Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide.
The last earnings update was 56 days ago.
Discounted Cash Flow Calculation for DB:EEF using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
DB:EEF DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Euronet Worldwide's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Euronet Worldwide'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
is considered below, and whether this is a fair price.
Price based on past earnings
Euronet Worldwide's earnings available for a low price, and how does
this compare to other companies in the same industry?
Euronet Worldwide's earnings are expected to grow significantly at over 20% yearly.
Euronet Worldwide's revenue is expected to grow by 12.3% 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.
Euronet Worldwide's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Euronet Worldwide's finances.
The net worth of a company is the difference between its assets and liabilities.
Euronet Worldwide is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Euronet Worldwide's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Euronet Worldwide'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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 3.3x debt.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
Mr. Michael J. Brown, also known as Mike, MSc founded Euronet Worldwide, Inc. in 1994 and has been its Chief Executive Officer since 1994 and President since December 10, 2014. Mr. Brown has 30 years of experience in the computer software and electronic payments business. Mr. Brown served in several senior roles with Bank One Louisiana, including Chief Credit Officer from 1998 to 1999. From 1996 to 1998, he served as a Senior Vice President and Manager of Credit and Client Services of First Commerce Corporation. He served as the President of Euronet Worldwide, Inc., from December 11, 2006 to June 11, 2007. He served as the President and Chief Operating Officer of Informix from February 1988 to January 1989. Mr. Brown served as the President of the Workstation Products Division of Informix from January 1989 to April 1990. In 1979, he founded Innovative Software Inc. In 1993, he was a founding Investor of Visual Tools Inc. He has been the Chairman of Euronet Worldwide, Inc. since 1996 and has been its Director since December 1996. He serves as Director of Monopar Therapeutics LLC. He serves as a Director of BServ, Inc. and Fundtech Ltd. He served as a Director of Blue Valley Ban Corp., since August 17, 2005. Mr. Brown served as a Director of Crystallex International Corp. until June 27, 2012. He served as a Director of Bank of Blue Valley. He served as a Director of Revolution Lighting Technologies, Inc. from March 2009 to April 2, 2012. He served as a Director at Euronet's predecessor companies. He serves as a Director of Greater Kansas City Community Foundation. He is also a Chartered Financial Analyst. Mr. Brown received a Master of Science in Molecular and Cellular Biology at the University of Missouri, Kansas City in 1997 and a Bachelor of Science in Electrical Engineering from the University of Missoure, Columbia in 1979.
Mike's compensation has increased by more than 20% in the past year.
Mike's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Euronet Worldwide management team is over 5 years, this suggests they are a seasoned and experienced team.
Executive VP & CFO
Executive VP and CEO of ePay
Executive VP & CEO of Money Transfer Segment
Executive VP and CEO of EFT Europe
Senior VP & Chief Technology Officer
Director of Financial Planning & IR
VP & Managing Director of Payments Software
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Euronet Worldwide board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. The company’s Electronic Financial Transaction (EFT) Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit card outsourcing, card issuing, and merchant acquiring services. This segment also offers ATM and POS currency conversion, surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling solutions, and tax-refund services; and integrated EFT software solutions. As of December 31, 2018, it operated a network of 40,354 ATMs; and approximately 293,000 POS terminals. Its epay segment provides distribution and processing of prepaid mobile airtime and other electronic content and payment processing services for various prepaid products, cards, and services; and vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operated a network of approximately 719,000 POS terminals. The company’s Money Transfer segment offers consumer-to-consumer money transfer services primarily under the Ria, AFEX Money Express, and IME brands; account-to-account money transfer services under the HiFX and xe brands; customers bill payment services; payment alternatives, such as money orders; check cashing services; foreign currency exchange and mobile top-up services; and cash management and foreign currency risk management services. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.
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