Fidelity National Information Services Inc (FIS)
UndervaluedFundamental
68
Price
$37.53
Market Cap
$18.82B
Part 1 · What the company is worth
Overview
Fidelity National Information Services is a global financial technology company providing mission-critical software and services to financial institutions, asset managers, and capital markets firms. Its solutions span core processing systems, digital banking platforms, payments processing, transaction services, fraud detection, wealth management, and securities trading technology across more than 130 countries.
How it makes money
FIS generates revenue primarily through multi-year recurring contracts with financial institutions and capital markets firms. Revenue streams include subscription and transaction-based pricing for core processing, digital banking platforms, payment processing services, and market data and analytics solutions. A significant percentage of revenue relates to long-term recurring contracts that provide predictable cash flows.
Revenue by segment
Serves global financial institutions, regional and community banks, credit unions, and commercial lenders with core processing, digital banking platforms (mobile, online, branch), payments processing, fraud detection, risk management, electronic funds transfer, and wealth and retirement solutions.
Provides market data, analytics, trading platforms, and portfolio management solutions to asset managers, private equity firms, securities brokers and trading firms, and insurance companies. Solutions enable investment decision-making and market operations for capital markets participants.
Includes corporate-level operations, corporate development initiatives, and other service lines not allocated to the primary operating segments.
Competitive moat
Switching costs · NarrowFIS's primary competitive advantage stems from long-term, multi-year contracts that create switching costs for clients. Once integrated into a financial institution's operations, FIS solutions are deeply embedded in mission-critical processes, making replacement costly and risky. The company supplements this with brand recognition as a global innovation leader, domain expertise across financial services, cloud-based technology infrastructure, and scale across global markets. However, the company acknowledges intense competition and must continually invest in modernization to maintain its position.
What drives demand
Moderately cyclicalFIS demand is moderately cyclical, driven by financial institutions' willingness to invest in technology infrastructure. Primary drivers include digital transformation initiatives (modernizing banking channels), regulatory compliance requirements (GDPR, DORA, anti-money laundering), growth in card-based transaction volumes from consumer spending, and client acquisition and consolidation in financial services. During economic expansions, financial institutions increase technology spending; during downturns, investment may be deferred though core maintenance and regulatory compliance spending typically continues.
Key risks
- Regulatory and Compliance Complexity — FIS operates under complex federal, state, and international regulations overseen by banking regulators (FFIEC, FDIC, OCC, FRB, NCUA) and must comply with anti-money laundering, sanctions, anti-corruption, and data protection regulations (GDPR, CCPA, CPRA, VCDPA). Regulatory changes could require costly system modifications.
- Cybersecurity and Data Protection — FIS handles sensitive financial and personal data across global operations and is subject to cyber resilience regulations and examination requirements. A data breach could result in significant damages, fines, penalties, and reputational harm.
- Competitive Pressures and Technology Obsolescence — FIS faces intensely competitive markets from established vendors and emerging competitors, including internal technology departments of financial institutions themselves. The company must continually invest in platform modernization to avoid technology obsolescence and maintain its market position.
- Client Relationship and Concentration Risk — FIS depends on long-term client relationships for recurring revenue. Loss of major clients or consolidation in the financial services industry could significantly reduce revenue. Economic downturns could also reduce client spending on technology solutions.
- Operational Risk and Mission-Critical Services — FIS provides mission-critical services to financial institutions worldwide. Service interruptions, system failures, or operational disruptions could create systemic banking risks, client losses, and reputational damage.
The case for
Buyers argue that FIS benefits from structural demand tailwinds: ongoing digital transformation of financial services, intensifying regulatory requirements that drive technology spending, and growing volumes in electronic payments and card transactions. The company's long-term multi-year contracts create predictable recurring revenue and high customer retention, providing cash flow visibility and downside protection. FIS's broad portfolio and domain expertise enable cross-selling opportunities to existing clients, and the company's global scale provides cost advantages and efficiency. Rising cybersecurity and compliance demands create opportunities for higher-margin services, while cloud infrastructure investments position FIS to modernize client systems profitably.
The case against
Sellers fear that FIS faces structural headwinds: intensely competitive markets with established rivals and new fintech entrants eroding margins, consolidation among financial institutions reducing the number of clients, and technology disruption threatening established business models. The company's heavy dependence on long-term contracts means client losses are difficult to replace. Regulatory compliance costs continue to rise, and customers may develop internal capabilities rather than outsource to FIS. Rising R&D and infrastructure costs are needed to avoid obsolescence but pressure profitability. Macroeconomic downturns reduce financial institutions' technology spending. Additionally, the 2024 Worldpay divestiture and Issuer Solutions acquisition signal strategic shifts that may create integration risks and distract management from core business optimization.
Generated with artificial intelligence on September 21, 2026, shared with all users
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 18, 2026, shared with all users
Fiserv sells the same core account processing, digital banking and card issuer processing platforms to the same U.S. banks and credit unions FIS serves, and the two routinely bid against each other for the same multi-year outsourcing contracts.
Jack Henry competes head-on for core processing and digital banking contracts with U.S. community banks and credit unions, the client base at the heart of the FIS Banking Solutions segment.
ACI Worldwide competes for the payment hub, real-time payments and card/EFT switching mandates that sit inside the FIS payments and debit network business.
