FIS
Fidelity National Information Services, Inc.$50.86
Buy
Target $73.66
Report: Mar 07, 2026Technology • Information Technology Services • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$50.86+44.8%
Rec: BuyConviction: High
Entry Target
$50.86
(0% above current)
Fair Value
$73.66
(45% above current)
Stop Loss
$46.16
(9% below current)
Position Size
Full
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$82.74
52 Week Low$46.13
Avg. 3 Month Volume5.20M
Efficiency
LTM Gross Margin36.9%
LTM EBITDA Margin27.3%
LTM EBIT Margin9.7%
LTM Operating Margin16.3%
LTM ROA1.2%
LTM ROE2.7%
LTM ROIC6.3%
LTM ROCE4.0%
Capital Structure
Market Cap (MM)$24.1B
Enterprise Value (MM)$36.6B
Shares Outstanding517.00M
Total Debt (MM)$13.08B
Cash & Equivalents (MM)$599.00M
LTM Net Debt (MM)$12.48B
LTM Net Debt/EBITDA4.3x
Growth
TTM Rev. Growth5.5%
Last 3-Yr Rev. CAGR-9.8%
Last 3-Yr EBITDA CAGRN/A
Last 3-Yr EPS CAGRN/A
Valuation
Street Target Price$71.13
LTM EV/Revenue3.4x
LTM EV/Gross Profit9.3x
LTM EV/EBIT35.3x
LTM EV/EBITDA12.5x
LTM P/E63.2x
LTM EV/FCF20.0x
LTM P/FCF13.2x
LTM P/TB2.0x
LTM P/B1.7x
Dividend Yield3.4%
Payout Ratio219.2%
Executive SummarySituation: Current price is $50.86 versus fair value $73.66 (44.8% expected return), and valuation confidence is stable. Debate: Bull case depends on Realization of $125M in expense synergies from the Total Issuing Solutions integration. Bear case centers on Moat erosion from AI-native competitors and open banking regulations. Conclusion: Recommendation is Buy with Full sizing and Long-Term horizon.
Bull Case
1. Resilient 78% recurring revenue base provides a high floor for cash flow generation. 2. AI adoption is accelerating (8x 2023 levels), driving demand for FIS's proprietary data and integrated platforms. 3. Significant margin expansion potential as $125M in synergies from the Total Issuing deal materialize.
Bear Case
1. High financial leverage (3.0x Net Debt/EBITDA) and negative tangible book value (-$14.7B) increase structural risk. 2. AI-native competitors could potentially disrupt traditional financial payment networks. 3. Integration risk of the $13.5B Issuer Solutions acquisition could lead to further margin compression.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Realization of $125M in expense synergies from the Total Issuing Solutions integration. This will validate management's ability to extract v...
Near-Term (0-6 months)Impact: Critical
Acceleration of Banking segment recurring revenue growth above 5%. This would prove the durability of the core banking moat and the success...
Long-Term (18+ months)Impact: Moderate
FIS is relevant now because it has just completed its major asset reshuffle and is entering the execution phase of its 'Future Forward' stra...
Primary Risks
Concern: Medium
Moat erosion from AI-native competitors and open banking regulations. New entrants could offer lower-cost, more flexible core banking soluti...
Concern: High
High financial leverage and rising interest expense. Net debt of $12.5B and interest coverage of 2.7x leave little room for error; a failure...
Concern: Medium
The stewardship verdict is adequate. While capital allocation has historically destroyed value through poorly timed buybacks, the current le...
Recent Activity
2025-10-29Press Release
-6.72%Fis Wins Alm Solution Of The Year At Risk Asia Awards 2025
2025-08-05SEC Filing (8-K)
-8.54%FIS reports strong Q2 2025 results and raises full-year outlook
2025-04-17SEC Filing (8-K)
+8.65%Excerpt: (EX-99.1) EX-99.1 Exhibit 99.1 News Release FIS Announces Sale of Worldpay Stake and Strategic Acquisition of Global Payments Issuer Solutions Business Acquisition of Global Payments Issuer Solutions business (Issuer...
2025-02-11SEC Filing (SC 13G)
-11.49%Beneficial ownership update (SC 13G).
2024-08-06SEC Filing (8-K)
+5.14%FIS reports strong Q2 2024 results and raises full-year outlook
Valuation Table
9.8/10Decision Grade
Scenario Range
$47
Bear
$100
Base
$124
Bull
$51