Fiserv Inc. (NASDAQ:FISV)

Price to Earnings (P/E) Ratio Trends

The P/E ratio exhibited an upward trajectory from early 2018 through late 2019, starting at approximately 19.88 and peaking above 80. This indicates that the company's stock price increased significantly relative to its earnings during this period. In 2020, the ratio remained volatile but generally high, fluctuating between roughly 66 and 81. By 2021 and early 2022, the P/E ratio declined steadily to about 39.85, suggesting a market revaluation with earnings growth potentially outpacing stock price increases or a correction in valuation.

Price to Operating Profit (P/OP) Ratio Trends

The P/OP ratio followed a pattern akin to the P/E ratio, initially rising from near 16 in early 2018 to peak sharply at approximately 48 in late 2019. This spike reflects a surge in stock price compared to operating profit, possibly due to growth expectations. From 2020 onwards, the ratio demonstrated a downward trend, moderating to around 25 by early 2022, indicating a relative improvement in operating profitability or market value adjustments.

Price to Sales (P/S) Ratio Trends

The P/S ratio showed a moderate increase from about 4.9 in early 2018 to a high near 9.7 in late 2019, suggesting a higher valuation placed on the company’s sales over this period. After reaching this peak, the ratio decreased significantly throughout 2020 and 2021, stabilizing near 4.0 by early 2022. This pattern implies that investor optimism concerning revenue growth diminished or that sales grew to better match market capitalization.

Price to Book Value (P/BV) Ratio Trends

The P/BV ratio experienced an initial increase from approximately 9.5 in early 2018 to a high of 15.8 by mid-2019. However, a dramatic decline occurred thereafter, with the ratio dropping sharply to about 2.3 by late 2019 and maintaining this lower level through early 2022. This substantial reduction indicates a significant shift in how the market values the company’s net assets, possibly due to adjustments in book value accounting, asset revaluation, or a reassessment of growth prospects relative to book equity.

Share Price Trends

The share price exhibited an overall upward trajectory from the first quarter of 2018 through mid-2019, increasing from approximately $69 to a peak above $109. This was followed by a period of volatility with a decline in late 2019 and early 2020, dipping below $95. Subsequently, the share price recovered and reached a higher level close to $123 by the first quarter of 2021. However, from mid-2021 through early 2022, the share price experienced another decline, falling to below $100, before recovering slightly to about $105 by the first quarter of 2022.

Earnings Per Share (EPS) Patterns

EPS showed variability across the years. Starting from a high near $3.6 in 2018, EPS declined substantially through 2019, bottoming near $1.3 by the end of that year. In 2020, EPS remained relatively stable but low, fluctuating around $1.25 to $1.43. Notably, beginning in early 2021, EPS demonstrated a recovery trend, rising gradually each quarter to reach approximately $2.63 by the first quarter of 2022. This indicates a positive earnings rebound after a period of diminished profitability.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio showed significant fluctuations over the period. Starting around 20 in early 2018, the ratio increased steadily, reaching extremely high values above 80 towards the end of 2019. This surge coincided with the decline in EPS, suggesting that the share price was less sensitive to earnings decreases or that investors anticipated future growth. Throughout 2020 and into early 2021, the P/E remained elevated, reaching a peak close to 95. However, from mid-2021 onwards, the ratio declined notably to around 40 by the first quarter of 2022, reflecting the improvement in earnings alongside a moderate share price recovery.

Summary Insights

The data reveals a company experiencing significant fluctuations in earnings and market valuation over the analyzed period. The share price trend generally followed an initial growth phase, interrupted by volatility consistent with broader market or company-specific challenges around 2019 and 2020. Earnings per share showed a marked dip during this period but demonstrated a steady recovery starting in 2021. The P/E ratio’s volatility underscores the impact of changing earnings on valuation metrics, with high P/E multiples during periods of weak earnings and a reversion to lower multiples as earnings recover. This pattern suggests investor optimism regarding future earnings following recent performance improvements.

The analysis of the quarterly financial data reveals several notable trends in the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the observed periods.

Share Price

The share price exhibited an overall upward trend from the first quarter of 2018 through the end of 2019, increasing from approximately 69.03 US$ to a peak of 109.65 US$ in the third quarter of 2019. This was followed by a period of volatility throughout 2020, where the price fluctuated between a low of 93.52 US$ in the third quarter and a high of 115.37 US$ in the fourth quarter, possibly reflecting market uncertainty during this period. In 2021, the share price showed a moderate increase in the early quarters, reaching 123.42 US$ in the first quarter, after which it declined steadily through the end of the year to 95.56 US$ by the fourth quarter of 2021. The first quarter of 2022 showed a recovery to 104.74 US$.

