Fifth Third Bancorp boosted its holdings in Shift4 Payments, Inc. (NYSE:FOUR – Free Report) by 19,626.6% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 30,379 shares of the company’s stock after acquiring an additional 30,225 shares during the period. Fifth Third Bancorp’s holdings in Shift4 Payments were worth $1,328,000 as of its most recent filing with the Securities and Exchange Commission.
Other hedge funds have also recently added to or reduced their stakes in the company. Wasatch Advisors LP boosted its holdings in shares of Shift4 Payments by 16.4% during the second quarter. Wasatch Advisors LP now owns 6,338,567 shares of the company’s stock worth $628,215,000 after purchasing an additional 890,990 shares during the last quarter. Bank of Montreal Can boosted its stake in Shift4 Payments by 3,048.9% in the 4th quarter. Bank of Montreal Can now owns 872,453 shares of the company’s stock worth $54,938,000 after buying an additional 844,746 shares during the last quarter. Norges Bank purchased a new stake in Shift4 Payments in the 4th quarter valued at about $51,635,000. Marshall Wace LLP increased its stake in shares of Shift4 Payments by 97.2% during the 4th quarter. Marshall Wace LLP now owns 1,655,485 shares of the company’s stock valued at $104,246,000 after acquiring an additional 816,155 shares during the last quarter. Finally, Durable Capital Partners LP lifted its holdings in shares of Shift4 Payments by 12.6% during the 2nd quarter. Durable Capital Partners LP now owns 6,665,443 shares of the company’s stock worth $660,612,000 after acquiring an additional 745,650 shares during the period. 98.87% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In A number of equities research analysts recently issued reports on the stock. Keefe, Bruyette & Woods boosted their target price on shares of Shift4 Payments from $50.00 to $52.00 and gave the company a “market perform” rating in a report on Friday, May 8th. Wolfe Research downgraded Shift4 Payments from an “outperform” rating to a “peer perform” rating in a report on Wednesday, April 15th. BMO Capital Markets initiated coverage on Shift4 Payments in a report on Tuesday, April 21st. They issued a “market perform” rating and a $50.00 target price on the stock. BTIG Research restated a “buy” rating and set a $70.00 price target on shares of Shift4 Payments in a research note on Thursday, May 7th. Finally, Seaport Research Partners lowered Shift4 Payments from a “buy” rating to a “neutral” rating in a research note on Thursday, April 16th. Ten research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $68.43.
Get Our Latest Research Report on Shift4 Payments
Insider Buying and Selling In other Shift4 Payments news, major shareholder Jared Isaacman bought 193,000 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were purchased at an average price of $40.66 per share, with a total value of $7,847,380.00. Following the purchase, the insider directly owned 1,787,455 shares of the company’s stock, valued at approximately $72,677,920.30. The trade was a 12.10% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 1.54% of the stock is currently owned by corporate insiders.
Shift4 Payments Trading Up 4.6% Shift4 Payments stock opened at $48.48 on Friday. Shift4 Payments, Inc. has a 52-week low of $34.56 and a 52-week high of $107.15. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 2.55. The firm has a market capitalization of $3.85 billion, a price-to-earnings ratio of 57.71, a PEG ratio of 0.50 and a beta of 1.41. The firm has a 50-day moving average price of $44.69 and a two-hundred day moving average price of $49.21.
Shift4 Payments (NYSE:FOUR – Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.97 earnings per share for the quarter, missing analysts’ consensus estimates of $0.99 by ($0.02). The business had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.09 billion. Shift4 Payments had a net margin of 2.63% and a return on equity of 33.55%. The business’s quarterly revenue was up 49.0% on a year-over-year basis. During the same period last year, the firm posted $1.07 EPS. Shift4 Payments has set its FY 2026 guidance at 5.500-5.700 EPS. Sell-side analysts expect that Shift4 Payments, Inc. will post 4.77 earnings per share for the current year.
Shift4 Payments Company Profile (Free Report)
Shift4 Payments is a U.S.-based provider of integrated payment processing and technology solutions, serving merchants across the hospitality, retail, e-commerce, gaming and lodging industries. The company’s platform enables businesses to accept in-store, online and mobile payments through a combination of point-of-sale hardware, payment gateway services and back-office software. By centralizing transaction processing and reporting, Shift4 aims to simplify payments, enhance security and streamline operations for its merchant customers.
The company’s core offerings include encrypted point-of-sale terminals, cloud-based payment gateways, and developer-friendly APIs for online and mobile checkouts.
