Fidelity National Info (FIS) AI Stock Analysis

• Market Cap: $35.91B
• Dividend Yield: 2.27%
• Average Volume (3M): 3.71M
• Price to Earnings (P/E): 257.4
• Beta (1Y): 0.56
• Revenue Growth: 3.64%
• EPS Growth: 102.21%
• Country: US
• Employees: 50,000
• Sector: Technology
• Sector Strength: 84
• Industry: Consumer Electronics
• EPS (TTM): 1.36
• Shares Outstanding: 522,378,600
• 10 Day Avg. Volume: 3,342,913
• 30 Day Avg. Volume: 3,714,542
• PEG Ratio: -0.27
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 4.41
• P/FCF Ratio: 22.63
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 5.34
• Enterprise Value/Gross Profit: 14.57
• Enterprise Value/Ebitda: 15.84
• 1Y Price Target: $86.50
• Price Target Upside: 26.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 58 Neutral
• Price Target: $73.00 ▲(6.35% Upside)

Fidelity National Info's stock score is primarily influenced by its financial performance and earnings call, which highlight stable revenue growth and strategic initiatives. However, technical analysis and valuation concerns weigh heavily, with bearish market indicators and a high P/E ratio suggesting caution. The positive earnings call sentiment and strategic focus on the Banking segment provide some optimism, but the overall outlook remains cautious due to market and valuation pressures.

Positive Factors

Mergers and Acquisitions

The pending deal with TSYS is seen as favorable, offering an attractive narrative for the company with durable earnings and cash flow growth.

Product Competitiveness

FIS has developed and acquired more competitive products, driving improved customer retention and new business pipeline growth.

Recurring Revenue

Over 80% of FIS's revenue is recurring, providing strong visibility into future earnings.

Negative Factors

Growth and Margin Concerns

Near-term dynamics and a mismatch with Street expectations have raised doubts due to the need for clarification on growth and margin.

Guidance and Expectations

September-quarter guidance calls for a 100-basis-point slowdown in adjusted revenue growth and adjusted EPS below the Street’s estimate.

Market Performance

Weaker Capital Markets performance and underwhelming future growth guidance have put pressure on the company's shares in a demanding market.

Fidelity National Info Business Overview & Revenue Model

Company Description

Fidelity National Information Services, Inc. provides technology solutions for merchants, banks, and capital markets firms worldwide. It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments. The Merchant Solutions segment offers enterprise acquiring, software-led small- to medium-sized businesses acquiring, and global e-commerce solutions. The Banking Solutions segment provides core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail payment solutions; wealth and retirement solutions; and item processing and output services. The Capital Market Solutions segment offers securities processing and finance, global trading, asset management and insurance, and corporate liquidity solutions. Fidelity National Information Services, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.

How the Company Makes Money

FIS generates revenue through multiple streams, primarily by offering software solutions, processing services, and technology consulting to financial institutions. Its key revenue streams include transaction processing fees, subscription fees for software services, and professional services related to software implementation and maintenance. Additionally, FIS benefits from partnerships with major financial institutions and technology providers, which help expand its market reach and enhance its service offerings. The company's strong position in the payments sector, along with its focus on innovation and digital transformation, further contributes to its earnings by attracting new clients and retaining existing ones.

Fidelity National Info Financial Statement Overview

Summary

Fidelity National Info shows moderate revenue growth and improved leverage, but faces challenges in profitability and operational efficiency. Cash flow generation remains strong, providing a solid foundation for future investments and debt management.

Income Statement

Fidelity National Info shows moderate revenue growth with a TTM increase of 1.25%. Gross profit margins are stable around 36-37%, but net profit margins have declined significantly in the TTM to 6.89% from 14.32% in the previous year. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.28 in the TTM from 0.74 the previous year, reflecting reduced leverage. However, return on equity has decreased to 4.62% from 9.24%, indicating lower profitability on shareholder investments. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow growth is strong at 11.15% in the TTM, and the free cash flow to net income ratio is healthy at 0.78. However, the operating cash flow to net income ratio has decreased, indicating potential challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.32B	10.13B	9.83B	9.72B	13.88B	12.55B
Gross Profit	3.78B	3.80B	3.66B	3.50B	5.20B	4.20B
EBITDA	3.48B	3.38B	2.90B	2.88B	5.02B	4.32B
Net Income	112.00M	1.45B	-6.66B	-16.72B	417.00M	158.00M
Balance Sheet
Total Assets	33.37B	33.78B	54.97B	63.28B	82.93B	83.84B
Cash, Cash Equivalents and Short-Term Investments	581.00M	834.00M	440.00M	456.00M	2.01B	1.96B
Total Debt	12.97B	11.54B	19.34B	20.41B	20.88B	20.62B
Total Liabilities	19.20B	18.08B	35.92B	35.87B	35.40B	34.35B
Stockholders Equity	14.17B	15.70B	19.05B	27.22B	47.35B	49.30B
Cash Flow
Free Cash Flow	1.59B	1.97B	4.22B	3.67B	3.56B	3.31B
Operating Cash Flow	1.72B	2.07B	4.33B	3.94B	4.81B	4.44B
Investing Cash Flow	-3.22B	8.14B	-1.52B	-373.00M	-1.77B	-914.00M
Financing Cash Flow	-2.12B	-12.62B	-3.32B	-2.57B	-2.54B	-2.75B

Fidelity National Info Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.64
• 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 68.64 is below the 20-day moving average (MA) of 69.95, below the 50-day MA of 75.27, and below the 200-day MA of 76.79, indicating a bearish trend. The MACD of -1.80 indicates Negative momentum. The RSI at 35.72 is Neutral, neither overbought nor oversold. The STOCH value of 31.78 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
INFY	79 Outperform	$68.21B	21.18	30.46%	2.99%	4.52%	-0.22%
CTSH	74 Outperform	$35.08B	14.58	16.69%	1.74%	6.34%	12.16%
BR	72 Outperform	$29.68B	35.71	34.81%	1.39%	5.88%	20.69%
ACN	70 Outperform	$159.18B	20.34	27.27%	2.35%	6.21%	14.87%
FI	70 Outperform	$73.41B	22.60	12.66%	―	6.73%	3.93%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%
FIS	58 Neutral	$35.91B	257.36	1.01%	2.27%	3.64%	102.21%

Fidelity National Info Corporate Events

Fidelity National Info Awaits Regulatory Approvals for Deal

On April 17, 2025, FIS entered into an agreement to purchase the Issuer Solutions business from Global Payments Inc. and sell its equity interests in Worldpay Holdco, LLC to Global Payments. The Hart-Scott-Rodino Antitrust Improvements Act waiting period expired on July 18, 2025, but the transaction still requires additional regulatory clearances and approvals.

Fidelity National Info Holds Annual Shareholder Meeting

On June 12, 2025, Fidelity National Information Services, Inc. held its Annual Meeting of Shareholders where all nominated directors were elected to serve until the 2026 meeting. Additionally, shareholders approved the executive compensation on an advisory basis and ratified KPMG LLP as the independent registered public accounting firm for 2025.