What happened
According to an SEC filing dated May 8, 2026, Emeth Value Capital, LLC initiated a new position by purchasing 107,016 shares of Shift4 Payments (FOUR +2.81%). The estimated transaction value is $5.91 million, calculated using the average closing price over the January-March 2026 quarter. The quarter-end value of this stake was $4.68 million, reflecting both the share purchase and price movement during the period.
What else to know
This new position in Shift4 Payments represents 7.09% of Emeth Value Capital, LLC's 13F reportable assets as of March 31, 2026.
- Top holdings after the filing:
- Driven Brands: $50.35 million (76.3% of AUM)
- Burford Capital: $6.53 million (9.9% of AUM)
- Shift4 Payments: $4.70 million (7.0% of AUM)
- Vivid Seats: $4.41 million (6.7% of AUM)
As of May 14, 2026, Shift4 Payments shares were priced at $41.93, down 54.4% over the past year, underperforming the S&P 500 by 82 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4.45 billion |
| Net Income (TTM) | $138.5 million |
| Price (as of 2026-05-14) | $41.93 |
| One-Year Price Change | (54.44%) |
Company Snapshot
Shift4 Payments:
- Offers integrated payment processing, point-of-sale solutions, eCommerce platforms, and business intelligence tools for merchants, hospitality, stadiums, and entertainment venues.
- Generates revenue primarily through transaction-based fees, software subscriptions, and value-added services embedded in its proprietary payment ecosystem.
- Serves merchants of varying sizes across the United States, with a focus on hospitality, retail, e-commerce, and large venue operators.
Shift4 Payments is a technology-driven provider of integrated payment processing and software solutions, supporting over $4 billion in annual revenue. The company's strategy centers on delivering a unified commerce platform that streamlines payment acceptance and business operations for merchants across multiple verticals. With scalable infrastructure and a broad suite of value-added services, Shift4 aims to differentiate itself through seamless integrations, robust security, and end-to-end customer support.
What this transaction means for investors
Emeth Value Capital likes to buy small-cap stocks it believes are mispriced, and I can’t help but think their opening purchase of Shift4 Payments fits this description very well. The company is the No. 2 payments provider in the restaurant industry (trailing only Toast), and holds the No. 1 spot in U.S. hospitality, U.S. sports and entertainment, and global luxury retail.
Despite its leadership position -- and a 32% sales growth rate in the last quarter (11% excluding its recent Global Blue acquisition) -- Shift4 Payments trades at 8 times free cash flow and has a similar EV/EBITDA ratio of 8. This combination of cheap valuation and steady growth makes it an excellent fit for Emeth Value Capital, in my opinion, and I really like the stock myself.
That said, the company has a net debt balance of over $3 billion, versus a market cap of just $3.3 billion, following the stock’s 60% decline from its 52-week high. Interested investors will want to make sure the stock remains solidly profitable and capable of paying down this debt over time -- but as of now, this doesn’t appear to be a major obstacle, considering Shift4 Payments has delivered positive net income and FCF for four years straight.
Innovating within each of its verticals, expanding beyond 75 countries, and trading at just 7.5 times management’s EPS guidance for this year, Shift4 Payments offers an alluring risk-reward ratio for investors, and I’ll likely continue buying alongside Emeth over the upcoming months.