Further Reading Five stocks we like better than Shift4 Payments AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits
Receive News & Ratings for Shift4 Payments Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shift4 Payments and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEFifth Third Bancorp Increases Stock Holdings in Protagonist Therapeutics, Inc. $PTGX
NEXT HEADLINE »ABN Amro Investment Solutions Lowers Holdings in Crown Castle Inc. $CCI
CENTER VALLEY, Pa.--(BUSINESS WIRE)--Shift4 (NYSE: FOUR) today announced the date for the release of its second quarter 2026 financial results. Q2 2026 Earnings Conference Call Shift4 will release its second quarter 2026 financial results pre-market open on Thursday, August 6, 2026. Management will also host a conference call at 8:30am ET to review these results. Conference Call Details Toll-free dial-in: +1-800-343-5172 Toll dial-in: +1-203-518-9856 Conference ID: FOUR2Q26 Th.
Shares of Shift4 Payments (FOUR - Free Report) have gained 27% over the past four weeks to close the last trading session at $49.11, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $61.4 indicates a potential upside of 25%.
The mean estimate comprises 20 short-term price targets with a standard deviation of $18.66. While the lowest estimate of $40.00 indicates a 18.6% decline from the current price level, the most optimistic analyst expects the stock to surge 144.4% to reach $120.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in FOUR. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in FOURThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 0% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, FOUR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much FOUR could gain, the direction of price movement it implies does appear to be a good guide.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Shift4 Payments (FOUR - Free Report) . FOUR is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.81, which compares to its industry's average of 17.08. Over the past year, FOUR's Forward P/E has been as high as 29.16 and as low as 13.28, with a median of 17.86.
FOUR is also sporting a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FOUR's PEG compares to its industry's average PEG of 1.00. Over the past 52 weeks, FOUR's PEG has been as high as 1.11 and as low as 0.47, with a median of 0.66.
We should also highlight that FOUR has a P/B ratio of 7.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 8.07. Over the past 12 months, FOUR's P/B has been as high as 11.00 and as low as 6.32, with a median of 8.04.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FOUR has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.86.
Finally, our model also underscores that FOUR has a P/CF ratio of 13.43. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FOUR's current P/CF looks attractive when compared to its industry's average P/CF of 13.43. Over the past year, FOUR's P/CF has been as high as 23.91 and as low as 11.91, with a median of 15.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shift4 Payments is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FOUR feels like a great value stock at the moment.
CENTER VALLEY, Pa. & SIGNY, Switzerland--(BUSINESS WIRE)--Shift4 (NYSE: FOUR), the global commerce technology provider powering the experience economy, has launched Shift4 One, an all-in-one solution combining payments, dynamic currency conversion, and tax-free shopping into a single handheld device. The tax-free shopping functionality is powered by Global Blue, the world's leading tax-free shopping provider, which was acquired by Shift4. The Shift4 One device automatically detects transactions.
Investors with an interest in Financial Transaction Services stocks have likely encountered both Shift4 Payments (FOUR - Free Report) and RB Global (RBA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Shift4 Payments and RB Global are sporting a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
FOUR currently has a forward P/E ratio of 8.94, while RBA has a forward P/E of 24.08. We also note that FOUR has a PEG ratio of 0.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RBA currently has a PEG ratio of 1.57.
Another notable valuation metric for FOUR is its P/B ratio of 2.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RBA has a P/B of 3.58.
These are just a few of the metrics contributing to FOUR's Value grade of A and RBA's Value grade of C.
Both FOUR and RBA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FOUR is the superior value option right now.
Shift4 is evolving into a niche, vertically integrated payments monopoly post-Global Blue acquisition, with market synergies not yet priced in. FOUR's acquisition of Global Blue brings dominant VAT refund infrastructure, high-margin DCC, and access to 70,000+ European merchants, driving revenue and margin expansion. Hardware consolidation via Shift4 One POS could materially boost Global Blue's TFS success ratio, unlocking €80M+ incremental revenue and €32M EBITDA with minimal incremental cost.
CENTER VALLEY, Pa.--(BUSINESS WIRE)--Shift4 Payments, Inc. (“Shift4” or the “Company”) (NYSE: FOUR), announced today, in connection with the 10,000,000 shares of 6% Series A Mandatory Convertible Preferred Stock issued on May 5, 2025, consistent with the terms laid out in the offering, the Board of Directors has declared a dividend of $1.50 per share to be paid in cash on August 3, 2026 to holders of record as of the close of business on July 15, 2026.
