Fidelity National Info (FIS) AI Stock Analysis

• Market Cap: $37.02B
• Dividend Yield: 2.06%
• Average Volume (3M): 3.95M
• Price to Earnings (P/E): 49.3
• Beta (1Y): 0.78
• Revenue Growth: -17.38%
• EPS Growth: N/A
• Country: US
• Employees: 50,000
• Sector: Technology
• Sector Strength: 48
• Industry: Software
• EPS (TTM): 1.48
• Shares Outstanding: 529,691,600
• 10 Day Avg. Volume: 3,742,001
• 30 Day Avg. Volume: 3,946,029
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.66
• Price to Cash Flow (P/CF): 11.80
• P/FCF Ratio: 15.60
• 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: $86.35
• Price Target Upside: 23.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Fidelity National Info's overall stock score reflects a challenging financial performance with significant profitability issues and a weak technical outlook. The earnings call provides some optimism due to strategic growth areas and shareholder returns, yet concerns persist with revenue and operational delays. The valuation is mixed, with a relatively high P/E ratio tempered by a decent dividend yield. Investors should remain cautious and monitor improvements in financial stability and growth execution.

Positive Factors

Earnings

FIS achieved fiscal year growth at the upper end of its outlook, reaching +7% compared to the 6.5-7% guide.

Mergers and Acquisitions

The demand environment is healthy, and FIS is seen as a net beneficiary of bank mergers and acquisitions.

Negative Factors

Revenue Guidance

Revenue and EBITDA guidance for 2025 are below expectations, with adjustments at $10.465 billion and $4.320 billion at their midpoints.

Fidelity National Info Business Overview & Revenue Model

Company Description

Incorporated in 1968, Florida-based Fidelity National Information Services, Inc. operates as a financial services technology company in the United States and internationally. It operates through three segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions.

How the Company Makes Money

FIS generates revenue through a diverse range of financial technology products and services. Its revenue model is primarily based on transactional fees, subscription fees, and software licensing. Key revenue streams include payment processing services for merchants and financial institutions, core banking software solutions that banks and credit unions utilize on a subscription basis, and capital markets solutions that support trading and investment operations. Significant partnerships with banks, retailers, and financial institutions also contribute to FIS's earnings by expanding its client base and enhancing its service offerings. Additionally, strategic acquisitions bolster its market position and open new revenue channels.

Fidelity National Info Financial Statement Overview

Summary

Fidelity National Info shows a mixed financial performance. The income statement reveals significant net losses with a negative net profit margin, highlighting profitability challenges. The balance sheet shows low equity relative to assets, posing a risk, despite no debt. The cash flow statement indicates efficient cash management, though free cash flow decline raises concerns.

Income Statement

Fidelity National Info's income statement reveals a mixed performance. The gross profit margin for the latest year stands at 37.55%, indicating a moderate ability to convert revenues into profit. However, the company experienced a significant net income loss of $6.65 billion in 2023, resulting in a negative net profit margin of -67.74%, which raises concerns about profitability. Revenue growth shows a decline of -32.43% from 2022 to 2023, reflecting a contraction in sales. The EBIT margin is positive at 14.83%, but overall profitability remains a challenge.

Balance Sheet

The balance sheet of Fidelity National Info indicates a challenging financial structure. The debt-to-equity ratio is effectively zero in the latest year due to the absence of total debt, which can be seen as a positive in terms of leverage. However, the equity ratio is a mere 3.50%, signifying low equity relative to total assets, which poses a risk. The return on equity (ROE) is positive at 23.97% for 2023, suggesting some degree of profitability relative to shareholders' equity, but overall asset and equity stability needs improvement.

Cash Flow

The cash flow statement shows some positive trends. The operating cash flow to net income ratio is strong at 2.33, indicating efficient cash generation relative to net income. Free cash flow experienced a decline of -35.27% from 2022 to 2023, which is concerning for long-term cash availability. Despite this, free cash flow remains healthy relative to net income, suggesting good cash management practices.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.13B	9.82B	14.53B	13.88B	12.55B
	Gross Profit
3.80B	3.68B	5.71B	5.20B	4.20B
	EBIT
1.71B	1.47B	1.65B	1.05B	736.00M
	EBITDA
1.71B	2.91B	2.88B	5.02B	4.32B
	Net Income Common Stockholders
935.00M	-6.65B	-16.71B	417.00M	158.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.00M	440.00M	2.19B	2.01B	1.96B
	Total Assets
33.78B	55.10B	63.28B	82.93B	83.84B
	Total Debt
11.54B	19.34B	20.14B	20.35B	20.02B
	Net Debt
10.71B	18.90B	17.95B	18.34B	18.06B
	Total Liabilities
18.08B	36.01B	35.87B	35.40B	34.35B
	Stockholders Equity
39.00M	19.09B	27.22B	47.35B	49.30B
Cash Flow		Free Cash Flow
1.36B	3.21B	2.55B	3.56B	3.31B
	Operating Cash Flow
2.17B	4.33B	3.94B	4.81B	4.44B
	Investing Cash Flow
8.18B	-1.35B	-373.00M	-1.77B	-914.00M
	Financing Cash Flow
-12.55B	-3.49B	-2.57B	-2.54B	-2.75B

Fidelity National Info Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIS, the sentiment is Negative. The current price of 69.66 is below the 20-day moving average (MA) of 72.75, below the 50-day MA of 77.16, and below the 200-day MA of 79.90, indicating a bearish trend. The MACD of -2.46 indicates Negative momentum. The RSI at 34.94 is Neutral, neither overbought nor oversold. The STOCH value of 50.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIS.

Fidelity National Info Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
V	84 Outperform	$688.11B	35.98	50.51%	0.63%	10.35%	16.40%
MA	80 Outperform	$506.06B	39.97	191.95%	0.49%	12.07%	17.27%
ADP	77 Outperform	$127.53B	32.70	83.72%	1.83%	7.09%	11.51%
JKHY	77 Outperform	$12.90B	31.92	20.51%	1.24%	5.36%	8.62%
GPN	73 Outperform	$24.65B	16.15	6.94%	1.00%	4.68%	63.39%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%
FIS	51 Neutral	$37.02B	49.29	4.65%	2.06%	-17.38%	―

Fidelity National Info Corporate Events

Fidelity National Info Appoints New Chief Accounting Officer

Fidelity National Information Services, Inc. is transitioning leadership within its accounting department as Christopher A. Thompson steps down from his role to become an advisor, with Alexandra Brooks stepping in as Executive Vice President, Chief Accounting Officer. Brooks brings extensive experience from her tenure at Hertz Global Holdings and other major firms. Her compensation package includes a substantial base salary, performance-based incentives, and long-term equity awards, reflecting her critical role in steering the company’s financial strategies.