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.

Snowflake

Fundamentals

Solid track record with reasonable growth potential.


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


Market Performance


7 Day Return

-4.7%

EEFT

-4.1%

US IT

0.4%

US Market


1 Year Return

26.0%

EEFT

20.6%

US IT

11.4%

US Market

Return vs Industry: EEFT exceeded the US IT industry which returned 20.6% over the past year.

Return vs Market: EEFT exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

EEFTIndustryMarket
7 Day-4.7%-4.1%0.4%
30 Day-6.1%-3.2%0.3%
90 Day-10.4%-8.0%-1.2%
1 Year26.0%26.0%21.9%20.6%13.9%11.4%
3 Year72.3%72.3%88.8%81.1%47.2%37.6%
5 Year161.0%161.0%134.9%113.5%62.4%44.6%

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?

11.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EEFT ($139.17) is trading below our estimate of fair value ($156.29)

Significantly Below Fair Value: EEFT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EEFT is good value based on its PE Ratio (24.6x) compared to the IT industry average (36.5x).

PE vs Market: EEFT is poor value based on its PE Ratio (24.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: EEFT is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: EEFT is overvalued based on its PB Ratio (5.4x) compared to the US IT industry average (4.2x).


Next Steps

  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EEFT's forecast earnings growth (19% per year) is above the savings rate (2.7%).

Earnings vs Market: EEFT's earnings (19% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: EEFT's revenue (11.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: EEFT's revenue (11.2% 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 high in 3 years time (20.9%)


Next Steps

Past Performance

How has Euronet Worldwide performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EEFT's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: EEFT's earnings growth over the past year (100.3%) exceeds its 5-year average (21.1% per year).

Earnings vs Industry: EEFT earnings growth over the past year (100.3%) exceeded the IT industry 9.8%.


Return on Equity

High ROE: EEFT's Return on Equity (20.8%) is considered high.


Return on Assets

ROA vs Industry: EEFT has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: EEFT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Euronet Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: EEFT's short term assets ($2.7B) exceeds its short term liabilities ($1.5B)

Long Term Liabilities: EEFT's short term assets (2.7B) exceeds its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: EEFT's debt to equity ratio (75.6%) is considered high

Reducing Debt: EEFT's debt to equity ratio has increased from 51.3% to 75.6% over the past 5 years.

Debt Coverage: EEFT's debt is well covered by operating cash flow (35.2%).

Interest Coverage: EEFT's interest payments on its debt are well covered by EBIT (13.1x 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 2.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

12.8yrs

Average management tenure


CEO

Mike Brown (62yo)

25.8yrs

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 ($USD6.46M) is about average for companies of similar size in the US market ($USD6.91M).

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


Management Age and Tenure

12.8yrs

Average Tenure

55yo

Average Age

Experienced Management: EEFT's management team is seasoned and experienced (12.8 years average tenure).


Board Age and Tenure

16.9yrs

Average Tenure

71yo

Average Age

Experienced Board: EEFT's board of directors are seasoned and experienced ( 16.9 years average tenure).


Insider Trading

Insider Buying: EEFT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,089,53104 Sep 19
Juan Bianchi
EntityIndividual
Role
Senior Key Executive
Executive VP & CEO of Money Transfer Segment
Shares7,144
Max PriceUS$152.51
SellUS$4,812,40006 Dec 18
Rick Weller
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares40,000
Max PriceUS$120.31

Ownership Breakdown


Management Team

  • Mike Brown (62yo)

    Chairman

    • Tenure: 25.8yrs
    • Compensation: US$6.46m
  • Jeff Newman (64yo)

    Executive VP

    • Tenure: 22.8yrs
    • Compensation: US$1.06m
  • Rick Weller (61yo)

    Executive VP

    • Tenure: 16.9yrs
    • Compensation: US$3.50m
  • Kevin Caponecchi (52yo)

    Executive VP and CEO of epay

    • Tenure: 4.8yrs
    • Compensation: US$1.92m
  • Juan Bianchi (48yo)

    Executive VP & CEO of Money Transfer Segment

    • Tenure: 0yrs
    • Compensation: US$2.04m
  • Cindy Ashcraft

    VP & Managing Director of Payments Software

    • Tenure: 0yrs
  • Nikos Fountas (55yo)

    Executive VP and CEO of EFT Europe

    • Tenure: 0yrs
    • Compensation: US$2.26m
  • Martin Brückner (43yo)

    Senior VP & Chief Technology Officer

    • Tenure: 5.8yrs
  • Karyn Zaborny

    Senior VP

    • Tenure: 0yrs
  • Stephanie Taylor

    Director of Financial Planning & IR

    • Tenure: 8.8yrs

Board Members

  • Tom McDonnell (73yo)

    Lead Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$225.00k
  • Mike Brown (62yo)

    Chairman

    • Tenure: 25.8yrs
    • Compensation: US$6.46m
  • Andrew Schmitt (70yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$215.00k
  • Eriberto Scocimara (83yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$212.50k
  • Andrzej Olechowski (72yo)

    Independent Director

    • Tenure: 17.4yrs
    • Compensation: US$200.00k
  • M. Strandjord (73yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$220.00k
  • Paul Althasen (54yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$200.00k
  • Mark Callegari (63yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$200.00k

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$7.583b
  • Shares outstanding: 54.49m
  • 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

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 Ele ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:34
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.