Since April 2025, Shift4 has been in a holding pattern, posting a small loss of 3.4% while floating around $76.94. The stock also fell short of the S&P 500’s 24.4% gain during that period.
Is now the time to buy FOUR? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free for active Edge members.
Why Are We Positive On Shift4?
Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE: FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.
1. Skyrocketing Revenue Shows Strong Momentum
Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
Thankfully, Shift4’s 37.4% annualized revenue growth over the last five years was incredible. Its growth surpassed the average financials company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Shift4’s full-year EPS grew at an astounding 110% compounded annual growth rate over the last four years, better than the broader financials sector.
3. Previous Growth Initiatives Are Paying Off
Return on equity, or ROE, tells us how much profit a company generates for each dollar of shareholder equity, a key funding source for banks. Over a long period, banks with high ROE tend to compound shareholder wealth faster through retained earnings, buybacks, and dividends.
Over the last five years, Shift4 has averaged an ROE of 12.3%, respectable for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows Shift4 has a narrow competitive moat.
Final Judgment
These are just a few reasons why Shift4 is a cream-of-the-crop financials company. With its shares underperforming the market lately, the stock trades at 13× forward P/E (or $76.94 per share). Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More Than Shift4
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