Morningstar Rating

Stock Research and Analysis

by Brett Horn

Bulls Say

With healthy operating margins and limited reinvestment needs, Fiserv spins off a good amount of free cash flow.
Thanks to high retention rates and long-term contracts, Fiserv's core processing relationships are a stable source of revenue.
Only about 5% of Fiserv's revenue comes from license sales, limiting the impact of volatility in the banking industry. Read more 

Bears Say

Consolidation in the banking industry could create more banks large enough to bring their core processing in-house.
Fiserv's investment in mobile and person-to-person payments could prove wrong-sighted, and maintaining growth depends on developing new products that see wide adoption.
Fiserv is tied to a mature industry, which limits growth potential. Read more 

Management

CEO Jeff Yabuki joined the company in 2005 after cofounder Leslie Muma retired. Before that, Yabuki held the COO position at H&R Block. Yabuki has been a pleasant surprise since taking over Fiserv, and we think stewardship under his watch has been   Read more 

Profile

Fiserv is a leading provider of core processing and complementary services, such as electronic funds transfer and loan processing, for U.S. banks and credit unions. The   Read more 

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