NasdaqGS:UEPS

Stock Analysis Report

Executive Summary

Net 1 UEPS Technologies, Inc. provides transaction processing services, financial inclusion products and services, and secure payment technologies in South Africa, the Republic of Korea, and internationally.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has Net 1 UEPS Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UEPS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

UEPS

1.2%

US IT

0.3%

US Market


1 Year Return

-35.4%

UEPS

25.5%

US IT

12.5%

US Market

Return vs Industry: UEPS underperformed the US IT industry which returned 25.5% over the past year.

Return vs Market: UEPS underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

UEPSIndustryMarket
7 Day-0.3%1.2%0.3%
30 Day-4.9%0.5%4.1%
90 Day-16.3%0.5%5.6%
1 Year-35.4%-35.4%26.7%25.5%15.0%12.5%
3 Year-72.3%-72.3%98.4%89.9%49.1%39.4%
5 Year-76.5%-76.5%131.2%110.5%62.8%44.7%

Price Volatility Vs. Market

How volatile is Net 1 UEPS Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate UEPS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate UEPS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: UEPS is unprofitable, so we can't compare its PE Ratio to the 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 (0.5x) compared to the US IT industry average (3.8x).


Next Steps

Future Growth

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

159.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UEPS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: UEPS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: UEPS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: UEPS's revenue (15% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: UEPS's revenue (15% per year) is forecast to grow slower 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


Next Steps

Past Performance

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

-55.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UEPS has large one-off items impacting its financial results.

Growing Profit Margin: UEPS's current net profit margins (-118.2%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: UEPS is unprofitable, and losses have increased over the past 5 years at a rate of -55.4% 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 (14.8%).


Return on Equity

High ROE: UEPS has a negative Return on Equity (-102.16%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Net 1 UEPS Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: UEPS's short term assets ($304.5M) exceeds its short term liabilities ($254.2M)

Long Term Liabilities: UEPS's short term assets (304.5M) exceeds its long term liabilities (116.7M)


Debt to Equity History and Analysis

Debt Level: UEPS's debt to equity ratio (31.2%) is considered satisfactory

Reducing Debt: UEPS's debt to equity ratio has increased from 17.2% to 31.2% over the past 5 years.

Debt Coverage: UEPS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if UEPS's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: UEPS has a low level of unsold assets or inventory.

Debt Coverage by Assets: UEPS's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate UEPS's dividend yield against the top 25% of dividend payers, as the company has not reported any 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

What is the CEO of Net 1 UEPS Technologies's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Herman Kotzé (49yo)

2.5yrs

Tenure

US$1,109,028

Compensation

Mr. Herman Gideon Kotzé, [BCom (Hons)(Acc), HDipTax, Cert Treasury Management, Chartered Accountant (SA)]., has been Chief Executive Officer of Net 1 UEPS Technologies Inc. since June 1, 2017. Mr. Kotzé ha ...


CEO Compensation Analysis

Compensation vs Market: Herman's total compensation ($USD1.11M) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

2.1yrs

Average Tenure

53yo

Average Age

Experienced Management: UEPS's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

59yo

Average Age

Experienced Board: UEPS's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$10,00007 Dec 18
Ekta Singh-Bushell
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Employee Director
Shares2,000
Max PriceUS$5.00
BuyUS$45,30014 Nov 18
Paul Edwards
EntityIndividual
Role
Vice Chairman
Deputy Chairman of the Board
Shares10,000
Max PriceUS$4.53
BuyUS$27,18014 Nov 18
Alasdair Kemsley Pein
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$4.53

Ownership Breakdown

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


Management Team

  • Herman Kotzé (49yo)

    CEO & Director

    • Tenure: 2.5yrs
    • Compensation: US$1.11m
  • Dhruv Chopra (45yo)

    Head of Investor Relations

    • Tenure: 0yrs
  • Alex Smith (50yo)

    CFO, Treasurer

    • Tenure: 1.7yrs
    • Compensation: US$578.70k
  • Nanda Pillay (48yo)

    Managing Director of Southern Africa

    • Tenure: 0yrs
    • Compensation: US$559.06k
  • Lawrie Chalmers (58yo)

    Vice President of Group Human Resources

    • Tenure: 0yrs
  • Phil-Hyun Oh (60yo)

    CEO & President of KSNET

    • Tenure: 12.8yrs
    • Compensation: US$913.79k
  • Y. Cho (53yo)

    Head of Research Director

    • Tenure: 0yrs
  • Alan Keschner (59yo)

    Vice President of Joint Ventures and Investments

    • Tenure: 0yrs
  • Philip Meyer (62yo)

    Managing Director of International Payments Group & Transact 24 Limited

    • Tenure: 0yrs
    • Compensation: US$493.62k
  • Janie Marx

    Group Compliance Officer

    • Tenure: 0.7yrs

Board Members

  • Alfred Mockett (69yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$210.00k
  • Chris Seabrooke (66yo)

    Non-Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: US$419.25k
  • Herman Kotzé (49yo)

    CEO & Director

    • Tenure: 2.5yrs
    • Compensation: US$1.11m
  • Paul Edwards (65yo)

    Deputy Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: US$210.00k
  • Alasdair Kemsley Pein (59yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$240.00k
  • Alex Smith (50yo)

    CFO, Treasurer

    • Tenure: 1.7yrs
    • Compensation: US$578.70k
  • Ekta Singh-Bushell (47yo)

    Independent Non-Employee Director

    • Tenure: 1.1yrs
    • Compensation: US$157.50k

Company Information

Net 1 UEPS Technologies, Inc.'s company bio, 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$163.475m
  • Shares outstanding: 55.98m
  • Website: https://www.net1.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UEPSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2004
NT1JSE (The Johannesburg Securities Exchange)YesCommon StockZAZARJun 2004

Biography

Net 1 UEPS Technologies, Inc. provides transaction processing services, financial inclusion products and services, and secure payment technologies in South Africa, the Republic of Korea, and internationall ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:42
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.