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UEPS

Net 1 UEPS TechnologiesNasdaqGS:UEPS Stock Report

Market Cap

US$307.8m

7D

1.1%

1Y

74.2%

Updated

22 Oct, 2021

Data

Company Financials +
UEPS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

UEPS Overview

Net 1 UEPS Technologies, Inc., a financial technology company, provides fintech products and services to unbanked and underbanked individuals and small businesses primarily in South Africa and internationally.

Net 1 UEPS Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Net 1 UEPS Technologies
Historical stock prices
Current Share PriceUS$5.40
52 Week HighUS$2.87
52 Week LowUS$6.62
Beta1.07
1 Month Change15.88%
3 Month Change28.27%
1 Year Change74.19%
3 Year Change-21.85%
5 Year Change-47.52%
Change since IPO-91.05%

Recent News & Updates

Oct 15
Net 1 UEPS Technologies (NASDAQ:UEPS) Has Debt But No Earnings; Should You Worry?

Net 1 UEPS Technologies (NASDAQ:UEPS) Has Debt But No Earnings; Should You Worry?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jun 07
Health Check: How Prudently Does Net 1 UEPS Technologies (NASDAQ:UEPS) Use Debt?

Health Check: How Prudently Does Net 1 UEPS Technologies (NASDAQ:UEPS) Use Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

UEPSUS ITUS Market
7D1.1%-0.7%1.7%
1Y74.2%21.9%30.3%

Return vs Industry: UEPS exceeded the US IT industry which returned 22.2% over the past year.

Return vs Market: UEPS exceeded the US Market which returned 31.1% over the past year.

Price Volatility

Is UEPS's price volatile compared to industry and market?
UEPS volatility
UEPS Beta1.07
Industry Beta1.18
Market Beta1

Stable Share Price: UEPS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: UEPS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19973,079Chris Meyerhttps://www.net1.com

Net 1 UEPS Technologies, Inc., a financial technology company, provides fintech products and services to unbanked and underbanked individuals and small businesses primarily in South Africa and internationally. The company develops payment technologies to offers financial and value -added services to its customers. It operates through three segments: Processing, Financial services, and Technology.

Net 1 UEPS Technologies Fundamentals Summary

How do Net 1 UEPS Technologies's earnings and revenue compare to its market cap?
UEPS fundamental statistics
Market CapUS$307.78m
Earnings (TTM)-US$37.82m
Revenue (TTM)US$130.79m

2.4x

P/S Ratio

-8.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UEPS income statement (TTM)
RevenueUS$130.79m
Cost of RevenueUS$96.25m
Gross ProfitUS$34.54m
ExpensesUS$72.36m
Earnings-US$37.82m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.66
Gross Margin26.41%
Net Profit Margin-28.92%
Debt/Equity Ratio5.2%

How did UEPS perform over the long term?

See historical performance and comparison

Valuation

Is Net 1 UEPS Technologies undervalued compared to its fair value and its price relative to the market?

1.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: UEPS ($5.4) is trading above our estimate of fair value ($0.74)

Significantly Below Fair Value: UEPS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UEPS is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: UEPS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UEPS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UEPS is good value based on its PB Ratio (1.1x) compared to the US IT industry average (5.4x).


Future Growth

How is Net 1 UEPS Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.8%

Forecasted Software industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if UEPS's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if UEPS's earnings are forecast to grow faster than the US market

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

Revenue vs Market: Insufficient data to determine if UEPS's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if UEPS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if UEPS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Net 1 UEPS Technologies performed over the past 5 years?

-52.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UEPS is currently unprofitable.

Growing Profit Margin: UEPS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UEPS is unprofitable, and losses have increased over the past 5 years at a rate of 52.2% per year.

Accelerating Growth: Unable to compare UEPS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UEPS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (35.6%).


Return on Equity

High ROE: UEPS has a negative Return on Equity (-13.79%), as it is currently unprofitable.


Financial Health

How is Net 1 UEPS Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: UEPS's short term assets ($294.3M) exceed its short term liabilities ($52.5M).

Long Term Liabilities: UEPS's short term assets ($294.3M) exceed its long term liabilities ($99.9M).


Debt to Equity History and Analysis

Debt Level: UEPS's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: UEPS's debt to equity ratio has reduced from 10.4% to 5.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UEPS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if UEPS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Net 1 UEPS Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UEPS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate UEPS'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 UEPS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UEPS'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 UEPS'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?

1.6yrs

Average management tenure


CEO

Chris Meyer (50 yo)

0.25

Tenure

Mr. Christopher Guy-Butt Meyer, also known as Chris, has been Group Chief Executive Officer at Net 1 UEPS Technologies, Inc. since July 1, 2021 and serves as its Director since 2021. He served as Joint Man...


Leadership Team

Experienced Management: UEPS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: UEPS's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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

Net 1 UEPS Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Net 1 UEPS Technologies, Inc.
  • Ticker: UEPS
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$307.780m
  • Shares outstanding: 57.00m
  • Website: https://www.net1.com

Number of Employees


Location

  • Net 1 UEPS Technologies, Inc.
  • President Place
  • 4th Floor
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 23:02
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.