Fiserv, Inc.
Fiserv, Inc. Fundamental Analysis
Fiserv, Inc. (FISV) shows moderate financial fundamentals with a PE ratio of 9.45, profit margin of 16.42%, and ROE of 13.64%. The company generates $21.2B in annual revenue with moderate year-over-year growth of 7.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.1/100 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 FISV's fundamental strength across five key dimensions:
Efficiency Score
WeakFISV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFISV trades at attractive valuation levels.
Growth Score
ModerateFISV shows steady but slowing expansion.
Financial Health Score
ModerateFISV shows balanced financial health with some risks.
Profitability Score
ModerateFISV maintains healthy but balanced margins.
Key Financial Metrics
Is FISV Expensive or Cheap?
P/E Ratio
FISV trades at 9.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FISV's PEG of -4.72 indicates potential undervaluation.
Price to Book
The market values Fiserv, Inc. at 1.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.57 times EBITDA. This is generally considered low.
How Well Does FISV Make Money?
Net Profit Margin
For every $100 in sales, Fiserv, Inc. keeps $16.42 as profit after all expenses.
Operating Margin
Core operations generate 26.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.64 in profit for every $100 of shareholder equity.
ROA
Fiserv, Inc. generates $4.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fiserv, Inc. generates strong operating cash flow of $6.10B, reflecting robust business health.
Free Cash Flow
Fiserv, Inc. generates strong free cash flow of $4.33B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.05 in free cash annually.
FCF Yield
FISV converts 12.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How FISV Stacks Against Its Sector Peers
| Metric | FISV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.45 | 35.19 | Better (Cheaper) |
| ROE | 13.64% | 1155.00% | Weak |
| Net Margin | 16.42% | -127067.00% (disorted) | Strong |
| Debt/Equity | 1.12 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.03 | 4.71 | Neutral |
| ROA | 4.34% | -314918.00% (disorted) | Weak |
FISV outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fiserv, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.76%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
210.39%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
110.02%
Industry Style: Growth, Innovation, High Beta
High Growth