From a business perspective fiserv is basically in a death spiral. The use too much of their free cash flow to buy back stock. Which is fine if you don’t have the massive debt due to the first data take over. That coupled with reissuing stock to insiders by way of RSU’s lessens the buy back effectiveness. Finally the growth rate is just so so. All that is clear to Wall Street and gets reflected in the stock price. Cutting costs is the only tool they have. So unless their hit the acquisition lottery, this all does not end well.
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Fiserv's EPS looks like garbage compared to 3-4 years ago, and the stock is under performing compared to Visa. Fiserv is dumping lots of it's knowledge, and it will be years before all these bad decisions shake out.
Oh mean ol Wall Street doesn’t like you. Great excuse. And the debt is untenable
And why isn't that success shared with the workers? #KnowYourAudience
First of all FIserv grew at 9% on a $15Billion base, very few companies this large grow at that rate. Second, the debt ratio is now 3.1 which again is a normal debt ratio and finally the company prints money, generating $4Billion in free cash flow each year. In total those are outstanding numbers, the market just doesn’t like the payments segment right now, look at PayPal, VISA, Square, FIS and Global Payments all down more that Fiserv in past twelve months.
There’s a lot of money to be made in acquisition - esp when you get to be CEO of the new biz. Again.
It's times like this I wish I had a MBA, maybe then I could understand why this is happening. Someone must be making a lot of money.