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EML Payments

ASX:EML
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EML
ASX
A$813M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

EML Payments Limited provides prepaid payment services in Australia, Europe, and North America. The last earnings update was 144 days ago. More info.


Add to Portfolio Compare Print
  • EML Payments has significant price volatility in the past 3 months.
EML Share Price and Events
7 Day Returns
1.9%
ASX:EML
-0.6%
AU IT
0%
AU Market
1 Year Returns
113.2%
ASX:EML
10.1%
AU IT
4.8%
AU Market
EML Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
EML Payments (EML) 1.9% 5.9% 86.2% 113.2% 123.4% 414.3%
AU IT -0.6% 2.6% -0.2% 10.1% 47.6% 44.2%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • EML outperformed the IT industry which returned 10.1% over the past year.
  • EML outperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
EML
Industry
5yr Volatility vs Market

Value

 Is EML Payments undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of EML Payments to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for EML Payments.

ASX:EML Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:EML
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 30%) (0%))
0.99
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.99 * 5.96%)
8.22%

Discounted Cash Flow Calculation for ASX:EML using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for EML Payments is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:EML DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.22%)
2020 22.30 Analyst x3 20.61
2021 33.93 Analyst x3 28.98
2022 44.00 Est @ 29.68% 34.72
2023 53.45 Est @ 21.47% 38.97
2024 61.85 Est @ 15.72% 41.68
2025 69.09 Est @ 11.7% 43.02
2026 75.22 Est @ 8.88% 43.28
2027 80.42 Est @ 6.91% 42.76
2028 84.87 Est @ 5.53% 41.70
2029 88.74 Est @ 4.57% 40.30
Present value of next 10 years cash flows A$376.02
ASX:EML DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$88.74 × (1 + 2.31%) ÷ (8.22% – 2.31%)
A$1,538.05
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,538.05 ÷ (1 + 8.22%)10
A$698.37
ASX:EML Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$376.02 + A$698.37
A$1,074.39
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,074.39 / 250.95
A$4.28
ASX:EML Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$4.28
Current discount Discount to share price of A$3.24
= -1 x (A$3.24 - A$4.28) / A$4.28
24.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price EML Payments is available for.
Intrinsic value
24%
Share price is A$3.24 vs Future cash flow value of A$4.28
Current Discount Checks
For EML Payments to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • EML Payments's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • EML Payments's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for EML Payments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are EML Payments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:EML PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.01
ASX:EML Share Price ** ASX (2019-07-19) in AUD A$3.24
Australia IT Industry PE Ratio Median Figure of 17 Publicly-Listed IT Companies 20.72x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of EML Payments.

ASX:EML PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:EML Share Price ÷ EPS (both in AUD)

= 3.24 ÷ 0.01

290.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EML Payments is overvalued based on earnings compared to the AU IT industry average.
  • EML Payments is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does EML Payments's expected growth come at a high price?
Raw Data
ASX:EML PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 290.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
66.9%per year
Australia IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.21x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:EML PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 290.87x ÷ 66.9%

4.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EML Payments is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on EML Payments's assets?
Raw Data
ASX:EML PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.56
ASX:EML Share Price * ASX (2019-07-19) in AUD A$3.24
Australia IT Industry PB Ratio Median Figure of 32 Publicly-Listed IT Companies 2.99x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:EML PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:EML Share Price ÷ Book Value per Share (both in AUD)

