Executive Summary
EML Payments Limited provides prepaid payment services in Australia, Europe, and North America. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with mediocre balance sheet.
Share Price & News
How has EML Payments's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
9.3%
EML
5.0%
AU IT
1.3%
AU Market
1 Year Return
-24.0%
EML
79.7%
AU IT
-0.6%
AU Market
Return vs Industry: EML underperformed the Australian IT industry which returned 79.7% over the past year.
Return vs Market: EML underperformed the Australian Market which returned -0.6% over the past year.
Shareholder returns
| EML | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.3% | 5.0% | 1.3% |
| 30 Day | -4.3% | 10.8% | 3.5% |
| 90 Day | 8.4% | 15.2% | 11.9% |
| 1 Year | -24.0%-24.0% | 81.7%79.7% | 2.8%-0.6% |
| 3 Year | 109.3%106.7% | 203.3%186.2% | 27.0%11.4% |
| 5 Year | 304.9%300.0% | 104.6%80.5% | 68.7%34.7% |
Long-Term Price Volatility Vs. Market
How volatile is EML Payments's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Did EML Payments Limited (ASX:EML) Insiders Sell Shares?4 weeks ago | Simply Wall St
Here's What We Learned About The CEO Pay At EML Payments Limited (ASX:EML)1 month ago | Simply Wall St
Is EML Payments (ASX:EML) A Risky Investment?Valuation
Is EML Payments undervalued compared to its fair value and its price relative to the market?
3.26x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: EML (A$4) is trading above our estimate of fair value (A$3.34)
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 AU 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 (3.3x) compared to the AU IT industry average (3.9x).
Next Steps
Future Growth
How is EML Payments forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
52.2%
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 (2%).
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 (16.3% per year) is forecast to grow faster than the Australian market (5.4% per year).
High Growth Revenue: EML's revenue (16.3% 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%).
Next Steps
Past Performance
How has EML Payments performed over the past 5 years?
16.4%
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, but has reduced losses over the past 5 years at a rate of 16.4% 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 (-23.2%).
Return on Equity
High ROE: EML has a negative Return on Equity (-1.33%), as it is currently unprofitable.
Next Steps
Financial Health
How is EML Payments's financial position?
Financial Position Analysis
Short Term Liabilities: EML's short term assets (A$1.0B) do not cover its short term liabilities (A$1.3B).
Long Term Liabilities: EML's short term assets (A$1.0B) exceed its long term liabilities (A$139.0M).
Debt to Equity History and Analysis
Debt Level: EML's debt to equity ratio (8.1%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if EML's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: EML's debt is well covered by operating cash flow (61.6%).
Interest Coverage: EML is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is EML Payments's current dividend yield, its reliability and sustainability?
0.30%
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?
2.4yrs
Average management tenure
CEO
Tom Cregan (49 yo)
8.75yrs
Tenure
AU$1,587,758
Compensation
Mr. Thomas Anthony Cregan, also known as Tom, has been the Chief Executive Officer of EML Payments Ltd (formerly, Emerchants Limited) since April 2, 2012 and has been its Managing Director since August 27,...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD1.23M) is above average for companies of similar size in the Australian market ($USD939.31K).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 8.75yrs | AU$1.59m | 3.1% A$ 44.8m | |
| Group Chief Financial Officer | 2.17yrs | AU$682.98k | 0.014% A$ 200.0k | |
| Group Chief Technology Officer | 2yrs | no data | no data | |
| Group General Counsel & Company Secretary | 2.42yrs | no data | no data | |
| Chief Sales & Marketing Officer | 0.83yr | AU$236.00k | no data | |
| Chief Corporate Development Officer | 2.5yrs | AU$1.75m | no data | |
| Group Chief People & Culture Officer | 2.42yrs | AU$36.12k | no data | |
| Group Chief Risk & Regulatory Officer | 7.5yrs | AU$503.08k | no data | |
| Group Chief Product Officer | no data | no data | no data | |
| CCO of PFS | no data | no data | no data | |
| Group Chief Digital Transformation Officer | no data | no data | no data | |
| Chief Executive Officer of Australia | 4.25yrs | AU$488.32k | no data |
2.4yrs
Average Tenure
Experienced Management: EML's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 8.75yrs | AU$1.59m | 3.1% A$ 44.8m | |
| Independent Non-Executive Director | 0.67yr | AU$9.46k | no data | |
| Independent Non-Executive Deputy Chairman | 1.17yrs | AU$122.30k | 0.27% A$ 3.8m | |
| Independent Non-Executive Director | 9.17yrs | AU$121.57k | 0.0069% A$ 100.0k | |
| Independent Non-Executive Director | 2.92yrs | AU$113.47k | 0.0051% A$ 73.2k | |
| Independent Non-Executive Chairman | 5.92yrs | AU$164.25k | 1.93% A$ 28.0m | |
| Independent Non-Executive Director | 2.92yrs | AU$115.14k | 0.013% A$ 192.1k |
2.9yrs
Average Tenure
51yo
Average Age
Experienced Board: EML's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
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 11.2%.
Top Shareholders
Company Information
EML Payments Limited's company bio, 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$1.447b
- Shares outstanding: 361.83m
- Website: https://emlpayments.com
Number of Employees
Location
- EML Payments Limited
- 333 Ann Street
- Level 12
- Brisbane
- Queensland
- 4000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EML | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 2006 |
| A8Y1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2006 |
| EMCH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 2006 |
| EML | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 2006 |
Biography
EML Payments Limited provides prepaid payment services in Australia, Europe, and North America. Its portfolio of payment solutions offers options for disbursement payouts, gifts, incentives, and rewards, a...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 07:08 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.