Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

<ul><li>Before market open on Tuesday, FOUR reported 3Q24 results.</li><li>Total revenue of $909.2 million was marginally lower than our estimate and consensus of $959.5 million and $972.2 million, respectively.</li><li>This was largely due to lower-than-expected E2E volumes of $43.5 billion, which came in ~5% below expectations.</li></ul>

Before market open on Tuesday, FOUR reported 3Q24 results.Total revenue of $909.2 million was marginally lower than our estimate and consensus of $959.5 million and $972.2 million, respectively.This was largely due to lower-than-expected E2E volumes of $43.5 billion, which came in ~5% below expectations.

Shift4 Payments, Inc. - Growth Remains Strong but Shy of Consensus Due to Slower Consumer Spending

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

<ul><li>Shift4 is an integrated payments processor offering basic payments and gateway services, as well as value-added software solutions</li><li>Despite above-market organic growth, Shift4 is trading at a discount compared to peers due to M&amp;A activity and complex reporting</li><li>Founder has potential to lead a management buyout at current valuation levels, presenting a compelling investment opportunity with strong growth potential and strategic value.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Shift4 is an integrated payments processor offering basic payments and gateway services, as well as value-added software solutionsDespite above-market organic growth, Shift4 is trading at a discount compared to peers due to M&amp;A activity and complex reportingFounder has potential to lead a management buyout at current valuation levels, presenting a compelling investment opportunity with strong growth potential and strategic value.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Shift4 Payments Inc (FOUR) - Thursday, Aug 8, 2024

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Shift4 Payments reported its second quarter results for 2024, reflecting robust growth in several key financial metrics, driven by strategic acquisitions and a significant expansion across various verticals both domestically and internationally.</li><li>The company showcased impressive growth in end-to-end payment volume, ascending by 50% year-over-year.</li><li>Gross profit increased by 38%, and gross revenue led by network fees grew by 41%.</li></ul>

Shift4 Payments reported its second quarter results for 2024, reflecting robust growth in several key financial metrics, driven by strategic acquisitions and a significant expansion across various verticals both domestically and internationally.The company showcased impressive growth in end-to-end payment volume, ascending by 50% year-over-year.Gross profit increased by 38%, and gross revenue led by network fees grew by 41%.

Shift4 Payments Inc.: Focus on Organic Growth and Diverse Offerings & Other Major Drivers

<ul><li>Shift4's Q1 2024 financial report reflects significant business activities and strategic moves, indicating both robust performance areas and components meriting caution.</li><li>The company has emphasized growth through diversifying its business lines, strengthening its core offerings of end-to-end payment solutions, and embracing acquisitions and expansions into new markets.</li><li>Key financial figures support this growth trajectory, with a 50% increase in end-to-end payment volume, and a 27% rise in gross profit.</li></ul>

Shift4's Q1 2024 financial report reflects significant business activities and strategic moves, indicating both robust performance areas and components meriting caution.The company has emphasized growth through diversifying its business lines, strengthening its core offerings of end-to-end payment solutions, and embracing acquisitions and expansions into new markets.Key financial figures support this growth trajectory, with a 50% increase in end-to-end payment volume, and a 27% rise in gross profit.

Shift4 Payments Inc.: Expansion of European Market Presence Through Vectron! - Major Drivers

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Event-Driven

<ul>
<li>We explore Klarna’s and Stripe’s IPO prospects and valuations based on recent share transactions; Nuvei and Cielo are close to being taken private, with Worldpay now controlled by private equity</li>
<li>Nuvei and Worldpay both grew by acquisition but failed to deliver on the market’s expected returns, in our view, ending up under PE ownership; is Nexi a potential PE target?</li>
<li>We retain Visa as a core holding and also keep PagSeguro and PayPal as buys, replacing Cielo with new peer group addition Shift4; we keep our sell rating on Affirm</li>
</ul>


We explore Klarna’s and Stripe’s IPO prospects and valuations based on recent share transactions; Nuvei and Cielo are close to being taken private, with Worldpay now controlled by private equity
Nuvei and Worldpay both grew by acquisition but failed to deliver on the market’s expected returns, in our view, ending up under PE ownership; is Nexi a potential PE target?
We retain Visa as a core holding and also keep PagSeguro and PayPal as buys, replacing Cielo with new peer group addition Shift4; we keep our sell rating on Affirm


Payment Companies – Potential IPOs, Select Companies Being Taken Private and Sector Overview

United States

Shift4 Payments, Inc. provides payment processing solutions. The Company offers software for transaction and money transfer activities. Shift4 Payments serves customers in the United States.

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Shift4 Payments (FOUR US)

Shift4 Payments, Inc. - Growth Remains Strong but Shy of Consensus Due to Slower Consumer Spending

Total revenue of $909.2 million was marginally lower than our estimate and consensus of $959.5 million and $972.2 million, respectively.

Water Tower Research

Shift4 Payments Inc (FOUR) - Thursday, Aug 8, 2024

Shift4 is an integrated payments processor offering basic payments and gateway services, as well as value-added software solutions

Value Investors Club

Shift4 Payments Inc.: Focus on Organic Growth and Diverse Offerings & Other Major Drivers

Shift4 Payments reported its second quarter results for 2024, reflecting robust growth in several key financial metrics, driven by strategic...

Baptista Research

Shift4 Payments Inc.: Expansion of European Market Presence Through Vectron! - Major Drivers

Shift4's Q1 2024 financial report reflects significant business activities and strategic moves, indicating both robust performance areas and...

Baptista Research

Payment Companies – Potential IPOs, Select Companies Being Taken Private and Sector Overview

In payments, PagSeguro, Visa, PayPal and Shift4 are buys while Affirm remains a sell. Klarna and Stripe prep for their IPOs, Nuvei and Cielo are...

Victor Galliano

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