Fidelity National Information Services (FIS) Stock Price, News & Analysis

Company Overview

Fidelity National Information Services, Inc. is a financial technology company that provides software, services and solutions to financial institutions, merchants and other businesses worldwide. The company was founded in 1968 and is headquartered in Jacksonville, Florida, with operations in more than 110 countries. FIS is a Fortune 500 company and is one of the largest global providers of banking and payment technologies.

FIS offers a wide range of products and services, including core banking and payment processing solutions, risk management, fraud detection, compliance services, mobile banking, digital wallets and other consumer-facing products. The company serves diverse customers, including banks, credit unions, merchants, governments and corporations.

Stephanie Ferris is the CEO and President of FIS. She joined the FIS team after FIS purchased WorldPay.  At WorldPay, she specialized in revenue synergies and long-range strategic planning. Other notable team members include John Durrant, the President of Banking Solutions. John has focused on enterprise payment systems, product experience and small-business banking for over a decade. 

Over the past few years, FIS has seen a weak financial performance. The company has been reporting losses for approximately three years. FIS's debt levels have increased in recent years due to the company's acquisition of Worldpay in 2019, which added roughly $16 billion in debt to FIS's balance sheet. Since 2019 FIS has maintained a debt level of around $35 billion. With a price-to-earnings ratio higher than the industry average and a price-to-book ratio lower than the industry average, FIS's valuation metrics suggest that the company is trading at a premium compared to its peers. FIS's stock price has performed poorly in recent years, consistently falling since Q2 of 2020. 

FIS operates in the financial technology industry, which is experiencing significant growth and disruption. The rise of digital banking and payments has led to increased competition, innovation in the industry and regulatory and cybersecurity challenges.

FIS's primary competitors include global financial technology companies like Fiserv, Square and PayPal. In addition, FIS competes with traditional banks and payment processors investing in digital technology.

FIS has several growth opportunities, including new product launches, acquisitions and expansions into new markets. In 2020, the company launched several new products, including a real-time payments solution and a digital wallet. FIS also acquired the payments technology company Worldpay for $43 billion in 2019. The acquisition has positioned FIS as one of the largest payment processors in the world and has expanded the company's global footprint. It is important to note that in 2023 FIS began discussing spinning WorldPay off into a separate entity. 

FIS is also exploring opportunities to expand into new markets, particularly in emerging economies such as Asia and Africa. The company has partnered with regional financial institutions to provide digital banking and payment solutions.

While FIS has seen strong financial performance and growth opportunities, the company has several potential risks and challenges. One significant risk is the increasing competition in the financial technology industry, particularly from new entrants and non-traditional players such as tech companies and fintech startups.

In addition, regulatory and compliance challenges could impact FIS's operations and growth. The financial technology industry is highly regulated, and changes in regulations or compliance requirements could increase costs and limit growth opportunities for FIS.

Cybersecurity threats are another significant risk facing FIS and the financial technology industry. As the company processes and stores sensitive financial data, any breaches or cyber-attacks could significantly damage FIS's reputation and financial performance.

Changes in consumer preferences and behavior could impact FIS's growth and profitability. As digital banking and payment solutions evolve, consumers may prefer alternative solutions, such as cryptocurrency or blockchain-based systems, which could impact FIS's traditional business model.

Written by Jeffrey Neal Johnson

Key Stats

• Today's Range: $79.59 to $81.67
• 50-Day Range: $80.14 to $90.96
• 52-Week Range: $58.24 to $91.98
• Volume: 8.05 million shs
• Average Volume: 3.74 million shs
• Market Capitalization: $43.85 billion
• P/E Ratio: 32.45
• Dividend Yield: 1.77%
• Price Target: $91.75
• Consensus Rating: Moderate Buy

Fidelity National Information Services Stock Analysis - MarketRank™

Fidelity National Information Services scored higher than 99% of companies evaluated by MarketBeat, and ranked 8th out of 333 stocks in the business services sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Fidelity National Information Services has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 12 buy ratings, 9 hold ratings, and 1 sell rating.

Amount of Analyst Coverage

Fidelity National Information Services has been the subject of 15 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 10.42%

Earnings Growth

Earnings for Fidelity National Information Services are expected to grow by 10.42% in the coming year, from $5.18 to $5.72 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Fidelity National Information Services is 32.45, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 113.39.

Price to Earnings Ratio vs. Sector

The P/E ratio of Fidelity National Information Services is 32.45, which means that it is trading at a more expensive P/E ratio than the Business Services sector average P/E ratio of about 28.29.

Price to Earnings Growth Ratio

Fidelity National Information Services has a PEG Ratio of 0.72. PEG Ratios below 1 indicate that a company could be undervalued.

Price to Book Value per Share Ratio

Fidelity National Information Services has a P/B Ratio of 2.53. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.35% of the float of Fidelity National Information Services has been sold short.

Short Interest Ratio / Days to Cover

Fidelity National Information Services has a short interest ratio ("days to cover") of 3.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Fidelity National Information Services has recently decreased by 1.17%, indicating that investor sentiment is improving.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Fidelity National Information Services pays a meaningful dividend of 1.79%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Fidelity National Information Services does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Fidelity National Information Services is 57.37%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Fidelity National Information Services will have a dividend payout ratio of 25.17% next year. This indicates that Fidelity National Information Services will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 3.0 / 5
• Environmental Score: -0.34

Percentage of Shares Shorted

2.35% of the float of Fidelity National Information Services has been sold short.

