Shift4 Payments (FOUR) AI Stock Analysis

• Market Cap: $6.17B
• Dividend Yield: N/A
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): 32.7
• Beta (1Y): 1.58
• Revenue Growth: 23.16%
• EPS Growth: 27.38%
• Country: US
• Employees: 4,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.47
• Shares Outstanding: 67,564,640
• 10 Day Avg. Volume: 2,513,428
• 30 Day Avg. Volume: 2,587,611
• PEG Ratio: 0.23
• Price to Book (P/B): 8.71
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 22.61
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 9.13
• Enterprise Value/Ebitda: 14.94
• 1Y Price Target: $96.94
• Price Target Upside: 38.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 5.25
• Revenue Forecast (FY): $1.99B

• Rating: 74 Outperform
• Price Target: $82.00 ▲(16.89% Upside)

Shift4 Payments' strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust revenue growth, effective cost management, and strategic expansions contribute positively. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation, which slightly offsets the overall score.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for Shift4's services, reflecting successful market penetration and effective business strategies.

Strategic Acquisitions

Strategic acquisitions enhance Shift4's market position and service offerings, fostering long-term growth and competitive advantage.

Cash Flow Generation

Strong cash flow generation supports ongoing operations and strategic investments, ensuring financial stability and growth potential.

Negative Factors

Debt Levels

Despite improvements, high debt levels can constrain financial flexibility and pose risks during economic downturns, impacting long-term stability.

Same-Store Sales Volatility

Volatility in same-store sales can lead to unpredictable revenue streams, challenging consistent financial performance and planning.

Challenges in Asia

Currency and regional challenges in Asia may hinder growth prospects and profitability, affecting Shift4's international expansion efforts.

Shift4 Payments Business Overview & Revenue Model

Company Description

Shift4 Payments, Inc. provides integrated payment processing and technology solutions in the United States. It provides omni-channel card acceptance and processing solutions, including credit, debit, contactless card, Europay, Mastercard and visa, QR Pay, and mobile wallets, as well as alternative payment methods; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; reporting and analytical tools; and web-store design, hosting, shopping cart management, and fulfillment integration, as well as tokenization, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers VenueNext that provides mobile ordering, countertop POS, and self-service kiosk services, as well as digital wallet to facilitate food and beverage, merchandise, and loyalty for stadium and entertainment venues; and Shift4Shop, which offers eCommerce solutions, including website builder, shopping cart, product catalog, order management, marketing, search engine optimization, secure hosting, and mobile webstores. In addition, it provides Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; SkyTab, a hybrid-cloud-based integrated POS solution; SkyTab Mobile, a mobile payment solution; and marketplace technology for integrations into third-party applications. Further, the company offers merchant management, training and education, marketing management, and incentives tracking solutions. Additionally, it provides merchant underwriting, onboarding and activation, training, risk management, and support services; and software integrations and compliance management, and partner support and services. The company was founded in 1999 and is headquartered in Allentown, Pennsylvania.

How the Company Makes Money

Shift4 Payments generates revenue primarily through transaction fees charged to merchants for payment processing services. The company earns a percentage of each transaction processed, along with fixed fees for various services. Additionally, Shift4 Payments offers subscription-based services for its integrated software solutions and POS systems, providing recurring revenue streams. The company has formed strategic partnerships with various industry players, such as point-of-sale hardware manufacturers and software developers, which enhance its service offerings and market reach. Furthermore, Shift4 Payments benefits from the growing trend of digital payments and e-commerce, which drives increased transaction volumes and ultimately contributes to its earnings.

Shift4 Payments Financial Statement Overview

Summary

Shift4 Payments exhibits strong revenue growth and improving profitability, with effective cost management reflected in the gross profit margin. The balance sheet shows improved leverage, although debt levels remain a concern. Cash flow generation is robust, supporting the company's growth and operational needs. Overall, the financial statements indicate a company on a positive growth trajectory with some leverage-related risks.

Income Statement

Shift4 Payments shows strong revenue growth with a TTM growth rate of 7.41%, indicating a positive trajectory. The gross profit margin has improved to 30.55% in the TTM, reflecting efficient cost management. However, the net profit margin decreased slightly to 6.11% from the previous year, suggesting some pressure on net profitability. Overall, the company demonstrates robust revenue growth and improving operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 2.37 in the TTM, down from 3.57 the previous year, indicating better leverage management. Return on equity is strong at 21.96%, showcasing effective use of equity to generate profits. However, the equity ratio remains relatively low at 18.57%, suggesting a higher reliance on debt financing. The balance sheet shows improvement in leverage but still carries some risk due to the debt levels.

