NasdaqGS:EEFT

Stock Analysis Report

Executive Summary

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide.

Rewards

PE ratio (14x) is below the IT industry average (23.1x)

Earnings are forecast to grow 5.41% per year

Earnings grew by 48.9% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Outstanding track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Euronet Worldwide's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EEFT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.0%

EEFT

8.3%

US IT

7.2%

US Market


1 Year Return

-36.3%

EEFT

-2.8%

US IT

-10.4%

US Market

Return vs Industry: EEFT underperformed the US IT industry which returned -5% over the past year.

Return vs Market: EEFT underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

EEFTIndustryMarket
7 Day11.0%8.3%7.2%
30 Day-27.5%-12.6%-12.6%
90 Day-42.9%-15.2%-19.4%
1 Year-36.3%-36.3%-1.8%-2.8%-8.5%-10.4%
3 Year6.2%6.2%63.1%56.0%15.8%8.3%
5 Year57.4%57.4%92.0%75.1%35.8%21.0%

Price Volatility Vs. Market

How volatile is Euronet Worldwide's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Euronet Worldwide undervalued compared to its fair value and its price relative to the market?

13.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EEFT ($90.97) is trading above our estimate of fair value ($82.62)

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


Price To Earnings Ratio

PE vs Industry: EEFT is good value based on its PE Ratio (14x) compared to the IT industry average (23.1x).

PE vs Market: EEFT is poor value based on its PE Ratio (14x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: EEFT is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: EEFT is overvalued based on its PB Ratio (3.1x) compared to the US IT industry average (2.8x).


Next Steps

Future Growth

How is Euronet Worldwide forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EEFT's forecast earnings growth (5.4% per year) is above the savings rate (1.7%).

Earnings vs Market: EEFT's earnings (5.4% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: EEFT's earnings are forecast to grow, but not significantly.

Revenue vs Market: EEFT's revenue (5.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: EEFT's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EEFT's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Euronet Worldwide performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EEFT has high quality earnings.

Growing Profit Margin: EEFT's current net profit margins (12.6%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: EEFT's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: EEFT's earnings growth over the past year (48.9%) exceeds its 5-year average (22.5% per year).

Earnings vs Industry: EEFT earnings growth over the past year (48.9%) exceeded the IT industry 13.4%.


Return on Equity

High ROE: EEFT's Return on Equity (22%) is considered high.


Next Steps

Financial Health

How is Euronet Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: EEFT's short term assets ($2.9B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: EEFT's short term assets ($2.9B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: EEFT's debt to equity ratio (69.5%) is considered high.

Reducing Debt: EEFT's debt to equity ratio has increased from 55.8% to 69.5% over the past 5 years.

Debt Coverage: EEFT's debt is well covered by operating cash flow (46%).

Interest Coverage: EEFT's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet

Inventory Level: EEFT has a low level of unsold assets or inventory.

Debt Coverage by Assets: EEFT's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Euronet Worldwide's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if EEFT'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 EEFT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

13.2yrs

Average management tenure


CEO

Mike Brown (62yo)

26.17s

Tenure

US$6,455,198

Compensation

Mr. Michael J. Brown, also known as Mike, MSc founded Euronet Worldwide, Inc. in 1994 and has been its Chief Executive Officer since 1996 and President since December 10, 2014. Mr. Brown has 30 years of ex ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.46M) is about average for companies of similar size in the US market ($USD7.36M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Brown
Chairman26.17yrsUS$6.46m3.22% $155.2m
Rick Weller
Executive VP17.25yrsUS$3.50m0.098% $4.7m
Kevin Caponecchi
Executive VP and CEO of epay5.25yrsUS$1.92m0.14% $6.7m
Juan Bianchi
Executive VP & CEO of Money Transfer Segmentno dataUS$2.04m0.0078% $375.1k
Nikos Fountas
Executive VP and CEO of EFT Europeno dataUS$2.26m0.036% $1.7m
Martin Brückner
Senior VP & Chief Technology Officer6.17yrsno data0.029% $1.4m
Stephanie Taylor
Director of Financial Planning & IR9.17yrsno datano data
Jeffrey Newman
Executive VP23.25yrsUS$1.06m0.017% $821.5k
Karyn Zaborny
Senior VPno datano datano data
Cindy Ashcraft
VP & Managing Director of Payments Softwareno datano datano data

13.2yrs

Average Tenure

55yo

Average Age

Experienced Management: EEFT's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Brown
Chairman26.17yrsUS$6.46m3.22% $155.2m
Thomas McDonnell
Lead Independent Director5.42yrsUS$225.00k0.14% $6.8m
Andrew Schmitt
Independent Director16.42yrsUS$215.00k0.12% $5.8m
Eriberto Scocimara
Independent Director23.25yrsUS$212.50k0.024% $1.2m
Andrzej Olechowski
Independent Director17.83yrsUS$200.00k0.019% $905.3k
M. Strandjord
Independent Director19yrsUS$220.00k0.081% $3.9m
Paul Althasen
Independent Director16.83yrsUS$200.00k0.091% $4.4m
Mark Callegari
Independent Director5.42yrsUS$200.00k0.028% $1.4m

17.3yrs

Average Tenure

71yo

Average Age

Experienced Board: EEFT's board of directors are seasoned and experienced ( 17.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EEFT insiders have sold more shares than they have bought 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 3.8%.


Top Shareholders

Company Information

Euronet Worldwide, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Euronet Worldwide, Inc.
  • Ticker: EEFT
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$4.815b
  • Shares outstanding: 53.52m
  • Website: https://www.euronetworldwide.com

Number of Employees


Location

  • Euronet Worldwide, Inc.
  • 3500 College Boulevard
  • Leawood
  • Kansas
  • 66211
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EEFTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1997
EEFDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1997
EEFBRSE (Berne Stock Exchange)YesCommon StockCHCHFMar 1997
EEFT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1997

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:32
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.