= 3.24 ÷ 0.56

5.83x

* Primary Listing of EML Payments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EML Payments is overvalued based on assets compared to the AU IT industry average.
X
Value checks
We assess EML Payments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. EML Payments has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is EML Payments expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
66.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is EML Payments expected to grow at an attractive rate?
  • EML Payments's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • EML Payments's earnings growth is expected to exceed the Australia market average.
  • EML Payments's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:EML Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:EML Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 66.9%
ASX:EML Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 19.7%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 26.1%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 18.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:EML Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:EML Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 261 1
2023-06-30 215 1
2022-06-30 176 1
2021-06-30 134 38 28 5
2020-06-30 116 28 19 5
2019-06-30 93 23 9 5
ASX:EML Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 80 27 3
2018-09-30 75 17 2
2018-06-30 71 6 2
2018-03-31 67 6 1
2017-12-31 64 6 1
2017-09-30 61 13 0
2017-06-30 58 19 0
2017-03-31 52 15 0
2016-12-31 45 11 1
2016-09-30 34 7 0
2016-06-30 23 2 0
2016-03-31 22 2 2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • EML Payments's earnings are expected to grow significantly at over 20% yearly.
  • EML Payments's revenue is expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:EML Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from EML Payments Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:EML Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30
2021-06-30 0.11 0.13 0.09 5.00
2020-06-30 0.08 0.09 0.07 5.00
2019-06-30 0.03 0.04 0.03 4.00
ASX:EML Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.01
2018-09-30 0.01
2018-06-30 0.01
2018-03-31 0.01
2017-12-31 0.00
2017-09-30 0.00
2017-06-30 0.00
2017-03-31 0.00
2016-12-31 0.00
2016-09-30 0.00
2016-06-30 0.00
2016-03-31 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • EML Payments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess EML Payments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
EML Payments has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has EML Payments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare EML Payments's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • EML Payments has delivered over 20% year on year earnings growth in the past 5 years.
  • EML Payments's 1-year earnings growth exceeds its 5-year average (315.3% vs 55.2%)
  • EML Payments's earnings growth has exceeded the AU IT industry average in the past year (315.3% vs 50.5%).
Earnings and Revenue History
EML Payments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from EML Payments Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:EML Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 79.97 2.74 33.01
2018-09-30 75.50 2.47 31.57
2018-06-30 71.02 2.21 30.13
2018-03-31 67.39 1.43 29.53
2017-12-31 63.76 0.66 28.93
2017-09-30 60.86 0.33 29.12
2017-06-30 57.96 0.01 29.32
2017-03-31 51.58 0.42 25.68
2016-12-31 45.19 0.84 22.05
2016-09-30 34.25 0.46 17.19
2016-06-30 23.31 0.09 12.33
2016-03-31 21.61 2.00 13.22
2015-12-31 19.92 3.92 14.11
2015-09-30 17.18 3.39 13.00
2015-06-30 14.44 2.86 11.90
2015-03-31 11.14 -0.41 9.28
2014-12-31 7.85 -3.68 6.66
2014-09-30 6.52 -4.55 6.55
2014-06-30 5.18 -5.41 6.44
2014-03-31 5.11 -4.65 6.13
2013-12-31 5.04 -3.90 5.82
2013-09-30 5.04 -4.63 6.33
2013-06-30 5.03 -5.36 6.83
2013-03-31 4.79 -7.09 6.87
2012-12-31 4.55 -8.82 6.92
2012-09-30 4.16 -9.42 6.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • EML Payments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • EML Payments used its assets less efficiently than the AU IT industry average last year based on Return on Assets.
  • EML Payments has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess EML Payments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
EML Payments has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is EML Payments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up EML Payments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • EML Payments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • EML Payments's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of EML Payments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • EML Payments has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from EML Payments Company Filings, last reported 6 months ago.

ASX:EML Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 140.66 0.00 50.11
2018-09-30 140.66 0.00 50.11
2018-06-30 129.77 0.00 39.01
2018-03-31 129.77 0.00 39.01
2017-12-31 125.94 0.00 34.70
2017-09-30 125.94 0.00 34.70
2017-06-30 120.58 0.00 39.87
2017-03-31 120.58 0.00 39.87
2016-12-31 122.14 0.00 31.81
2016-09-30 122.14 0.00 31.81
2016-06-30 119.21 0.00 26.94
2016-03-31 119.21 0.00 26.94
2015-12-31 54.98 0.00 4.09
2015-09-30 54.98 0.00 4.09
2015-06-30 52.58 0.00 4.26
2015-03-31 52.58 0.00 4.26
2014-12-31 42.84 0.00 5.29
2014-09-30 42.84 0.00 5.29
2014-06-30 16.71 0.00 4.50
2014-03-31 16.71 0.00 4.50
2013-12-31 18.99 0.00 6.43
2013-09-30 18.99 0.00 6.43
2013-06-30 13.65 0.00 1.36
2013-03-31 13.65 0.00 1.36
2012-12-31 14.96 0.35 2.86
2012-09-30 14.96 0.35 2.86
  • EML Payments has no debt.
  • EML Payments had no debt 5 years ago.
  • EML Payments has no debt, it does not need to be covered by operating cash flow.
  • EML Payments has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess EML Payments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. EML Payments has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is EML Payments's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from EML Payments dividends. Estimated to be 0% next year.
If you bought A$2,000 of EML Payments shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate EML Payments's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate EML Payments's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:EML Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:EML Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30
2021-06-30 0.00 1.00
2020-06-30 0.00 1.00
2019-06-30 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as EML Payments has not reported any payouts.
  • Unable to verify if EML Payments's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of EML Payments's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as EML Payments has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of EML Payments's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess EML Payments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can EML Payments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. EML Payments has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of EML Payments's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Cregan
COMPENSATION A$776,038
AGE 48
TENURE AS CEO 7.3 years
CEO Bio

