FDC
First Data Corp.
TMT, Finance/Real Estate
11/13/2017
Presented
| Date | 11/10/2017 |
| Price | $17.07 |
| Market Cap | $16.11B |
| Ent Value | $38.11B |
| P/E Ratio | 22.46x |
| Book Value | $2.27 |
| Div Yield | 0% |
| Shares O/S | 944.00M |
| Ave Daily Vol | 6,626,446 |
| Short Int | 10.88% |
Current
| Price | no data |
| Market Cap | no data |
| First Data Corp. provides commerce-enabling technology and solutions. It provides secure and innovative payment technology and services. The company operates through three business segments: Global Business Solutions, Global Financial Solutions and Network & Security Solutions. The Global Business Solutions segment provides retail point-of-sale merchant acquiring and eCommerce services. This segment also provides next generation offerings, such as mobile payment services, web store-in-a-box solutions and cloud-based clover point-of-sale operating system. The Global Financial Solutions segment provides credit solutions for bank and non-bank issuers, such as credit and retail private-label card processing; and licensed financial software systems, such as VisionPLUS bank processing application and lending solutions. This segment also offers related services, including card personalization and embossing, statement printing, client service and remittance processing. The Network & Security Solutions segment provides EFT network solutions, such as STAR Network and debit card processing solutions. It also offers stored value network solutions, including money network, ValueLink, Gyft, and transaction wireless; and security and fraud solutions, such as TransArmor and TeleCheck. The company's other services include mobile payments, eCommerce and prepaid solutions, as well as payment processing, fraud protection and authentication solutions, online banking, check guarantee and verification services and point-of-sale services to its customers. First Data was founded in 1971 and is headquartered in Atlanta, GA. |
Publicly traded companies mentioned herein: Bank of America Corp (BAC), First Data Corp (FDC), Global Payments Inc (GPN), PNC Financial Services Group (PNC), Vantiv Inc (VNTV), Wells Fargo & CO (WFC)
Highlights
The presenter is long shares of First Data (FDC), seeing favorable secular trends and fading operational headwinds that combine to set up for a strong return profile. Weakness in the NA merchant acquirer business appears to be transitory as the Wells Fargo issue subsides, and new products could help with lead generation and reduction of churn. The presenter models 25% upside to FDC shares from continued FCF generation and 7% EBITDA growth, and believes there’s possibility for multiple expansion, noting that one turn of EV/EBITDA expansion would translate to 21% upside. He believes FDC shares can return ~50% over the next year.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.