Fidelity National Information Services, Inc. (FIS) stock analysis

P/E below its 5-year median

Fidelity National Information Services's P/E of 4.4 is below its own 5-year median of 61.5.

P/E below the industry

Fidelity National Information Services's P/E of 4.4 is below the Miscellaneous Business Services median of 25.6.

EV/EBITDA below its 5-year median

Fidelity National Information Services's EV/EBITDA of 7.7 is below its 5-year median of 15.5.

P/B below the industry

Fidelity National Information Services's price-to-book of 0.94 is below the Miscellaneous Business Services median of 2.48.

Trading below fair value

The share price of $29.54 is below our fair value estimate of $78.72.

Margin of safety over 20%

The price is 62.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 2179% over the last twelve months, against a 5-year average of 19.3% a year.

Growing faster than the industry

Revenue grew 23.6% over the last twelve months; the Miscellaneous Business Services median is 9.8%.

Guidance lowered

Fidelity National Information Services lowered its FY 2026 Revenue outlook on Aug 4, 2026.

Gross margin slipping

Gross margin was 35.8% over the last twelve months, against 36.7% a year earlier.

Return on equity under 15%

Return on equity was 23.0% over the last twelve months and averaged -12.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Fidelity National Information Services's return on equity of 23.0% is above the Miscellaneous Business Services median of 6.8%.

Earnings grew over 5 years

Net income grew 19.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 26.8% over the last twelve months, against a 5-year average of -43.5%.

Net margin above the industry

Fidelity National Information Services's net margin of 26.8% is above the Miscellaneous Business Services median of 4.1%.

High debt

Debt is 128% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 40.6% five years ago to 128%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.2% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 3.0 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.55 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.01; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Fidelity National Information Services paid dividends worth 5.8% of the share price over the last twelve months.

Yield above Treasuries

The 5.8% yield is above the 4.7% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Fidelity National Information Services yields 5.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 25.8% of net income.

Covered by free cash flow

Dividends take 32.2% of free cash flow.