Stock Analysis on Net

Fiserv Inc. (NASDAQ:FISV)

This company has been moved to the archive! The financial data has not been updated since April 28, 2022.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Fiserv Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal 378 (25) 25 189 342
State 138 71 69 39 44
Foreign 109 79 57 17 19
Current 625 125 151 245 405
Federal (186) 189 118 110 (250)
State (106) (34) (18) 24 3
Foreign 30 (84) (53) (1)
Deferred (262) 71 47 133 (247)
Income tax provision 363 196 198 378 158

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Fiserv Inc. current decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Fiserv Inc. deferred increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Income tax provision Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Fiserv Inc. income tax provision decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Effective Income Tax Rate (EITR)

Fiserv Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
State income taxes, net of federal effect 1.60% 2.00% 3.70% 3.20% 2.30%
Foreign tax law changes 8.00% 2.80% 0.00% 0.00% 0.00%
Foreign derived intangibles income deduction -3.10% -3.20% -0.20% -0.20% 0.00%
Excess tax benefit from share-based awards -2.20% -3.90% -5.10% -2.20% -3.60%
Sale of businesses and subsidiary restructuring -2.10% 0.70% -2.60% 1.30% 0.00%
Unrecognized tax benefits -2.70% -1.00% -0.10% 0.00% 0.00%
Nondeductible executive compensation 0.70% 2.00% 1.00% 0.20% 0.00%
Valuation Allowance -1.30% -1.70% 0.30% 0.00% 0.00%
Domestic production activities deduction 0.00% 0.00% 0.00% 0.00% -2.00%
Other, net 1.90% -2.00% 0.30% -0.20% 0.20%
Effective income tax rate, before tax expense (benefit) due to federal tax reform 21.80% 16.70% 18.30% 23.10% 31.90%
Tax expense (benefit) due to federal tax reform 0.00% 0.00% 0.00% 1.20% -20.30%
Effective income tax rate 21.80% 16.70% 18.30% 24.30% 11.60%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Effective income tax rate, before tax expense (benefit) due to federal tax reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Fiserv Inc. effective income tax rate, before tax expense (benefit) due to federal tax reform decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Components of Deferred Tax Assets and Liabilities

Fiserv Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Accrued expenses 171 189 303 74 39
Share-based compensation 134 185 216 43 40
Net operating loss and credit carry-forwards 804 1,158 1,444 131 131
Foreign tax credits on undistributed earnings 289
Leasing liabilities 194 171 219
Other 194 76 65 30 33
Deferred tax assets, gross 1,497 1,779 2,536 278 243
Valuation allowance (697) (888) (1,145) (101) (103)
Deferred tax assets 800 891 1,391 177 140
Capitalized software development costs (633) (614) (622) (129) (117)
Intangible assets (2,676) (2,993) (3,297) (437) (455)
Property and equipment (280) (198) (143) (66) (49)
Capitalized commissions (95) (87) (86) (80)
Investments in joint ventures (630) (908) (841) (78)
Leasing right-of-use assets (142) (141) (205)
Other (474) (311) (332) (112) (48)
Deferred tax liabilities (4,930) (5,252) (5,526) (902) (669)
Net deferred tax assets (liabilities) (4,130) (4,361) (4,135) (725) (529)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Fiserv Inc. deferred tax assets, gross decreased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Fiserv Inc. deferred tax assets decreased from 2019 to 2020 and from 2020 to 2021.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Fiserv Inc. net deferred tax assets (liabilities) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Deferred Tax Assets and Liabilities, Classification

Fiserv Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Noncurrent deferred tax assets (included in Other long-term assets) 42 28 112 20 23
Noncurrent deferred tax liabilities 4,172 4,389 4,247 745 552

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Noncurrent deferred tax assets (included in Other long-term assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Fiserv Inc. noncurrent deferred tax assets (included in Other long-term assets) decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Noncurrent deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Fiserv Inc. noncurrent deferred tax liabilities increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjustments to Financial Statements: Removal of Deferred Taxes

Fiserv Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 76,249 74,619 77,539 11,262 10,289
Less: Noncurrent deferred tax assets, net 42 28 112 20 23
Total assets (adjusted) 76,207 74,591 77,427 11,242 10,266
Adjustment to Total Liabilities
Total liabilities (as reported) 44,299 41,290 42,682 8,969 7,558
Less: Noncurrent deferred tax liabilities, net 4,172 4,389 4,247 745 552
Total liabilities (adjusted) 40,127 36,901 38,435 8,224 7,006
Adjustment to Total Fiserv, Inc. Shareholders’ Equity
Total Fiserv, Inc. shareholders’ equity (as reported) 30,952 32,330 32,979 2,293 2,731
Less: Net deferred tax assets (liabilities) (4,130) (4,361) (4,135) (725) (529)
Total Fiserv, Inc. shareholders’ equity (adjusted) 35,082 36,691 37,114 3,018 3,260
Adjustment to Net Income Attributable To Fiserv, Inc.
Net income attributable to Fiserv, Inc. (as reported) 1,334 958 893 1,187 1,246
Add: Deferred income tax expense (benefit) (262) 71 47 133 (247)
Net income attributable to Fiserv, Inc. (adjusted) 1,072 1,029 940 1,320 999

