Fidelity National Information Services Inc. (NYSE:FIS)

Net earnings (loss) attributable to FIS common stockholders

The net earnings show a declining trend from 2018 to 2020, dropping from 846 million US dollars in 2018 to 158 million US dollars in 2020. There is a partial recovery in 2021, with net earnings increasing to 417 million US dollars. However, the figure experiences a substantial reversal in 2022, resulting in a significant net loss of 16,720 million US dollars.

Earnings before tax (EBT)

Earnings before tax mirror the pattern observed in net earnings. Starting at 1,089 million US dollars in 2018, the EBT declines sharply to 260 million US dollars in 2020. There is a recovery in 2021, with EBT rising to 795 million US dollars, followed by a steep decline to a negative 16,331 million US dollars in 2022.

Earnings before interest and tax (EBIT)

EBIT decreases progressively from 1,403 million US dollars in 2018 to 599 million US dollars in 2020. A noticeable improvement occurs in 2021, where EBIT reaches 1,011 million US dollars. Nevertheless, 2022 shows a drastic downturn with EBIT falling to a negative 16,031 million US dollars.

Earnings before interest, tax, depreciation and amortization (EBITDA)

EBITDA presents a contrasting trend initially, increasing from 2,823 million US dollars in 2018 to 5,026 million US dollars in 2021. The growth primarily occurs between 2019 and 2021, with the figure rising from 3,236 million US dollars to 5,026 million US dollars. However, in 2022, EBITDA turns sharply negative, reaching negative 12,185 million US dollars.

Summary of trends

Across all metrics, the period from 2018 to 2020 is characterized by declining profitability, with the lowest points generally in 2020. A recovery phase is evident in 2021, indicated by improvements in all earnings measures. The year 2022 is marked by a significant financial downturn, with all profitability metrics turning sharply negative, suggesting extraordinary losses or impairments that severely impacted financial performance.

The financial data reveals several notable trends over the five-year period analyzed. Enterprise value (EV) and earnings before interest, tax, depreciation, and amortization (EBITDA) exhibit considerable fluctuations that impact key valuation metrics.

Enterprise Value (EV)

The enterprise value demonstrated a sharp increase from the end of 2018 to 2019, rising from approximately $42.9 billion to $115.7 billion. Following this peak, EV declined steadily over the next three years, reaching $56.1 billion by the end of 2022. This significant rise and subsequent decline may indicate periods of market revaluation, acquisition activity, or shifts in investor sentiment.

EBITDA

EBITDA exhibited a consistent upward trend from 2018 through 2021, growing from roughly $2.8 billion to $5.0 billion, indicating improving operational performance over this period. However, in 2022, there was a dramatic reversal, with EBITDA turning significantly negative (approximately -$12.2 billion). This major downturn signals substantial operational difficulties or non-recurring charges impacting profitability.

EV/EBITDA Ratio

The EV/EBITDA ratio spiked significantly in 2019, peaking at 35.75, which reflects the steep increase in enterprise value combined with a modest increase in EBITDA. The ratio then declined steadily to 14.84 by 2021, corresponding with a stable increase in EBITDA and a declining EV. No ratio is provided for 2022, likely due to the negative EBITDA, which complicates meaningful valuation comparisons for that year.

Overall, the data highlights a period of initial growth and high valuation multiples followed by decreasing enterprise value and a severe decline in earnings, leading to a negative EBITDA in the latest period. The abrupt operational and valuation shifts in the final year require further investigation to understand underlying causes such as one-time charges, restructuring, or other adverse events.