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Shift4 Payments Financial Strength

: 4 (As of Jun. 2022)
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Shift4 Payments has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Shift4 Payments's Interest Coverage for the quarter that ended in Jun. 2022 was 2.74. Shift4 Payments's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.87. As of today, Shift4 Payments's Altman Z-Score is 1.80.


Competitive Comparison

For the Software - Infrastructure subindustry, Shift4 Payments's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Shift4 Payments Financial Strength Distribution

For the Software industry and Technology sector, Shift4 Payments's Financial Strength distribution charts can be found below:

* The bar in red indicates where Shift4 Payments's Financial Strength falls into.



Shift4 Payments Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Shift4 Payments's Interest Expense for the months ended in Jun. 2022 was $-8 Mil. Its Operating Income for the months ended in Jun. 2022 was $23 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,754 Mil.

Shift4 Payments's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*23/-8.4
=2.74

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Shift4 Payments's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4.1 + 1753.8) / 2026.8
=0.87

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Shift4 Payments has a Z-score of 1.80, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.8 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Shift4 Payments  (NYSE:FOUR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Shift4 Payments has the Financial Strength Rank of 4.


Shift4 Payments Financial Strength Related Terms

Thank you for viewing the detailed overview of Shift4 Payments's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Shift4 Payments Business Description

Shift4 Payments logo
Traded in Other Exchanges
N/A
Address
2202 North Irving Street, Allentown, PA, USA, 18109
Shift4 Payments Inc is provider of integrated payment processing and technology solutions. The company offers software providers a single integration to an end-to-end payments offering, a powerful gateway and a robust suite of technology solutions (including cloud enablement, business intelligence, analytics, and mobile) to enhance the value of their software suites and simplify payment acceptance. The Shift4 Model is built to serve a range of merchants from small-to-medium-sized businesses to large and complex enterprises across numerous verticals, including lodging, leisure, and food and beverage.
Executives
Davis Karen Roter director C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING ST ALLENTOWN PA 18109
Searchlight Ii Gwn Gp, Llc 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P.. 745 FIFTH AVENUE, 27TH FLOOR NEW YORK NY 10151
Frankel Jordan officer: GC & Corporate Secretary C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 18109
Halkyard Jonathan S director DAVE & BUSTER'S ENTERTAINMENT, INC. 2481 MANANA DRIVE DALLAS TX 75220
Cruz Christopher Nestor director C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 16109
Herring Bradley officer: CFO C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 16109
Goldsmith-grover Sarah director C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 18109
Sommers Steven M. officer: Chief Application Architect C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 18109
Lauber David Taylor officer: Chief Strategy Officer C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 18109
Cronic Kevin J. officer: Chief System Architect C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 18109
Frey Andrew director 10802 EXECUTIVE CENTER DRIVE SUITE 300 LITTLE ROCK AR 72211
Isaacman Donald director C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 18109
Disman Nancy director 57 ROUND TREE DRIVE MELVILLE NY 11747
Isaacman Jared director, 10 percent owner, officer: Chairman & CEO C/O SHIFT4 PAYMENTS, INC. 2202 N. IRVING STREET ALLENTOWN PA 18109
Searchlight Ii Gwn, L.p. 10 percent owner 745 FIFTH AVENUE 27TH FLOOR NEW YORK NY 10151

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