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FOUR (Shift4 Payments) Piotroski F-Score : 6 (As of Oct. 31, 2024)


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What is Shift4 Payments Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Shift4 Payments has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Shift4 Payments's Piotroski F-Score or its related term are showing as below:

FOUR' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 7   Max: 8
Current: 6

During the past 6 years, the highest Piotroski F-Score of Shift4 Payments was 8. The lowest was 3. And the median was 7.


Shift4 Payments Piotroski F-Score Historical Data

The historical data trend for Shift4 Payments's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Shift4 Payments Piotroski F-Score Chart

Shift4 Payments Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial N/A 4.00 3.00 7.00 8.00

Shift4 Payments Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 8.00 7.00 6.00

Competitive Comparison of Shift4 Payments's Piotroski F-Score

For the Software - Infrastructure subindustry, Shift4 Payments's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Shift4 Payments's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, Shift4 Payments's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Shift4 Payments's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 32.6 + 13.7 + 20.6 + 39.2 = $106 Mil.
Cash Flow from Operations was 111.7 + 105.3 + 56.7 + 116.1 = $390 Mil.
Revenue was 675.4 + 705.4 + 707.4 + 827 = $2,915 Mil.
Gross Profit was 180.3 + 195.2 + 187.8 + 231.8 = $795 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(2590.6 + 2649.9 + 3387.8 + 3407.8 + 3494.2) / 5 = $3106.06 Mil.
Total Assets at the begining of this year (Jun23) was $2,591 Mil.
Long-Term Debt & Capital Lease Obligation was $1,779 Mil.
Total Current Assets was $928 Mil.
Total Current Liabilities was $686 Mil.
Net Income was 43.1 + 29.2 + 14.8 + 25.1 = $112 Mil.

Revenue was 547.3 + 537.7 + 547 + 637 = $2,269 Mil.
Gross Profit was 135.7 + 144.1 + 145.4 + 166.9 = $592 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(2299.6 + 2485.7 + 2554 + 2614.9 + 2590.6) / 5 = $2508.96 Mil.
Total Assets at the begining of last year (Jun22) was $2,300 Mil.
Long-Term Debt & Capital Lease Obligation was $1,765 Mil.
Total Current Assets was $973 Mil.
Total Current Liabilities was $300 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Shift4 Payments's current Net Income (TTM) was 106. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Shift4 Payments's current Cash Flow from Operations (TTM) was 390. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=106.1/2590.6
=0.04095576

ROA (Last Year)=Net Income/Total Assets (Jun22)
=112.2/2299.6
=0.04879109

Shift4 Payments's return on assets of this year was 0.04095576. Shift4 Payments's return on assets of last year was 0.04879109. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Shift4 Payments's current Net Income (TTM) was 106. Shift4 Payments's current Cash Flow from Operations (TTM) was 390. ==> 390 > 106 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=1778.7/3106.06
=0.57265475

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=1764.5/2508.96
=0.70327945

Shift4 Payments's gearing of this year was 0.57265475. Shift4 Payments's gearing of last year was 0.70327945. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=927.7/686.3
=1.35174122

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=973.3/300.4
=3.24001332

Shift4 Payments's current ratio of this year was 1.35174122. Shift4 Payments's current ratio of last year was 3.24001332. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Shift4 Payments's number of shares in issue this year was 67.255. Shift4 Payments's number of shares in issue last year was 60.235. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=795.1/2915.2
=0.27274286

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=592.1/2269
=0.26095196

Shift4 Payments's gross margin of this year was 0.27274286. Shift4 Payments's gross margin of last year was 0.26095196. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=2915.2/2590.6
=1.12529916

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=2269/2299.6
=0.98669334

Shift4 Payments's asset turnover of this year was 1.12529916. Shift4 Payments's asset turnover of last year was 0.98669334. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Shift4 Payments has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Shift4 Payments  (NYSE:FOUR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Shift4 Payments Piotroski F-Score Related Terms

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Shift4 Payments Business Description

Traded in Other Exchanges
Address
3501 Corporate Parkway, Center Valley, PA, USA, 18034
Shift4 Payments Inc is provider of integrated payment processing and technology solutions. The company offers software providers a single integration to an end-to-end payments offering, a powerful gateway and a robust suite of technology solutions (including cloud enablement, business intelligence, analytics, and mobile) to enhance the value of their software suites and simplify payment acceptance. The company derives maximum revenue from United States.
Executives
Jordan Frankel officer: GC & Corporate Secretary C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Nancy Disman director 57 ROUND TREE DRIVE, MELVILLE NY 11747
David Taylor Lauber officer: Chief Strategy Officer C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Sarah Goldsmith-grover director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Jared Isaacman director, 10 percent owner, officer: Chairman & CEO C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Sam Bakhshandehpour director THE NEW HOME COMPANY, 95 ENTERPRISE, SUITE 325, ALISO VIEJO CA 92656
Karen Roter Davis director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING ST, ALLENTOWN PA 18109
Searchlight Capital Partners Ii Gp, Llc 10 percent owner 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Bradley Herring officer: CFO C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 16109
Searchlight Ii Gwn Gp, Llc 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P.., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Donald Isaacman director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Ii Gwn, L.p. 10 percent owner 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Kevin J. Cronic officer: Chief System Architect C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Capital Ii Pv, L.p. 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Steven M. Sommers officer: Chief Application Architect C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109