Education
About Us
Working with TipRanks
Follow Us
Fiserv (FI)
NYSE:FI
Top Page
Fiserv
(NYSE:FI)79Outperform
Positive Factors
Earnings
Fiserv delivered strong topline beats in merchant/consolidated EBIT/EPS and delivered guidance on rev/EPS seemingly inline with consensus.
Partnership
The new partnership between Fiserv and ADP creates a unique opportunity to increase client base and cross-sell each other's solutions.
Negative Factors
Competition
Domestically, competition around contract renewals is expected to intensify as Block steps up product/distribution capacity in key verticals.
Leadership
Concerns regarding leadership changes and questions on Clover growth sustainability have weighed on share appreciation.
Fiserv (FI) vs. S&P 500 (SPY)
Market Cap
$125.68B
Dividend YieldN/A
Average Volume (3M)3.18M
Price to Earnings (P/E)42.0
Beta (1Y)0.74
Revenue Growth7.14%
EPS Growth7.91%
CountryUS
Employees42,000
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)5.38
Shares Outstanding561,288,940
10 Day Avg. Volume3,758,369
30 Day Avg. Volume3,182,751
Financial Highlights & Ratios
PEG Ratio5.31
Price to Book (P/B)N/A
Price to Sales (P/S)6.14
Price to Cash Flow (P/CF)14.20
P/FCF Ratio12.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$253.91Price Target Upside15.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
Fiserv Business Overview & Revenue Model
Company DescriptionFiserv, 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 MoneyFiserv 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 significant revenue growth and strong operational efficiency. However, the balance sheet indicates a slight risk due to increased reliance on liabilities.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.88
Very Positive
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.75
Positive
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.82
Very Positive
| 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
Neutral
219.95
Price Trends
217.78
Positive
212.09
Positive
187.00
Positive
Market Momentum
2.44
Positive
42.63
Neutral
11.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FI, the sentiment is Neutral. The current price of 219.95 is below the 20-day moving average (MA) of 230.93, above the 50-day MA of 217.78, and above the 200-day MA of 187.00, indicating a neutral trend. The MACD of 2.44 indicates Positive momentum. The RSI at 42.63 is Neutral, neither overbought nor oversold. The STOCH value of 11.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FI.
Fiserv Risk Analysis
Fiserv disclosed 31 risk factors in its most recent earnings report. Fiserv reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fiserv Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $54.73B | 31.98 | 46.16% | 2.58% | 4.18% | 5.67% | |
79 Outperform | $125.68B | 41.98 | 11.00% | ― | 7.14% | 7.91% | |
77 Outperform | $126.30B | 32.39 | 83.72% | 1.85% | 7.09% | 11.51% | |
77 Outperform | $12.90B | 31.92 | 21.90% | 1.24% | 5.36% | 8.62% | |
73 Outperform | $24.83B | 16.27 | 6.94% | 1.00% | 4.68% | 63.39% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
51 Neutral | $37.02B | 49.29 | 4.65% | 2.07% | -17.38% | ― |
* Technology Sector Average
Performance Comparison
FI
Fiserv
219.95
68.71
45.43%
ADP
Automatic Data Processing
302.46
63.90
26.79%
FIS
Fidelity National Info
70.39
1.66
2.42%
GPN
Global Payments
100.14
-28.33
-22.05%
JKHY
Jack Henry & Associates
183.51
11.09
6.43%
PAYX
Paychex
149.89
32.56
27.75%
Fiserv Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 2.67% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call indicated a strong performance in 2024 with significant growth in earnings and revenue, especially in the Clover segment. Fiserv demonstrated robust shareholder returns and strategic global expansion. However, challenges in Argentina and a slowdown in the issuing segment were noted as potential concerns. Overall, the positive aspects of growth and strategic execution outweigh the challenges.Highlights
Strong Earnings Growth
Fiserv delivered an adjusted earnings per share of $8.80, up 17%, with total company organic revenue growth of 16%.
Clover Revenue Success
Clover revenue grew 29% for both the quarter and full year, reaching $2.7 billion, with a strong growth in value-added solutions and hardware sales.
Significant Shareholder Returns
Fiserv returned $5.5 billion to shareholders through share repurchases, contributing to a nearly 5% decline in average shares outstanding for the year.
Expansion in Merchant Partnerships
In 2024, Fiserv added 65% more bank partners for merchant acquiring than in 2023, approaching 1,000 financial institutions as partners.
Global Expansion
Clover expanded to three new countries: Brazil, Mexico, and Australia, with strong international growth potential.
Lowlights
Challenges in Argentina
The transitory benefits from Argentina's excess inflation and interest rates are not expected to continue in 2025, impacting future growth comparisons.
Issuer Slowdown
In Q4, the issuing segment saw slower growth due to lower volume in print and plastic business, tied to the overall credit environment.
Company Guidance
During the Fiserv Fourth Quarter 2024 Earnings conference call, significant metrics were highlighted, showcasing the company's robust financial performance and strategic advancements. Fiserv reported an impressive adjusted earnings per share of $8.80, marking a 17% increase, with adjusted revenue growth of 7% and an adjusted operating margin expansion of 170 basis points to 39.4%. Organic revenue growth reached 16%, and free cash flow was robust at $5.2 billion. The company returned $5.5 billion to shareholders via share repurchases. For 2025, Fiserv guided 10% to 12% organic revenue growth, over 125 basis points of adjusted operating margin expansion, 15% to 17% adjusted EPS growth, and approximately $5.5 billion in free cash flow. These projections exclude contributions from transitory factors, reflecting a solid foundation for continued growth driven by new product launches, strategic partnerships, and international expansion, emphasizing the company's commitment to sustained shareholder value and operational excellence.Fiserv Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Fiserv Appoints Michael P. Lyons as CEO-Elect
Positive
Jan 23, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.