FIS — Fidelity National Information Services, Inc.
Snapshot dated August 27, 2026.
Fidelity National Information Services, Inc. provides financial technology solutions, specializing in banking software and payments processing for financial institutions and merchants globally. The company operates through two primary segments: Banking Solutions, which delivers core processing and digital banking platforms, and Merchant Solutions, which handles payment acceptance and commerce enablement. FIS serves thousands of financial institutions, including large regional banks and global enterprises, alongside millions of merchants who rely on its payment infrastructure to process transactions. It operates as a major incumbent in the global financial infrastructure space, competing against established processors and specialized fintech providers. The company recently completed the divestiture of a majority stake in its Worldpay merchant solutions business to private equity firm GTCR, marking a strategic pivot to refocus on its core banking and integrated financial services. FIS maintains a vast geographic footprint, with operations spanning across North America, Europe, and emerging markets.
Fair Value / Share
$39.60
Price on August 27, 2026
$40.69
Margin of Safety
-2.67%
Data by Equibles and SEC filings. Figures are as of August 27, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$40.69
Market Cap
$21,034,145,000
Net Income (TTM)
$3,373,000,000
Diluted Shares
517.0 million
EPS (TTM)
$6.52
Earnings Yield
16.04%
AI Analysis
With an EPS of $6.52 and a share price of $40.69, FIS presents an earnings yield of 16.04%. This yield is substantially higher than the 4-5% return typically available from safe, government-backed bonds. A high yield relative to this benchmark implies that the current market price is low relative to the company's annual per-share earnings. For this figure to change, the stock price would need to rise, or the underlying earnings per share would need to decline. This measurement considers only the current earnings relative to the share price and does not account for the quality of future earnings, potential changes in interest rates, or the long-term debt obligations of the firm.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$1,915,000,000
Net Working Capital
$407,000,000
Net Fixed Assets
$1,140,000,000
Invested Capital
$1,547,000,000
Return on Capital
123.79%
AI Analysis
For FIS, the return on capital calculation results in 123.79%. This figure is derived from an EBIT of $1.9B and a total invested capital base of $1.5B, which combines $407M in net working capital and $1.1B in net fixed assets. When compared to the framework’s benchmark where 30% or more is considered an efficient use of capital, this outcome indicates that the business generates significant profit relative to the tangible operating capital required to sustain its operations. This measure relies on historical accounting data and does not capture future growth potential or the ongoing capital intensity required to maintain technological infrastructure. While this result suggests high efficiency in capital deployment, changes in the company's operating strategy—such as increased spending on property, plant, or equipment, or shifts in working capital management—would directly impact the total invested capital figure and consequently shift the return on capital percentage.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| JKHYJack Henry & Associates Inc | $654M | $12.4B | 19.0x |
| FISFidelity National Information Services, Inc. | $1.9B | $41.5B | 21.7x |
| GPNGlobal Payments Inc | $1.3B | $42.7B | 32.6x |
Where FIS sits: 21.7x against a peer median of 25.8x (peers: 32.6x and 19.0x) — 16.1% below the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
FIS
Debt $21.2B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. It carries no separately reported lease obligations.
GPN
Named as a competitor: Direct competitor in merchant payment processing and issuer technology solutions
Debt $22.4B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. It carries no separately reported lease obligations.
JKHY
Named as a competitor: Competes directly in core banking software and transaction processing for financial institutions
Debt $90M. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. It carries no separately reported lease obligations.
Operating earnings — FIS
AI Analysis
The Acquirer's Multiple measures the price of the entire business relative to its operating earnings. Fidelity National Information Services (FIS) has an Acquirer's Multiple of 21.7x, derived from an enterprise value of $41.5B and operating earnings of $1.9B. Among its peers, Global Payments (GPN) carries a multiple of 32.6x based on an enterprise value of $42.7B and operating earnings of $1.3B, while Jack Henry & Associates (JKHY) has a multiple of 19.0x based on an enterprise value of $12.4B and operating earnings of $654M. Consequently, JKHY represents the lowest multiple and GPN represents the highest. FIS is currently 16.1% below the median of 25.8x. This comparison is sensitive to differences in capital structure and business model; the gap would narrow if the operating earnings of these firms converged, or if the market adjusted the price paid for each dollar of their respective operating earnings.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
7/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
This section is Strong, with the business clearing all three profitability signals and generating significant cash flow relative to its reported earnings.
