NasdaqGS:UEPS

Stock Analysis Report

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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. More Details


Snowflake Analysis

Adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

UEPS

-2.7%

US IT

-1.1%

US Market


1 Year Return

2.6%

UEPS

23.1%

US IT

15.6%

US Market

Return vs Industry: UEPS underperformed the US IT industry which returned 26.9% over the past year.

Return vs Market: UEPS underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

UEPSIndustryMarket
7 Day0%-2.7%-1.1%
30 Day-2.8%0.9%4.2%
90 Day-1.0%2.1%6.3%
1 Year2.6%2.6%24.3%23.1%18.2%15.6%
3 Year-66.0%-66.0%84.6%77.5%39.6%30.4%
5 Year-81.8%-81.8%146.9%127.0%79.5%59.2%

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?

0.6x

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 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 (0.6x) 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?

23.6%

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 (2.2%).

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


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

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

-64.8%

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 64.8% 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 (8.1%).


Return on Equity

High ROE: UEPS has a negative Return on Equity (-33.5%), as it is currently unprofitable.


Next Steps

Financial Health

How is Net 1 UEPS Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: UEPS's short term assets ($319.3M) exceed its short term liabilities ($71.3M).

Long Term Liabilities: UEPS's short term assets ($319.3M) exceed its long term liabilities ($92.2M).


Debt to Equity History and Analysis

Debt Level: UEPS's debt to equity ratio (5.1%) is considered satisfactory.

Reducing Debt: UEPS's debt to equity ratio has reduced from 12.4% to 5.1% 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


Next Steps

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?

0.6yrs

Average management tenure


CEO

Alex Smith (51 yo)

0.083

Tenure

US$973,346

Compensation

Mr. Alexander Michael Ramsay Smith, also known as Alex, C.A., has been Interim Chief Executive Officer of Net 1 UEPS Technologies Inc. since September 30, 2020. Mr. Smith has been Chief Financial Officer, ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD973.35K) is about average for companies of similar size in the US market ($USD1.23M).

Compensation vs Earnings: Alex's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Michael Smith
Interim CEO0.083yrUS$973.35k0.27%
$ 473.7k
Herman Kotze
Consultant0.083yrUS$2.59m0.34%
$ 588.4k
Nunthakumarin Pillay
Managing Director of Southern Africano dataUS$1.07m0.098%
$ 172.4k
Philippus Meyer
Managing Director of International Payments Group & Transact 24 Limitedno dataUS$350.00k0.72%
$ 1.3m
Alan Keschner
Vice President of Joint Ventures and Investmentsno datano datano data
Dhruv Chopra
Group Vice President of Investor Relationsno datano datano data
Janie Marx
Group Compliance Officer1.58yrsno datano data
Lawrie Chalmers
Vice President of Group Human Resourcesno datano datano data
Y. Cho
Head of Research Directorno datano datano data
Yasvanth Singh
Chief Information Officer0.58yrno data0.0053%
$ 9.3k
Keith Kourie
Chief Information Officer0.58yrno data0.0053%
$ 9.3k
Cara van Straaten
Group Financial Controllerno datano datano data

0.6yrs

Average Tenure

54yo

Average Age

Experienced Management: UEPS's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alexander Michael Smith
Interim CEO0.083yrUS$973.35k0.27%
$ 473.7k
Antony Ball
Independent Non-Executive Director0.42yrUS$19.95kno data
Jabulane Mabuza
Independent Non-Employee Chairman0.33yrUS$17.85k0.12%
$ 215.3k
Kubandiran Pillay
Independent Non-Employee Director0.33yrUS$13.98kno data
Alasdair Kemsley Pein
Independent Director15.67yrsUS$219.69k0.15%
$ 268.0k
Ian Greenstreet
Independent Non-Employee Director0.42yrUS$24.63kno data
Ali Zaynalabidin Mazanderani
Independent Non-Executive Director0.42yrUS$16.27kno data
Ekta Singh-Bushell
Independent Non-Employee Director2yrsUS$226.63k0.012%
$ 21.7k

0.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: UEPS's board of directors are not considered experienced ( 0.4 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: UEPS 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 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$175.580m
  • Shares outstanding: 56.64m
  • 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 Analysis2020/10/27 00:44
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.