Broadridge sells post-trade processing, securities servicing and wealth technology to brokers and asset managers, the same buyers FIS targets with its Capital Market Solutions segment.
Temenos is the leading international core banking software vendor and meets FIS in competitive tenders at banks in Europe, Asia and the Middle East, and increasingly in the United States.
Finastra, privately held after the Misys–D+H merger, offers the same combination of core banking, payments, lending and treasury software that FIS sells to banks and corporate treasuries.
Balance Sheet & Liquidity
Revenue
$12.20B
Trailing 12 months (through 6/30/2026)
Net Income
$3.37B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$2.45B
Total Equity
$13.90B
Total Liabilities
$19.59B
Current Ratio
0.53
Interest Coverage
4.45
Debt/EBITDA
5.87
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$134.92
Current Price
$37.53
Margin of Safety
+72.2%
Fair Value Range
$87.70 - $182.14
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
5.76
ROE
2.7%
P/B Ratio
1.21
P/FCF
6.86
Gross Margin
35.9%
ROIC
4.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
4.4%
WACC
5.2%
ROIC − WACC
-0.8 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (18)
- Gross margin 35.9%
- P/FCF 6.86
- P/B ratio 1.21
- Debt/equity ratio
- Operating margin 15.7%
- Positive free cash flow
- CapEx intensity
- Interest coverage
- Debt/EBITDA
- Return on tangible assets
- Price below Graham Number
- DCF valuation (Undervalued)
- ROE 22.6%
- PEG ratio 0.24
- Earnings quality (operating cash flow / net income) 0.88
- Share dilution -5.8%
- Net margin trend 27.6% vs 1.1%
- Piotroski F-Score 5/9
Failed (8)
- EPS shows upward trend
- EPS CAGR -7.31%
- Price CAGR -7.29%
- ROIC 4.4%
- Current ratio
- Low reliance on intangibles
- Revenue growth 5Y -3.2%
- Earnings surprise, average 0.8%
Unavailable (1)
- Dividend payout –
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Moderate: some gap between profits and cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Ms. Stephanie L. Ferris | CEO, President & Director | 51 |
| Mr. James Kehoe | Corporate Executive VP & CFO | 63 |
| Mr. Robert Alexander Toohey | Corporate Executive VP & Chief People Officer | 57 |
| Ms. Alexandra Dawn Brooks | Executive VP & Chief Accounting Officer | 54 |
| Mr. Georgios Mihalos | SVP & Head of Investor Relations | - |
| Mr. Charles Harrison Keller | Chief Legal & Corporate Affairs Officer | 54 |
| Ms. Ellyn Raftery | Executive VP and Chief Marketing & Communications Officer | - |
| Kim Snider | Senior Vice President of Global Marketing & Communications | - |
| Mr. Guy M. Hains | Head of Market Team | 73 |
| Mr. Peter Francis | Global Head of Professional Services - Insurance | - |
Audit Risk
10
Board Risk
3
Compensation Risk
10
Shareholder Rights Risk
6
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-24
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-04
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-04
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much FIS moves, measured on its daily prices.
More volatile than 48% of the tracked stocks (90-day volatility).
- Volatility 30d
- 29.7%
- Volatility 90d
- 35.3%
- Beta vs S&P 500 (1y)
- 0.26Correlation 0.10
- Max drawdown (12m)
- -52.1%
- ATR (14d, % of price)
- 3.04%
Earnings reactions
How FIS moved around its past quarterly results.
Next earnings release
Nov 4, 2026 · In 11 days · Before the open
EPS estimate: 1.60Revenue estimate: $3.4B
What usually happens
- Over the last 12 releases the stock moved a median of 2.8% the next day, up or down.
- Next-day moves: up 5, down 7 (out of 12).
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 4, 2026 | Before the open | 1.49 | 1.48 | -0.5% | -10.2% | -1.2% | -5.1% |
| May 8, 2026 | Before the open | 1.30 | 1.36 | +4.6% | -5.8% | -8.0% | -11.5% |
| Feb 24, 2026 | Before the open | 1.70 | 1.68 | -1.3% | +1.8% | +1.4% | +5.4% |
| Nov 5, 2025 | Before the open | 1.50 | 1.51 | +0.6% | +0.9% | +2.5% | +5.1% |
| Aug 5, 2025 | Before the open | n/a | n/a | n/a | -5.3% | -8.5% | -11.5% |
| May 6, 2025 | Before the open | n/a | n/a | n/a | -1.6% | -3.1% | +0.7% |
| Feb 11, 2025 | Before the open | n/a | n/a | n/a | -12.9% | -11.5% | -15.7% |
| Nov 4, 2024 | Before the open | n/a | n/a | n/a | -1.2% | +0.7% | -1.2% |
| Aug 6, 2024 | Before the open | n/a | n/a | n/a | +3.0% | +5.1% | +4.6% |
| May 7, 2024 | After the close | n/a | n/a | n/a | +0.4% | -0.3% | +2.8% |
| Feb 26, 2024 | Before the open | n/a | n/a | n/a | -2.3% | +4.7% | +7.7% |
| Nov 7, 2023 | Before the open | n/a | n/a | n/a | -0.9% | -1.2% | +1.3% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on FIS and what the price did next.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for FIS.