Series logged a 1.6% change during today's morning session, and is now trading at a price of $173.22 per share.
Series returned gains of 14.5% last year, with its stock price reaching a high of $238.59 and a low of $146.46. Over the same period, the stock outperformed the S&P 500 index by 4.4%. More recently, the company's 50-day average price was $178.33. Fiserv, Inc. provides payments and financial services technology solutions in the United States, Europe, the Middle East and Africa, Latin America, the Asia-Pacific, and internationally. Based in Milwaukee, WI, the Large-Cap Consumer Discretionary company has 38,000 full time employees. Series has not offered a dividend during the last year.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $10,187 | $14,852 | $16,226 | $17,737 | $19,093 | $20,456 |
| Operating Margins | 16% | 12% | 14% | 21% | 26% | 28% |
| Net Margins | 9% | 6% | 8% | 14% | 16% | 15% |
| Net Income (M) | $893 | $958 | $1,334 | $2,530 | $3,068 | $3,131 |
| Net Interest Expense (M) | -$473 | -$709 | -$693 | -$733 | -$976 | -$1,195 |
| Depreciation & Amort. (M) | $247 | $523 | $498 | $555 | $566 | $589 |
| Diluted Shares (M) | 523 | 683 | 672 | 648 | 616 | 582 |
| Earnings Per Share | $1.71 | $1.4 | $1.99 | $3.9 | $4.98 | $5.38 |
| EPS Growth | n/a | -18.13% | 42.14% | 95.98% | 27.69% | 8.03% |
| Free Cash Flow (M) | $2,074 | $3,247 | $2,874 | $3,139 | $3,774 | $5,062 |
| CAPEX (M) | $721 | $900 | $1,160 | $1,479 | $1,388 | $1,569 |
| Total Debt (M) | $21,899 | $20,684 | $21,237 | $21,418 | $23,118 | $24,840 |
| Net Debt / EBITDA | 11.32 | 8.33 | 7.32 | 4.78 | 3.93 | 3.65 |
| Current Ratio | 1.08 | 1.04 | 1.03 | 1.04 | 1.04 | 1.06 |
Series has rapidly growing revenues and increasing reinvestment in the business and strong operating margins with a positive growth rate. Additionally, the company's financial statements display exceptional EPS growth and generally positive cash flows. However, the firm has a highly leveraged balance sheet. Finally, we note that Series has just enough current assets to cover current liabilities, as shown by its current ratio of 1.06.
Series's Valuation Is in Line With Its Sector Averages:
Series has a trailing twelve month P/E ratio of 31.6, compared to an average of 20.93 for the Consumer Discretionary sector. Based on its EPS guidance of $10.19, the company has a forward P/E ratio of 17.5. According to the 29.0% compound average growth rate of Series's historical and projected earnings per share, the company's PEG ratio is 1.09. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 16.5%. On this basis, the company's PEG ratio is 1.92. This suggests that these shares are overvalued. Furthermore, Series is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.72 is higher than the sector average of 2.93. The company's shares are currently trading 130.9% below their Graham number.
Overview of Series's Market Factors:
Series has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 94.0% of the company's shares, and the insider ownership rate stands at 0.71%, suggesting a small amount of insider investors.
