This Fintech Stock Poised for Explosive Growth Could Surge Over 100% by 2028.

Company Overview - Shift4 Payments offers payment-processing hardware and software primarily to high-volume customers in sectors like hospitality and sports venues, which has contributed to its substantial growth [6][7] - The company has experienced a nearly 400% increase in revenue over the past five years, although it operates with lower margins due to its focus on high-volume clients [7] Financial Performance - Shift4's free cash flow has shown consistent improvement, currently generating over $350 million annually, yet its stock price has stagnated, resulting in a price-to-free-cash-flow valuation of 16 [10] - Despite a 6% decline in stock price over the past five years, the S&P 500 has risen by 85%, indicating a significant underperformance relative to the broader market [12] Market Conditions - The fintech sector faced significant challenges in 2025, leading to underperformance compared to the S&P 500, which presents potential investment opportunities in this beaten-down industry [3][5] - Investors have expressed concerns about the fintech sector due to fierce competition and potential disruption from cryptocurrency, which has negatively impacted Shift4's stock [13][14] Debt and Acquisitions - Shift4 has increased its debt levels significantly, particularly after acquiring Global Blue for $2.5 billion, raising concerns about its financial leverage [14] - The company has a high level of debt compared to cash, which could pose risks, although management remains focused on growth rather than immediate debt reduction [16][17] Future Outlook - Management has approved a $1 billion stock buyback program, indicating confidence in the company's business strength and the sustainability of its debt [18] - Shift4 aims for an adjusted free cash flow annual run rate of $1 billion by the end of 2027, which could potentially double its free cash flow by 2028, suggesting significant upside potential for the stock [19][20]