Euronet Worldwide (NasdaqGS:EEFT) - Share price, News & Analysis

Q: What is the Fair Price of EEFT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EEFT ($98.89) is trading below our estimate of [[fair value]] ($312.09)

EEFT fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

EEFT Stock Overview

Rewards

Trading at 68.3% below our estimate of its fair value

Earnings are forecast to grow 42.66% per year

Became profitable this year

Risk Analysis

Significant insider selling over the past 3 months

Euronet Worldwide Competitors

ExlService Holdings

NasdaqGS:EXLS

US$4.9b

WEX

NYSE:WEX

US$7.1b

TELUS International (Cda)

NYSE:TIXT

US$6.8b

WNS (Holdings)

NYSE:WNS

US$3.7b

Price History & Performance

Summary of all time highs, changes and price drops for Euronet Worldwide
Historical stock prices
Current Share Price	US$98.89
52 Week High	US$149.92
52 Week Low	US$96.30
Beta	1.38
1 Month Change	-17.91%
3 Month Change	-24.70%
1 Year Change	-29.02%
3 Year Change	-41.18%
5 Year Change	13.35%
Change since IPO	559.27%

Recent News & Updates

Jul 01

Is Euronet Worldwide (NASDAQ:EEFT) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

May 20

Why Euronet Worldwide, Inc. (NASDAQ:EEFT) Could Be Worth Watching

While Euronet Worldwide, Inc. ( NASDAQ:EEFT ) might not be the most widely known stock at the moment, it saw a...

Apr 28

Euronet Worldwide (NASDAQ:EEFT) May Have Issues Allocating Its Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

Shareholder Returns

	EEFT	US IT	US Market
7D	-8.4%	-3.7%	-2.2%
1Y	-29.0%	-35.2%	-19.1%

Return vs Industry: EEFT exceeded the US IT industry which returned -35.2% over the past year.

Return vs Market: EEFT underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is EEFT's price volatile compared to industry and market?
EEFT volatility
EEFT Average Weekly Movement	6.5%
IT Industry Average Movement	9.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.3%

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

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

About the Company

Founded	Employees	CEO	Website
1994	8,800	Mike Brown	https://www.euronetworldwide.com

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, agents, retailers, merchants, content providers, and individual consumers worldwide. The company’s Electronic Fund Transfer 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. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions, as well as delivers non-cash products.

Euronet Worldwide Fundamentals Summary

How do Euronet Worldwide's earnings and revenue compare to its market cap?
EEFT fundamental statistics
Market Cap	US$5.00b
Earnings (TTM)	US$87.69m
Revenue (TTM)	US$3.06b

57.0x

P/E Ratio

1.6x

P/S Ratio

Is EEFT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EEFT income statement (TTM)
Revenue	US$3.06b
Cost of Revenue	US$1.92b
Gross Profit	US$1.14b
Other Expenses	US$1.05b
Earnings	US$87.69m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.73
Gross Margin	37.15%
Net Profit Margin	2.86%
Debt/Equity Ratio	154.1%

How did EEFT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is EEFT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EEFT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EEFT. This is calculated by dividing EEFT's market cap by their current preferred multiple.
What is EEFT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$5.00b

EEFT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	15.3x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does EEFT's PE Ratio compare to its peers?

EEFT PE Ratio vs Peers

The above table shows the PE ratio for EEFT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	47.3x
EXLS ExlService Holdings	41.5x	12.4%	US$4.9b
WEX WEX	56.8x	20.0%	US$7.1b
TIXT TELUS International (Cda)	62.5x	31.3%	US$6.8b
WNS WNS (Holdings)	28.3x	10.1%	US$3.7b
EEFT Euronet Worldwide	57x	42.7%	US$5.0b

Forward PE

Price-To-Earnings vs Peers: EEFT is expensive based on its Price-To-Earnings Ratio (57x) compared to the peer average (47.3x).

Price to Earnings Ratio vs Industry

How does EEFT's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Earnings vs Industry: EEFT is expensive based on its Price-To-Earnings Ratio (57x) compared to the US IT industry average (28.3x)

Price to Earnings Ratio vs Fair Ratio

What is EEFT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EEFT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	57x
Fair PE Ratio	44.2x

Price-To-Earnings vs Fair Ratio: EEFT is expensive based on its Price-To-Earnings Ratio (57x) compared to the estimated Fair Price-To-Earnings Ratio (44.2x).

Share Price vs Fair Value

What is the Fair Price of EEFT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EEFT ($98.89) is trading below our estimate of fair value ($312.09)

Significantly Below Fair Value: EEFT is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

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

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Future Growth

How is Euronet Worldwide forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

42.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EEFT's forecast earnings growth (42.7% per year) is above the savings rate (1.9%).

Earnings vs Market: EEFT's earnings (42.7% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: EEFT's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EEFT's revenue (13.2% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: EEFT's revenue (13.2% 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 (27.3%)

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Past Performance

How has Euronet Worldwide performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-15.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EEFT has high quality earnings.

Growing Profit Margin: EEFT became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: EEFT's earnings have declined by 15.5% per year over the past 5 years.

Accelerating Growth: EEFT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EEFT has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (21%).

Return on Equity

High ROE: EEFT's Return on Equity (7.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Euronet Worldwide's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EEFT's short term assets ($3.1B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: EEFT's short term assets ($3.1B) exceed its long term liabilities ($2.0B).

Debt to Equity History and Analysis

Debt Level: EEFT's net debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: EEFT's debt to equity ratio has increased from 62.3% to 154.1% over the past 5 years.

Debt Coverage: EEFT's debt is well covered by operating cash flow (23.5%).

Interest Coverage: EEFT's interest payments on its debt are well covered by EBIT (6.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

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 recent payouts.

High Dividend: Unable to evaluate EEFT'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 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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EEFT has not reported any payouts.

Discover strong dividend paying companies

Management

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

10.0yrs

Average management tenure

CEO

Mike Brown (65 yo)

28yrs

Tenure

US$11,680,872

Compensation

Mr. Michael J. Brown, also known as Mike, M.Sc., co-founded Euronet Worldwide, Inc. in 1994 and has been its Chief Executive Officer since July 1994 and President since December 10, 2014. Mr. Brown served...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD11.68M) is above average for companies of similar size in the US market ($USD8.35M).

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

Leadership Team

Experienced Management: EEFT's management team is seasoned and experienced (10 years average tenure).

Board Members

Experienced Board: EEFT's board of directors are seasoned and experienced ( 19.7 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31