FI

Fiserv, Inc.

Finance/Real Estate, TMT


Presented:10/24/2023
Price:$115.45
Cap:$70.38B
Current Price:$194.02
Cap:$111.70B

Presented

Date10/24/2023
Price$115.45
Market Cap$70.38B
Ent Value$91.82B
P/E Ratio24.16x
Book Value$49.13
Div Yield0%
Shares O/S609.62M
Ave Daily Vol2,383,576
Short Int0.90%

Current

Price$194.02
Market Cap$111.70B
Fiserv, Inc. engages in the provision of financial services technology. It operates through the following segments: Merchant Acceptance, Financial Technology, and Payments and Network. The Merchant Acceptance segment provides commerce enabling solutions and serves merchants of all sizes around the world. The Financial Technology segment offers technology solutions needed to run operations, including products and services that enable financial institutions to process customer deposit and loan accounts. The Payments and Network segment includes the provision of services to financial institutions and corporate clients with products and services required to process digital payment 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: Block Inc (SQ), Fidelity National Information Services Inc (FIS), Fiserv Inc (FI), Jack Henry & Associates Inc (JKHY)

Highlights

The presenter is long shares of Fiserv Inc (FI) based on the improved setup that makes the stock easier to own now compared to the past two years. Management seems to be delivering on expectations, which continued when FI reported Q3’23 earnings on October 24th, so the presenter doesn’t see major risk to the 2025 Clover revenue target of $3.5B+. That target has drawn some skepticism because the lack of topline acceleration in recent quarters had made it seem increasingly back-end loaded. However, management spoke to line of sight on the acceleration during the recent earnings call, and he expects that message to be reiterated with added detail when FI hosts its Analyst Day on November 15th. Based on slight upside to consensus earnings and multiple expansion, he believes the stock can trade up from the current $114 share price to $150 over the next few quarters. 

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Idea Discussion

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