Shift4 Payments, Inc.
Shift4 Payments, Inc. Fundamental Analysis
Shift4 Payments, Inc. (FOUR) shows moderate financial fundamentals with a PE ratio of 28.35, profit margin of 2.48%, and ROE of 7.54%. The company generates $4.2B in annual revenue with strong year-over-year growth of 29.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.0/100 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 FOUR's fundamental strength across five key dimensions:
Efficiency Score
WeakFOUR struggles to generate sufficient returns from assets.
Valuation Score
ModerateFOUR shows balanced valuation metrics.
Growth Score
ModerateFOUR shows steady but slowing expansion.
Financial Health Score
ModerateFOUR shows balanced financial health with some risks.
Profitability Score
WeakFOUR struggles to sustain strong margins.
Key Financial Metrics
Is FOUR Expensive or Cheap?
P/E Ratio
FOUR trades at 28.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FOUR's PEG of -0.54 indicates potential undervaluation.
Price to Book
The market values Shift4 Payments, Inc. at 2.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.32 times EBITDA. This is generally considered low.
How Well Does FOUR Make Money?
Net Profit Margin
For every $100 in sales, Shift4 Payments, Inc. keeps $2.48 as profit after all expenses.
Operating Margin
Core operations generate 8.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.54 in profit for every $100 of shareholder equity.
ROA
Shift4 Payments, Inc. generates $1.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shift4 Payments, Inc. produces operating cash flow of $640.36M, showing steady but balanced cash generation.
Free Cash Flow
Shift4 Payments, Inc. generates strong free cash flow of $603.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.86 in free cash annually.
FCF Yield
FOUR converts 15.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How FOUR Stacks Against Its Sector Peers
| Metric | FOUR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.35 | 34.43 | Better (Cheaper) |
| ROE | 7.54% | 1135.00% | Weak |
| Net Margin | 2.48% | -134663.00% (disorted) | Weak |
| Debt/Equity | 3.20 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 1.66 | 5.77 | Neutral |
| ROA | 1.19% | -310462.00% (disorted) | Weak |
FOUR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shift4 Payments, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
209.13%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
375.38%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
1172.02%
Industry Style: Growth, Innovation, High Beta
High Growth