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Fidelity National Info (FIS)
NYSE:FIS
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Fidelity National Info
(NYSE:FIS)
Select Model
Select Model
Rating:59Neutral
Price Target:
$69.00
▲(10.36% Upside)
Fidelity National Info's overall stock score is driven by stable financial performance and strong cash flow generation, despite challenges in profitability and operational efficiency. The technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation. However, the positive earnings call outlook and strategic initiatives provide some optimism.
Positive Factors
Revenue Growth
FIS's increased revenue targets indicate strong market demand and effective business strategies, supporting long-term growth prospects.
Strategic Acquisitions
These strategic moves align with operational simplification and are expected to enhance free cash flow, strengthening FIS's competitive position.
Product Innovation
Innovative product launches and AI integration demonstrate FIS's commitment to digital transformation, enhancing its market offerings and client retention.
Negative Factors
Profitability Challenges
Declining net profit margins suggest pressure on operational efficiency, potentially impacting long-term profitability and shareholder returns.
Higher Cash Tax Payments
Increased cash tax payments reduce free cash flow, potentially limiting FIS's ability to invest in growth initiatives and manage debt effectively.
Bad Debt Charge
A bad debt charge indicates potential credit risk exposure, which can affect profitability and financial stability if not managed properly.
Fidelity National Info (FIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.66B
Dividend Yield2.5%
Average Volume (3M)4.23M
Price to Earnings (P/E)234.1
Beta (1Y)0.49
Revenue Growth3.64%
EPS Growth102.21%
CountryUS
Employees50,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.36
Shares Outstanding522,378,600
10 Day Avg. Volume4,619,027
30 Day Avg. Volume4,234,694
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)2.85
Price to Sales (P/S)4.41
P/FCF Ratio22.63
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue5.34
Enterprise Value/Gross Profit14.57
Enterprise Value/Ebitda15.84
Forecast
1Y Price Target
$83.69Price Target Upside33.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Fidelity National Info Business Overview & Revenue Model
Company DescriptionFidelity National Information Services, Inc. provides technology solutions for merchants, banks, and capital markets firms worldwide. It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments. The Merchant Solutions segment offers enterprise acquiring, software-led small- to medium-sized businesses acquiring, and global e-commerce solutions. The Banking Solutions segment provides core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail payment solutions; wealth and retirement solutions; and item processing and output services. The Capital Market Solutions segment offers securities processing and finance, global trading, asset management and insurance, and corporate liquidity solutions. Fidelity National Information Services, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.
How the Company Makes MoneyFIS generates revenue through multiple streams, primarily by offering software solutions, processing services, and technology consulting to financial institutions. Its key revenue streams include transaction processing fees, subscription fees for software services, and professional services related to software implementation and maintenance. Additionally, FIS benefits from partnerships with major financial institutions and technology providers, which help expand its market reach and enhance its service offerings. The company's strong position in the payments sector, along with its focus on innovation and digital transformation, further contributes to its earnings by attracting new clients and retaining existing ones.
Fidelity National Info Key Performance Indicators (KPIs)
Any
Total Recurring Revenue
Indicates the stability and predictability of the company's income, highlighting the strength of its customer relationships and the potential for sustained growth.
Indicates the stability and predictability of the company's income, highlighting the strength of its customer relationships and the potential for sustained growth.
Data provided by:
Main Street Data
Main Street DataFidelity National Info Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in the Banking segment with significant strategic acquisitions and a positive outlook for shareholder returns. However, there were challenges such as a temporary slowdown in Capital Markets lending and higher cash tax payments. Overall, the positive highlights slightly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Banking Business Performance
Banking revenue grew 6%, exceeding expectations due to improved commercial excellence and strong client retention. Recurring revenue growth was particularly strong at 7%.
Strategic Acquisitions and Divestitures
The acquisition of Global Payments Issuer business and sale of the Worldpay stake are on track, aligning with operational simplification strategy and expected to significantly enhance free cash flow.
Increased Shareholder Returns
Returned $460 million to shareholders through share repurchases and dividends, remaining on track to meet the $1.2 billion target for the year.
Product Innovation and AI Integration
Launched Money Movement Hub and expanded it to include digital assets through a partnership with Circle Internet Group. AI initiatives like TreasuryGPT and Banker Assist are gaining traction.
Improved Full Year Outlook
Raised full-year revenue, adjusted EBITDA, and adjusted EPS targets. Expecting revenue growth of 4.8% to 5.3% and double-digit EPS growth of 10% to 11%.
Negative Updates
Temporary Slowdown in Capital Markets Lending
Capital Markets revenue growth was slightly below expectations due to a temporary slowdown in lending business, attributed to macroeconomic uncertainty.
Higher Cash Tax Payments
Free cash flow was $292 million with a cash conversion rate of 52%, impacted by higher cash tax payments resulting in a 23-point headwind.
Bad Debt Charge in Banking
Banking EBITDA margin contracted by 70 basis points due to a bad debt charge in the quarter.
