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FI Fiserv, Inc. - Fundamental Analysis

NEUTRAL
FI Stock | Fundamental Analysis & Investment Insights
NYSE Technology Information Technology Services
Current Price
$63.8
Analyst Target
$100.16
+57.0% Upside
52W High
$238.59
52W Low
$60.95

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
65%
Analysis Accuracy
Fiserv (FI) trades at a steep discount to its historical levels and peers, with a compelling forward P/E of 6.26 and strong operating margins of 25.39%, suggesting potential value. However, the stock has collapsed by nearly 70% over the past year, reflecting deteriorating growth—revenue up only 0.9% YoY and negative EPS growth in recent quarters—alongside weakening earnings momentum and bearish insider activity. While profitability metrics remain solid relative to the technology sector, the lack of revenue growth, declining earnings trajectory, and elevated leverage (Debt/Equity of 1.21) constrain upside. Analysts are lukewarm with a 'hold' consensus and a $100.16 target implying ~57% upside, but execution risks and macro sensitivity in fintech payments cloud the outlook.

Key Strengths

Attractive valuation with forward P/E of 6.26, significantly below sector average of 155.76
High operating margin of 25.39% and gross margin of 60.48%, reflecting pricing power and operational efficiency
Strong historical earnings consistency with 22 out of 25 quarters meeting or beating estimates
Profit margin of 17.05% exceeds sector average of 16.54%, indicating superior profitability
EV/EBITDA and cash flow data missing, but stable ROE of 13.54% suggests reasonable capital efficiency

Key Risks

Revenue growth of just 0.9% YoY indicates stagnation in core business expansion
Most recent Q/Q EPS growth of -17.4% and YoY EPS decline of -11.3% signal deteriorating earnings power
Bearish insider activity: $1.31M in officer sales over last 6 months with no buys
High leverage with Debt/Equity ratio of 1.21, above sector average of 0.76, increasing refinancing and interest rate risk
Stock down 69.9% over 1Y and 42.2% over 5Y, reflecting deep investor skepticism and potential structural challenges
AI Fair Value Estimate
Based on comprehensive analysis
$100.16
+57.0% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
48
Moderate
Value
85
Future
40
Past
65
Health
50
Dividend
0
AI Verdict
Fiserv presents a value trap risk—deeply undervalued on earnings multiples with strong margins, yet hamstrung by stagnant revenue, declining EPS momentum, and bearish sentiment reflected in both price action and insider behavior; while peers like Snowflake and Atlassian grow rapidly (31.8% and 20.6% revenue growth respectively), FI’s near-flat top line contrasts sharply, limiting re-rating potential despite 57% implied upside from analyst targets.
Key drivers: Low forward P/E offering apparent value, Deteriorating earnings growth and revenue stagnation, Bearish insider and price momentum signals
Confidence
70%
Value
85/100

Fiserv appears cheap relative to both its history and the broader technology sector, where peers trade at premium multiples despite weaker profitability—suggesting FI is priced for permanent deceleration.

Positives
  • Forward P/E of 6.26 is dramatically below sector average of 155.76
  • Price/Sales of 1.62 and Price/Book of 1.36 are well below high-growth fintech peers
Watchpoints
  • Low multiples may reflect justified concerns about growth sustainability
  • Missing EV/EBITDA and cash flow data limits full valuation confidence
Future
40/100

The company’s future growth trajectory appears weak, with flat revenue and declining EPS momentum, while price trends show no sign of reversal—down 62% over 6 months—lagging strong peer momentum seen in Zoom and Snowflake.

Positives
  • Analyst target implies 57% upside, suggesting belief in recovery potential
  • Operating leverage could amplify bottom-line gains if revenue stabilizes
Watchpoints
  • Revenue growth of 0.9% YoY is insufficient for re-rating in a growth-oriented sector
  • Recent Q/Q EPS decline of 17.4% and weakening earnings surprises undermine forward confidence
Past
65/100

Fiserv has historically delivered reliable profitability and earnings execution, but the past year’s collapse in share price (-69.9%) and declining EPS trend suggest a breakdown in investor confidence, possibly due to macro pressures in payments or competitive erosion.

Positives
  • Long track record of earnings stability—22 of 25 quarters at or above estimates
  • Consistently high margins: gross (60.48%), operating (25.39%), and net (17.05%)
Watchpoints
  • Earnings growth has reversed sharply, with last two quarters showing YoY declines
  • 5-year total return of -42.2% reflects prolonged underperformance despite solid fundamentals
Health
50/100

Fiserv’s balance sheet is leveraged beyond sector norms, with tight liquidity (quick ratio 0.24), raising concerns about flexibility in a rising rate environment, though ongoing profitability may support debt servicing.

