FIS — Fidelity National Information Services, Inc.
Snapshot dated August 31, 2026.
Fidelity National Information Services, Inc. provides technology solutions, processing services, and information products to the financial services industry. The company operates through three primary segments: Merchant Solutions, which facilitates payment processing for businesses; Banking Solutions, providing core processing and digital banking software; and Capital Market Solutions, supporting trading and risk management for investment firms. Its customer base includes commercial banks, retail banks, global financial institutions, and merchants ranging from small businesses to large enterprises across the globe. As one of the largest providers in the financial technology sector, it competes with firms like Fiserv and Jack Henry & Associates. Recently, the company completed a significant strategic shift by divesting its majority stake in the Worldpay merchant solutions business to private equity firm GTCR to focus on its core software and banking processing operations.
Fair Value / Share
$35.03
Price on August 31, 2026
$40.78
Upside to fair value
-14.1%
Data by Equibles and SEC filings. Figures are as of August 31, 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
$40.78
Market Cap
$21,083,260,000
Net Income (TTM)
$3,373,000,000
Diluted Shares
517.0 million
EPS (TTM)
$6.52
Earnings Yield
16%
AI Analysis
With a stock price of $40.78 and an EPS (TTM) of $6.52, FIS produces an earnings yield of 16.00%. This yield sits notably above the 4-5% return available from a safe alternative like a bond. Mechanically, this indicates that the current market price implies expectations for lower future earnings or reflects higher perceived business risk, as investors are being compensated with a higher yield for the same dollar of current earnings. For this yield to move closer to the benchmark, the company would need to see a sustained increase in earnings or a shift in market sentiment affecting the share price. This measure does not capture future growth prospects, debt obligations, or the stability of the company's competitive position.
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
Fidelity National Information Services, Inc. (FIS) generated an EBIT (TTM) of $1.9B on an invested capital base of $1.5B, which represents the combined $407M in net working capital and $1.1B in net fixed assets. This produces a return on capital of 123.79%. This figure sits significantly above the 30% benchmark often used to identify an efficient use of operating capital. While this measure highlights the profit generated per dollar of tangible capital employed, it does not account for the varying levels of capital intensity inherent across different industries. The result would change if the company's underlying operating structure evolved—specifically, if the amount of capital required to maintain the current level of EBIT increased, or if the business model required larger investments in fixed assets or working capital.
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 |
|---|---|---|---|
| FISVFiserv Inc | $4.7B | $55.7B | 12.0x |
| FISFidelity National Information Services, Inc. | $1.9B | $41.5B | 21.7x |
| GPNGlobal Payments Inc | $1.3B | $42.5B | 32.4x |
Where FIS sits: 21.7x against a peer median of 22.2x (peers: 12.0x and 32.4x) — in line with the median, within 2.2%.
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. The company separately reports $82M of operating lease liabilities as of 2026-06-30. These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
FISV
Named as a competitor: Direct competitor in core banking software and payment processing services for financial institutions
Debt $27.9B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $126M of operating lease liabilities as of 2026-06-30. These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
GPN
Named as a competitor: Competes directly in merchant acquiring and payment technology services
Debt $22.4B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $363.9M of operating lease liabilities as of 2025-12-31 ($305.8M non-current, $58.1M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — FIS
AI Analysis
The Acquirer’s Multiple for FIS is 21.7x, calculated using an enterprise value of $41.5B and operating earnings of $1.9B. Among the peer group, FISV has the lowest multiple at 12.0x, derived from an enterprise value of $55.7B and operating earnings of $4.7B, while GPN shows the highest multiple at 32.4x, based on an enterprise value of $42.5B and operating earnings of $1.3B. Regarding the comparison, FIS operates at 21.7x against a peer median of 22.2x (peers: 12.0x and 32.4x) — in line with the median, within 2.2%. This measurement reflects the ratio of the total price to acquire the business relative to its core operating profitability, excluding the impact of financing decisions or tax structures. Changes in the relative multiples would occur if these businesses altered their capital structures, such as by taking on significant debt, or if their respective operating earnings diverged as a result of shifts in core operational efficiency.
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
FIS exhibits Strong current profitability, passing all three checks with positive returns and cash flow generated relative to its asset base.
- Return on Assets is positive at 1.14%
- Free Cash Flow to Total Assets is positive at 7.33%
- The accruals check shows a value of 6.83, as Cash Flow from Operations exceeds Net Income
This score indicates the company is generating real cash-backed earnings today; a shift in the relationship between accounting profit and actual cash flow would be required to change this result.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
The stability profile is Mixed, reflecting a reduction in both debt and share count alongside a decline in short-term liquidity.