Subject to the terms of the Mandatory Convertible Preferred Stock, and as described further in the prospectus supplement filed by the Company with the Securities and Exchange Commission on May 2, 2025, the declaration and payment of future quarterly dividends, if any, will be at the sole discretion of the Board of Directors based on its consideration of various factors, including the company’s operating results, financial condition and anticipated capital requirements.
Additional information regarding the Series A Mandatory Convertible Preferred Stock can be found within the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 5, 2025, which can be accessed via the Company’s website investors.shift4.com.
About Shift4
Shift4 (NYSE: FOUR) powers the experience economy, enabling businesses to deliver the moments that matter. Transforming how people shop, dine, stay, and play, Shift4’s commerce technology allows for a seamless experience at any scale. From your neighborhood restaurant to the world’s largest event venues, Shift4 handles billions of transactions annually for hundreds of thousands of businesses around the world. For more information, visit shift4.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Shift4 intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding Shift4’s expectations associated with the declared dividends and future dividend payments. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to the substantial and increasingly intense competition worldwide in the financial services, payments and payment technology industries; our ability to continue to expand our share of the existing payment processing markets or expand into new markets; additional risks associated with our expansion into international operations, including compliance with and changes in foreign governmental policies, as well as exposure to foreign exchange rates; and our respective ability to integrate and interoperate each of our services and products with a variety of operating systems, software, devices, and web browsers, and the other important factors discussed under the caption “Risk Factors” in Part I, Item 1A in Shift4’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and our other filings with the SEC. Any such forward-looking statements represent management’s expectations as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, Shift4 disclaims any obligation to do so, even if subsequent events cause our views to change.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Shift4 Payments (FOUR) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
How do you choose between a fast-growing payment processor and an established industry titan? Deciding whether to buy Shift4 Payments (FOUR +0.95%) or PayPal (PYPL +1.01%) depends on your appetite for growth versus stability.
Shift4 Payments focuses on providing specialized commerce technology for the hospitality and entertainment sectors. PayPal provides a massive digital wallet ecosystem used by millions of consumers for daily transactions. You should compare them to see which better balances revenue growth and bottom-line profitability in your portfolio.
The case for Shift4 PaymentsShift4 Payments provides integrated commerce solutions and payment processing for merchants in specialized industries, such as hospitality and entertainment. The company has aggressively expanded its presence among tech stocks by completing the acquisition of Bambora North America in March 2026 and integrating the Global Blue business. It also maintains a strategic partnership with xAI to incorporate artificial intelligence into its customer service operations, thereby enhancing merchant support. No single customer accounts for more than 10% of revenue, which helps diversify its merchant and software partner network.
In FY 2025, revenue reached nearly $4.2 billion, a 25.5% increase from the prior year. Net income for the period was approximately $119 million. This performance led to a net margin of roughly 2.8%.
As of its December 2025 balance sheet, the debt-to-equity ratio is 3.2x. This ratio measures total debt relative to shareholder equity, showing that Shift4 Payments uses significant leverage to fund its operations. The current ratio, which measures the ability to cover short-term obligations, is 1.7x, while free cash flow reached nearly $499 million.
The case for PayPalPayPal operates a global network that connects 439 million active accounts with merchants for cross-border and domestic transactions. Its ecosystem includes popular brands like Venmo and Xoom, as well as its own stablecoin and various payment funding sources. The platform remains technology-agnostic to support bank accounts, credit cards, and buy now, pay later solutions for millions of users.
In FY 2025, revenue reached roughly $33.2 billion, up 4.3% from the prior year. Net income for the fiscal year was approximately $5.2 billion. This allowed the company to achieve a healthy net margin of nearly 15.8%.
As of the December 2025 balance sheet, the company maintains a debt-to-equity ratio of approximately 0.5x. The current ratio is 1.3x, indicating the business has more than enough assets to cover its short-term liabilities. Free cash flow was robust at nearly $5.6 billion for the year, which equals cash from operations minus capital expenditures.
Risk profile comparisonShift4 Payments faces intense competition from other industry players, such as Adyen and Block, which could hurt its ability to retain key merchant partners. The company also carries significant debt that could limit its capital flexibility to fund new strategic opportunities during economic downturns. Additionally, its reliance on complex IT systems and emerging AI tools makes it a target for cyberattacks and for increasing global regulations, such as the EU AI Act.
