Fidelity National Information Services: Growth, Cheap Valuation And Capital Return To Shareholders

Investor Overview
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Summary

  • Strong sales and earnings growth and high FCF margin indicate strong management.
  • Analysts expect revenue and EPS to grow by an average of 7% and 12% annually.
  • FIS’ revenue is well diversified in its segments and each business unit is growing.
  • FIS is loyal to its shareholders; the free cash flows are returned to the shareholders.
  • A forward PE of 17 and TTM EV/FCF of 22 make the stock attractive.

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Introduction

Fidelity National Information Services (NYSE:FIS) is a leading financial services technology provider that provides technical solutions for merchants (Merchant Solutions), banks (Banking Solutions), and capital market companies (Capital Markets).

Merchant Solutions focuses on payment processing, including

This article was written by

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I'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.I prefer steadily growing companies with high free cash flow margins, dividend stocks and stocks with generous share repurchase programs.Disclaimer: My articles do not provide financial advice, they reflect my own findings and insights.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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