Series logged a -0.7% change during today's morning session, and is now trading at a price of $128.03 per share.
Series returned losses of -29.3% last year, with its stock price reaching a high of $238.59 and a low of $127.41. Over the same period, the stock underperformed the S&P 500 index by -46.5%. AThe company's 50-day average price was $136.11. 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 Real Estate 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 | -$934 |
| 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.
an Increase in Expected Earnings Improves Its Value Outlook but Priced Beyond Its Margin of Safety:
Series has a trailing twelve month P/E ratio of 22.8, compared to an average of 27.31 for the Real Estate sector. Based on its EPS guidance of $10.19, the company has a forward P/E ratio of 13.4. According to the 29.0% compound average growth rate of Series's historical and projected earnings per share, the company's PEG ratio is 0.79. 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 1.39. This implies that the shares are fairly valued. In contrast, Series is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.76 is higher than the sector average of 1.94. The company's shares are currently trading 70.6% below their Graham number.
Analysts Give Series an Average Rating of Buy:
The 30 analysts following Series have set target prices ranging from $125.0 to $250.0 per share, for an average of $183.91 with a buy rating. The company is trading -30.4% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Series has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 91.9% of the company's shares, and the insider ownership rate stands at 0.72%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $6,394,889,622.
