$Fiserv (FI.US)$In the 2023.3.20 analysis, excessive goodwil...

The American company, which was listed in 1986, is mainly in the financial technology service business. The main market is in the US, and the current price is 153.82.

The company grew rapidly for a period of time after major mergers and acquisitions in 2019. Recently, the growth rate began to slow. The average revenue growth rate in the past 3 years was 8.7%, the average growth rate of operating profit reached 52% due to the continuous increase in gross margin, and the average growth rate of net profit reached 47.4%. Interest expenses account for 20% of operating profit in 2023, and the interest burden is very heavy. This is also quite puzzling. Net profit has reached more than 3 billion dollars, and the debt burden is still increasing. Gross margin increased from 47.4% to 59.8% in the past 4 years, net margin from 6.6% to 16.4%, and return on net assets from 2.9% to 10.1%.

2024Q1 revenue increased 7.4%, operating profit increased 25.9%, and net profit increased 30.6%.

The balance ratio has increased from 55% to 66.3% in the past 5 years. Total assets have increased quite a bit, but net assets have decreased. This is probably mainly due to treasury stocks, which have now reached 12.9 billion dollars. The ratio and growth rate of accounts receivable are relatively normal. Goodwill and other intangible assets are 48.415 billion, 1.6 times the net assets of 30.669 billion yuan, and long-term loans reached 23.105 billion yuan, 7.5 times the net profit in 2023.

Currently, the cash is 596 million, the current ratio is 1.1, and the quick ratio is 0.12.

Net cash flow has continued to be higher than net investment in the past 4 years, but considering the large investment in 2019, it has remained flat for the past 5 years.

Currently, the price-earnings ratio is 30.8, and the price-earnings ratio is TTM 28.8. Considering the current high debt ratio, we will wait and see for the time being.