PayPal operates in a heavily regulated industry and remains subject to significant legal scrutiny regarding consumer protection. Despite the dismissal of some securities fraud class actions in May 2026, the company continues to face competition from Visa and Mastercard, as well as other fintech firms. Any disruptions at third-party banks or cloud infrastructure providers could also interrupt its transaction processing capabilities.
Valuation comparisonBased on the Forward P/E and P/S ratio, Shift4 Payments appears to be priced more attractively relative to its future earnings estimates than PayPal.
MetricShift4 PaymentsPayPalSector BenchmarkForward P/E6.5x8.2x37.6xP/S ratio0.9x1.2xSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Right out of the gates, I want to be fair and say that I own both PayPal and Shift4 Payments, but I have owned the former for much longer -- and it hasn’t been a great ride. While I love PayPal’s powerful brand, massive user base, and incredible free cash flow generation, the company’s growth story seems to be nearing its latter chapters.
While rumors swirl about a potential sale or spinoff of its faster-growing Venmo business -- a move that may create some value for shareholders -- it isn’t the type of transaction that really gets me excited about a stock. I just don’t know what the next move is for PayPal, other than a lot of share buybacks. These repurchases are fine, but not enough on their own to move the needle meaningfully -- even at PayPal’s deeply discounted price. For these reasons, I have stopped adding to my PayPal position and have just been letting it sit in the “penalty box,” so to speak, waiting for positive developments.
Meanwhile, I have been adding Shift4 Payments fairly frequently over the last year or so, as the stock slid by more than 50%. While neither PayPal nor Shift4 have been a stellar investment since their market debuts, Shift4’s steady sales growth, paired with a forward P/E of 6.5, makes it very enticing in my opinion.
That said, Shift4 adds an additional layer of risk as a serial acquirer. The company loves to grow through M&A and has quickly grown to become the No. 2 payment provider in U.S. restaurants (only trailing Toast), the No. 1 provider in U.S. hospitality, sports, and entertainment, and the No. 1 payments firm for luxury brands globally.
This leadership position, paired with management’s (so-far) keen ability to make and integrate shrewd acquisitions, makes Shift4’s growth story very appealing, especially at just 6.5 times forward earnings. Just growing sales and adjusted EBITDA by 34% and 43%, respectively, in 2025, Shift4 Payments offers multibagger potential that PayPal may no longer have, if it can continue to stick the landing on its numerous acquisitions. Said another way, I’ll take my chances with Shift4’s medium-risk, high-reward potential versus PayPal’s medium-risk, medium-reward outlook, in my opinion.
CENTER VALLEY, Pa.--(BUSINESS WIRE)--Shift4 (NYSE: FOUR) today announced the date for the release of its first quarter 2026 financial results. Q1 2026 Earnings Conference Call Shift4 will release its first quarter 2026 financial results pre-market open on Thursday, May 7, 2026. Management will also host a conference call at 8:30am ET to review these results. Conference Call Details Toll-free dial-in: +1-800-274-8461 Toll dial-in: +1-203-518-9814 Conference ID: FOUR1Q26 The earnings conference c.
MIAMI--(BUSINESS WIRE)--Inter Miami CF today announced a new partnership with Shift4 (NYSE: FOUR), the global commerce technology provider powering the experience economy, with the company's industry-leading integrated payment technology now powering ticketing and concession purchases at Nu Stadium, delivering a seamless matchday experience from the moment fans arrive through the final whistle. As part of the partnership, Shift4 has been named an Official Partner of Inter Miami CF and the Offic.
Shift4 Payments (FOUR) offers high-reward potential despite a 63% drawdown since its ATH, driven by niche dominance and aggressive M&A. FOUR's transformative Global Blue acquisition adds leverage and complexity, but offers cross-sell opportunities and potential FCF growth as integration matures. Current capital allocation prioritizes a $1B buyback over deleveraging, amplifying risk but potentially highly accretive at current depressed share prices.
Sometimes a potential investment is hiding in plain sight: check into a hotel, buy a stadium hot dog, or wrap up that purchase from a Paris boutique. Shift4 Payments NYSE: FOUR is the company you just found.
Shift4 certainly lacks the name recognition of Visa NYSE: V or PayPal Holdings NASDAQ: PYPL, but it doesn’t lack the aggressiveness. The company is in the midst of transitioning from a lean domestic processor to a debt-heavy global powerhouse.
Get Shift4 Payments alerts:
For investors willing to accept some volatility in exchange for exposure to a high-growth business, Shift4 deserves to be brought out from the background.
