Stock of the Day

November 14, 2022

Fidelity National Information Services (FIS)

$69.95
+$0.10 (+0.1%)
Market Cap: $37.00B

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 recently increased its quarterly dividend to $0.40 per share, up from $0.36, indicating strong financial health and a commitment to returning value to shareholders.
  • Fidelity National Information Services, Inc. reported earnings per share (EPS) of $1.40, surpassing analysts' expectations, which reflects robust operational performance and potential for future growth.
  • With a current stock price of approximately $79.97, the company offers a dividend yield of 2.30%, which can be attractive for income-focused investors.
  • The firm has a solid return on equity of 17.30%, suggesting effective management and the ability to generate profits from shareholders' investments.
  • The company operates in the growing financial services technology sector, providing solutions that are increasingly in demand by financial institutions and businesses worldwide.

Fidelity National Information Services Bear Case

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

  • The company has a current ratio of 0.85, which indicates potential liquidity issues, as it may not have enough short-term assets to cover its short-term liabilities.
  • Fidelity National Information Services, Inc. has a debt-to-equity ratio of 0.62, which, while not excessively high, suggests that the company relies on debt financing, potentially increasing financial risk.
  • Insider ownership is relatively low at 0.20%, which may indicate a lack of confidence from those closest to the company regarding its future performance.
  • The payout ratio is currently at 55.17%, meaning that over half of the company's earnings are being distributed as dividends, which could limit reinvestment in growth opportunities.
  • Market volatility and economic uncertainties can impact the financial services sector, potentially affecting the company's performance and stock price.

Recent News