Fiserv (FI) Unveils a Cash Flow Software Platform for Small and Medium Businesses

Stock (Symbol)

Fiserv (FI)

Stock Price

$238

Sector

Data is as of

Expected to Report

Company Description

Fiserv is a global provider of payments and financial services technology solutions.

The Company provides account processing and digital banking solutions, card issuer processing and network services, payments, e-commerce, merchant acquiring and processing, and the Clover cloud-based point-of-sale solution.

The Company’s segments include Merchant Acceptance (Acceptance), Financial Technology (Fintech) and Payments and Network (Payments).

The Acceptance segment provides a range of commerce-enabling solutions and serves merchants of all sizes around the world. Acceptance solutions enable businesses to securely accept consumers’ electronic payment transactions online or in-person.

The Fintech segment provides financial institutions around the world with the technology solutions they need to run their operations.

The Payments segment provides financial institutions and corporate clients around the world with the products and services required to process digital payment transactions. Source: Refinitiv

Sharek’s Take

Fiserv software controls ATM transactions, money transfers, and mobile banking to more than 13,000 banks and credit unions around the world. The company manages around 6 million merchant locations, 10,000 financial institutions, 140 million deposit accounts, 80 million online U.S. banking users, via nearly 1,000 products and services. In July 2019 Fiserv merged with First Data (FDC). First Data specialized in point-of-sale transactions, with a substantial share of the gas and grocery market. Prior to the merger, First Data processed 4 out of 10 transactions at the point-of-sale in the US and had more than 1 billion cards on file.

Here are some quick stats and information on Fiserv’s business segments as of last qtr:

• Merchant Solutions:
  • Revenue +11%, accounted for 51% of company sales.
    • Small Business revenue increased 12%. Payment volume grew 4%.
    • Enterprise revenue grew 15%. Growth was driven by transactions growth of 17% and higher VAS penetration.
    • Processing revenue declined 5%. A few large processing clients experienced declines in their volumes and revenue.
  • Clover revenue grew 29%, with an annualized payment volume growth of 14%. Clover is a full point-of-sale system for merchants to ring up sales, take payments on Clover point-of-sale devices, and keep track of numbers.
• Financial Solutions:
  • Revenue +3%, accounted for 49% of total sales.
    • Digital payments revenue grew 5%.
    • Issuing revenue is flat.
    • Banking revenue grew 4%. 
  • Zelle revenue grew 28%, while transactions grew 35%. Zelle is a digital person-to-person payments platform that allows users to send money. It’s similar to PayPal, Venmo or Cash App. Fiserv doesn’t actually own Zelle, but it does run payment processing for it and collects interchange fees for providing this service. Zelle is owned by Early Warning Systems, which is owned by JP Morgan Chase, Bank of America, Wells Fargo, and other big banks.

Fiserv is a high quality stock that has delivered double-digit profit growth every year since 1986. 2024 was the 39th consecutive year of 10% or better EPS growth. Since the company went public in 1986, the stock’s gone from $0.28 to $238. Management does not pay a dividend, but instead has purchased billions in stock since the company’s share buyback program began in 2005. In 2024, management repurchased $5.5 billion in stock. FI is part of the Conservative Growth Portfolio, Growth Portfolio, Aggressive Growth Portfolio. It’s a safe stock with a high-teens growth rate and a reasonable P/E.

One Year Chart

This chart looks great! Fiserv has been trending higher for a year

One negative is the P/E is up from 20 last qtr to 23 this qtr. That’s taken away some upside for the stock. FI has risen from $203 to $238 since last qtr. I could see FI reaching a P/E of 25. That would be $256.

The Est. LTG of 16% is very good for a safe stock such as this. This figure was also 16% last qtr.

Notice profits have been up every year in this chart. And have grown at double-digit rates all year.

Earnings Table

Last qtr, Fiserv reported 15% profit growth and beat expectations of 13% growth. Revenue increased 7%, aligning with analysts’ expectations of 7% growth. Organic revenue growth was a solid 13% year-over-year.

• Merchant Solutions organic revenue grew 23% year-over-year. Small business organic revenue was 24%. Enterprise organic revenue was 31%. Processing organic revenue was -3%.
• Commerce Hub continued its positive momentum with roughly 250 clients and daily transactions.
• Financial Solutions organic revenue grew 4% year-over-year. Management continue to see demand for FI’s integration on the FedNow for real-time payments, with nearly 400 of clients enabled or in process.

Annual Profit Estimates are up for the 7th consecutive qtr. For 2025, management expects organic revenue growth of 10% to 12%.

Qtrly Profit Estimates are for 11%, 15%, 19%, and 18% growth the next 4 qtrs. Analysts think FISV revenue will grow 7% next qtr.

Fair Value

FISV has a P/E of only 23 this quarter.

My Fair Value P/E is 25, which equates at $256 a share, that’s 7% upside.

2026 Fair Value is a P/E of 25, valued at $300 a share, upside of 26%.

Notice the consistent profit growth each year during the past decade. This company is like a machine.

Bottom Line

Fiserv’s (FISV) ten-year chart shows a stock that used to grow steadily, then had a multi-year run of going sideways.

FI stock is one of the best values in the stock market today. It’s such a good company. 

FI slides from 3rd to 6th in the Conservative Portfolio Power Rankings.

The stock moves from 10th to 15th in the Growth Portfolio Power Rankings as the 2025 upside shrink from 20% to 7% this qtr due to the stock’s rise.

The stock stays at 13th in the Aggressive Growth Portfolio Power Rankings.

Power Rankings

15 of 29

Aggressive Growth Portfolio

13 of 13

Conservative Stock Portfolio

6 of 21