$210.92
arrow_drop_up0.06%Is FI a Buy or Sell based on AI Analysis?
Fundamental Analysis
Fiserv Inc's fundamental analysis reveals several key indicators that highlight the company's financial health and performance. The company's price-to-earnings (PE) ratio of 30.23 signifies that investors are willing to pay $30.23 for every $1 of earnings, indicating a relatively high valuation. Additionally, Fiserv's return on equity (ROE) of 10.04% showcases the company's ability to generate profits from shareholders' equity, reflecting a relatively healthy financial performance. Furthermore, Fiserv's dividend yield growth year over year is not specified, suggesting that the company may not prioritize dividend payments to its shareholders. Moreover, Fiserv's revenue growth of 7.65% highlights the company's ability to increase its top line, indicating positive momentum in its business operations. The company's operating margin of 29.51% demonstrates efficient cost management and operational effectiveness. Additionally, Fiserv's high ownership value by institutions at 94.13% suggests strong confidence from institutional investors in the company's future prospects and potential for growth. Overall, these fundamental indicators provide insights into Fiserv Inc's financial stability, growth potential, and market performance.
Positive Development
Fiserv has been expanding its reach and influence in the financial services sector, with its recent partnerships with Genesis Bank and Scienaptic AI. This indicates that Fiserv is well-positioned to take advantage of the growing demand for digital payment solutions. Fiserv's strong financial performance, with a high earnings-per-share (EPS) of 1.4435, and an operating margin of 0.2941, suggests that the company has a robust financial position. Fiserv's recent acquisition of ZSuite Technologies, a leader in fintech, has given it access to innovative payment solutions that can help it compete more effectively in the market.
Negative Development
Fiserv's high level of debt, with a long-term debt-to-total-asset ratio of 0.2413, could potentially be a concern for investors, especially if interest rates rise significantly. Fiserv's high level of debt-to-equity ratio, at 0.7743, may also raise concerns for investors as it could indicate high leverage and potential financial risk. Fiserv's recent bidding for Shift4 Payments could be a potential distraction for the company and may require significant investment, potentially affecting its profitability in the short term.
Technical Analysis
Fiserv Inc, a technology company in the stock sector, currently has a technical rating of NEUTRAL. The company's stock price is $150.57, with a one-month price change percent of 4.44% and a six-month price change percent of 23.61%. The technical indicators for the month include one buy indicator (ATR), four hold indicators (RSI, MACD, ADX, and ROC), and three sell indicators (CCI, WILLR, and STOCHRSI). Additionally, the stock has a beta of 0.91 and a market value score of 24. Fiserv's historical performance shows a 495.61% all-price change percent, indicating significant growth potential in the long term. Furthermore, Fiserv Inc has demonstrated consistent operating margins, with a gross margin of 59.85%, an operating margin of 29.51%, a pre-tax margin of 20.42%, and a net margin of 16.07%. The company also has a strong return on equity of 10.04% and a return on assets of 3.47%. With a solid free cash flow margin of 20.48% and a free cash flow of $3.91B, Fiserv is in a favorable position to reinvest in its operations and drive further growth. Overall, the company's technical analysis highlights its stability and growth potential in the technology sector.
Conclusion and recommendation
Based on the data provided, Fiserv Inc (FI) appears to be a solid technology company with strong financials and positive growth indicators. The company has a market cap of $88.9B and a price-to-earnings ratio of 30.23, indicating solid investor confidence. Fiserv has shown consistent revenue growth of 7.65% and a net margin of 16.07%, showcasing its ability to generate profits efficiently. Additionally, the company has a return on equity of 10.04% and a return on assets of 3.47%, indicating effective management of its resources. With a fifty-two week high of $151.97 and a low of $103.99, Fiserv has demonstrated resilience and stability in the face of market fluctuations. In conclusion, Fiserv Inc presents a promising investment opportunity for investors seeking exposure to the technology sector. The company's strong financial performance, positive growth forecasts, and consistent profitability make it an attractive option for long-term investors. With a solid market score and industry score, Fiserv has positioned itself as a leader in the sector, backed by a robust balance sheet and steady revenue growth. Overall, Fiserv's stable performance and growth potential make it a recommended buy for investors looking to capitalize on the company's continued success in the technology industry.