Fiserv (FI) AI Stock Analysis

• Market Cap: $88.34B
• Dividend Yield: N/A
• Average Volume (3M): 5.45M
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.52
• Revenue Growth: 6.56%
• EPS Growth: 6.03%
• Country: US
• Employees: 38,000
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): 2.14
• Shares Outstanding: 554,433,840
• 10 Day Avg. Volume: 7,711,768
• 30 Day Avg. Volume: 5,449,297
• PEG Ratio: 6.13
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.49
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 10.25
• Enterprise Value/Ebitda: 3.69
• 1Y Price Target: $215.43
• Price Target Upside: 34.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 68 Neutral
• Price Target: $173.00 ▲(8.03%Upside)

Fiserv's strong financial performance and positive earnings call outlook are significant strengths, driven by revenue growth, operational efficiency, and strategic initiatives. However, bearish technical indicators and a relatively high valuation score pose potential risks. The company's recent corporate actions further bolster its strategic direction and financial flexibility.

Positive Factors

Growth Potential

Clover’s international launch in four markets and a recent ADP distribution deal are expected to support growth.

Market Opportunity

Clover is seen as a leading software-integrated POS solution with a large, fragmented total addressable market in U.S. SMB processing.

Product Portfolio

The company's broad product portfolio, which includes Merchant Acceptance, Fintech, and Payments segments, allows it to serve a wide range of clients, positioning Fiserv strongly in the market.

Negative Factors

Clover Gateway Headwind

Management has clarified that the gateway will be an additional headwind in 2Q, resulting in lower Clover volume growth than previously estimated.

Competitive Risks

Key risks include intense competition and the need for continual innovation, potential security breaches and operational failures, and regulatory and compliance challenges.

Financial Challenges

Significant debts to be refinanced posting a near-term challenge.

Fiserv Business Overview & Revenue Model

Company Description

Fiserv, Inc. (FI) is a global provider of financial services technology solutions. Headquartered in Brookfield, Wisconsin, the company operates in the financial services sector, offering a wide range of services including electronic payments processing, digital banking solutions, and risk management. Fiserv's core products and services cater to banks, credit unions, merchants, and other financial institutions, enabling them to enhance their operational efficiency and deliver seamless digital experiences to their customers.

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 strong financial performance, with consistent revenue growth, robust profit margins, and efficient cash flow management. While the balance sheet is stable with moderate leverage, there is room for improvement in return on equity.

Income Statement

Fiserv's income statement shows strong financial performance with consistent revenue growth, as evidenced by a 11.9% increase in total revenue from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin is robust at 70.9% for TTM, indicating efficient cost management. Net profit margin remains healthy at 15.7%, though slightly improved from the previous year. The EBIT margin at 29.4% and EBITDA margin at 39.9% for TTM further underscore the company's strong operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.09, indicating a moderate level of leverage. The equity ratio is 32.2%, suggesting a solid capital structure. However, the return on equity (ROE) stands at 12.5% for TTM, which, while healthy, suggests room for improvement in terms of generating returns from equity.

