company background image
EEFT

Euronet Worldwide NasdaqGS:EEFT Stock Report

Last Price

US$102.00

Market Cap

US$5.1b

7D

1.1%

1Y

-21.9%

Updated

18 Aug, 2022

Data

Company Financials +
EEFT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance4/6
Financial Health4/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Euronet Worldwide
Historical stock prices
Current Share PriceUS$102.00
52 Week HighUS$149.92
52 Week LowUS$92.88
Beta1.33
1 Month Change-0.27%
3 Month Change-10.57%
1 Year Change-21.95%
3 Year Change-32.61%
5 Year Change6.23%
Change since IPO580.00%

Recent News & Updates

Aug 07
Euronet Worldwide (NASDAQ:EEFT) Will Want To Turn Around Its Return Trends

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...

Jul 26

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.

Jul 20

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.

Shareholder Returns

EEFTUS ITUS Market
7D1.1%1.0%1.4%
1Y-21.9%-25.4%-8.4%

Return vs Industry: EEFT exceeded the US IT industry which returned -25.9% over the past year.

Return vs Market: EEFT underperformed the US Market which returned -9% over the past year.

Price Volatility

Is EEFT's price volatile compared to industry and market?
EEFT volatility
EEFT Average Weekly Movement5.6%
IT Industry Average Movement8.9%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

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

FoundedEmployeesCEOWebsite
19948,800Mike Brownhttps://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 CapUS$5.06b
Earnings (TTM)US$136.27m
Revenue (TTM)US$3.19b

37.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EEFT income statement (TTM)
RevenueUS$3.19b
Cost of RevenueUS$1.95b
Gross ProfitUS$1.24b
Other ExpensesUS$1.10b
EarningsUS$136.27m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.75
Gross Margin38.75%
Net Profit Margin4.27%
Debt/Equity Ratio205.0%

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

4/6

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

  • Analyst Forecast

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.

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/Revenue1.7x
Enterprise Value/EBITDA12.9x
PEG Ratio0.9x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average32.6x
EXLS ExlService Holdings
46.3x13.9%US$5.9b
WNS WNS (Holdings)
30.5x10.9%US$4.2b
WEX WEX
38.2x23.7%US$7.4b
CNXC Concentrix
15.3x5.4%US$6.9b
EEFT Euronet Worldwide
37.1x39.7%US$5.1b

Price-To-Earnings vs Peers: EEFT is expensive based on its Price-To-Earnings Ratio (37.1x) compared to the peer average (32.6x).


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 (37.1x) compared to the US IT industry average (30.2x)


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 Ratio37.1x
Fair PE Ratio42.8x

Price-To-Earnings vs Fair Ratio: EEFT is good value based on its Price-To-Earnings Ratio (37.1x) compared to the estimated Fair Price-To-Earnings Ratio (42.8x).


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 ($102) is trading below our estimate of fair value ($267.99)

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.


Discover undervalued companies

Future Growth

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


39.7%

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 (14.4% 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 (7.8% 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%)


Discover growth companies

Past Performance

How has Euronet Worldwide performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-16.1%

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 16.4%.


Return on Equity

High ROE: EEFT's Return on Equity (13.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Euronet Worldwide's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • 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 ($3.5B) 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).


Balance Sheet


Discover healthy companies

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?

10.1yrs

Average management tenure


CEO

Mike Brown (65 yo)

28.08yrs

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 ($USD11.68M) is above average for companies of similar size in the US market ($USD8.19M).

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 (10.1 years average tenure).


Board Members

Experienced Board: EEFT's board of directors are seasoned and experienced ( 19.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Euronet Worldwide, Inc.'s 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
  • Implied Market Cap: US$5.057b
  • Shares outstanding: 49.58m
  • Website: https://www.euronetworldwide.com

Number of Employees


Location

  • Euronet Worldwide, Inc.
  • 11400 Tomahawk Creek Parkway
  • Suite 300
  • Leawood
  • Kansas
  • 66211-2672
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.