Should I Buy Fizzerve (FISV)? Finance YouTuber Analysis

The analyst is avoiding Fiserv despite its low valuation (8x earnings, 6x free cash flow) due to declining fundamentals, contracting margins, and significant debt. He highlights concerns about the company raising debt to fund share buybacks while its business is struggling, suggesting it's not a high-quality investment.

“So ultimately, I am not interested in this one. I do understand that its multiple is very very low, but it seems like the underlying business is not high quality and is being disrupted in some way.”

The YouTuber notes Fiserv's significant decline and low P/E ratio of eight, aligning with Michael Burry's full position. He points to the company's targeted EPS of $12 by 2028, which would imply a P/E of four and a potential 3x return. The company's strong free cash flow and entrenched position in fintech provide a margin of safety.

“If they hit those 12, the stock will be at 150, 160, and that's a 3x return.”