Fidelity National Information Services, Inc. (FIS) | Investment Case

1. Company Snapshot

1.a. Company Description

Fidelity National Information Services, Inc.provides technology solutions for merchants, banks, and capital markets firms worldwide.It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments.

The Merchant Solutions segment offers enterprise acquiring, software-led small- to medium-sized businesses acquiring, and global e-commerce solutions.The Banking Solutions segment provides core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail payment solutions; wealth and retirement solutions; and item processing and output services.The Capital Market Solutions segment offers securities processing and finance, global trading, asset management and insurance, and corporate liquidity solutions.

Fidelity National Information Services, Inc.was founded in 1968 and is headquartered in Jacksonville, Florida.

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1.b. Last Insights on FIS

Fidelity National Information Services, Inc. faces challenges, including internal mistakes and ambitious targets, as seen in Fiserv's recent third-quarter results. Institutional investors, such as Cullen Frost Bankers Inc. and Envestnet Portfolio Solutions Inc., have reduced their stakes in the company. Additionally, a law firm, Halper Sadeh LLC, is investigating potential breaches of fiduciary duties by certain officers and directors. The company's third-quarter earnings preview and upcoming financial results announcement on November 5, 2025, may provide further insights. FIS also announced a quarterly dividend of $0.40 per common share.

1.c. Company Highlights

Last Price	66.66
Change Percentage	1.69%
Open	65.47
Previous Close	65.56
Market Cap ( Millions)	34520
Volume	2129936
Year High	85.85
Year Low	59.51
M A 50	65.66
M A 200	72.56

FCF Yield	4.89%
Dividend Yield	2.34%
ROE	1.03%
Debt / Equity	94.29%
Net Debt / EBIDTA	362.23%
Price To Book	2.53
Price Earnings Ratio	230.24
Price To FCF	20.45
Price To sales	3.23
EV / EBITDA	13.63

2. FIS Delivers Strong Q3 Results with Revenue Growth and Margin Expansion

FIS reported a strong third quarter with adjusted revenue growth of 6.3% to $2.7 billion, driven by outperformance from its banking business and strong recurring revenue growth across both segments. Adjusted EBITDA margins expanded by more than 50 basis points, and adjusted EPS increased 7.9% to $1.51, beating analyst estimates of $1.48. The company's sales pipeline annual contract value has expanded 13% annually since 2023, driven by commercial excellence initiatives and the deployment of AI in the marketing sales cycle.

Publication Date: Nov -06

                                    📋 Highlights
                                    Revenue & EPS Growth::
                                                Adjusted revenue grew 6.3% to $2.7B, with adjusted EPS rising 8% to $1.51, driven by strong Banking segment performance and recurring revenue growth.
Margin Expansion::
                                                Adjusted EBITDA margins expanded 200 bps to 41.8%, with 7.1% growth, aided by cost-saving programs and higher-margin product shifts (e.g., payments/digital).
Free Cash Flow & Share Repurchases::
                                                Free cash flow surged 100% YoY to $800M, enabling $500M returned to shareholders and a $1.3B share buyback target increase for 2024.
AI & Sales Pipeline Growth::
                                                AI deployment in marketing/sales boosted lead generation, contributing to a 13% annual increase in sales pipeline annual contract value since 2023.
M&A Impact::
                                                Q3 banking M&A contributed 150 bps to revenue growth, with full-year guidance raised to 5.4–5.7% adjusted revenue growth and 85%+ 2025 free cash flow conversion target.

                                

Segment Performance

The banking business sizably outperformed the capital markets segment, with revenue growth driven by higher-margin products such as payments, digital, and bank modernization. The company is focusing on making sure it sells in the categories that are higher quality, higher recurring, and higher organic growth. Renewal retention has also shown steady improvement, and the company is happy with its renewal rates.

Margin Expansion and Cash Flow

FIS achieved sequential margin improvement of approximately 200 basis points, driven by strong segment profitability across both Banking and Capital Markets. Adjusted free cash flow conversion was 142%, enabling the company to increase its share repurchase target to $1.3 billion for the year. The company's free cash flow was $800 million in the quarter and more than doubled year-over-year.

Valuation and Outlook

With a P/E Ratio of 223.64 and an EV/EBITDA of 10.83, the market is pricing in high expectations for FIS's future growth. Analysts estimate revenue growth at 4.4% next year. The company's strong performance and guidance raise are increasing its revenue and EBITDA outlook for the year for the second time, driven by margin expansion from both segments. FIS is also increasing its 2025 cash conversion target to over 85%. The company's focus on commercial excellence, client excellence, and innovation, including the use of AI, is expected to drive future growth.