Positives
  • Operating margin strength supports cash generation potential
  • Current ratio of 1.08 indicates minimal short-term solvency risk
Watchpoints
  • Debt/Equity of 1.21 is high for the sector (avg 0.76), increasing financial risk
  • Quick ratio of 0.24 signals limited liquid assets to cover short-term liabilities
Dividend
0/100

The absence of a dividend reduces shareholder yield and signals capital is being retained—potentially for debt reduction or reinvestment—but offers no cushion for long-term investors amid volatility.

Positives
No standout positives identified.
Watchpoints
  • No dividend currently paid, eliminating income appeal
  • Payout ratio of 0.00% suggests no near-term return of capital to shareholders

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$63.8
Analyst Target
$100.16
Upside/Downside
+57.0%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for FI and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
FI
Fiserv, Inc.
Primary
-42.2% -36.8% -69.9% -62.0% -47.6% -0.4%
MCHP
Microchip Technology Incorporated
Peer
-9.3% -25.6% -16.1% -11.3% -18.0% -5.0%
TEAM
Atlassian Corporation
Peer
-19.9% +7.5% -39.3% -31.2% +1.3% -3.8%
PAYX
Paychex, Inc.
Peer
+38.6% +0.9% -20.7% -26.9% -11.2% +0.1%
FICO
Fair Isaac Corporation
Peer
+268.0% +182.5% -25.0% -20.9% +6.4% +0.1%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
9.86
Forward P/E
6.26
PEG Ratio
N/A
P/B Ratio
1.36
P/S Ratio
1.62
EV/Revenue
3.0
EV/EBITDA
6.92
Market Cap
$34.31B

Profitability

Profit margins and return metrics

Profit Margin 17.05%
Operating Margin 25.39%
Gross Margin 60.48%
ROE 13.54%
ROA 4.77%

Growth

Revenue and earnings growth rates

Revenue Growth +0.9%
Earnings Growth +49.0%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +40.4%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
1.21
Moderate
Current Ratio
1.08
Good
Quick Ratio
0.24
Poor
Cash/Share
$1.99

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-04
$N/A
2025-10-29
$2.04
-22.9% surprise
2025-07-23
$2.47
+1.5% surprise
2025-04-24
$2.14
+3.1% surprise

Technology Sector Comparison

Comparing FI against 38 companies in the Technology sector (14 bullish, 17 neutral, 1 bearish)
P/E Ratio
9.86
This Stock
vs
114.29
Sector Avg
-91.4% (Discount)
Return on Equity (ROE)
13.54%
This Stock
vs
25.54%
Sector Avg
-47.0% (Below Avg)
Profit Margin
17.05%
This Stock
vs
17.79%
Sector Avg
-4.2% (Weaker)
Debt to Equity
1.21
This Stock
vs
0.78
Sector Avg
+54.6% (Higher)
Revenue Growth
0.9%
This Stock
vs
19.4%
Sector Avg
-95.4% (Slower)
Current Ratio
1.08
This Stock
vs
1.97
Sector Avg
-45.3% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
FI
Fiserv, Inc.
NEUTRAL $34.31B 9.86 13.5% 17.0% $63.8
MCHP
Microchip Technology Incorporated
BEARISH $28.9B - -2.9% -4.4% $53.48
TEAM
Atlassian Corporation
NEUTRAL $39.94B - -15.3% -3.4% $151.79
PAYX
Paychex, Inc.
NEUTRAL $40.34B 25.13 41.3% 27.9% $112.1
FICO
Fair Isaac Corporation
BULLISH $41.29B 65.79 -% 32.7% $1741.37

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-10-30 FRITZ LANCE M Director Purchase 10,000 $651,800
2025-05-28 GELB ANDREW Officer Sale 5,652 $904,320
2025-05-27 ROSMAN ADAM L Officer Sale 2,512 $403,631
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
HOLD
28 analysts
JP Morgan
2025-10-30
Maintains
Overweight Overweight
UBS
2025-10-30
down
Buy Neutral
Citigroup
2025-10-30
Maintains
Neutral Neutral
Bernstein
2025-10-30
down
Outperform Market Perform
Argus Research
2025-10-30
down
Buy Hold
Keybanc
2025-10-30
down
Overweight Sector Weight
Goldman Sachs
2025-10-30
down
Buy Neutral
RBC Capital
2025-10-30
Maintains
Outperform Outperform
Keefe, Bruyette & Woods
2025-10-30
Maintains
Outperform Outperform
Truist Securities
2025-10-30
down
Buy Hold