- Leverage decreased to 0.27 from 0.29 a year ago
- Liquidity declined as the current ratio fell to 0.59 from 0.85
- Net Dilution was avoided as shares fell from 555.0 million to 525.0 million
The score reflects a healthier balance sheet regarding long-term debt and share count, though the current ratio indicates a relative tightening of short-term resources compared to the prior year.
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
Operational improvements are Mixed, with gains in cash flow efficiency and asset utilization offset by narrowing margins and lower returns.
- Return on Assets fell to 1.14% from 4.29%
- Free Cash Flow to Total Assets improved to 7.33% from 6.15%
- Gross Margin declined to 36.86% from 37.56%
- Asset Turnover improved to 0.32 from 0.3
For this score to improve, the company would need to reverse the current year-over-year compression in its profit margins and return on assets.
Change in ROA (↑)
FailChange in FCFTA (↑)
PassChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
PassFramework conclusion
FIS earns a total score of 7/10, driven by strong profitability and a reduction in both debt and share count, though weighed down by mixed operational improvements. This score suggests that while the company's financial health is generally solid, there are specific areas of deterioration in liquidity and margins. The result helps distinguish whether recent price levels reflect a temporary operational lull or a more fundamental decline in the business's ability to generate returns.
- Return on Assets is positive but fell to 1.14% from 4.29%
- Cash Flow from Operations is 6.83 times higher than Net Income
- Diluted shares outstanding decreased to 525.0 million
- The current ratio declined from 0.85 to 0.59
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
$21.4B
PV of Terminal Value
$17.1B
= Business Value
$38.5B
Terminal value share
44.49%
Business value → share value
Intrinsic Value (business)
$38.5B
+ Cash & Equivalents
$744M
− Debt
$21.2B
= Shareholders' Value
$18.1B
÷ Diluted Shares
517.0 million
= Fair Value / Share
$35.03
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
Trailing twelve months.
FY2023 $4.2B · FY2024 $2.1B · FY2025 $2.5B
Growth rate (yrs 1–10)
4%
Terminal growth (after yr 10)
3%
AI Analysis
Fidelity National Information Services operates a core transaction-processing business, warranting a mid-risk classification and a 12% discount rate to account for the company's leverage and ongoing portfolio adjustments. The 4.00% growth rate reflects an expectation for steady, moderate organic expansion following recent structural simplifications. The framework anchors this ten-year forecast on a fixed Year-1 FCF of $3.3B, which represents an unlevered starting point applied consistently across all companies. Beyond year ten, the model employs a fixed 3% terminal growth rate—a conservative baseline that does not assume the business outpaces the broader economy indefinitely. This terminal value represents 44.5% of the total business value, indicating that a substantial portion of this estimate rests on long-term assumptions. To arrive at an equity value, the framework adds $744M in cash and subtracts $21.2B of debt from the intrinsic business value, resulting in $18.1B available to shareholders. Divided by 517.0 million shares, this produces a fair value per share of $35.03. Compared to the current price of $40.78, the estimate carries a margin of safety of -14.10%, suggesting the current market price exceeds this specific model's output. The result is most sensitive to the discount rate; because the terminal value comprises such a large share of the total, even minor adjustments to the risk bucket assumption would produce the largest variance in the final figure.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
16% 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 22.2x (peers: 12.0x and 32.4x) — in line with the median, within 2.2%.
FS-Score
7/10 — Solid but mixed
Intrinsic Value
-14.1% upside to fair value
The analysis of Fidelity National Information Services presents a mixed profile. The company demonstrates high operating efficiency, evidenced by a 123.79% Return on Capital which significantly exceeds the 30% benchmark, and a solid 7/10 FS-Score indicating stable operational health. These figures suggest robust capital allocation and efficiency in the core business. In contrast, the valuation indicators present a different picture. While the 16% Earnings Yield is favorable against the 4-5% bond-yield benchmark and the 21.7x Acquirer's Multiple aligns closely with the 22.2x peer median, the Intrinsic Value check shows a -14.1% margin of safety, signaling that the current price sits above the calculated intrinsic value. The tension here lies between high operational performance and pricing metrics that appear stretched relative to estimated value. A shift in the Intrinsic Value figure would most significantly alter this overall picture, as it represents the primary point of disagreement with the other valuation and quality metrics.
Comments
Notes from readers on FIS — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
Loading comments…