Mr. Thomas Anthony Cregan, also known as Tom, has been the Chief Executive Officer of EML Payments Ltd (formerly, Emerchants Limited) since April 2, 2012 and has been its Managing Director since August 27, 2012. Mr. Cregan has been Strategic Corporate Advisor of BidEnergy Limited since June 2017. He served as the Managing Director for Australia and Vice President of E-pay Ltd since February 2003. Mr. Cregan served as the Executive Vice President of Sales and Distribution at NetSpend Corporation and Netspend Holdings, Inc. since July 2008 and was responsible for its check cashing, payday loan and general retail channels. He served as the General Manager of NetSpend Corporation since July 2008. From March 2008 to June 2008, Mr. Cregan served as Managing Director of International at NetSpend and was responsible for evaluating international market opportunities. From 2005 to 2008, He served as the President of PaySpot, Inc., renamed E-pay Americas, a wholly-owned subsidiary of Euronet Worldwide, Inc. Mr. Cregan was responsible for establishing the e-pay presence in Australia in 2000 and led e-pay to gain a majority of the Australian Electronic Top-up market share in two years. Mr. Cregan joined Euronet following the acquisition of his company, epay Australia and New Zealand Pty. Ltd., which he founded and served as Managing Director from inception in November 1999 to December 2004. He held sales and channel management roles for Westpac Banking, Optus Communications Ltd and Mobil Oil Australia Ltd. He has more than 16 years of relevant leadership experience in the technology industry. He serves as a Director of Emerchants Limited since August 27, 2012 and Email Pty Ltd. Mr. Cregan holds a Bachelor of Business Degree and an MBA from Monash University and has an international business certificate from INSEAD Institute.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tom's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the EML Payments management team in years:

1.1
Average Tenure
  • The average tenure for the EML Payments management team is less than 2 years, this suggests a new team.
Management Team

Tom Cregan

TITLE
CEO, MD & Director
COMPENSATION
A$776K
AGE
48
TENURE
7.3 yrs

Eric Mettemeyer

TITLE
Chief Corporate Development Officer
COMPENSATION
A$2M

Kristen Shaw

TITLE
Group Chief People & Culture Officer
COMPENSATION
A$36K
TENURE
0.9 yrs

Andrew Betts

TITLE
Group Chief Risk & Regulatory Officer
COMPENSATION
A$503K
TENURE
6 yrs

Brandon Thompson

TITLE
Chief Commercial Officer
COMPENSATION
A$490K
TENURE
1.1 yrs

Stuart Green

TITLE
Chief Executive Officer of Europe
COMPENSATION
A$492K
TENURE
2.5 yrs

Rachelle Ledger

TITLE
Chief Executive Officer of Australia
COMPENSATION
A$488K
TENURE
2.8 yrs

Rob Shore

TITLE
Group Chief Financial Officer
TENURE
0.7 yrs

Jason Nadler

TITLE
Chief Technology Officer
TENURE
0.5 yrs

Paul Wenk

TITLE
Group General Counsel & Company Secretary
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the EML Payments board of directors in years:

4.4
Average Tenure
48
Average Age
  • The tenure for the EML Payments board of directors is about average.
Board of Directors