Cash Flow

Free cash flow has grown significantly by 183.5% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 0.38, indicating a healthy conversion of net income to cash. The free cash flow to net income ratio is 0.87, reflecting efficient cash management. Overall, the cash flow statement highlights strong cash generation and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.88B	3.33B	2.56B	1.99B	1.37B	766.90M
Gross Profit	1.26B	973.10M	687.80M	470.20M	278.40M	177.80M
EBITDA	772.40M	356.80M	366.20M	268.50M	55.30M	10.60M
Net Income	194.80M	229.60M	86.20M	75.10M	-48.90M	-18.40M
Balance Sheet
Total Assets	8.99B	5.04B	3.39B	2.55B	2.34B	1.78B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.21B	455.00M	776.50M	1.23B	927.80M
Total Debt	4.79B	2.88B	1.78B	1.77B	1.76B	1.01B
Total Liabilities	6.76B	4.02B	2.52B	2.07B	1.94B	1.11B
Stockholders Equity	1.67B	806.60M	653.30M	347.30M	272.80M	459.60M
Cash Flow
Free Cash Flow	499.40M	310.60M	250.70M	-104.60M	-56.30M	-9.50M
Operating Cash Flow	555.70M	500.30M	388.30M	275.40M	29.20M	23.40M
Investing Cash Flow	-3.04B	-691.10M	-301.90M	-516.80M	-196.70M	-102.10M
Financing Cash Flow	2.57B	929.20M	-152.20M	-214.60M	471.20M	1.00B

Shift4 Payments Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 70.15
• 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 FOUR, the sentiment is Neutral. The current price of 70.15 is above the 20-day moving average (MA) of 68.60, below the 50-day MA of 74.67, and below the 200-day MA of 87.49, indicating a neutral trend. The MACD of -1.79 indicates Negative momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 47.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FOUR.

Shift4 Payments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	74 Outperform	$6.17B	32.68	15.52%	―	23.16%	27.38%
DLO	73 Outperform	$3.86B	25.47	32.78%	―	22.02%	12.42%
WEX	69 Neutral	$5.13B	19.43	20.30%	―	-1.15%	-2.52%
PAYO	69 Neutral	$2.03B	30.05	9.79%	―	10.58%	-45.52%
EEFT	66 Neutral	$3.09B	10.70	23.10%	―	7.25%	-1.12%
MQ	64 Neutral	$2.08B	―	-4.10%	―	20.11%	-391.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Shift4 Payments Corporate Events

Shift4 Payments Reports Strong Revenue Growth and Strategic Expansion

Shift4 Payments, Inc., a leading provider of software and payment processing solutions in the United States, has reported its latest quarterly earnings, showcasing significant financial growth and strategic acquisitions. The company operates primarily in the financial technology sector, offering a comprehensive suite of payment solutions to its clients.

Shift4 Payments Reports Strong Q3 Earnings Amid Challenges

Shift4 Payments, Inc. recently held its earnings call, delivering a mix of optimism and caution. The company reported strong financial results, highlighted by significant customer wins and successful integration of recent acquisitions, notably Global Blue. However, challenges such as same-store sales volatility and economic uncertainties in certain regions were also acknowledged.

Shift4 Payments Amends Credit Agreement with Citizens Bank

On September 26, 2025, Shift4 Payments, LLC amended its Settlement Line Credit Agreement with Citizens Bank, increasing the credit line by $25 million to a total of $125 million and extending the maturity date to September 28, 2026. This amendment, effective September 29, 2025, reflects Shift4’s strategic financial adjustments to support its operational growth and stability.

The most recent analyst rating on (FOUR) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Shift4 Payments stock, see the FOUR Stock Forecast page.

Shift4 Payments Completes Merger with Global Blue

On August 18, 2025, Shift4 Payments completed a squeeze-out merger with Global Blue, following a successful tender offer on July 3, 2025, where Shift4 acquired 97.37% of Global Blue’s shares. The merger resulted in Global Blue delisting from the NYSE and becoming a wholly-owned subsidiary of Shift4, impacting its market presence and shareholder structure.

The most recent analyst rating on (FOUR) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Shift4 Payments stock, see the FOUR Stock Forecast page.