Morningstar | WorldPay Reports Solid First Quarter
Worldpay reported a solid first quarter. Revenue was up 14% year over year, and adjusted EBITDA margins improved to 46.0% from 44.0%. We will maintain our $111 fair value estimate and narrow moat rating. Our fair value estimate reflects the value of Fidelity National Information Services' merger offer, not Worldpay’s stand-alone value.During its earnings call, Fidelity National Information Services management commented that its $43 billion deal to acquire Worldpay remains on track, and the company received an early termination of the waiting period from the Department of Justice. The deal is now expected to close in the third quarter. While we retain some concerns about the integration of such a large deal, the acquisition will likely raise Fidelity’s long-term growth prospects, given that Worldpay has generally enjoyed double-digit growth.
Worldpay is a holding company. Through its subsidiaries, the company provides electronic payment processing services to merchants and financial institutions. The company operates two segments: Merchant Services, which provides merchant acquiring and payment processing services to national merchants, regional and small-to-mid sized businesses; and Financial Institution Services, which provides card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine driving and network gateway and switching services that utilize the company's proprietary Jeanie debit payment network to a set of financial institutions.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.