Peter Martin

TITLE
Non-Executive Chairman
COMPENSATION
A$164K
TENURE
4.4 yrs

Tom Cregan

TITLE
CEO, MD & Director
COMPENSATION
A$776K
AGE
48

Tony Adcock

TITLE
Independent Non-Executive Director
COMPENSATION
A$93K
TENURE
7.7 yrs

Kirstin Ferguson

TITLE
Independent Non-Executive Director
AGE
46
TENURE
1.4 yrs

David Liddy

TITLE
Independent Non-Executive Director
COMPENSATION
A$94K
AGE
69
TENURE
7.3 yrs

Melanie Wilson

TITLE
Independent Non-Executive Director
COMPENSATION
A$33K
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
30. May 19 Sell Challenger Limited Company 09. Nov 17 30. Apr 19 -1,787,685 A$1.72 A$-3,081,097
30. May 19 Buy Challenger Limited Company 25. Jul 17 28. May 19 5,400,620 A$2.03 A$10,970,995
30. May 19 Sell Perennial Investment Partners Limited Company 18. Mar 19 28. May 19 -4,640,629 A$2.69 A$-11,944,993
30. May 19 Buy Perennial Investment Partners Limited Company 22. Mar 19 23. Apr 19 436,047 A$1.83 A$770,551
15. Mar 19 Sell Perennial Investment Partners Limited Company 13. Mar 19 13. Mar 19 -4,000,000 A$1.71 A$-6,824,951
15. Mar 19 Sell Tribeca Investment Partners Pty Ltd. Company 05. Sep 18 13. Mar 19 -1,127,755 A$1.71 A$-1,855,069
15. Mar 19 Buy Tribeca Investment Partners Pty Ltd. Company 09. Sep 18 12. Nov 18 736,753 A$1.62 A$1,191,176
07. Mar 19 Buy Peter Martin Individual 05. Mar 19 07. Mar 19 850,000 A$1.70 A$1,447,084
14. Dec 18 Sell UBS Asset Management Company 29. Nov 18 12. Dec 18 -2,719,501 A$1.37 A$-3,725,999
14. Dec 18 Buy UBS Asset Management Company 29. Nov 18 12. Dec 18 74,606 A$1.49 A$111,389
02. Dec 18 Sell UBS Asset Management Company 30. Jul 18 28. Nov 18 -4,003,217 A$1.59 A$-6,381,982
02. Dec 18 Buy UBS Asset Management Company 30. Jul 18 28. Nov 18 8,057,031 A$1.59 A$12,798,389
03. Dec 18 Buy Perennial Investment Partners Limited Company 25. Oct 18 29. Nov 18 2,722,399 A$1.60 A$4,118,397
26. Nov 18 Sell Anthony Adcock Individual 20. Nov 18 21. Nov 18 -184,593 A$1.50 A$-276,391
26. Oct 18 Sell Perennial Investment Partners Limited Company 17. Sep 18 17. Sep 18 -175,891 A$1.71 A$-300,129
26. Oct 18 Buy Perennial Investment Partners Limited Company 06. Sep 18 24. Oct 18 2,940,858 A$1.63 A$4,713,812
10. Sep 18 Buy Tribeca Investment Partners Pty Ltd. Company 29. May 18 07. Sep 18 1,183,253 A$1.75 A$1,992,774
06. Sep 18 Sell Perennial Investment Partners Limited Company 04. Sep 18 04. Sep 18 -2,925,967 A$1.68 A$-4,913,310
04. Sep 18 Sell Perennial Investment Partners Limited Company 13. Jun 18 31. Aug 18 -3,826,059 A$1.67 A$-6,396,122
04. Sep 18 Buy Perennial Investment Partners Limited Company 31. May 18 30. Aug 18 1,288,448 A$1.27 A$1,639,146
27. Aug 18 Buy Melanie Wilson Individual 22. Aug 18 22. Aug 18 40,000 A$1.80 A$71,960
X
Management checks
We assess EML Payments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. EML Payments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Closer Look At EML Payments Limited's (ASX:EML) Uninspiring ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.017 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Who Are EML Payments Limited's (ASX:EML) Major Shareholders?

I am going to take a deep dive into EML Payments Limited’s (ASX:EML) most recent ownership structure, not a frequent subject of discussion among individual investors. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices. … Therefore, it is beneficial for us to examine EML's ownership structure in more detail.

