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. While his pedigree didn't create much confidence given the mistakes H&R Block's management team made over   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 

Bank on These Stocks When the Time Is Right  
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.