Fact based stock research
Shift4 Payments (NYSE:FOUR)

US82452J1097

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Shift4 Payments stock research in summary

shift4.com

ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), Shift4 Payments (Data Processing & Outsourcing, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Shift4 Payments are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives). But they show above-average growth (Growth Rank of 81) and are safely financed (Safety Rank of 69, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on Shift4 Payments's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Shift4 Payments exhibits low value (Obermatt Value Rank of 33), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 81). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 69) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	33
Growth Rank	81
Safety Rank	69
Combined Rank	69

Country	USA
Industry	Data Processing & Outsourcing
Index
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Shift4 Payments

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	24	13	14	33
GROWTH
GROWTH	87	65	100	81
SAFETY
SAFETY	10	55	18	69
SENTIMENT
SENTIMENT	n/a	15	68	^new
360° VIEW
360° VIEW	n/a	15	41	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Shift4 Payments is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	24	13	14	33
GROWTH
GROWTH	87	65	100	81
SAFETY
SAFETY	10	55	18	69
COMBINED
COMBINED	28	28	33	69

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Shift4 Payments the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), Shift4 Payments shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Shift4 Payments. Price-to-Sales (P/S) is 66, which means that the stock price compared with what market professionals expect for future sales is lower than for 66% of comparable companies, indicating a good value concerning Shift4 Payments's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 50% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 1 (dividends are expected to be higher than for 1% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 71% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Shift4 Payments to 29. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 33, is a hold recommendation based on Shift4 Payments's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	48	71	67	66
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	41	6	34	50
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	17	19	9	29
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	24	13	14	33

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Shift4 Payments; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 81 (better than 81% compared with alternatives) for 2024, Shift4 Payments shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Shift4 Payments. Sales Growth has a value of 96, which means that, currently, professionals expect the company to grow more than 96% of its competitors. The same is valid for Profit Growth with a value of 66 and for Capital Growth with 55. In addition, Stock Returns had an above-average rank value of 69, which means they have been higher than 69% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 81, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Shift4 Payments exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	80	90	98	96
PROFIT GROWTH
PROFIT GROWTH	n/a	93	96	66
CAPITAL GROWTH
CAPITAL GROWTH	n/a	4	92	55
STOCK RETURNS
STOCK RETURNS	85	27	81	69
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	87	65	100	81

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Shift4 Payments.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 69 (better than 69% compared with alternatives), the company Shift4 Payments has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Shift4 Payments is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Shift4 Payments. Refinancing is at 78, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 78% of its competitors. Liquidity is also good at 79, meaning the company generates more profit to service its debt than 79% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 15, which means the company has an above-average debt-to-equity ratio. It has more debt than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 69 (better than 69% compared with alternatives), Shift4 Payments has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Shift4 Payments could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Shift4 Payments and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	31	30	18	15
REFINANCING
REFINANCING	50	94	54	78
LIQUIDITY
LIQUIDITY	27	23	48	79
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	10	55	18	69

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Shift4 Payments and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	71	73	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	37	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	18	60	^new
MARKET PULSE
MARKET PULSE	n/a	26	44	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	15	68	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Shift4 Payments.
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