Fidelity National Info (FIS) AI Stock Analysis

• Market Cap: $41.10B
• Dividend Yield: 1.89%
• Average Volume (3M): 4.37M
• Price to Earnings (P/E): 48.9
• Beta (1Y): 0.58
• Revenue Growth: -9.12%
• EPS Growth: N/A
• Country: US
• Employees: 50,000
• Sector: Technology
• Sector Strength: 76
• Industry: Consumer Electronics
• EPS (TTM): 1.21
• Shares Outstanding: 525,395,100
• 10 Day Avg. Volume: 3,572,070
• 30 Day Avg. Volume: 4,374,113
• PEG Ratio: 4.31
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.93
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 13.58
• Enterprise Value/Ebitda: 8.58
• 1Y Price Target: $89.35
• Price Target Upside: 14.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 71 Outperform
• Price Target: $86.00 ▲( 9.95% Upside)

Fidelity National Info's overall stock score of 71 reflects a solid financial foundation with strong cash flow management and operational efficiency, though profitability challenges persist. The positive sentiment from the latest earnings call and strategic moves provide optimism for future growth. However, the high valuation and mixed technical indicators suggest caution. Investors should monitor the company's ability to improve profitability and manage leverage effectively.

Positive Factors

Asset Swap

The pending asset swap is expected to drive significant growth opportunities for FIS.

Recurring Revenue

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

Negative Factors

Financial Complexity

The asset swap will likely further complicate FIS’s financials.

Financial Guidance

Q2 guidance slightly below Street with adjusted EPS guidance below Street expectations.

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 a variety of streams, primarily by offering technology solutions and services to financial institutions and merchants. Its key revenue sources include payment processing services, which involve transaction fees from credit and debit card processing, and core banking services, which provide software and systems that manage banking operations. Additionally, FIS earns money through consulting and implementation services that help clients to integrate and optimize their technology systems. The company also benefits from strategic partnerships and long-term contracts with major financial institutions, which contribute to stable and recurring revenue flows. These factors, along with its expansive global reach and continuous innovation in financial technologies, underpin FIS's financial performance.

Fidelity National Info Financial Statement Overview

Summary

Fidelity National Info presents a mixed financial picture. Despite a positive EBIT margin and efficient cash management, significant net income losses and a low equity base pose risks. The company needs to stabilize its financial position for long-term growth.

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
3.38B	2.91B	2.88B	5.02B	4.32B
	Net Income Common Stockholders
1.45B	-6.65B	-16.71B	417.00M	158.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
834.00M	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
15.70B	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
8.14B	-1.35B	-373.00M	-1.77B	-914.00M
	Financing Cash Flow
-12.62B	-3.49B	-2.57B	-2.54B	-2.75B

Fidelity National Info Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 78.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIS, the sentiment is Neutral. The current price of 78.22 is below the 20-day moving average (MA) of 78.43, above the 50-day MA of 75.56, and below the 200-day MA of 79.51, indicating a neutral trend. The MACD of 1.04 indicates Positive momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 36.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FIS.

Fidelity National Info Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	81 Outperform	$76.33B	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%
CTSH	76 Outperform	$39.00B	16.66	16.61%	1.53%	4.09%	14.05%
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	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%

Fidelity National Info Corporate Events

Fidelity National Info Secures $8B Term Loan Agreement

On May 1, 2025, Fidelity National Information Services, Inc. entered into a Term Loan Credit Agreement with Goldman Sachs Bank USA and other lenders, allowing the company to draw up to $8 billion in senior unsecured term loans. These loans, maturing 364 days after borrowing, will fund the acquisition of the Issuer Solutions Business and related expenses. The agreement includes various covenants and replaces a previous bridge loan commitment.

FIS Announces Strategic Acquisition and Stake Sale

On April 17, 2025, FIS announced a strategic transaction agreement to acquire Global Payments’ Issuer Solutions business for $13.5 billion and sell its Worldpay stake to Global Payments for $6.6 billion. This move strengthens FIS’s position as a global fintech leader, enhancing its product suite and financial profile by replacing non-cash generating interests with growing revenue streams. The acquisition is expected to be accretive to FIS’s financial metrics and deliver significant revenue and cost synergies, while the sale of Worldpay accelerates monetization and supports deleveraging efforts.

Fidelity National Info Appoints New Audit Committee Chair

On March 10, 2025, Fidelity National Information Services announced that Lee Adrean, a long-serving Board member and Chair of the Audit Committee, decided not to stand for re-election at the 2025 annual shareholder meeting. His departure was not due to any disagreements with the company. The Board expressed gratitude for his 11 years of service and leadership. Subsequently, on March 13, 2025, Nicole Anasenes was appointed as the new Chair of the Audit Committee, bringing over 20 years of financial expertise to the role. The Board also decided to reduce its size from ten to nine directors following the shareholder meeting.