EEFT Stock Overview
Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, agents, retailers, merchants, content providers, and individual consumers worldwide.
Euronet Worldwide Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$98.07|
|52 Week High||US$149.92|
|52 Week Low||US$92.88|
|1 Month Change||-2.91%|
|3 Month Change||-10.85%|
|1 Year Change||-25.36%|
|3 Year Change||-35.82%|
|5 Year Change||1.38%|
|Change since IPO||553.80%|
Recent News & Updates
Euronet Worldwide (NASDAQ:EEFT) Will Want To Turn Around Its Return Trends
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...
Euronet Q2 2022 Earnings Preview
Euronet (NASDAQ:EEFT) is scheduled to announce Q2 earnings results on Wednesday, July 27th, after market close. The consensus EPS Estimate is $1.68 (+217.0% Y/Y) and the consensus Revenue Estimate is $808.4M (+13.1% Y/Y). Over the last 2 years, EEFT has beaten EPS estimates 50% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 9 upward revisions and 1 downward. Revenue estimates have seen 3 upward revisions and 6 downward.
Euronet Worldwide: Slightly Expensive, But Further Growth Could Make The Stock Attractive
Euronet Worldwide has continued to show strong growth across the European market. epay and Money Transfer segments have led such growth. Should we see a further rebound in earnings, then the stock should become more attractive from an earnings standpoint. Investment Thesis: While Euronet Worldwide (EEFT) is slightly expensive from an earnings standpoint, a further rebound in earnings growth could make the stock more attractive. Euronet Worldwide has been seeing a steady decline in price over the past two years, after having rebounded strongly after the initial COVID-19 market decline in March 2020: Investing.com As a leading provider of global electronic payment services, the company was in a good position to expand its offerings during the emergency phase of COVID-19, when demand for electronic and online payments grew strongly. However, there appear to be growing concerns on whether the business can sustain growth in an inflationary environment - when consumers may ultimately cut back on spending. The purpose of this article is to assess whether Euronet Worldwide can thrive in the current macroeconomic environment. Performance Given that Euronet Worldwide had reached almost the peak of its growth (in price terms) in the quarter of March 2020, I decided to compare the company's cash position during this period to that of the most recent quarter. Balance Sheet Item March 2020 March 2022 Cash and cash equivalents (in USD '000) 709,521 986,534 Total current liabilities (in USD '000) 1,461,590 1,770,954 Cash to current liabilities ratio 48.54% 55.7% Source: Figures sourced from March 2020 and March 2022 Form 10-Qs. Cash to current liabilities ratio calculated by author. We can see that the company's cash to current liabilities ratio has actually improved over this period, indicating that Euronet Worldwide is in a better position to meet its short-term debt obligations. While diluted earnings per share came in at $0.16 in the most recent quarter, which is an improvement on the loss of -$0.16 seen in the same quarter last year, the company has yet to rebound to the prior earnings per share of $0.62 seen in March 2019. When looking at the company's earnings on a five-year basis, we can see that earnings per share have yet to rebound to pre-2020 levels, while the P/E ratio itself is still above the ratio that we saw during that period. YCharts In this regard, I take the view that despite improving cash performance - investors are likely to want to see further evidence of an earnings rebound before considering investment in the stock. Looking Forward In terms of growth drivers and potential risks for Euronet Worldwide, almost 54% of the company's revenue came from the European market in March 2022: Euronet Worldwide Form 10-Q March 2022 As such, the company could be at risk of revenue loss resulting from a falling euro, as a weaker currency means that the company stands to earn less in commissions in dollar terms. However, the fact that this segment raised 66% of its total revenues through branded payments (that is, prepaid payments through use of items such as prepaid debit cards, gift cards, vouchers, among others) means that the segment could see opportunity for growth in an inflationary environment given that rising costs of borrowing and fees from traditional financial institutions may increase demand for non-traditional payment methods.
|EEFT||US IT||US Market|
Return vs Industry: EEFT exceeded the US IT industry which returned -28.1% over the past year.
