Fiserv Inc (FI, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $157.46, Fiserv Inc has witnessed a daily gain of 5.82%, marked against a three-month change of 11.97%. A thorough analysis, underlined by the GF Score, suggests that Fiserv Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 4/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in profitability and growth, and a respectable momentum rank, GuruFocus assigned Fiserv Inc the GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding Fiserv Inc Business
Fiserv Inc is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing, for US banks and credit unions, with a focus on small and midsize banks. Through the merger with First Data in 2019, Fiserv also provides payment processing services for merchants. About 10% of the company's revenue is generated internationally. With a market cap of $92.70 billion and sales of $19.09 billion, Fiserv Inc boasts an operating margin of 25.39%, reflecting its efficiency and profitability.
Profitability Rank Breakdown
The Profitability Rank shows Fiserv Inc's impressive standing among its peers in generating profit. Fiserv Inc's Operating Margin has increased significantly over the past five years, with the latest figure standing at 25.39%. This upward trend is a testament to the company's growing proficiency in transforming revenue into profit. Additionally, Fiserv Inc's Gross Margin has also seen a consistent rise, reaching 59.83% in 2023. These margins underscore the company's efficiency and control over its costs.
Fiserv Inc's strong Predictability Rank of 4.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence in its financial stability.
Growth Rank Breakdown
Ranked highly in Growth, Fiserv Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 12.6%, which outperforms 59.04% of companies in the Software industry. Moreover, Fiserv Inc has seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 20.4 and a five-year rate of 18.6. This trend accentuates the company's continued capability to drive growth and profitability.
Next Steps
Considering Fiserv Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for companies with similar robust financial indicators can explore more options using the GF Score Screen. Fiserv Inc's strong market position, consistent profitability, and growth trajectory make it a compelling consideration for value investors seeking to capitalize on market opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
