debt
23.60B	22.70B	20.52B	20.40B	19.78B
	Total Liabilities
49.49B	60.22B	52.18B	44.30B	41.29B
	Stockholders Equity
27.07B	29.86B	30.83B	30.95B	32.33B
Cash Flow		Free Cash Flow
6.63B	3.77B	3.14B	2.87B	3.25B
	Operating Cash Flow
6.63B	5.16B	4.62B	4.03B	4.15B
	Investing Cash Flow
-2.40B	-1.07B	-2.11B	-1.63B	-341.00M
	Financing Cash Flow
-4.17B	-4.36B	-2.48B	-761.00M	-3.84B

Fiserv Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 218.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FI, the sentiment is Neutral. The current price of 218.09 is below the 20-day moving average (MA) of 222.29, below the 50-day MA of 219.79, and above the 200-day MA of 190.62, indicating a neutral trend. The MACD of -1.68 indicates Positive momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FI.

Fiserv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYX	80 Outperform	$52.93B	30.93	46.16%	2.70%	4.18%	5.67%
ADP	77 Outperform	$121.05B	31.04	83.72%	1.93%	7.09%	11.51%
JKHY	76 Outperform	$12.78B	31.61	21.90%	1.25%	5.36%	8.62%
FI	76 Outperform	$124.49B	40.52	11.00%	―	7.14%	7.91%
GPN	73 Outperform	$23.94B	15.80	6.94%	1.03%	4.68%	63.39%
Sector *	58 Neutral	$21.91B	10.52	-19.51%	2.38%	4.81%	-25.47%
FIS	51 Neutral	$39.41B	52.48	4.65%	1.93%	-17.38%	―

Fiserv Corporate Events

Fiserv Appoints Stephanie Cohen to Board of Directors

On March 15, 2025, Fiserv, Inc. announced the appointment of Stephanie Cohen to its board of directors. Cohen, who is recognized as independent under NYSE and SEC rules, brings extensive experience from her roles at Cloudflare Inc. and Goldman Sachs. This strategic appointment is expected to strengthen Fiserv’s governance and potentially enhance its strategic direction, given Cohen’s background in financial strategy and management.

Fiserv Appoints Michael P. Lyons as CEO-Elect

On January 22, 2025, Fiserv, Inc. announced the appointment of Michael P. Lyons as the company’s President and CEO-Elect, effective January 27, 2025, with his full transition to CEO upon Frank J. Bisignano’s confirmation as Commissioner of Social Security or by June 30, 2025. Lyons, with extensive experience from The PNC Financial Services Group, is expected to bring strategic growth to Fiserv, aligning with the company’s plans to separate the roles of Chairman and CEO. This transition reflects Fiserv’s strategic positioning in the competitive financial technology market and aims to strengthen its leadership and operational capacity.