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Fiserv Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Fiserv Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 8.22% 6.45% 8.77% 20.38% 21.88%
Adjusted net profit margin 6.61% 6.93% 9.23% 22.67% 17.54%
Total Asset Turnover
Reported total asset turnover 0.21 0.20 0.13 0.52 0.55
Adjusted total asset turnover 0.21 0.20 0.13 0.52 0.55
Financial Leverage
Reported financial leverage 2.46 2.31 2.35 4.91 3.77
Adjusted financial leverage 2.17 2.03 2.09 3.72 3.15
Return on Equity (ROE)
Reported ROE 4.31% 2.96% 2.71% 51.77% 45.62%
Adjusted ROE 3.06% 2.80% 2.53% 43.74% 30.64%
Return on Assets (ROA)
Reported ROA 1.75% 1.28% 1.15% 10.54% 12.11%
Adjusted ROA 1.41% 1.38% 1.21% 11.74% 9.73%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Fiserv Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Fiserv Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Fiserv Inc. adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Fiserv Inc. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Fiserv Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

Fiserv Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Fiserv, Inc. 1,334 958 893 1,187 1,246
Revenue 16,226 14,852 10,187 5,823 5,696
Profitability Ratio
Net profit margin1 8.22% 6.45% 8.77% 20.38% 21.88%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Fiserv, Inc. 1,072 1,029 940 1,320 999
Revenue 16,226 14,852 10,187 5,823 5,696
Profitability Ratio
Adjusted net profit margin2 6.61% 6.93% 9.23% 22.67% 17.54%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Net profit margin = 100 × Net income attributable to Fiserv, Inc. ÷ Revenue
= 100 × 1,334 ÷ 16,226 = 8.22%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Fiserv, Inc. ÷ Revenue
= 100 × 1,072 ÷ 16,226 = 6.61%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Fiserv Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenue 16,226 14,852 10,187 5,823 5,696
Total assets 76,249 74,619 77,539 11,262 10,289
Activity Ratio
Total asset turnover1 0.21 0.20 0.13 0.52 0.55
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue 16,226 14,852 10,187 5,823 5,696
Adjusted total assets 76,207 74,591 77,427 11,242 10,266
Activity Ratio
Adjusted total asset turnover2 0.21 0.20 0.13 0.52 0.55

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 16,226 ÷ 76,249 = 0.21

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 16,226 ÷ 76,207 = 0.21

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Fiserv Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 76,249 74,619 77,539 11,262 10,289
Total Fiserv, Inc. shareholders’ equity 30,952 32,330 32,979 2,293 2,731
Solvency Ratio
Financial leverage1 2.46 2.31 2.35 4.91 3.77
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 76,207 74,591 77,427 11,242 10,266
Adjusted total Fiserv, Inc. shareholders’ equity 35,082 36,691 37,114 3,018 3,260
Solvency Ratio
Adjusted financial leverage2 2.17 2.03 2.09 3.72 3.15

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Fiserv, Inc. shareholders’ equity
= 76,249 ÷ 30,952 = 2.46

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Fiserv, Inc. shareholders’ equity
= 76,207 ÷ 35,082 = 2.17

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Fiserv Inc. adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Fiserv, Inc. 1,334 958 893 1,187 1,246
Total Fiserv, Inc. shareholders’ equity 30,952 32,330 32,979 2,293 2,731
Profitability Ratio
ROE1 4.31% 2.96% 2.71% 51.77% 45.62%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Fiserv, Inc. 1,072 1,029 940 1,320 999
Adjusted total Fiserv, Inc. shareholders’ equity 35,082 36,691 37,114 3,018 3,260
Profitability Ratio
Adjusted ROE2 3.06% 2.80% 2.53% 43.74% 30.64%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income attributable to Fiserv, Inc. ÷ Total Fiserv, Inc. shareholders’ equity
= 100 × 1,334 ÷ 30,952 = 4.31%

2 Adjusted ROE = 100 × Adjusted net income attributable to Fiserv, Inc. ÷ Adjusted total Fiserv, Inc. shareholders’ equity
= 100 × 1,072 ÷ 35,082 = 3.06%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Fiserv Inc. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Fiserv, Inc. 1,334 958 893 1,187 1,246
Total assets 76,249 74,619 77,539 11,262 10,289
Profitability Ratio
ROA1 1.75% 1.28% 1.15% 10.54% 12.11%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Fiserv, Inc. 1,072 1,029 940 1,320 999
Adjusted total assets 76,207 74,591 77,427 11,242 10,266
Profitability Ratio
Adjusted ROA2 1.41% 1.38% 1.21% 11.74% 9.73%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income attributable to Fiserv, Inc. ÷ Total assets
= 100 × 1,334 ÷ 76,249 = 1.75%

2 Adjusted ROA = 100 × Adjusted net income attributable to Fiserv, Inc. ÷ Adjusted total assets
= 100 × 1,072 ÷ 76,207 = 1.41%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Fiserv Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.