Shift4 Payments (FOUR) AI Stock Analysis

• Market Cap: $7.68B
• Dividend Yield: N/A
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.77
• Revenue Growth: 23.86%
• EPS Growth: 79.35%
• Country: US
• Employees: 4,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.10
• Shares Outstanding: 67,291,180
• 10 Day Avg. Volume: 1,285,112
• 30 Day Avg. Volume: 2,076,375
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 9.68
• Enterprise Value/Ebitda: 24.78
• 1Y Price Target: $109.71
• Price Target Upside: 26.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 73 Outperform
• Price Target: $100.00 ▲(15.18% Upside)

Shift4 Payments' strong financial performance and positive earnings call outlook are the most significant factors driving the score. However, the stock's bearish technical indicators and high valuation relative to earnings limit its overall attractiveness. The company's strategic expansions and robust growth projections provide a positive long-term outlook, but current market conditions suggest caution.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for Shift4's payment solutions, enhancing its market position and supporting long-term business expansion.

Strategic Acquisitions

Acquiring Global Blue allows Shift4 to enter new verticals and markets, potentially increasing its customer base and revenue streams, which can drive sustainable growth.

International Expansion

The expansion into European markets enhances Shift4's global footprint, providing access to new customers and revenue opportunities, supporting long-term growth.

Negative Factors

Integration Challenges

Integration challenges with Global Blue could disrupt operations and delay synergies, impacting efficiency and profitability in the short to medium term.

Margin Pressure

Margin pressure from acquisitions may limit profitability improvements, affecting the company's ability to reinvest in growth and maintain competitive pricing.

Debt Reliance

High reliance on debt can strain financial flexibility and increase risk, especially if interest rates rise or cash flow generation weakens.

Shift4 Payments Business Overview & Revenue Model

Company Description

Shift4 Payments (FOUR) is a leading payment processing and technology company that offers a comprehensive suite of solutions for businesses in various sectors, including retail, hospitality, and e-commerce. The company specializes in providing integrated payment processing services, point-of-sale (POS) systems, and business management software, enabling merchants to accept payments seamlessly across multiple channels. With a focus on innovation and security, Shift4 Payments aims to enhance the payment experience for both merchants and their customers.

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 shows strong revenue growth and improving profitability, supported by effective cost management. The balance sheet indicates a reduction in leverage, though the company still relies significantly on debt. Cash flow metrics are positive, reflecting good cash generation and management. Overall, the company is on a solid financial footing with opportunities for further operational improvements.

Income Statement

Shift4 Payments has demonstrated consistent revenue growth, with a TTM revenue growth rate of 4.01%. The gross profit margin has improved to 30.65% in the TTM, indicating strong cost management. The net profit margin has also increased to 9.71%, reflecting improved profitability. However, the EBIT margin remains low at 0.05%, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has decreased to 2.37 in the TTM, showing a reduction in leverage compared to previous years. Return on equity is strong at 25.58%, indicating effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Shift4 Payments has shown positive free cash flow growth of 3.79% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.38, suggesting a healthy conversion of net income to cash. The free cash flow to net income ratio of 1.04 indicates strong cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.61B	3.33B	2.56B	1.99B	1.37B	766.90M
Gross Profit	1.10B	973.10M	687.80M	470.20M	278.40M	177.80M
EBITDA	430.80M	356.80M	366.20M	268.50M	55.30M	10.60M
Net Income	220.50M	229.60M	86.20M	75.10M	-48.90M	-18.40M
Balance Sheet
Total Assets	6.99B	5.04B	3.39B	2.55B	2.34B	1.78B
Cash, Cash Equivalents and Short-Term Investments	3.03B	1.21B	455.00M	776.50M	1.23B	927.80M
Total Debt	3.77B	2.88B	1.78B	1.77B	1.76B	1.01B
Total Liabilities	5.00B	4.02B	2.52B	2.07B	1.94B	1.11B
Stockholders Equity	1.59B	806.60M	653.30M	347.30M	272.80M	459.60M
Cash Flow
Free Cash Flow	490.40M	310.60M	250.70M	-104.60M	-56.30M	-9.50M
Operating Cash Flow	566.00M	500.30M	388.30M	275.40M	29.20M	23.40M
Investing Cash Flow	-441.80M	-691.10M	-301.90M	-516.80M	-196.70M	-102.10M
Financing Cash Flow	2.66B	929.20M	-152.20M	-214.60M	471.20M	1.00B

Shift4 Payments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 86.82
• 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 Negative. The current price of 86.82 is below the 20-day moving average (MA) of 88.43, below the 50-day MA of 94.13, and below the 200-day MA of 96.03, indicating a bearish trend. The MACD of -1.75 indicates Negative momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 30.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FOUR.

Shift4 Payments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEX	77 Outperform	5.73B	21.15	31.31%	―	-1.62%	36.57%
PAYO	77 Outperform	2.44B	25.75	12.95%	―	13.02%	-2.57%
FOUR	73 Outperform	$7.68B	32.17	19.00%	―	23.86%	79.35%
DLO	73 Outperform	4.35B	28.70	32.57%	―	22.02%	12.42%
EEFT	68 Neutral	3.64B	12.14	24.48%	―	8.71%	25.75%
MQ	63 Neutral	2.60B	-45.21	-7.67%	―	17.47%	-544.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Shift4 Payments Corporate Events

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.

Shift4 Payments Expands Credit Facility and Completes Acquisition

On June 30, 2025, Shift4 Payments, LLC, entered into an amendment to its credit agreement, increasing its revolving credit facility by $100 million and establishing a $1 billion term loan facility, effective July 3, 2025. These financial arrangements are aimed at enhancing Shift4’s operational flexibility and supporting its acquisition of Global Blue Group Holding AG, which was completed with a cash offer totaling approximately $2.7 billion. The acquisition, funded through a combination of cash, credit facilities, and issuance of preferred stock and senior notes, enables Shift4 to expand its market presence and streamline operations, with plans to delist Global Blue from the NYSE and integrate it into its operations.

Shift4 Payments Announces CEO Transition to Taylor Lauber

On June 4, 2025, Shift4 Payments announced the resignation of Jared Isaacman as CEO, effective June 5, 2025, with his transition to Executive Chairman. Taylor Lauber, the company’s President, will assume the CEO role, marking a strategic leadership transition aimed at driving the company’s next growth phase. The company also terminated a restructuring transaction agreement due to unmet conditions, maintaining Isaacman’s voting shares and previously announced structural changes.