Simply Wall St -

How Does EML Payments Limited (ASX:EML) Affect Your Portfolio Returns?

If you are looking to invest in EML Payments Limited’s (ASX:EML), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … Generally, an investor should consider two types of risk that impact the market value of EML. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one.

Simply Wall St -

Interested In EML Payments Limited (ASX:EML)? Here's How It Performed Recently

Today I will take a look at EML Payments Limited's (ASX:EML) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the consumer finance industry performed. … Was EML weak performance lately part of a long-term decline. … EML recently turned a profit of AU$660.00k (most recent trailing twelve-months) compared to its average loss of -AU$3.07m over the past five years

Simply Wall St -

EML Payments Limited's (ASX:EML) Earnings Dropped -21.34%, How Did It Fare Against The Industry?

Today I will take a look at EML Payments Limited's (ASX:EML) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the consumer finance industry performed. … Check out our latest analysis for EML Payments Was EML's recent earnings decline worse than the long-term trend and the industry? … To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data.

Simply Wall St -

EML Payments Limited (ASX:EML) Investors Are Paying Above The Intrinsic Value

Looking at data points like book values, on top of the return and cost of equity, can be appropriate for calculating EML’s intrinsic value. … The returns in excess of cost of equity is called excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (13.21% – 8.55%) * A$0.51 = A$0.02 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = A$0.02 / (8.55% – 2.76%) = A$0.41 These factors are combined to calculate the true value of EML's stock: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = A$0.51 + A$0.41 = A$0.92 Relative to today's price of A$1.27, EML is priced above its true value.

Simply Wall St -

EML Payments Limited (ASX:EML): Can Growth Justify Its March Share Price?

The stock is trading at a lofty price-to-earnings (PE) ratio of 477.26x, telling us that EML Payments is overvalued based on current earnings compared to the consumer finance industry average of 16.91x , and overvalued compared to the AU market average ratio of 17.7x. … ASX:EML PE PEG Gauge Mar 15th 18 After looking at EML's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … This tells us that when we include its growth in our analysis EML Payments's stock can be considered highly overvalued , based on its fundamentals.

Simply Wall St -

Should You Buy EML Payments Limited (ASX:EML) Now?

EML Payments Limited (ASX:EML), a consumer finance company based in Australia, saw significant share price volatility over the past couple of months on the ASX, rising to the highs of A$2.03 and falling to the lows of A$1.3. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … EML’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

With A -89.77% Earnings Drop Lately, Did EML Payments Limited (ASX:EML) Underperform Its Industry?

Below, I assess EML's latest performance announced on 30 June 2017 and evaluate these figures to its historical trend and industry movements. … Check out our latest analysis for EML Payments Was EML's weak performance lately a part of a long-term decline? … I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data.

Simply Wall St -

Will EML Payments Limited (ASX:EML) Continue To Underperform Its Industry?

Check out our latest analysis for EML Payments What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of EML Payments’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:EML Last Perf Jan 2nd 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Company Info

Description

EML Payments Limited provides prepaid payment services in Australia, Europe, and North America. The company issues mobile, virtual, and physical card solutions for payouts, gifts, incentives and rewards, and supplier payments. It also offers supplier enablement, payment execution, program management, and other services. The company was formerly known as Emerchants Limited and changed its name to EML Payments Limited in November 2016. EML Payments Limited was founded in 2001 and is based in Brisbane, Australia.

Details
Name: EML Payments Limited
EML
Exchange: ASX
Founded: 2001
A$813,089,673
250,953,603
Website: http://emlpayments.com
Address: EML Payments Limited
333 Ann Street,
Level 12,
Brisbane,
Queensland, 4000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX EML Ordinary Shares Australian Securities Exchange AU AUD 18. Jan 2006
OTCPK EMCH.F Ordinary Shares Pink Sheets LLC US USD 18. Jan 2006
DB A8Y1 Ordinary Shares Deutsche Boerse AG DE EUR 18. Jan 2006
CHIA EML Ordinary Shares Chi-X Australia AU AUD 18. Jan 2006
Number of employees
Current staff
Staff numbers
236
EML Payments employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:36
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/03
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.