Company Guidance
In the FIS Second Quarter 2025 Earnings Call, the company reported a 5% increase in revenue to $2.6 billion, surpassing expectations, driven largely by the Banking segment's strong performance. Adjusted EBITDA also grew by 5%, exceeding the upper end of the forecasted range, with margins improving by 200 basis points sequentially. The adjusted earnings per share (EPS) of $1.36 met the anticipated target. FIS successfully returned $460 million to shareholders through share repurchases and dividends, maintaining the goal of reaching a $1.2 billion return by year-end. The strategic acquisition of Global Payments' Issuer business and the sale of a minority stake in Worldpay were highlighted as pivotal moves to enhance operational simplification and boost free cash flow. Additionally, FIS raised its full-year revenue growth outlook to 4.8%-5.3% and projected a modest adjusted EBITDA margin expansion, despite currency-related challenges.Fidelity National Info Financial Statement Overview
Summary
Fidelity National Info shows moderate revenue growth and improved leverage, but faces challenges in profitability and operational efficiency. Cash flow generation remains strong, providing a solid foundation for future investments and debt management.Income Statement
Fidelity National Info shows moderate revenue growth with a TTM increase of 1.25%. Gross profit margins are stable around 36-37%, but net profit margins have declined significantly in the TTM to 6.89% from 14.32% in the previous year. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.65
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.28 in the TTM from 0.74 the previous year, reflecting reduced leverage. However, return on equity has decreased to 4.62% from 9.24%, indicating lower profitability on shareholder investments. The equity ratio remains stable, suggesting a balanced asset structure.58
Neutral
Cash Flow
Free cash flow growth is strong at 11.15% in the TTM, and the free cash flow to net income ratio is healthy at 0.78. However, the operating cash flow to net income ratio has decreased, indicating potential challenges in converting income into cash.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.32B | 10.13B | 9.83B | 9.72B | 13.88B | 12.55B |
| Gross Profit | 3.78B | 3.80B | 3.66B | 3.50B | 5.20B | 4.20B |
| EBITDA | 3.48B | 3.38B | 2.90B | 2.88B | 5.02B | 4.32B |
| Net Income | 112.00M | 1.45B | -6.66B | -16.72B | 417.00M | 158.00M |
Balance Sheet | ||||||
| Total Assets | 33.37B | 33.78B | 54.97B | 63.28B | 82.93B | 83.84B |
| Cash, Cash Equivalents and Short-Term Investments | 581.00M | 834.00M | 440.00M | 456.00M | 2.01B | 1.96B |
| Total Debt | 12.97B | 11.54B | 19.34B | 20.41B | 20.88B | 20.62B |
| Total Liabilities | 19.20B | 18.08B | 35.92B | 35.87B | 35.40B | 34.35B |
| Stockholders Equity | 14.17B | 15.70B | 19.05B | 27.22B | 47.35B | 49.30B |
Cash Flow | ||||||
| Free Cash Flow | 1.59B | 1.97B | 4.22B | 3.67B | 3.56B | 3.31B |
| Operating Cash Flow | 1.72B | 2.07B | 4.33B | 3.94B | 4.81B | 4.44B |
| Investing Cash Flow | -3.22B | 8.14B | -1.52B | -373.00M | -1.77B | -914.00M |
| Financing Cash Flow | -2.12B | -12.62B | -3.32B | -2.57B | -2.54B | -2.75B |
Fidelity National Info Technical Analysis
Negative
62.52
Price Trends
66.89
Negative
72.19
Negative
73.50
Negative
Market Momentum
-1.00
Positive
34.11
Neutral
27.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIS, the sentiment is Negative. The current price of 62.52 is below the 20-day moving average (MA) of 66.56, below the 50-day MA of 66.89, and below the 200-day MA of 73.50, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 34.11 is Neutral, neither overbought nor oversold. The STOCH value of 27.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIS.
Fidelity National Info Risk Analysis
Fidelity National Info disclosed 33 risk factors in its most recent earnings report. Fidelity National Info reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fidelity National Info Peers Comparison
UnderperformOutperform
Sector (61)
FIS
Fidelity National Info
62.52
-25.35
-28.85%
SONY
Sony Group
27.89
10.63
61.59%
Fidelity National Info Corporate Events
Fidelity National Information Services Reports Strong Q2 2025
Aug 6, 2025
Fidelity National Information Services (FIS) is a global leader in financial technology, providing solutions to financial institutions, businesses, and developers to enhance their financial operations. The company is headquartered in Jacksonville, Florida, and is a member of the Fortune 500 and S&P 500 indices.
FIS Earnings Call Highlights Strong Growth and Strategic Moves
Aug 6, 2025
The recent earnings call for Fidelity National Information Services (FIS) painted a generally positive picture, highlighting strong financial performance and strategic growth initiatives. Despite facing some challenges, the overall sentiment was optimistic, driven by robust revenue growth and improved profit margins.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.