Fidelity National Information Services, Inc. (FIS) Stock Analysis
Fidelity National Information Services, Inc. (FIS) Stock Analysis
Overall Grade: F (Concerning)
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Fidelity National Information Services, Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 10.4% | Near cost of capital |
| FCF Margin | -1.4% | Cash flow pressure |
| Debt/Equity | 0.9x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is Fidelity National Information Services, Inc.'s Profitability and ROIC?
Fidelity National Information Services, Inc.'s return on invested capital of 10.4% is around industry norms. Gross margin of 36.9% with operating margin at 16.3% reflects the company's moderate market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.4% | Adequate | Adequate returns |
| Return on Equity (ROE) | 2.6% | Warning | Moderate equity returns |
| Gross Margin | 36.9% | Good | Competitive pricing environment |
| Operating Margin | 16.3% | Good | Efficient operations |
How Strong is Fidelity National Information Services, Inc.'s Cash Flow Quality?
Fidelity National Information Services, Inc. generated $-154.0M in free cash flow over the trailing twelve months, representing a -1.4% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -1.4% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-154.0M | Red flag | Cash burn |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is Fidelity National Information Services, Inc.'s Financial Health?
Fidelity National Information Services, Inc.'s debt-to-equity ratio of 0.9x indicates moderate leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.9x | Adequate | Moderate leverage |
| Net Cash Position | $-12.5B | Warning | Net debt position |
Is Fidelity National Information Services, Inc. Stock Overvalued or Undervalued?
Fidelity National Information Services, Inc. trades at a P/E of 91.0x, representing a premium to the sector median of N/A. Free cash flow yield of -0.4% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 91.0x | Warning | Premium valuation |
| EV/Sales | 4.4x | Good | Growth premium priced in |
| FCF Yield | -0.4% | Warning | Lower cash yield |
| Dividend Yield | 3.6% | Adequate | Meaningful income |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.4% | Top 50% | 1.6x above |
| Free Cash Flow Margin | -1.4% | Bottom 10% | -0.1x below |
| Gross Margin | 36.9% | Bottom 50% | 0.7x below |
| Operating Margin | 16.3% | Top 50% | 2.6x above |
| Return on Equity (ROE) | 2.6% | Bottom 50% | 0.4x below |
| P/E Ratio | 91.0x | N/A | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 10.4% (Adequate - Top 50% of sector (median: 6.5%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -1.4% (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 36.9% (Good - Bottom 50% of sector (median: 52.9%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 94.1% (Adequate)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 91.0x (Warning)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -0.4% (Red flag)
Frequently Asked Questions
Q: What is Fidelity National Information Services, Inc.'s Return on Invested Capital (ROIC)?
Fidelity National Information Services, Inc. (FIS) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.4%. This compares above the sector median of 6.5%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is Fidelity National Information Services, Inc.'s Free Cash Flow Margin?
Fidelity National Information Services, Inc. (FIS) has a free cash flow margin of -1.4%, generating $-154.0 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is Fidelity National Information Services, Inc. stock overvalued or undervalued?
Fidelity National Information Services, Inc. (FIS) trades at a P/E ratio of 91.0x, which is above the sector median of N/A. The EV/Sales multiple is 4.4x.
Q: Does Fidelity National Information Services, Inc. pay a dividend?
Fidelity National Information Services, Inc. (FIS) currently pays a dividend yield of 3.6%. Including share buybacks, the total shareholder yield is 7.7%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: How much debt does Fidelity National Information Services, Inc. have?
Fidelity National Information Services, Inc. (FIS) has a debt-to-equity ratio of 0.9x with total debt of $13.1 billion. Net debt position is $12.5 billion.
Q: What is Fidelity National Information Services, Inc.'s revenue and earnings growth?
Fidelity National Information Services, Inc. (FIS) grew revenue by 5.4% year-over-year. Earnings per share decreased by 72.2% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is Fidelity National Information Services, Inc. buying back stock?
Fidelity National Information Services, Inc. (FIS) repurchased $1.4 billion of stock over the trailing twelve months. This represents a buyback yield of 4.1%.
Q: How does Fidelity National Information Services, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Fidelity National Information Services, Inc. (FIS) shows: ROIC of 10.4% is above the sector median of 6.5% (Top 41%). FCF margin of -1.4% trails the sector median of 10.0%. Gross margin at 36.9% is 16.1 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Fidelity National Information Services, Inc.?
Investors in Fidelity National Information Services, Inc. (FIS) should monitor these potential warning signs: 1) FCF margin is thin at -1.4%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.