Shift4 Delivers Strong Growth and Profit ExpansionShift4 is a payments technology company that handles transactions for hundreds of thousands of locations, including hotels, sports stadiums, restaurants, and luxury retailers internationally. With a raft of record results last year, its numbers show both the positive results and the cost of its recent expansion.
Shift4 Payments Today
$39.57 +3.94 (+11.05%)
As of 06/11/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$34.56▼
$108.50P/E Ratio47.10
Price Target$70.19
The growth is obvious: 2025 payment volume of $209 billion was up 27% over the previous year. Gross revenue reached $4.18 billion, up 25% year-over-year. Gross revenue less network fees, an even stronger measure as it’s the amount it keeps after paying card network costs, climbed 46% to $1.98 billion.
Profitability rose just as fast. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 43% to $970 million, operating income jumped 42%, and the company reported $500 million in adjusted free cash flow.
Expansion Strategy Transforms the BusinessThe results, in part, reflect the expansion trajectory that Shift4 is on. A few years ago, Shift4 was primarily known as a payment processor for U.S. restaurants and hotels. Today, it is something significantly more ambitious.
The defining move of 2025 was the $2.6 billion acquisition of Global Blue, a tax-free shopping and payments specialist that serves luxury retailers and international tourists across Europe and beyond.
With the acquisition, the company now serves over 80,000 merchants in more than 40 countries outside the United States, including in Europe, Australia, and New Zealand.
The strategic logic is clear. Global Blue connects luxury brands with wealthy international travelers who shop abroad and reclaim value-added taxes at the border. The high-margin business provides a natural lock on a premium customer segment. The deal closed in July 2025 and contributed $338 million in revenue and $45 million in net income last year.
And the expansion continues. Most recently with the purchase of Bambora North America from Worldline, a leading French payment processor in Europe. That deal closed in early March and added another 140,000 merchants across the continent.
Financials Remain Robust Amid GrowthWith aggressive expansion, however, comes some financial complexity. Investors are well advised to understand both sides of the ledger. On the positive side, Shift4 ended the year with $964 million in cash and cash equivalents, supported by its strong free cash flow, which comes in handy with acquisitions.
The impact of its growth was particularly notable in fourth-quarter comparisons. The company reported overall revenue of $610 million for the three months, up more than 50% YOY. Adjusted EBITDA rose 48% compared with the year before to $304 million with a 50% margin.
The fourth quarter also produced record adjusted free cash flow of $171 million, up 28%, representing a 56% conversion of EBITDA into cash. The margins are among the most attractive features of a software-driven payments platform: once the infrastructure is built and merchants are onboarded, each additional transaction flowing through the system generates revenue at very low incremental cost.
Debt and Guidance Add Investor CautionThe flip side during an acquisition spree is cost and leverage. Shift4 has issued preferred stock and taken on other financing to fund its growth and the Global Blue acquisition, leaving $4.6 billion in principal debt outstanding at year-end. The company also carries $2.7 billion in goodwill on its balance sheet.
The debt is not inherently an issue for a business expecting to generate close to $500 million in adjusted free cash flow this year. It does raise a level of caution, however, if revenue growth slows unexpectedly, or if integration expenses run higher than planned.
The expansion also took a toll on GAAP earnings last year. Net income attributable to shareholders was $79 million for the year, down from $230 million in 2024, with diluted earnings of $2.16 per share compared with $6.06 in the prior year. Income from operations, however, was $351 million compared with $247 million, even as the company absorbed a 45% jump in amortization and depreciation costs and a tripling of interest expense.
Those results, though, were only part of the reason the stock took a tumble after earnings were announced. Guidance from management came in below what analysts were hoping for, which pushed the stock down more than 16%. This year, the company is projecting overall volume growth of 15% to 20%, while revenue less network fees is expected to climb between 26% and 31% YOY to $2.5 billion to $2.6 billion. Adjusted EBITDA is projected to rise between 20% and 25%.
Competition within the financial sector is also an obvious pressure point. Shift4 competes against payments giants including Block NYSE: XYZ, Fiserv NASDAQ: FISV, and Global Payments NYSE: GPN, each of which have deep resources of their own.
Analyst Outlook Looks to Balance Risk and RewardWith all the growth, acquisition costs, balance sheet items, and risks considered, analysts currently have a Hold recommendation.
Current Price$39.57High Forecast$107.00Average Forecast$70.19Low Forecast$45.00Shift4 Payments Stock Forecast Details
Of the 23 analysts covering the company, 10 have a Hold rating, 12 recommend Buy, and one has a Sell on the stock. Their average price target is $72.76—roughly 60% higher than current trading.
