Analysts covering Fidelity National Information Services Inc (NYSE:FIS) are optimistically predicting triple-digit earnings per share to of 119.53% over the following three years. At a current EPS of $2.018, this growth rate means shareholders can expect an impending EPS of $4.431. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. View our latest badysis for Fidelity National Information Services
What can we expect from Fidelity National Information Services Inc (NYSE:FIS) in the future?
If you are bullish about Fidelity National Information Services’s growth potential then you are certainly not alone. Expectations from 19 badysts are very high, with earnings expected to rise from today’s level of $2.018 to $4.431 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 119.53% over the next few years, which is an optimistic outlook in the near term. During the same time we will see the revenue grow from $9,351M to $9,877M and profit is predicted to shoot from $662M to $1,453M in the next couple of years, more than doubling from the most recent level. However, margins look rather unappealing at the current levels of revenue and earnings.
Is this similar growth to the past?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. FIS’s earnings growth the past couple of years was 23.00% which indicates that the company’s past performance is supportive of a strong continuation. This means FIS has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of badysts’ consensus prediction for the company’s future growth going forward.
For FIS, I’ve compiled three essential factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet badysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is FIS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether FIS is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of FIS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pbad the short term volatility of the financial market, we aim to bring you a long-term focused research badysis purely driven by fundamental data. Note that our badysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.