Fiserv (FI) AI Stock Analysis

• Market Cap: $91.77B
• Dividend Yield: N/A
• Average Volume (3M): 4.47M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.55
• Revenue Growth: 6.56%
• EPS Growth: 6.03%
• Country: US
• Employees: 38,000
• Sector: Technology
• Sector Strength: 90
• Industry: Information Technology Services
• EPS (TTM): 2.14
• Shares Outstanding: 554,433,840
• 10 Day Avg. Volume: 3,232,420
• 30 Day Avg. Volume: 4,469,658
• PEG Ratio: 5.56
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.59
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 9.54
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $212.13
• Price Target Upside: 27.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 74 Outperform
• Price Target: $190.00 ▲(13.77%Upside)

Fiserv's strong financial performance and positive earnings call are significant strengths, bolstered by strategic acquisitions and product expansions. However, technical analysis and valuation concerns, including a high P/E ratio and no dividend, moderate the overall score.

Positive Factors

Growth and Market Position

Clover, Fiserv’s leading software-integrated POS offering, is well positioned to take meaningful share in a large, fragmented U.S. payments TAM, and competitive fears are overblown.

Innovation and Revenue Growth

Fiserv's dominant position in global payments and financial technology increasingly creates a compelling investment opportunity as ongoing innovation, international growth, and strategic acquisitions will continue to drive revenue and cash flow growth.

Strategic Expansion and Partnerships

The partnership with PayPal to integrate FIUSD and PYUSD in cross-border transactions and merchant solutions is seen as a strategic expansion.

Negative Factors

Competitive Risks

Fiserv is clearly moving aggressively to counter the risk that stablecoins will coopt its financial institution customers’ deposit bases, impairing growth.

Financial Challenges

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

Market Skepticism

There is skepticism about stablecoins gaining mainstream adoption for traditional point-of-sale transactions due to a lack of strong consumer value proposition.

Fiserv Business Overview & Revenue Model

Company Description

Fiserv, Inc., together with its subsidiaries, provides payment and financial services technology worldwide. The company operates through Acceptance, Fintech, and Payments segments. The Acceptance segment provides point-of-sale merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Carat, an omnichannel commerce solution; Clover, a cloud-based point-of-sale and business management platform; and Clover Connect, an independent software vendors platform. This segment distributes through various channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions, and other strategic partners. The Fintech segment offers customer deposit and loan accounts, as well as manages an institution's general ledger and central information files. This segment also provides digital banking, financial and risk management, professional services and consulting, item processing and source capture, and other products and services. The Payments segment offers card transactions, such as debit, credit, and prepaid card processing and services; security and fraud protection products; card production; print services; and various network services, as well as non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products. It serves business, banks, credit unions, other financial institutions, merchants, and corporate clients. Fiserv, Inc. was incorporated in 1984 and is headquartered in Brookfield, Wisconsin.

How the Company Makes Money

Fiserv generates revenue primarily through transaction fees, service fees, and software licensing. The company's key revenue streams include payment processing services, where it charges financial institutions and merchants fees for processing credit and debit card transactions. Fiserv also earns money from its digital banking and core account processing solutions, which involve licensing fees and subscription-based models. Additionally, the company provides risk and compliance services, data analytics, and consulting services, further contributing to its revenue. Strategic partnerships with major financial institutions and technology providers enhance Fiserv's offerings and expand its market reach, playing a significant role in its earnings growth.

Fiserv Financial Statement Overview

Summary

Fiserv shows impressive financial strength with strong revenue growth, robust margins, and efficient cash flow management. The company's moderate leverage and solid equity position provide a stable foundation, although there is room for enhancing returns 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
EBITDA	9.03B	8.84B	7.81B	6.64B	5.39B	4.96B
Net Income	3.25B	3.13B	3.07B	2.53B	1.33B	958.00M
Balance Sheet
Total Assets	80.40B	77.18B	90.89B	83.87B	76.25B	74.62B
Cash, Cash Equivalents and Short-Term Investments	641.00M	1.24B	1.20B	902.00M	835.00M	906.00M
Total Debt	28.41B	24.96B	23.90B	21.42B	21.24B	20.68B
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: 167.00
• 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 167 is below the 20-day moving average (MA) of 169.17, below the 50-day MA of 170.31, and below the 200-day MA of 199.36, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 17.67 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	79 Outperform	$77.05B	23.84	29.00%	2.83%	3.85%	-0.38%
ACN	77 Outperform	$175.06B	22.37	27.27%	2.11%	6.21%	14.87%
BR	76 Outperform	$27.63B	35.35	33.92%	1.50%	5.73%	13.40%
FI	74 Outperform	$91.77B	29.54	11.88%	―	6.56%	6.03%
FIS	70 Neutral	$41.32B	49.20	5.25%	2.03%	-9.12%	―
JKHY	67 Neutral	$12.76B	29.82	22.49%	1.32%	6.04%	13.36%
Sector *	56 Neutral	HK$13.96B	5.35	-5.75%	5.38%	9.34%	-42.23%

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.