- Return on Assets is positive at 1.14%
- Free Cash Flow to Total Assets is positive at 7.33%
- Cash flow from operations is 6.83 times larger than net income
A high accruals ratio indicates that earnings are backed by actual cash intake, though a drop in Net Income would lower the ROA and could change this score.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
This section is Mixed, as a reduction in debt and a decrease in share count are offset by a decline in the current ratio.
- Leverage decreased from 0.29 to 0.27 year over year
- Current ratio fell to 0.59 from 0.85 in the prior year
- Net dilution is negative as share count fell from 555.0 million to 525.0 million shares
The score would improve if current assets grew faster than current liabilities to reverse the downward trend in liquidity.
Change in Leverage (↓ or unchanged)
PassChange in Liquidity (↑ Current Ratio)
FailNet Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
2/4
This section is Mixed, reflecting an uneven operational performance where improved asset efficiency and cash generation were met with declining margins.
- ROA fell from 4.29% to 1.14%
- FCFTA improved from 6.15% to 7.33%
- Gross Margin declined from 37.56% to 36.86%
- Asset Turnover improved from 0.3 to 0.32
A return to higher gross margins or a year-over-year increase in ROA would be required to shift this section to a higher score.
Change in ROA (↑)
FailChange in FCFTA (↑)
PassChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
PassFramework conclusion
The company earns a total score of 7/10, driven by strong cash-backed profitability but tempered by mixed operational and stability signals. This score suggests that while the company is currently profitable and generating cash, there are specific areas of deterioration in liquidity and margins that distinguish it from the highest-scoring firms. The measurement helps identify if the company's financial health is stabilizing or if recent operational declines represent a more systemic risk.
- Return on Assets is currently 1.14%
- The current ratio declined to 0.59
- Gross Margin moved lower to 36.86%
- Diluted shares outstanding decreased to 525.0 million shares
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$2.8B
+ After-Tax Interest Expense
$447.7M
= Unlevered Free Cash Flow
$3.3B
Business value (10-year DCF)
PV of Years 1–10
$22.2B
PV of Terminal Value
$18.7B
= Business Value
$40.9B
Business value → share value
Intrinsic Value (business)
$40.9B
+ Cash & Equivalents
$744M
− Debt
$21.2B
= Shareholders' Value
$20.5B
÷ Diluted Shares
517.0 million
= Fair Value / Share
$39.60
Divided by 517.0 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-06-30.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$3.3B
Growth rate (yrs 1–10)
5%
Terminal growth (after yr 10)
3%
AI Analysis
To value Fidelity National Information Services, the framework applies a 12% discount rate, placing the company in the mid-risk bucket due to its stable fintech core offset by recent divestitures and leverage. The forecast utilizes a fixed Year-1 FCF of $3.3B, calculated by adding back after-tax interest to the trailing-twelve-month cash flow. A 5.00% growth rate is applied over the ten-year forecast window, reflecting modest expectations following business simplification and historical volatility. Beyond year 10, a fixed terminal growth rate of 3% is applied, which is a standard parameter across all valuations. This terminal value represents 45.7% of the total business value, indicating the degree to which the long-term assumption impacts the total figure. The fair value per share of $39.60 is derived by adding $744M in cash to the business value and subtracting $21.2B in debt, divided by 517.0 million shares. Against the current price of $40.69, this yields a margin of safety of -2.67%, representing the buffer between the current price and the model's estimate. This valuation is most sensitive to the 5.00% growth rate assumption; a change in this variable would alter the fair value more than any other input. This measure does not account for future shifts in debt structure or unanticipated capital requirements.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
16.04% vs ~4-5% bond-yield benchmark
Return on Capital
123.79% ROC vs ~30% benchmark
Acquirer's Multiple
21.7x against a peer median of 25.8x (peers: 32.6x and 19.0x) — 16.1% below the median.
FS-Score
7/10 — Solid but mixed
Intrinsic Value
-2.67% margin of safety
The five checks present a divided profile for FIS, balancing strong operational performance against tight pricing metrics. The Earnings Yield of 16.04% and a 123.79% Return on Capital indicate a business generating substantial cash flow relative to its capital base, which sits well above their respective benchmarks. The Acquirer's Multiple of 21.7x reinforces this by situating the company at 16.1% below its peer median, suggesting a pricing comparison favorable to the group. However, these metrics collide with a -2.67% margin of safety, indicating that current market pricing exceeds the calculated intrinsic value. The FS-Score of 7/10 highlights that while operational health is generally robust, specific accounting or balance sheet components remain inconsistent. This framework effectively captures the tension between strong internal returns and a share price that leaves little room for error relative to its intrinsic value. If the Intrinsic Value check shifted to positive, the framework would likely present a more consistent outlook across both valuation and operational metrics.