Despite the attractive upside, Shift4 Payments is not a stock for investors who prize stability, low volatility, or dividend income. The company does not pay a dividend, carries acquisition-related leverage, and has a history of sharp price swings even when it beats expectations.
But Shift4 is in the midst of a serious expansion plan, and if it goes well, that could translate into attractive returns. If investors are comfortable with that profile and are looking for aggressive growth, Shift4 deserves to come out of the shadows.
Should You Invest $1,000 in Shift4 Payments Right Now?Before you consider Shift4 Payments, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Shift4 Payments wasn't on the list.
While Shift4 Payments currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat's analysts have just released their top five short plays for June 2026. Learn which stocks have the most short interest and how to trade them. Click the link to see which companies made the list.
CHICAGO & CENTER VALLEY, Pa.--(BUSINESS WIRE)--Shift4 (NYSE:FOUR), a global leader in integrated payments and commerce technology, has partnered with the Chicago Cubs to power the fan experience at Wrigley Field, one of Major League Baseball's most iconic ballparks. Shift4 will provide a comprehensive commerce ecosystem at Wrigley Field, processing payments for food & beverage concessions, retail sales, and Gallagher Way, the entertainment district adjacent to the historic ballpark. From th.
Shift4 Payments (FOUR - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on May 7, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -7.5%.
Revenues are expected to be $542.72 million, up 47.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.83% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Shift4 Payments?For Shift4 Payments, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.03%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Shift4 Payments will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Shift4 Payments would post earnings of $1.57 per share when it actually produced earnings of $1.60, delivering a surprise of +1.91%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Shift4 Payments doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Analysts on Wall Street project that Shift4 Payments (FOUR - Free Report) will announce quarterly earnings of $0.99 per share in its forthcoming report, representing a decline of 7.5% year over year. Revenues are projected to reach $542.72 million, increasing 47.3% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Shift4 Payments metrics that are commonly monitored and projected by Wall Street analysts.
It is projected by analysts that the 'Gross Revenue- Subscription and other revenues' will reach $117.41 million. The estimate indicates a year-over-year change of +26.8%.
Analysts predict that the 'Gross Revenue- Payments-based revenue' will reach $889.72 million. The estimate indicates a year-over-year change of +17.7%.
The consensus among analysts is that 'End-to-End Payment Volume' will reach $54.01 billion. Compared to the present estimate, the company reported $45.00 billion in the same quarter last year.
View all Key Company Metrics for Shift4 Payments here>>>
Over the past month, Shift4 Payments shares have recorded returns of +1.7% versus the Zacks S&P 500 composite's +10.3% change. Based on its Zacks Rank #5 (Strong Sell), FOUR will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
CENTER VALLEY, Pa.--(BUSINESS WIRE)---- $FOUR--Shift4 (NYSE: FOUR) has posted its first quarter 2026 financial results as part of its Q1 2026 Shareholder Letter, which can be viewed here or by navigating to the Financials section of its Investor Relations website at https://investors.shift4.com. Earnings Conference Call Management will host a conference call today, May 7th, 2026, at 8:30 a.m. ET to discuss the results. Conference Call Details Toll-free dial-in: +1-800-274-8461 Toll dial-in: +1-203-51.
Shift4 Payments (FOUR - Free Report) came out with quarterly earnings of $0.97 per share, missing the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.02%. A quarter ago, it was expected that this company would post earnings of $1.57 per share when it actually produced earnings of $1.6, delivering a surprise of +1.91%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Shift4 Payments, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $549 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.16%. This compares to year-ago revenues of $368.5 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Shift4 Payments shares have lost about 31.9% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Shift4 Payments?While Shift4 Payments has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Shift4 Payments was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.34 on $588.12 million in revenues for the coming quarter and $5.60 on $2.53 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, PagSeguro Digital Ltd. (PAGS - Free Report) , has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +29%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
PagSeguro Digital Ltd.'s revenues are expected to be $1.01 billion, up 22% from the year-ago quarter.