Cash Flow

Fiserv's cash flow statement demonstrates strong cash flow generation capabilities, as evidenced by a 40.8% increase in free cash flow from 2023 to TTM. The operating cash flow to net income ratio of 2.00 indicates efficient conversion of income to cash flow. Additionally, the free cash flow to net income ratio of 1.64 highlights strong cash flow performance relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.70B	20.46B	19.09B	17.74B	16.23B	14.85B
	Gross Profit
12.62B	12.44B	11.42B	9.74B	8.10B	7.04B
	EBIT
6.09B	5.88B	4.85B	3.74B	2.29B	1.42B
	EBITDA
9.02B	8.82B	7.81B	6.64B	5.39B	4.96B
	Net Income Common Stockholders
3.25B	3.13B	3.07B	2.53B	1.33B	958.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
641.00M	1.24B	1.20B	902.00M	835.00M	906.00M
	Total Assets
80.40B	77.18B	90.89B	83.87B	76.25B	74.62B
	Total Debt
28.41B	24.96B	23.90B	21.42B	21.24B	20.68B
	Net Debt
27.77B	23.72B	22.70B	20.52B	20.40B	19.78B
	Total Liabilities
53.88B	49.49B	60.22B	52.18B	44.30B	41.29B
	Stockholders Equity
25.88B	27.07B	29.86B	30.83B	30.95B	32.33B
Cash Flow		Free Cash Flow
4.98B	5.06B	3.77B	3.14B	2.87B	3.25B
	Operating Cash Flow
6.49B	6.63B	5.16B	4.62B	4.03B	4.15B
	Investing Cash Flow
-2.97B	-2.40B	-1.07B	-2.11B	-1.63B	-341.00M
	Financing Cash Flow
-3.35B	-4.17B	-4.36B	-2.48B	-761.00M	-3.84B

Fiserv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FI, the sentiment is Negative. The current price of 160.14 is below the 20-day moving average (MA) of 176.34, below the 50-day MA of 196.80, and below the 200-day MA of 199.87, indicating a bearish trend. The MACD of -10.43 indicates Positive momentum. The RSI at 32.67 is Neutral, neither overbought nor oversold. The STOCH value of 8.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FI.

Fiserv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	81 Outperform	$76.39B	23.74	29.00%	2.29%	3.85%	-0.38%
BR	78 Outperform	$27.84B	35.61	33.92%	1.45%	5.73%	13.40%
ACN	77 Outperform	$193.81B	25.55	27.26%	1.85%	4.10%	9.78%
JKHY	74 Outperform	$13.25B	30.98	22.49%	1.23%	6.04%	13.36%
FIS	71 Outperform	$41.10B	48.93	5.25%	1.89%	-9.12%	―
FI	68 Neutral	$88.34B	28.18	11.88%	―	6.56%	6.03%
Sector *	61 Neutral	$11.28B	10.16	-6.88%	2.97%	7.41%	-8.93%

Fiserv Corporate Events

Fiserv Holds Annual Shareholders Meeting with Key Decisions

On May 14, 2025, Fiserv, Inc. held its annual shareholders meeting where several key decisions were made. The shareholders elected ten directors to serve until the next annual meeting, approved the executive compensation plan, ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025, and rejected a proposal to amend the Compensation Recoupment Policy. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (FI) stock is a Buy with a $262.00 price target. To see the full list of analyst forecasts on Fiserv stock, see the FI Stock Forecast page.

Fiserv Completes €2.175 Billion Senior Notes Offering

On May 7, 2025, Fiserv Funding Unlimited Company, a subsidiary of Fiserv, Inc., completed a public offering of senior notes totaling €2.175 billion, with varying interest rates and maturities. This issuance, guaranteed by Fiserv, Inc., is expected to bolster the company’s financial flexibility and strengthen its market position, offering stakeholders a structured investment opportunity.

Fiserv Announces Leadership Changes with New CEO

On May 6, 2025, Frank J. Bisignano was confirmed as the Commissioner of the Social Security Administration, leading to his resignation as Chairman and CEO of Fiserv, Inc. Michael P. Lyons, previously President and CEO-Elect, assumed the role of CEO and director, while Doyle R. Simons became the non-executive Chairman of the Board. On the same date, certain performance share units held by Mr. Bisignano vested, while others were forfeited.

Fiserv Appoints New Chief Operating Officer

On April 1, 2025, Fiserv, Inc. announced the appointment of Takis Georgakopoulos as Chief Operating Officer, effective April 2, 2025. In his new role, Georgakopoulos will oversee the company’s technology operations and Merchant Solutions business, succeeding Guy Chiarello, who will become Vice Chairman. This leadership change is expected to enhance Fiserv’s strategic focus on technology and merchant solutions, potentially impacting its market positioning and operations.

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.