FOUR
I purchased Some FOUR today at $67.29, and in a really shocking development the stock went lower after i brought it. LOL. But without further ado here is what I like.
FOUR is a fantastic growth story in the payment space at 52 week lows. Analyst estimates are for this FY are $5.40 up from $3.89 the year before, with analyst estimates at $6.85 for the next FY, which at this point isn't that far away for a December year ender. This is less than 10x next year eps estimates, which is way too cheap for a company who is growing revs and earnings at this rapid rate. as you can see from the chart below that is rapid revenue growth, you don't generally get to buy revenue growth stories and eps growth stories like this at single digit PE on next year earnings estimates.
FY 26 5.34 Billion (Analyst Estimate)
FY 25 4.25 Billon (Analyst estimate)
FY 24 3,300,600,000
FY 23 2,564,800,000
FY 22 1,993.600,000
FY 21 1,367,500,000
Conclusion: I think FOUR is worthy of a 15X multiple conservatively considering how fast it grows. in the past we have seen it easily get a multiple in the 20's, but even at 15x, that would put FV around $102 using next year earnings estimates. That would be a 50%+ return over the next 6-12 month possibly. Hence I see a lot of upside in this growth story with a badly beaten up stock price. Time will tell. All is just my opinion, and I could always be wrong though.
