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EML

EML PaymentsASX:EML Stock Report

Market Cap

AU$1.2b

7D

0%

1Y

-10.2%

Updated

16 Oct, 2021

Data

Company Financials +
EML fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

EML Overview

EML Payments Limited provides payment card technology solutions in Australia, Europe, and North America.

Price History & Performance

Summary of all time highs, changes and price drops for EML Payments
Historical stock prices
Current Share PriceAU$3.16
52 Week HighAU$2.47
52 Week LowAU$5.89
Beta1.42
1 Month Change-16.84%
3 Month Change-17.49%
1 Year Change-10.23%
3 Year Change97.50%
5 Year Change70.81%
Change since IPO174.78%

Recent News & Updates

Oct 08
Is EML Payments Limited (ASX:EML) Potentially Undervalued?

Is EML Payments Limited (ASX:EML) Potentially Undervalued?

EML Payments Limited ( ASX:EML ), might not be a large cap stock, but it received a lot of attention from a substantial...

Aug 23
A Look At The Fair Value Of EML Payments Limited (ASX:EML)

A Look At The Fair Value Of EML Payments Limited (ASX:EML)

How far off is EML Payments Limited ( ASX:EML ) from its intrinsic value? Using the most recent financial data, we'll...

Shareholder Returns

EMLAU ITAU Market
7D0%0.7%0.9%
1Y-10.2%9.0%20.2%

Return vs Industry: EML underperformed the Australian IT industry which returned 9% over the past year.

Return vs Market: EML underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is EML's price volatile compared to industry and market?
EML volatility
EML Beta1.42
Industry Beta1.68
Market Beta1

Stable Share Price: EML is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: EML's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003540Tom Creganhttps://emlpayments.com

EML Payments Limited provides payment card technology solutions in Australia, Europe, and North America. It operates in three segments: General Purpose Reloadable, Gift & Incentive, and Virtual Account Numbers. The company offers white label gaming cards, salary packaging cards, and commission payouts solutions, as well as coalition marketing platform.

EML Payments Fundamentals Summary

How do EML Payments's earnings and revenue compare to its market cap?
EML fundamental statistics
Market CapAU$1.18b
Earnings (TTM)-AU$28.69m
Revenue (TTM)AU$192.22m

6.1x

P/S Ratio

-41.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EML income statement (TTM)
RevenueAU$192.22m
Cost of RevenueAU$63.80m
Gross ProfitAU$128.42m
ExpensesAU$157.11m
Earnings-AU$28.69m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.077
Gross Margin66.81%
Net Profit Margin-14.93%
Debt/Equity Ratio9.2%

How did EML perform over the long term?

See historical performance and comparison

Valuation

Is EML Payments undervalued compared to its fair value and its price relative to the market?

2.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EML (A$3.16) is trading above our estimate of fair value (A$2.34)

Significantly Below Fair Value: EML is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EML is unprofitable, so we can't compare its PE Ratio to the Australian IT industry average.

PE vs Market: EML is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EML's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EML is good value based on its PB Ratio (2.8x) compared to the AU IT industry average (3.4x).


Future Growth

How is EML Payments forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

78.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EML is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: EML is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EML's is expected to become profitable in the next 3 years.

Revenue vs Market: EML's revenue (14.2% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: EML's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EML's Return on Equity is forecast to be low in 3 years time (12.8%).


Past Performance

How has EML Payments performed over the past 5 years?

-62.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EML is currently unprofitable.

Growing Profit Margin: EML is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EML is unprofitable, and losses have increased over the past 5 years at a rate of 62.8% per year.

Accelerating Growth: Unable to compare EML's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EML is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-11.2%).


Return on Equity

High ROE: EML has a negative Return on Equity (-6.92%), as it is currently unprofitable.


Financial Health

How is EML Payments's financial position?


Financial Position Analysis

Short Term Liabilities: EML's short term assets (A$1.6B) do not cover its short term liabilities (A$1.8B).

Long Term Liabilities: EML's short term assets (A$1.6B) exceed its long term liabilities (A$81.1M).


Debt to Equity History and Analysis

Debt Level: EML's debt to equity ratio (9.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EML's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable EML has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EML is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40% per year.


Dividend

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

0.56%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EML's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EML's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EML's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EML's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EML's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Tom Cregan (50 yo)

9.5yrs

Tenure

AU$1,434,228

Compensation

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,...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD1.06M) is about average for companies of similar size in the Australian market ($USD997.89K).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EML's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: EML's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

EML Payments Limited's employee growth, exchange listings and data sources


Key Information

  • Name: EML Payments Limited
  • Ticker: EML
  • Exchange: ASX
  • Founded: 2003
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: AU$1.179b
  • Shares outstanding: 373.22m
  • Website: https://emlpayments.com

Number of Employees


Location

  • EML Payments Limited
  • 333 Ann Street
  • Level 12
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:02
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.