Fiserv (FI) AI Stock Analysis

• Market Cap: $117.51B
• Dividend Yield: N/A
• Average Volume (3M): 3.50M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 0.82
• Revenue Growth: 7.14%
• EPS Growth: 7.91%
• Country: US
• Employees: 38,000
• Sector: Technology
• Sector Strength: 40
• Industry: Information Technology Services
• EPS (TTM): 5.38
• Shares Outstanding: 558,574,200
• 10 Day Avg. Volume: 3,868,512
• 30 Day Avg. Volume: 3,499,410
• PEG Ratio: 4.94
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.98
• Price to Cash Flow (P/CF): 13.80
• P/FCF Ratio: 12.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $251.14
• Price Target Upside: 22.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

Fiserv's overall stock score of 77 reflects its strong financial performance and strategic growth initiatives, balanced by a high valuation and mixed technical indicators. The company's robust earnings growth and strategic expansions position it well for future growth, although careful monitoring of liabilities and market conditions is advised.

Positive Factors

Earnings and Financial Performance

Strong merchant revenue growth is expected to drive consistent earnings outperformance and strong free cash generation.

Market Valuation

Despite a premium to payments peers, Fiserv is trading at a meaningful discount on a growth adjusted basis compared to consumer names.

Partnership and Strategic Alliances

The new partnership between Fiserv and ADP creates a unique opportunity to increase client base and cross-sell each other's solutions.

Negative Factors

Competitive Dynamics

Despite continued momentum, analysts remain on the sidelines owing to views of competitive dynamics in Clover growth markets.

Domestic Competition

Domestically, competition around contract renewals is expected to intensify as Block steps up product/distribution capacity in key verticals.

Leadership and Management

Concerns regarding leadership changes and questions on Clover growth sustainability have weighed on share appreciation.

Fiserv Business Overview & Revenue Model

Company Description

Fiserv, Inc. (FI) is a global provider of financial services technology solutions. Headquartered in Brookfield, Wisconsin, the company operates in the financial services sector, offering a wide range of services including electronic payments processing, digital banking solutions, and risk management. Fiserv's core products and services cater to banks, credit unions, merchants, and other financial institutions, enabling them to enhance their operational efficiency and deliver seamless digital experiences to their customers.

How the Company Makes Money

Fiserv makes money primarily through its comprehensive suite of financial services and technology solutions. The company's revenue streams include transaction fees, subscription fees, and professional services. Fiserv charges transaction fees for processing electronic payments, including credit and debit card transactions. Additionally, it offers digital banking solutions and charges financial institutions subscription fees for using its software-as-a-service (SaaS) platforms. Fiserv also generates revenue from professional services, such as consulting, implementation, and support services. Significant partnerships with financial institutions and merchants enhance Fiserv's market reach and contribute to its earnings by expanding its customer base and increasing transaction volumes.

Fiserv Financial Statement Overview

Summary

Fiserv demonstrates robust financial performance with strong growth in revenue and profitability, supported by efficient operational and cash management. However, there is a potential risk due to increased reliance on liabilities for asset financing.

Income Statement

Fiserv has shown impressive revenue growth, with a consistent increase in total revenue from $10.19 billion in 2019 to $20.46 billion in 2024. The gross profit margin remains strong, indicating efficient management of production costs. Net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are robust, showcasing operational efficiency and effective cost management.

Balance Sheet

The debt-to-equity ratio has remained relatively stable, indicating a balanced approach to leveraging debt financing. Return on equity is solid, reflecting effective use of shareholder funds. However, the equity ratio has decreased over the years, suggesting increased reliance on liabilities for asset financing, which could pose potential risks if not managed properly.

Cash Flow

Fiserv exhibits strong operating cash flow, with significant growth over the years, highlighting the company's ability to generate cash from core operations. Free cash flow has also increased, indicating good financial health and capability to fund expansions or pay dividends. The operating and free cash flow to net income ratios suggest efficient cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.46B	19.09B	17.74B	16.23B	14.85B
	Gross Profit
12.44B	11.42B	9.74B	8.10B	7.04B
	EBIT
5.88B	4.85B	3.74B	2.29B	1.42B
	EBITDA
5.88B	7.81B	6.64B	5.39B	4.96B
	Net Income Common Stockholders
3.13B	3.07B	2.53B	1.33B	958.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.24B	1.20B	902.00M	835.00M	906.00M
	Total Assets
77.18B	90.89B	83.87B	76.25B	74.62B
	Total Debt
24.84B	23.90B	21.42B	21.24B	20.68B
	Net Debt
23.60B	22.70B	20.52B	20.40B	19.78B
	Total Liabilities
49.49B	60.22B	52.18B	44.30B	41.29B
	Stockholders Equity
27.07B	29.86B	30.83B	30.95B	32.33B
Cash Flow		Free Cash Flow
6.63B	3.77B	3.14B	2.87B	3.25B
	Operating Cash Flow
6.63B	5.16B	4.62B	4.03B	4.15B
	Investing Cash Flow
-2.40B	-1.07B	-2.11B	-1.63B	-341.00M
	Financing Cash Flow
-4.17B	-4.36B	-2.48B	-761.00M	-3.84B

Fiserv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 204.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FI, the sentiment is Negative. The current price of 204.38 is below the 20-day moving average (MA) of 215.23, below the 50-day MA of 221.65, and above the 200-day MA of 195.13, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FI.

Fiserv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BR	78 Outperform	$27.18B	36.34	35.34%	1.58%	5.73%	11.41%
FI	77 Outperform	$117.51B	39.09	11.00%	―	7.14%	7.91%
JKHY	76 Outperform	$12.44B	30.78	21.90%	1.31%	5.36%	8.62%
ACN	75 Outperform	$187.77B	24.75	27.26%	1.85%	4.10%	9.78%
INFY	75 Outperform	$67.64B	22.12	33.16%	2.35%	3.08%	11.92%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%
FIS	51 Neutral	$38.35B	51.06	4.65%	2.04%	-17.38%	―

Fiserv Corporate Events

Fiserv Appoints New Chief Operating Officer

On April 1, 2025, Fiserv, Inc. announced the appointment of Takis Georgakopoulos as Chief Operating Officer, effective April 2, 2025. In his new role, Georgakopoulos will oversee the company’s technology operations and Merchant Solutions business, succeeding Guy Chiarello, who will become Vice Chairman. This leadership change is expected to enhance Fiserv’s strategic focus on technology and merchant solutions, potentially impacting its market positioning and operations.

Fiserv Appoints Stephanie Cohen to Board of Directors

On March 15, 2025, Fiserv, Inc. announced the appointment of Stephanie Cohen to its board of directors. Cohen, who is recognized as independent under NYSE and SEC rules, brings extensive experience from her roles at Cloudflare Inc. and Goldman Sachs. This strategic appointment is expected to strengthen Fiserv’s governance and potentially enhance its strategic direction, given Cohen’s background in financial strategy and management.

Fiserv Appoints Michael P. Lyons as CEO-Elect

On January 22, 2025, Fiserv, Inc. announced the appointment of Michael P. Lyons as the company’s President and CEO-Elect, effective January 27, 2025, with his full transition to CEO upon Frank J. Bisignano’s confirmation as Commissioner of Social Security or by June 30, 2025. Lyons, with extensive experience from The PNC Financial Services Group, is expected to bring strategic growth to Fiserv, aligning with the company’s plans to separate the roles of Chairman and CEO. This transition reflects Fiserv’s strategic positioning in the competitive financial technology market and aims to strengthen its leadership and operational capacity.