FISV

Fiserv Inc

TMT, Finance/Real Estate


Presented:07/08/2019
Price:$93.58
Cap:$36.72B
Current Price:$194.02
Cap:$111.70B

Presented

Date07/08/2019
Price$93.58
Market Cap$36.72B
Ent Value$41.04B
P/E Ratio38.61x
Book Value$6.10
Div Yield0%
Shares O/S392.44M
Ave Daily Vol3,709,964
Short Int16.29%

Current

Price$194.02
Market Cap$111.70B
Fiserv, Inc. engages in the provision of financial services technology. It operates through the Payments & Industry Products and Financial Institution Services segments. The Payments and Industry Products segment offers financial institutions and other companies with the products and services required to process electronic payment transactions. The Financial Institution Services segment comprises banks, thrifts, and credit unions with account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services that support numerous types of financial transactions. The company was founded by Leslie M. Muma and George D. Dalton on July 31, 1984 and is headquartered in Brookfield, WI.

Publicly traded companies mentioned herein: Bank of America Corp (BAC), First Data Corp (FDC), Fiserv Inc (FISV), KKR & Co Inc (KKR), PayPal Holdings Inc (PYPL), PNC Financial Services Group Inc/The (PNC), Square Inc (SQ), Wells Fargo & Co (WFC)

Highlights

The presenter is long shares of Fiserv Inc (FISV), which he describes as an outsourced IT group for banks. FISV’s long-term contracts alone make it an interesting business, as revenues during the recession fell only 1% and EPS grew 10%, but the presenter’s bull case is mainly driven by its impending merger with First Data Corp (FDC). He thinks that this merger will allow the proforma company to cross-sell its services while benefiting from significant cost synergies. On the back of this high-margin incremental revenue, the presenter expects share prices to appreciate ~30% from the current ~$94 to ~$120 by the end of 2020. 

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Idea Discussion

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