Short Interest Ratio / Days to Cover

Fidelity National Information Services has a short interest ratio ("days to cover") of 3.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Fidelity National Information Services has recently decreased by 1.17%, indicating that investor sentiment is improving.

News and Social Media

• Score: 2.8 / 5
• News Sentiment: 1.06

News Sentiment

Fidelity National Information Services has a news sentiment score of 1.06. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.59 average news sentiment score of Business Services companies.

News Coverage This Week

MarketBeat has tracked 19 news articles for Fidelity National Information Services this week, compared to 11 articles on an average week.

Search Interest

Only 21 people have searched for FIS on MarketBeat in the last 30 days. This is a decrease of -19% compared to the previous 30 days.

MarketBeat Follows

Only 7 people have added Fidelity National Information Services to their MarketBeat watchlist in the last 30 days. This is a decrease of -22% compared to the previous 30 days.

Company Ownership

• Score: 3.3 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Fidelity National Information Services insiders have sold 1,700.20% more of their company's stock than they have bought. Specifically, they have bought $55,244.00 in company stock and sold $994,501.00 in company stock.

Percentage Held by Insiders

Only 0.20% of the stock of Fidelity National Information Services is held by insiders.

Percentage Held by Institutions

96.23% of the stock of Fidelity National Information Services is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

FIS Stock Analysis - Frequently Asked Questions

How have FIS shares performed this year?

Fidelity National Information Services' stock was trading at $60.07 at the start of the year. Since then, FIS shares have increased by 35.6% and is now trading at $81.46.
View the best growth stocks for 2024 here.

How were Fidelity National Information Services' earnings last quarter?

Fidelity National Information Services, Inc. (NYSE:FIS) announced its quarterly earnings results on Monday, November, 4th. The information technology services provider reported $1.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.29 by $0.11. The company's quarterly revenue was up 3.1% on a year-over-year basis.
Read the conference call transcript.

Is Fidelity National Information Services doing a stock buyback?

Fidelity National Information Services' Board of Directors authorized a share repurchase program on Monday, February 26th 2024, which permits the company to buy back $500,000,000 in outstanding shares, according to EventVestor. This means that the company could reacquire up to 1.3% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board of directors believes its stock is undervalued.

Does Fidelity National Information Services have any subsidiaries?

The following companies are subsidiaries of Fidelity National Information Services: Payrix, Virtus Partners Holdings, Worldpay, SunGard, Clear2Pay, Reliance Financial Corporation, Credit Management Solutions, and others.

Who are Fidelity National Information Services' major shareholders?

Fidelity National Information Services' top institutional shareholders include State Street Corp (4.59%), Geode Capital Management LLC (2.39%), Charles Schwab Investment Management Inc. (1.89%) and UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC (1.32%). Insiders that own company stock include Gary Norcross, James W Woodall, Ellen R Alemany, Lenore D Williams, Keith W Hughes, Erik D Hoag, Jeffrey A Goldstein and Jeffrey E Stiefler.
View institutional ownership trends.

How do I buy shares of Fidelity National Information Services?

Shares of FIS stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Fidelity National Information Services own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Fidelity National Information Services investors own include NVIDIA (NVDA), Meta Platforms (META), Tesla (TSLA), Advanced Micro Devices (AMD), Visa (V), JPMorgan Chase & Co. (JPM) and Intel (INTC).

Company Calendar

• Ex-Dividend for 9/24 Dividend: 9/10/2024
• Dividend Payable: 9/24/2024
• Last Earnings: 11/04/2024
• Ex-Dividend for 12/23 Dividend: 12/09/2024
• Today: 12/21/2024
• Dividend Payable: 12/23/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Business Services
• Industry: Business services, not elsewhere classified
• Sub-Industry: Data Processing & Outsourced Services
• Current Symbol: NYSE:FIS
• CUSIP: 31620M10
• CIK: 1136893
• Web: www.fisglobal.com
• Phone: (904) 438-6000
• Fax: 904-357-1105
• Employees: 60,000
• Year Founded: 1968

Price Target and Rating

• Average Stock Price Target: $91.75
• High Stock Price Target: $126.00
• Low Stock Price Target: $65.00
• Potential Upside/Downside: +12.6%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 22 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $2.51
• Trailing P/E Ratio: 32.45
• Forward P/E Ratio: 15.73
• P/E Growth: 0.72
• Net Income: $-6,654,000,000.00
• Net Margins: 14.37%
• Pretax Margin: 9.34%
• Return on Equity: 15.35%
• Return on Assets: 6.79%

Debt

• Debt-to-Equity Ratio: 0.63
• Current Ratio: 1.18
• Quick Ratio: 1.18

Sales & Book Value

• Annual Sales: $10.03 billion
• Price / Sales: 4.37
• Cash Flow: $7.58 per share
• Price / Cash Flow: 10.74
• Book Value: $32.24 per share
• Price / Book: 2.53

Miscellaneous

• Outstanding Shares: 538,354,000
• Free Float: 537,277,000
• Market Cap: $43.85 billion
• Optionable: Optionable
• Beta: 1.03