Fiserv (FISV) AI Stock Analysis

• Market Cap: $32.70B
• Dividend Yield: N/A
• Average Volume (3M): 13.74M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.46
• Revenue Growth: 5.16%
• EPS Growth: 24.92%
• Country: US
• Employees: 38,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.04
• Shares Outstanding: 537,851,870
• 10 Day Avg. Volume: 7,306,931
• 30 Day Avg. Volume: 13,738,767
• PEG Ratio: 4.89
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 5.81
• P/FCF Ratio: 23.48
• Enterprise Value/Market Cap: 3.03
• Enterprise Value/Revenue: 4.68
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: 11.21
• 1Y Price Target: $107.61
• Price Target Upside: 76.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 29
• EPS Forecast (FY): 8.61
• Revenue Forecast (FY): $19.85B

• Rating: 68 Neutral
• Price Target: $71.00 ▲(16.78% Upside)

Fiserv's overall stock score of 68 reflects strong financial performance and attractive valuation, offset by bearish technical indicators and challenges highlighted in the earnings call. The company's strategic initiatives and partnerships are promising, but revised guidance and economic impacts pose risks to near-term performance.

Positive Factors

Revenue Growth

Clover's strong revenue growth highlights the success of value-added solutions and SaaS penetration, indicating robust demand and market position.

Strategic Partnerships

Strategic partnerships, like with Nubank, expand Fiserv's market reach and enhance its competitive advantage in international markets.

Cash Flow Management

Strong cash flow growth supports future investments and debt servicing, ensuring financial flexibility and long-term sustainability.

Negative Factors

Organic Revenue Growth Slowdown

Sluggish organic growth indicates challenges in maintaining momentum, potentially impacting long-term revenue expansion and market competitiveness.

Revised Financial Guidance

Revised guidance reflects recalibration of growth assumptions, highlighting potential difficulties in achieving previous targets and impacting investor confidence.

Challenges in Financial Solutions Segment

Decline in Financial Solutions revenue suggests segment-specific issues that could hinder overall performance and require strategic adjustments.

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-based fees, subscription services, and software licensing. A significant portion of its income comes from payment processing services, which charge merchants a fee per transaction. Additionally, the company earns revenue from its account processing services for banks, which typically involves monthly service fees based on the number of accounts managed. Fiserv also offers software solutions on a subscription basis, providing ongoing support and updates for its clients. Strategic partnerships with major financial institutions and technology firms further enhance its market position, allowing Fiserv to expand its reach and diversify its service offerings, contributing positively to its overall earnings.

Fiserv Financial Statement Overview

Summary

Fiserv exhibits strong financial performance with robust revenue growth of 22.7% and solid profitability metrics, including a gross profit margin of 60.5% and a net profit margin of 17.0%. The company also demonstrates effective cash flow management with a free cash flow growth rate of 15.2%. However, the increase in debt levels and a slight decline in gross profit margin warrant attention.

Income Statement

Fiserv has demonstrated strong revenue growth with a TTM revenue growth rate of 22.7%, indicating robust demand for its services. The company maintains healthy profitability with a gross profit margin of 60.5% and a net profit margin of 17.0%. EBIT and EBITDA margins are also strong at 28.1% and 39.2%, respectively, reflecting efficient operations and cost management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.20, indicating a balanced approach to leveraging. Return on equity is solid at 13.97%, showcasing effective use of shareholder funds to generate profits. However, the increase in debt levels over the past year could pose a risk if not managed carefully, especially in a rising interest rate environment.

Cash Flow

Fiserv's cash flow position is strong, with a free cash flow growth rate of 15.2% in the TTM period, highlighting effective cash generation capabilities. The operating cash flow to net income ratio of 0.28 suggests a stable conversion of income to cash. The free cash flow to net income ratio of 0.94 indicates that the company is generating ample free cash flow relative to its net income, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.16B	20.46B	19.09B	17.74B	16.23B	14.85B
Gross Profit	12.80B	12.44B	11.43B	9.74B	8.10B	7.04B
EBITDA	8.85B	8.84B	8.02B	6.83B	5.56B	5.10B
Net Income	3.61B	3.13B	3.07B	2.53B	1.33B	958.00M
Balance Sheet
Total Assets	79.37B	77.18B	90.89B	83.87B	76.25B	74.62B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.24B	1.20B	902.00M	835.00M	906.00M
Total Debt	30.20B	24.96B	23.90B	21.54B	21.24B	20.68B
Total Liabilities	54.23B	49.49B	60.22B	52.18B	44.30B	41.29B
Stockholders Equity	25.12B	27.07B	29.86B	30.83B	30.95B	32.33B
Cash Flow
Free Cash Flow	5.94B	5.06B	3.77B	3.14B	2.87B	3.25B
Operating Cash Flow	6.34B	6.63B	5.16B	4.62B	4.03B	4.15B
Investing Cash Flow	-2.98B	-2.40B	-1.07B	-2.11B	-1.63B	-341.00M
Financing Cash Flow	-4.10B	-4.17B	-4.36B	-2.48B	-761.00M	-3.84B

Fiserv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FISV, the sentiment is Negative. The current price of 60.8 is below the 20-day moving average (MA) of 62.96, below the 50-day MA of 99.88, and below the 200-day MA of 158.16, indicating a bearish trend. The MACD of -11.59 indicates Negative momentum. The RSI at 18.47 is Positive, neither overbought nor oversold. The STOCH value of 19.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FISV.

Fiserv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTSH	80 Outperform	$37.19B	17.86	14.50%	1.61%	7.44%	-4.57%
JKHY	77 Outperform	$12.59B	26.42	23.45%	1.39%	7.75%	20.42%
INFY	76 Outperform	$72.82B	22.07	29.15%	2.75%	4.62%	1.06%
WIT	74 Outperform	$29.24B	17.92	16.39%	3.07%	-1.97%	48.61%
BR	71 Outperform	$26.57B	29.10	38.21%	1.60%	8.57%	35.02%
FISV	68 Neutral	$32.70B	9.40	13.64%	―	5.16%	24.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%