Ticker: FOUR
Market capitalization: $6.1B
Enterprise value: $7.3B
Price: $74 (2/6/24)
What the Company Does
Shift4 provides payment processing solutions and business intelligence software with a focus on the hospitality and entertainment sector, processing over $200B in payments annually for more than 200,000 customers. Shift4 also owns TheGivingBlock, which is the leading facilitator of charitable giving in cryptocurrency. The average cryptocurrency donation is over 30x the size of the average fiat donation, and crypto is the fastest-growing donation method. Shift4 has historically operated in the United States but is now attempting to expand internationally, with an initial focus in Europe.
Why We Own It
Shift4 provides sticky, and likely growing, cash flows at a compelling valuation with an impressive, highly aligned management team in a large addressable market. CEO Jared Isaacman founded the company in his teens and has continued to grow it relentlessly in a capital-efficient way ever since. Over the first fifteen years of the company’s life, Shift4 grew organically with neither outside capital nor acquisitions, and it has increased revenue by a double-digit percentage for 24 consecutive years, including through downturns. Today, the stock trades near its lowest-ever multiples on sales and free cash flow, despite significant prospects for continued growth and potentially rapid profit scaling thanks to operating leverage on prior investments. In addition to the possibility of profit scaling on fixed-cost leverage, the company has four avenues for continued expansion – 1) Growth of their hospitality-centric SkyTab service, 2) International, 3) Upgrading gateway “processing-only” clients to more full-suite software, and 4) New verticals.
How Management Allocates Capital
Management currently has two priorities for free cash flow – 1) M&A, and 2) Share repurchases. The market appears concerned that management will overspend on potential revenue synergies, a risk we believe is mitigated by a public commitment to remain disciplined on prices paid, as well as the aforementioned capital-efficient track record of growth and the CEO’s significant equity stake in the company’s economics (almost 29%).
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FAQs
Credit cards are still the most common online payment method, but digital wallets and other types of payment are becoming more popular every day. With Shift4, you can securely (and instantly) accept many types of payments including credit cards, digital wallets like Apple Pay and Google Pay, and more.
Is Shift4 Payments a good stock to buy? ›
Shift4 Payments has a consensus rating of Strong Buy which is based on 13 buy ratings, 1 hold ratings and 0 sell ratings. What is Shift4 Payments's price target? The average price target for Shift4 Payments is $90.17. This is based on 14 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
What is the story of Shift4 Payments? ›
Shift4 Payments, Inc. is an American payment processing company based in Allentown, Pennsylvania. The company, founded in 1999 by the then 16-year-old Jared Isaacman, processes payments for over 200,000 businesses in the retail, hospitality, leisure and restaurant industries.
What is the price of Shift4? ›
The current price of FOUR is 75.91 USD — it has decreased by −0.28% in the past 24 hours. Watch Shift4 Payments, Inc. stock price performance more closely on the chart.
What companies use Shift4 Payments? ›
Companies Currently Using Shift4
| Company Name | Website | City |
|---|
| Trapp Family Lodge | trappfamily.com | Stowe |
| The Giving Block | thegivingblock.com | Washington, DC |
| Sonesta International Hotels Corporation | sonesta.com | New Orleans |
| Finaro | finaro.com | Herzliyya |
2 more rowsIndustry Comparison
| Company | ESG Risk Rating | Industry Rank |
|---|
| The Western Union Co. | 17.4 Low | 218 out of 1111 |
| Nuvei Corp. | 19.1 Low | 334 out of 1111 |
| Hims & Hers Health, Inc. | 22.9 Medium | 625 out of 1111 |
| Shift4 Payments, Inc. | 28.9 Medium | 1052 out of 1111 |
1 more rowShift4 Payments Inc Class A does not currently pay dividends. Therefore, the dividend yield is 0%.
Is Shift4 Payments profitable? ›
Revenue grew 30% year over year last quarter to $827 million, with net income of $54.5 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $162.4 million. Even though it is investing heavily for growth, Shift4 Payments has been able to remain profitable.
What is the price prediction for Shift4 Payments? ›
Based on short-term price targets offered by 21 analysts, the average price target for Shift4 Payments comes to $89.19. The forecasts range from a low of $53.00 to a high of $106.00. The average price target represents an increase of 17.49% from the last closing price of $75.91.
Who owns Shift4? ›
Jared Isaacman is the founder and CEO of Allentown, Pennsylvania-based payment processing firm Shift4 Payments.
Shift4 Payments Employees
Shift4 Payments had 3,030 employees as of December 31, 2023.
Who are the shareholders of Shift4 Payments? ›
Top Institutional Holders
| Holder | Shares | Date Reported |
|---|
| Blackrock Inc. | 2.86M | Jun 30, 2024 |
| Ameriprise Financial, Inc. | 2.64M | Jun 30, 2024 |
| Jennison Associates LLC | 2.59M | Jun 30, 2024 |
| ClearBridge Investments, LLC | 2.31M | Jun 30, 2024 |
6 more rowsOur touch-free QR code payment option allows customers to simply scan a unique code with their smartphone and complete the payment on their phone. Our innovative SkyTab® mobile solution enables you to accept payment anywhere: at the table, curbside, or on the road for delivery.
What is the transaction fee for Shift4? ›
Shift4 Payments Pricing, Rates & Fees
Shift4 Payments has a batch fee of $0.35 and 1.79% & $0.10 per transaction. Finally, Shift4 requires merchants to return any equipment 15 days before the contract ends, or else it enforces late equipment fees.
What is Shift4 annual revenue? ›
Shift4 Payments annual revenue for 2023 was $2.565B, a 28.65% increase from 2022. Shift4 Payments annual revenue for 2022 was $1.994B, a 45.78% increase from 2021. Shift4 Payments annual revenue for 2021 was $1.368B, a 78.32% increase from 2020.