For the quarter ended March 2026, Shift4 Payments (FOUR - Free Report) reported revenue of $549 million, up 49% over the same period last year. EPS came in at $0.97, compared to $1.07 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $542.72 million, representing a surprise of +1.16%. The company delivered an EPS surprise of -2.02%, with the consensus EPS estimate being $0.99.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Shift4 Payments performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
End-to-End Payment Volume: $56 billion versus the four-analyst average estimate of $54.01 billion.Gross Revenue- Subscription and other revenues: $102 million versus the four-analyst average estimate of $117.41 million. The reported number represents a year-over-year change of +10.2%.Gross Revenue- Payments-based revenue: $917 million compared to the $889.72 million average estimate based on four analysts. The reported number represents a change of +21.3% year over year.View all Key Company Metrics for Shift4 Payments here>>>
Shares of Shift4 Payments have returned +1.7% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
MarketBeat Instant News Alerts Trending News All MarketBeat Instant News Alerts Sort By
Time Frame
Alert Type
Keywords
Page 1 of 322
Get 30 Days of MarketBeat All Access for Free
Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools.
Start Your 30-Day Trial
Sign in to your free account to enjoy these benefits
In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer.
Shift4 Payments is rated Strong Buy with a 12-month price target of $72.80, reflecting undervalued global growth and margin expansion. Q1 results showed GRLNF up 49% YoY and adjusted EBITDA up 39% YoY, with management reaffirming robust FY guidance despite travel headwinds. Acquisitions like Global Blue and Bambora have transformed FOUR into a diversified global commerce platform, with international GRLNF guided to grow 25%+ in 2026.
CENTER VALLEY, Pa. & NEW YORK--(BUSINESS WIRE)---- $FOUR--Shift4 (NYSE: FOUR), the global commerce technology provider powering the experience economy, and Lydian, the global crypto and stablecoin payment platform, today announced a partnership to expand upon Shift4's Pay with Crypto solution, enabling Shift4's merchants to accept Tether (USDT) with settlement in local currency. Shift4's Pay with Crypto product allows customers to pay with any major wallet, just as they would with a credit card. Merchant.
CENTER VALLEY, Pa.--(BUSINESS WIRE)--Shift4 (NYSE: FOUR), the global commerce technology provider powering the experience economy, today announced the launch of its third Shift4 Rescue Mission contest, partnering once again with hospitality expert and Bar Rescue star Jon Taffer. The program will award $100,000 to a community-focused restaurant or bar owner facing operational and financial challenges. Applications open today for restaurant owners nationwide seeking support to revitalize their bu.
Jared Isaacman, 10% Owner, founder, and former CEO, reported the acquisition of 388,500 shares of Shift4 Payments (FOUR +10.72%) in multiple open-market transactions on May 11 and May 12, 2026, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares traded388,500Transaction value~$15.9 millionPost-transaction shares (direct)1,787,455Post-transaction shares (indirect)20,922,737Post-transaction value (direct ownership)~$72.9 millionTransaction value based on SEC Form 4 weighted average purchase price ($41.04).
Key questionsHow does the scale of this purchase compare to Isaacman's historical trading activity?
At 388,500 shares, this is the largest single acquisition by Isaacman in the available historical record, exceeding the previous high for individual transaction volume, and reflects a material redeployment of capital into direct holdings.What is the post-transaction ownership structure and through which entities are indirect shares held?
Following the transaction, Isaacman directly owns 1,787,455 shares and indirectly controls 20,922,737 shares, primarily through Rook, for which he is sole stockholder, as well as trusts established for family members.Was the transaction timed around a material change in the company's share price or relative valuation?
The purchase was executed as shares were priced at around $41.04, near the May 12, 2026 market close of $40.78, following a one-year total return of (54.7)% as of that date, suggesting the buy occurred during a period of substantial price compression.What is the ongoing capacity for future insider transactions given the current holdings?
With direct holdings now at 1,787,455 shares and total beneficial ownership of 22.71 million shares, Isaacman maintains substantial capacity for future activity, especially via indirect holdings, which comprise over 90% of his aggregate position.Company overviewMetricValueRevenue (TTM)$4.45 billionNet income (TTM)$139 millionDividend yield (common shares)0%1-year price change-54.70%* 1-year price change calculated using a calendar year window.
Company snapshotOffers integrated payment processing, omni-channel card acceptance, proprietary gateway solutions, POS hardware/software, eCommerce platforms, and business intelligence tools.Generates revenue primarily from transaction fees, software subscriptions, and value-added services for merchants through a vertically integrated payments ecosystem.Serves merchants across hospitality, retail, eCommerce, food service, stadiums, and entertainment venues in the United States.The company leverages proprietary software and hardware solutions to deliver secure, integrated payment and commerce experiences for a diverse merchant base. Its competitive edge stems from vertical integration, broad omni-channel capabilities, and deep software integrations tailored to high-volume, complex environments.
