FIS - Embedded Expectations Analysis - 2020 07 24
Fidelity National Information Services (FIS:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a Uniform P/E of 38.7x, implying expectations for profitability to remain stable. However, management may be concerned about their ability to sustain client wins and transaction volumes, and about the potential of recent investmentsSpecifically, management might lack confidence in their ability to sustain client wins with their modern banking platform, and may have concerns about their ability to improve their transaction volumes. In addition, they may have concerns about the potential of their investment in next-generation technology, and their ability to drive accelerating growth through investing. Also, they may lack confidence in their ability to leverage their global reach to win a deal with multinationals and global brands, and may have concerns about the sustainability of their customer deal wins with banks and specialty retailers
Fidelity National Information Services is a provider of technology solutions for merchants, banks, and capital markets firms globally. The company's solutions include merchant acquiring solutions; payment solutions; global eCommerce solutions; processing and ancillary applications solutions; digital solutions; fraud, risk management and compliance solutions; electronic funds transfer and network services solutions; card and retail payment solutions; wealth and retirement solutions; item processing and output services solutions; securities processing and finance solutions; global trading solutions; asset management and insurance solutions; and corporate liquidity solutions.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
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.