NasdaqGS:EEFT

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: EEFT's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

7.1%

EEFT

4.1%

US IT

2.1%

US Market


1 Year Return

-13.2%

EEFT

27.9%

US IT

19.8%

US Market

Return vs Industry: EEFT underperformed the US IT industry which returned 27.8% over the past year.

Return vs Market: EEFT underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

EEFTIndustryMarket
7 Day7.1%4.1%2.1%
30 Day54.9%10.3%8.1%
90 Day28.7%2.8%6.0%
1 Year-13.2%-13.2%29.2%27.9%22.5%19.8%
3 Year49.8%49.8%98.6%90.8%46.5%36.8%
5 Year86.2%86.2%181.5%161.8%96.9%75.3%

Long-Term 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?

0.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EEFT ($136.87) is trading below our estimate of fair value ($137.43)

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 poor value based on its PE Ratio (221.5x) compared to the US IT industry average (36.1x).

PE vs Market: EEFT is poor value based on its PE Ratio (221.5x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: EEFT is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: EEFT is overvalued based on its PB Ratio (5.5x) compared to the US IT industry average (3.9x).


Next Steps

Future Growth

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

113.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EEFT's forecast earnings growth (113.9% per year) is above the savings rate (2.2%).

Earnings vs Market: EEFT's earnings (113.9% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: EEFT's revenue (12.9% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: EEFT's revenue (12.9% 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 (18.5%).


Next Steps

Past Performance

How has Euronet Worldwide performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EEFT has a large one-off loss of $106.0M impacting its September 30 2020 financial results.

Growing Profit Margin: EEFT's current net profit margins (1.3%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: EEFT's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: EEFT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EEFT had negative earnings growth (-89.1%) over the past year, making it difficult to compare to the IT industry average (3.2%).


Return on Equity

High ROE: EEFT's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Euronet Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: EEFT's short term assets ($2.7B) exceed its short term liabilities ($1.4B).

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


Debt to Equity History and Analysis

Debt Level: EEFT's debt to equity ratio (86.8%) is considered high.

Reducing Debt: EEFT's debt to equity ratio has increased from 57.7% to 86.8% over the past 5 years.

Debt Coverage: EEFT's debt is well covered by operating cash flow (31.8%).

Interest Coverage: EEFT's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

What is Euronet Worldwide 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 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.


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?

9.8yrs

Average management tenure


CEO

Mike Brown (63 yo)

26.83yrs

Tenure

US$8,415,773

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 ($USD8.42M) is about average for companies of similar size in the US market ($USD6.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Brown
Chairman26.83yrsUS$8.42m3.47%
$ 248.3m
Rick Weller
Executive VP18yrsUS$8.74m0.18%
$ 13.2m
Kevin Caponecchi
Executive VP and CEO of epay5.92yrsUS$7.15m0.14%
$ 10.1m
Juan Bianchi
Executive VP & CEO of Money Transfer Segmentno dataUS$7.27m0.0080%
$ 570.7k
Nikos Fountas
Executive VP and CEO of EFT Europeno dataUS$7.55m0.037%
$ 2.6m
Martin Brückner
Senior VP & Chief Technology Officer6.83yrsno data0.030%
$ 2.1m
Stephanie Taylor
Director of Financial Planning & IR9.83yrsno datano data
Desmond Acosta
Deputy General Counselno datano datano data
Scott Claassen
General Counsel & Secretaryno datano datano data
Karyn Zaborny
Senior VPno datano datano data
Tony Warren
Managing Director of Payments Softwareno datano datano data
William Waugh
Chief Regulatory Officerno datano datano data

9.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: EEFT's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Brown
Chairman26.83yrsUS$8.42m3.47%
$ 248.3m
Thomas McDonnell
Lead Independent Director6.17yrsUS$255.00k0.15%
$ 10.8m
Andrew Schmitt
Independent Director17.17yrsUS$240.00k0.13%
$ 9.1m
Michael Frumkin
Director0.42yrno data0.0038%
$ 269.9k
Andrzej Olechowski
Independent Director18.5yrsUS$225.00k0.024%
$ 1.7m
M. Strandjord
Independent Director19.67yrsUS$245.00k0.088%
$ 6.3m
Paul Althasen
Independent Director17.5yrsUS$225.00k0.098%
$ 7.0m
Mark Callegari
Independent Director6.17yrsUS$225.00k0.032%
$ 2.3m

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: 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 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$7.160b
  • Shares outstanding: 52.31m
  • 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
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 Ele...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:06
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.