FIS – Market expectations are for Uniform ROA to remain stable, but management may be concerned about client wins, volumes, and their investments

• Fidelity National Information Services (FIS:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a Uniform P/E of 38.7x, implying expectations for profitability to remain stable. However, management may be concerned about their ability to sustain client wins and transaction volumes, and about the potential of recent investments
  
  

• Specifically, management might lack confidence in their ability to sustain client wins with their modern banking platform, and may have concerns about their ability to improve their transaction volumes. In addition, they may have concerns about the potential of their investment in next-generation technology, and their ability to drive accelerating growth through investing. Also, they may lack confidence in their ability to leverage their global reach to win a deal with multinationals and global brands, and may have concerns about the sustainability of their customer deal wins with banks and specialty retailers