How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Fiserv ten years ago? It may not have been easy to hold on to FISV for all that time, but if you did, how much would your investment be worth today?
Fiserv's Business In-Depth
With that in mind, let's take a look at Fiserv's main business drivers.
Founded in 1984, Fiserv Inc. is headquartered in Brookfield, WI. The company provides financial services technology solutions to over 12,000 clients worldwide in the banking, insurance, healthcare and investment industries. Fiserv serves banks, credit unions, leasing and finance companies, investment management firms, billers, retailers, and merchants.
The company has grown its business through developing highly specialized products and services and enhancing them, increasing capabilities through innovation, expanding client base, and acquiring complementary businesses. Core focus areas of Fiserv’s business are portfolio management, client relationship value enhancement, operational effectiveness, capital discipline and innovation.
Revenues climbed 2.2% year over year to $5.8 billion in 2020. Processing & services revenues, primarily generated from account-and-transaction based fees under contracts (three to five-year terms), represented 85.4% of revenues in 2018. The company has two reportable segments –
Payments and Industry Products – This segment provides electronic bill payment and presentment services; person-to-person payment services; account-to-account transfers; debit and credit card processing and services; Internet and mobile banking software and services; payments infrastructure services; and other electronic payments software and services. The segment also provides card and print personalization services; fraud and risk management products and services, and investment account processing services for separately managed accounts.
Financial Institution Services – This segment provides account processing, item processing and source capture, cash management and consulting services, loan origination and servicing products, among others. The segment also provides ACH and treasury management, and source capture optimization services and case management and resolution services to the financial services industry.
In 2019, Fiserv acquired of First Data. This is one of the biggest financial mergers in a decade and is helping Fiserv emerge as one of the world’s largest payments and financial technology providers.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Fiserv, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $8,234.86, or a gain of 723.49%, as of August 17, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 275.58% and gold's return of -4.13% over the same time frame.
Analysts are anticipating more upside for FISV.
Fiserv enjoys a dominant position in the financial and payments solutions business on the back of broad and diverse customer base, and continued technology upgrades. The company's diversified product portfolio helps attract a steady flow of customers. Acquisitions help expand its product portfolio, enhance offerings, boost its market share and customer base. The company has been consistently rewarding shareholders through share buybacks. These initiatives instill investors’ confidence, positively impacting earnings per share. Due to these positives, the stock has increased in the past year. However, maintaining strong and long-term client relationships has been a difficult task amid stiff competition. Acquisition of a large number of companies results in some integration risk. High debt may limit the company’s future expansion.
Shares have gained 5.33% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
Image: Bigstock
Here's How Much You'd Have If You Invested $1000 in Fiserv a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Fiserv ten years ago? It may not have been easy to hold on to FISV for all that time, but if you did, how much would your investment be worth today?
Fiserv's Business In-Depth
With that in mind, let's take a look at Fiserv's main business drivers.
Founded in 1984, Fiserv Inc. is headquartered in Brookfield, WI. The company provides financial services technology solutions to over 12,000 clients worldwide in the banking, insurance, healthcare and investment industries. Fiserv serves banks, credit unions, leasing and finance companies, investment management firms, billers, retailers, and merchants.
The company has grown its business through developing highly specialized products and services and enhancing them, increasing capabilities through innovation, expanding client base, and acquiring complementary businesses. Core focus areas of Fiserv’s business are portfolio management, client relationship value enhancement, operational effectiveness, capital discipline and innovation.
Revenues climbed 2.2% year over year to $5.8 billion in 2020. Processing & services revenues, primarily generated from account-and-transaction based fees under contracts (three to five-year terms), represented 85.4% of revenues in 2018. The company has two reportable segments –
Payments and Industry Products – This segment provides electronic bill payment and presentment services; person-to-person payment services; account-to-account transfers; debit and credit card processing and services; Internet and mobile banking software and services; payments infrastructure services; and other electronic payments software and services. The segment also provides card and print personalization services; fraud and risk management products and services, and investment account processing services for separately managed accounts.
Financial Institution Services – This segment provides account processing, item processing and source capture, cash management and consulting services, loan origination and servicing products, among others. The segment also provides ACH and treasury management, and source capture optimization services and case management and resolution services to the financial services industry.
In 2019, Fiserv acquired of First Data. This is one of the biggest financial mergers in a decade and is helping Fiserv emerge as one of the world’s largest payments and financial technology providers.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Fiserv, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $8,234.86, or a gain of 723.49%, as of August 17, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 275.58% and gold's return of -4.13% over the same time frame.
Analysts are anticipating more upside for FISV.
Fiserv enjoys a dominant position in the financial and payments solutions business on the back of broad and diverse customer base, and continued technology upgrades. The company's diversified product portfolio helps attract a steady flow of customers. Acquisitions help expand its product portfolio, enhance offerings, boost its market share and customer base. The company has been consistently rewarding shareholders through share buybacks. These initiatives instill investors’ confidence, positively impacting earnings per share. Due to these positives, the stock has increased in the past year. However, maintaining strong and long-term client relationships has been a difficult task amid stiff competition. Acquisition of a large number of companies results in some integration risk. High debt may limit the company’s future expansion.
Shares have gained 5.33% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.