Stock of the Day

November 14, 2022

Fidelity National Information Services (FIS)

$81.22
+$0.68 (+0.8%)
Market Cap: $42.66B

About Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.

Fidelity National Information Services Bull Case

Here are some ways that investors could benefit from investing in Fidelity National Information Services, Inc.:

  • The company reported earnings per share (EPS) of $1.21 for the latest quarter, exceeding analysts' expectations, which indicates strong financial performance.
  • Fidelity National Information Services, Inc. has a solid return on equity of 17.30%, suggesting effective management and profitability relative to shareholder equity.
  • With a quarterly revenue of $2.53 billion, which surpassed analyst estimates, the company demonstrates robust growth and demand for its services.
  • The current stock price is around $80.33, reflecting a stable market position and potential for future appreciation.
  • The company has a dividend yield of 2.01%, providing investors with a steady income stream, although the payout ratio is high at 105.96%, indicating a commitment to returning value to shareholders.

Fidelity National Information Services Bear Case

Investors should be bearish about investing in Fidelity National Information Services, Inc. for these reasons:

  • The dividend payout ratio of 105.96% suggests that the company is paying out more in dividends than it earns, which could be unsustainable in the long term.
  • Recent analyst ratings show mixed sentiments, with some firms lowering their target prices, indicating potential volatility in stock performance.
  • Insider ownership is relatively low at 0.20%, which may raise concerns about alignment between management and shareholder interests.
  • Despite a positive revenue growth of 2.6% year-over-year, this growth rate may not be sufficient to meet investor expectations in a competitive market.
  • Market analysts have given an average rating of "Moderate Buy," suggesting that while there is potential, there are also significant risks involved.

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