What this transaction means for investorsShift4 Payments stock has struggled since its founder, Jared Isaacman, stepped down as CEO to become NASA Administrator. As previously mentioned, the stock has lost almost 55% of its value over the previous year.
Hence, it is notable that Isaacman would buy shares in the fintech stock at such a time. In most cases, buying shares of a stock is a sign of confidence. Still, one has to wonder if personal reasons motivate this sale or if Isaacman sees a true opportunity in the company he founded.
Today's Change
(
10.72
%) $
3.82
Current Price
$
39.45
The good news for investors is that indications appear to point to the latter. In the first quarter of 2026, revenue of just over $1.1 billion increased by 32% year over year.
Admittedly, this did not translate into higher profits as interest expenses spiked. Nonetheless, in a time where larger fintech companies have suffered from slower growth, Shift4 continues its rapid expansion. That could bode well for the company as it moves forward under a different leader.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shift4 Payments. The Motley Fool has a disclosure policy.
AUSTIN, Texas--(BUSINESS WIRE)--Loman AI now available within Shift4 Dine, bringing the #1 Voice AI for restaurants to customers across the Shift4 ecosystem.
On June 03, 2026, Shift4 Payments Inc FOUR shares fell 7.1% today, bringing the current price to $40.22. This move is part of a broader downward trend, with the stock experiencing a 36.1% decline year-to-date and a staggering 57.7% drop over the past year. The stock has traded between $39.61 and $108.50 over the last 52 weeks.
GF Value™ verdict: Current price of $40.22 is 63.7% undervalued compared to GF Value of $110.75.GF Score™ of 74/100 indicates the stock is rated as Above Average.Most notable signal: Insider activity shows that insiders bought $17.9M in the last 3 months, with no selling reported. Is FOUR Overvalued or Undervalued? Shift4 Payments Inc's current price of $40.22 is significantly below the GF Value™ estimate of $110.75, suggesting that the stock is undervalued by 63.7%. This presents a potential opportunity for investors, as the market may not be fully recognizing the company's intrinsic value. However, the GF Valuation label describes it as a Possible Value Trap, urging caution for those considering entry. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The large margin of safety indicated by the GF Value™ suggests that there may be favorable potential for appreciation. However, the significant price declines observed in recent months signal underlying challenges that may need to be addressed. Investors should weigh the potential upside against these risks before making any decisions.
How Does FOUR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 47.3x 44.2x Forward P/E 7.2x N/A The current P/E (TTM) of 47.3x is above the 5-year median P/E of 44.2x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that while the stock may be undervalued based on intrinsic value estimates, it is currently trading at a higher multiple than its historical average, which may raise concerns regarding its valuation sustainability.
What Does FOUR's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 4/10 Profitability 6/10 Growth 10/10 Valuation 2/10 Momentum 4/10 The GF Score™ of 74/100 indicates that Shift4 Payments Inc is rated as Above Average overall. The strongest area is Growth, with a perfect score of 10/10, suggesting robust growth prospects. However, the Valuation score is notably low at 2/10, which is a critical area of concern. The Financial Strength and Momentum scores are also relatively weak at 4/10, indicating that while the company may have growth potential, its overall financial health and momentum could present challenges.
What Are Insiders Doing with FOUR Stock? Recent insider activity shows a positive trend, with insiders purchasing $17.9 million worth of shares in the last three months and no reported selling. This significant buying could signal confidence in the company's future performance and may suggest that insiders believe the current price level is attractive. Such activity is often viewed favorably by potential investors, as it may indicate alignment between management interests and shareholder value.
What This Means for Investors Based on the GF Value™, Shift4 Payments Inc FOUR stock is currently undervalued. However, the significant premium in its P/E ratio compared to historical averages and the warning of a possible value trap suggest that investors should proceed with caution. The underlying challenges reflected in the stock’s recent performance may need to be addressed before fully capitalizing on the perceived opportunity.
For the complete analysis, visit the Shift4 Payments Inc FOUR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is FOUR's GF Score™?
FOUR's GF Score™ is 74/100, indicating that the stock is rated as Above Average based on key financial metrics.
Is FOUR overvalued or undervalued?
FOUR is currently undervalued according to GF Value™, which estimates the fair value at $110.75 compared to the current price of $40.22.
What is FOUR's P/E ratio?
FOUR's P/E (TTM) is 47.3x, which is 7% above its 5-year median of 44.2x, indicating that the stock is trading at a higher multiple than its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