Operating Profit per Share

The operating profit per share displayed relative stability in 2018, ranging roughly between 4.34 US$ and 4.48 US$. However, starting in 2019, a decline was evident, with values decreasing notably in the third and fourth quarters to around 2.30–2.37 US$, representing a significant reduction. Throughout 2020, the operating profit per share hovered between approximately 2.46 US$ and 2.77 US$, indicating a stabilization at the lower level observed in late 2019. In 2021, a recovery trend emerged, with the operating profit rising progressively from 2.55 US$ in the first quarter to 3.51 US$ in the fourth quarter. By the first quarter of 2022, this figure had further improved to 4.11 US$, nearing the levels recorded in early 2018.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio exhibited considerable fluctuation correlating inversely with the changes in operating profit per share. During 2018, the ratio remained relatively stable between approximately 15.92 and 18.93, indicating consistent market valuation relative to operating profit. In 2019, the ratio increased sharply, peaking at 47.73 in the third quarter, which reflected the considerable reduction in operating profit per share amidst relatively high share prices. Through 2020, the P/OP ratio stabilized but remained elevated, fluctuating between 34.56 and 41.7. In 2021, the ratio started high at 48.46 in the first quarter but declined progressively over the year, reaching 27.24 by the fourth quarter, consistent with the recovering operating profit per share. The first quarter of 2022 showed a further decrease to 25.46, suggesting a modestly lower market valuation relative to operating profit compared to the previous year.

In summary, the data indicates that the company experienced a decline in operating profit per share beginning in 2019, with a significant recovery occurring in 2021 and into early 2022. The share price demonstrated volatility especially around 2020, with a peak in early 2021 followed by a decline and partial recovery. The fluctuations in the P/OP ratio reflect these dynamics, with elevated valuations in 2019 and early 2021 relative to operating profit, followed by a normalization trend as profitability improved.

The analysis of the quarterly financial data reveals several notable trends in key performance indicators over the observed period.

Share Price

The share price demonstrated a general upward trend from the beginning of the period until the end of 2019, rising from approximately 69.03 US$ at March 31, 2018 to a peak near 109.65 US$ by September 30, 2019. Subsequently, there was a period of fluctuation and slight decline through 2020, with the price dropping to as low as 93.52 US$ in September 2020 before recovering to about 115.37 US$ at year-end 2020. In 2021, the share price exhibited volatility, reaching a high of 123.42 US$ by March 31, but then experiencing a downward trend to 95.56 US$ by December 31, 2021. The most recent figure as of March 31, 2022 shows a moderate rebound to 104.74 US$.

Sales per Share

Sales per share generally increased over the entire timeframe. Starting at 14.02 US$ in March 2018, sales per share rose steadily with minor anomalies, reaching a low point of 11.31 US$ in September 2019, which appears to be an outlier given the otherwise upward trend. A pronounced increase occurs from early 2020 onward, with sales per share rising sharply to above 22 US$ by December 2020 and continuing to climb beyond 25 US$ by March 2022. This indicates consistent revenue growth on a per-share basis throughout the analysis horizon.

Price-to-Sales (P/S) Ratio

The P/S ratio shows a less stable pattern. Initially, it climbed from about 4.92 in March 2018 to a notable peak of 9.69 in September 2019, suggesting a period when share price appreciation outpaced sales growth. Following this peak, the ratio declined sharply toward the end of 2019 and through 2020, reaching lows around 4.16 by September 2020. Afterward, the P/S ratio oscillated modestly, remaining between approximately 3.84 and 5.55 through early 2022. The decline in P/S ratio after 2019 reflects rapid growth in sales relative to share price, potentially indicating improved valuation based on sales or a market correction.

In summary, the company’s sales per share have shown steady growth, particularly pronounced since 2020. Share price exhibited growth with intermittent periods of volatility and correction, particularly from late 2019 through 2021. The P/S ratio’s rise and subsequent fall highlight shifts in market valuation relative to sales, with a strong expansion phase followed by a recalibration as sales growth accelerated. Overall, the data suggests strengthening operational performance coupled with dynamic stock market valuation adjustments over the period analyzed.

The analysis of the quarterly financial data reveals significant fluctuations and trends in key financial metrics over the observed periods.

Share Price

The share price exhibited an overall upward trend from March 2018 through early 2019, increasing from approximately $69.03 to a peak around $109.65 in September 2019. Following this peak, the share price experienced some volatility, declining gradually through 2020 with a notable dip near September 2020 at $93.52, before rebounding to approximately $115.37 at year-end 2020. In 2021, the share price again showed volatility, reaching a high of $123.42 in March 2021, but then declined steadily to a low near $95.56 by December 2021. Early 2022 data suggests a slight recovery to approximately $104.74.

Book Value Per Share (BVPS)

The book value per share demonstrated a distinct structural change mid-2019. Initially, BVPS values ranged between about $5.86 and $7.26, showing some variation but remaining within a relatively narrow band. Starting from September 2019, a marked increase occurred, with BVPS jumping to the mid-40s ($48.05 to $48.56 range) and maintaining a stable plateau around $47 to $48 throughout late 2019, 2020, and into early 2022. This shift likely reflects a significant corporate event impacting equity and capitalization.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio mirrored the trends observed in share price and BVPS with considerable variation over time. Initially, from March 2018 to June 2019, the ratio was notably high, ranging from approximately 9.5 to 15.8, indicating the share price was significantly higher than the book value per share. However, after the marked increase in BVPS in late 2019, the P/BV ratio sharply declined to approximately 2.2 and remained around 2.0 to 2.6 through early 2022. This decline suggests an adjustment in the market valuation relative to book value, likely due to the jump in book value rather than a share price decrease alone.

In summary, the share price has shown periods of growth, volatility, and some recovery, while the book value per share underwent a notable step increase around late 2019. Correspondingly, the P/BV ratio declined markedly post this change, stabilizing at a much lower level compared to prior periods. These dynamics indicate a significant change in the capital structure or accounting presentation that substantially affected book value and market valuation metrics.