Return vs Market: EEFT underperformed the US Market which returned -12.9% over the past year.
|EEFT Average Weekly Movement||6.1%|
|IT Industry Average Movement||10.0%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.1%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: EEFT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: EEFT's weekly volatility (6%) has been stable over the past year.
About the Company
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
|EEFT fundamental statistics|
Is EEFT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|EEFT income statement (TTM)|
|Cost of Revenue||US$1.95b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||2.75|
|Net Profit Margin||4.27%|
How did EEFT perform over the long term?See historical performance and comparison
Is EEFT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
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.
|What is EEFT's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does EEFT's PE Ratio compare to its peers?
|EEFT PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
EXLS ExlService Holdings
WNS WNS (Holdings)
WU Western Union
EEFT Euronet Worldwide
Price-To-Earnings vs Peers: EEFT is expensive based on its Price-To-Earnings Ratio (35.7x) compared to the peer average (30.1x).
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 (35.7x) compared to the US IT industry average (30x)
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.
|Current PE Ratio||35.7x|
|Fair PE Ratio||42.7x|
Price-To-Earnings vs Fair Ratio: EEFT is good value based on its Price-To-Earnings Ratio (35.7x) compared to the estimated Fair Price-To-Earnings Ratio (42.7x).
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 ($98.07) is trading below our estimate of fair value ($265.06)
Significantly Below Fair Value: EEFT is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Euronet Worldwide forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EEFT's forecast earnings growth (39.7% per year) is above the savings rate (1.9%).
Earnings vs Market: EEFT's earnings (39.7% per year) are forecast to grow faster than the US market (12.8% per year).
High Growth Earnings: EEFT's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EEFT's revenue (12.1% per year) is forecast to grow faster than the US market (8% per year).
High Growth Revenue: EEFT's revenue (12.1% 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 (27.2%)
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How has Euronet Worldwide performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EEFT has high quality earnings.
Growing Profit Margin: EEFT's current net profit margins (4.3%) are higher than last year (4%).
Past Earnings Growth Analysis
Earnings Trend: EEFT's earnings have declined by 16.1% per year over the past 5 years.
Accelerating Growth: EEFT's earnings growth over the past year (23.4%) exceeds its 5-year average (-16.1% per year).
Earnings vs Industry: EEFT earnings growth over the past year (23.4%) exceeded the IT industry 19.8%.
Return on Equity
High ROE: EEFT's Return on Equity (13.3%) is considered low.
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How is Euronet Worldwide's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: EEFT's short term assets ($3.5B) exceed its short term liabilities ($2.3B).
Long Term Liabilities: EEFT's short term assets ($3.5B) exceed its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: EEFT's net debt to equity ratio (18%) is considered satisfactory.
Reducing Debt: EEFT's debt to equity ratio has increased from 80.2% to 205% over the past 5 years.
Debt Coverage: EEFT's debt is not well covered by operating cash flow (19.8%).
Interest Coverage: EEFT's interest payments on its debt are well covered by EBIT (8.3x coverage).
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What is Euronet Worldwide current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate EEFT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate EEFT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if EEFT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if EEFT's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as EEFT has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Brown (65 yo)
Mr. Michael J. Brown, also known as Mike, M.Sc., co-founded Euronet Worldwide, Inc. in 1994 and has been its Chief Executive Officer since July 1994 and President since December 10, 2014. Mr. Brown served...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($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.
Experienced Management: EEFT's management team is seasoned and experienced (10.1 years average tenure).
Experienced Board: EEFT's board of directors are seasoned and experienced ( 19.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Euronet Worldwide, Inc.'s employee growth, exchange listings and data sources
- Name: Euronet Worldwide, Inc.
- Ticker: EEFT
- Exchange: NasdaqGS
- Founded: 1994
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Implied Market Cap: US$4.862b
- Shares outstanding: 49.58m
- Website: https://www.euronetworldwide.com
Number of Employees
- Euronet Worldwide, Inc.
- 11400 Tomahawk Creek Parkway
- Suite 300
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/08 00:00|
|End of Day Share Price||2022/08/08 00:00|
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.