FDC

First Data Corp.

TMT, Finance/Real Estate


Presented:09/24/2018
Price:$25.61
Cap:$23.91B
Current Price:no data
Cap:no data

Presented

Date09/24/2018
Price$25.61
Market Cap$23.91B
Ent Value$40.94B
P/E Ratio14.41x
Book Value$3.84
Div Yield0%
Shares O/S933.73M
Ave Daily Vol7,732,201
Short Int6.97%

Current

Priceno data
Market Capno data
First Data Corp. engages in the provision of commerce-enabling technology and solutions; and payment technology and services. It operates through the following segments: Global Business Solutions; Global Financial Solutions; and Network and Security Solutions. The Global Business Solutions segment provides retail point-of-sale merchant acquiring and eCommerce services. 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. The Network and Security Solutions segment provides EFT network solutions, such as STAR Network and debit card processing solutions. The company was founded in 1971 and is headquartered in Atlanta, GA.

Publicly traded companies mentioned herein: Adyen NV (ADYEN NA), First Data Corp (FDC), Global Payments Inc (GPN), KKR & Co Inc (KKR), Square Inc (SQ), Wells Fargo & Co (WFC), Worldpay Inc (WP)

Highlights

First Data (FDC) shares are cheap at 12x the presenter's 2020 EPS forecast. The business is experiencing a positive fundamental inflection that is underappreciated by the Street, and could lead to upside revisions and further gains, well beyond the 60% increase seen over the past six months. The $44B EV global e-commerce solutions/ merchant acquirer stands to attract new shareholders as its leverage is reduced to below 4.5x (from 5.1x today); and earnings growth should outpace Street estimates through 2020 as improvements in the bank channel and growth of the Clover platform and ISV (independent/integrated software vendors) business drive multiple expansion. Looking out one year, if FDC can trade at a high teens multiple to forward earnings - still a meaningful discount to payment players such as Global Payments and Worldpay - FDC shareholders could see further gains of 50%+ (to $38 - $39).

  • 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.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.