Stock (Symbol) |
Fiserv (FISV) |
Stock Price |
$122 |
Sector |
| Financial |
Data is as of |
| July 1, 2017 |
Expected to Report |
| Jul 31 |
Company Description |
 Fiserv, Inc. (Fiserv) is a global provider of financial services technology. The Company provides account processing systems; electronic payments processing products and services, and related services, including document and payment card production and distribution, check processing and imaging, source capture systems, and lending and risk management products and services. Source: Thomson Financial |
Sharek’s Take |
 Fiserv (FISV) provides technology banks utilize to allow withdrawing money from an ATM, money transfers and mobile banking to more than 13,000 banks and credit unions around the world. It integrates banks with billers including AT&T, Discover, T-Mobile, Chase, American Express and utilities to make paying bills online easy. The rapid adoption of mobile transactions — including peer-to-peer money transfers via cell phone — gives this company a good environment for growth. Fiserv has many differenet programs banks and financial institutions can utilize, including BillMatrix Next which lets people to set up payments, create digital wallets, and schedule recurring payments from their phone, tablets and laptops — from a number of payments types. FISV is a high quality stock that has delivered double-digit profit growth every year since 1986. That’s more than three decades of at least 10% profit growth. Management targets 4-8% sales growth and 11-18% profit growth long-term, and profit growth of 14% to 17% this year. Analysts have an Est. LTG of 12% per year on the stock. Managment doesn’t pay a dividend, but does lots of stock buybacks. Last qtr FISV bought back 3.4 million shares and had 212.9 million shares outstanding. That’s an equivalent of reducing the share count 6% on an anulalized basis. The company has repurchased around a third of the shares outstanding the past ten years. Fiserv is a high quality stock that deserves a premium valuation (a high P/E). The P/E is 24, which is in mine with my estimates. The steady rise in interest rates is also good for FISV as it gives bank management teams confidence in their business so they can make investments to advance their technology. The stock is currently selling around its Fair Value, but with the advances in mobile payments and a rising interest rate environment, this stock is at its highs as things are looking good. |
One Year Chart |
 Sales grew 4% last qtr as profits expanded 18%. FISV beat profit estimates of 12% profit growth. Qtly Estimates stand at 14%, 14%, 16% and 8%. The Est. LTG of 12% per year is too low in my opinion, the company is growing in the mid-teens. |
Fair Value |
 This stock was such a bargain in 2011 and 2012. Wow. But I wasn’t following companies that grew less than 20% per year back then. So what did I do? Bought the stock when it sold for more than 20x earnings. I feel this company can continue to grow profits at a double-digit rate for the foreseeable future and perhaps the stock follow along. |
Bottom Line |
 Fiserv has grown profits at least 10% per year for 30 years — a remarkable feat. And now with interest rates rising banks can invest in new technologies to make mobile banking easier for customers. FISV is an outstanding core holding for investors looking for growth and safety. The stock ranks 12th of 33 stocks in the Conservative Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 12 of 33 |
