First Data Corp Stock Analysis, Valuation (NYSE:FDC)
FDC Stock Analysis
Watch the robo advisor video of First Data Corp stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for FDC stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
First Data Corp Stock Rating 3.4/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for FDC stock analysis. First Data Corp valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at First Data Corp stock rating which is indicative of the company's financial performance.
Should you buy FDC stock?
- The TTM operating margin was good at 14.2% for First Data Corp.
- LTM Net margins were good at 12.2% for First Data Corp.
- The First Data Corp stock currently trades at a price to earnings ratio of 12. We rate this as a positive, compared to the industry average of 22.8.
- FDC stock is trading at a favorable price to sales multiple of 1.2 as against the Business Services industry average multiple of 1.7.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for First Data Corp at 30.6%.
Should you sell FDC stock?
- Revenue growth of 2.4% has been weak over the last 5 years.
- With a debt/equity ratio of 3.19, First Data Corp is highly leveraged in comparison to Business Services peers.
- Cash flow from operations is 0.5 times net income which is a negative signal.
Investors can make use of the Amigobulls First Data Corp stock analysis to ascertain how FDC stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.
While doing a study of the company financials, First Data Corp revenue growth and profit or net income are two main metrics which help in identifying whether FDC stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about FDC stock.