Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. Fundamental Analysis
Fidelity National Information Services, Inc. (FIS) shows strong financial fundamentals with a PE ratio of 8.02, profit margin of 22.91%, and ROE of 18.45%. The company generates $11.7B in annual revenue with moderate year-over-year growth of 5.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FIS's fundamental strength across five key dimensions:
Efficiency Score
WeakFIS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFIS trades at attractive valuation levels.
Growth Score
ModerateFIS shows steady but slowing expansion.
Financial Health Score
ModerateFIS shows balanced financial health with some risks.
Profitability Score
ExcellentFIS achieves industry-leading margins.
Key Financial Metrics
Is FIS Expensive or Cheap?
P/E Ratio
FIS trades at 8.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FIS's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Fidelity National Information Services, Inc. at 1.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.52 times EBITDA. This is generally considered low.
How Well Does FIS Make Money?
Net Profit Margin
For every $100 in sales, Fidelity National Information Services, Inc. keeps $22.91 as profit after all expenses.
Operating Margin
Core operations generate 17.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.45 in profit for every $100 of shareholder equity.
ROA
Fidelity National Information Services, Inc. generates $6.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fidelity National Information Services, Inc. generates strong operating cash flow of $2.96B, reflecting robust business health.
Free Cash Flow
Fidelity National Information Services, Inc. generates strong free cash flow of $2.79B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.40 in free cash annually.
FCF Yield
FIS converts 12.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How FIS Stacks Against Its Sector Peers
| Metric | FIS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.02 | 36.74 | Better (Cheaper) |
| ROE | 18.45% | 968.00% | Weak |
| Net Margin | 22.91% | 5945062585.00% | Weak |
| Debt/Equity | 0.27 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 0.59 | 4.94 | Weak Liquidity |
| ROA | 6.14% | -296476.00% (disorted) | Weak |
FIS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fidelity National Information Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1.84%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
189.47%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-20.14%
Industry Style: Growth, Innovation, High Beta
Declining