3. NewsRoom

Baupost Group LLC MA Purchases 296,764 Shares of Fidelity National Information Services, Inc. $FIS

Dec -06

Source: defenseworld.net

Fidelity National Information Services, Inc. (FIS) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

HALPER SADEH LLC ENCOURAGES IRHYTHM TECHNOLOGIES, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Nov -30

Source: prnewswire.com

Goldman Sachs Spotlights Dividend Stocks Using AI – 5 Strong Buys Now

Nov -26

Source: 247wallst.com

Boston Partners Acquires 1,122,181 Shares of Fidelity National Information Services, Inc. $FIS

Nov -26

Source: defenseworld.net

Associated Banc Corp Has $3.28 Million Stock Position in Fidelity National Information Services, Inc. $FIS

Nov -26

Source: defenseworld.net

FIS Powers German Auto Bank's Digital Transformation, Accelerating Deposit Growth

Nov -25

Source: businesswire.com

FIS to Present at Upcoming Conference

Nov -24

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.48%)

6. Segments

Banking Solutions

Expected Growth: 6.5%

Fidelity National Information Services’ technology and outsourcing solutions drive growth, with increasing adoption by financial institutions seeking operational efficiency and cost reduction.

Corporate and Other

Expected Growth: 5.8%

Fidelity National Information Services' growth is driven by increasing adoption of digital payment solutions, strategic acquisitions, and cost savings initiatives, which are expected to offset the impact of rising interest rates and intense competition.

Capital Market Solutions

Expected Growth: 6.5%

Fidelity National Information Services' comprehensive suite of solutions drives adoption in capital markets, fueling growth through trading, investment management, and risk management capabilities.

7. Detailed Products

Merchant Solutions

Provides payment processing and merchant acquiring services to businesses of all sizes

Banking and Payments

Offers a range of banking and payment solutions, including core banking, digital channels, and payment processing

Capital Markets

Provides trading, risk management, and compliance solutions to capital markets firms

Wealth and Retirement

Offers wealth management and retirement solutions to financial institutions and advisors

Risk and Compliance

Provides risk management and compliance solutions to financial institutions

Digital Enablement

Offers digital transformation solutions to financial institutions, including digital channels and APIs

8. Fidelity National Information Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Fidelity National Information Services, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Fidelity National Information Services, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized to meet specific customer needs, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Fidelity National Information Services, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power with suppliers.

Threat Of New Entrants

The financial technology industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Fidelity National Information Services, Inc.

Intensity Of Rivalry

The financial technology industry is highly competitive, with many established players competing for market share. Fidelity National Information Services, Inc. faces intense competition from rivals such as Fiserv, Inc. and Global Payments Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	50.09%
Debt Cost	4.21%
Equity Weight	49.91%
Equity Cost	8.88%
WACC	6.54%
Leverage	100.37%

11. Quality Control: Fidelity National Information Services, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Broadridge Financial Solutions

A-Score: 5.9/10

Value: 2.0

Growth: 7.0

Quality: 6.4

Yield: 4.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

IBM

A-Score: 5.5/10

Value: 1.5

Growth: 3.0

Quality: 6.3

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

Cognizant

A-Score: 5.5/10

Value: 5.5

Growth: 4.8

Quality: 7.5

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

Gartner

A-Score: 4.3/10

Value: 4.1

Growth: 8.1

Quality: 7.7

Yield: 0.0

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

FIS

A-Score: 4.3/10

Value: 2.7

Growth: 3.6

Quality: 4.4

Yield: 5.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

Fiserv

A-Score: 4.2/10

Value: 6.6

Growth: 8.1

Quality: 6.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.99%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.54%

Fidelity National Information Services, Inc. - US31620M1062

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FIS

1.c. Company Highlights

Higher Yield

Less Volatile

Lower Growth

Earnings Beats

Strong Momentum

Revenues Miss

Fairly Valued

Revenues Beats

Stable Momentum

Weak Momentum

2. FIS Delivers Strong Q3 Results with Revenue Growth and Margin Expansion

Segment Performance

Margin Expansion and Cash Flow

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.48%)

6. Segments

Banking Solutions

Expected Growth: 6.5%

Corporate and Other

Expected Growth: 5.8%

Capital Market Solutions

Expected Growth: 6.5%

7. Detailed Products

Merchant Solutions

Banking and Payments

Capital Markets

Wealth and Retirement

Risk and Compliance

Digital Enablement

8. Fidelity National Information Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Fidelity National Information Services, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.66$

Current Price

66.66$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA