NASDAQ:EEFT is showing good growth, while it is not too expensive.

Last update: Oct 23, 2023

Here's EURONET WORLDWIDE INC (NASDAQ:EEFT) for you, a growth stock our stock screener believes is undervalued. NASDAQ:EEFT is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Assessment of NASDAQ:EEFT

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:EEFT was assigned a score of 7 for growth:

EEFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.65%, which is quite impressive.
EEFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.45%.
The Revenue has been growing by 8.32% on average over the past years. This is quite good.
Based on estimates for the next years, EEFT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.50% on average per year.
Based on estimates for the next years, EEFT will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Deciphering NASDAQ:EEFT's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:EEFT, the assigned 7 reflects its valuation:

EEFT is valuated reasonably with a Price/Earnings ratio of 11.92.
EEFT's Price/Earnings ratio is a bit cheaper when compared to the industry. EEFT is cheaper than 60.40% of the companies in the same industry.
EEFT is valuated cheaply when we compare the Price/Earnings ratio to 25.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.99, which indicates a very decent valuation of EEFT.
EEFT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 18.58.
Based on the Enterprise Value to EBITDA ratio, EEFT is valued cheaper than 83.17% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EEFT indicates a somewhat cheap valuation: EEFT is cheaper than 79.21% of the companies listed in the same industry.
EEFT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EEFT may justify a higher PE ratio.
EEFT's earnings are expected to grow with 13.50% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NASDAQ:EEFT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:EEFT scores a 6 out of 10:

With an excellent Altman-Z score value of 2.26, EEFT belongs to the best of the industry, outperforming 81.19% of the companies in the same industry.
EEFT has a debt to FCF ratio of 2.56. This is a good value and a sign of high solvency as EEFT would need 2.56 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.56, EEFT is doing good in the industry, outperforming 78.22% of the companies in the same industry.
EEFT's Current ratio of 1.52 is fine compared to the rest of the industry. EEFT outperforms 66.34% of its industry peers.
EEFT has a Quick ratio of 1.52. This is in the better half of the industry: EEFT outperforms 68.32% of its industry peers.

Profitability Insights: NASDAQ:EEFT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:EEFT, the assigned 7 is noteworthy for profitability:

EEFT has a Return On Assets of 5.20%. This is amongst the best in the industry. EEFT outperforms 80.20% of its industry peers.
EEFT has a Return On Equity of 19.66%. This is amongst the best in the industry. EEFT outperforms 86.14% of its industry peers.
EEFT has a better Return On Invested Capital (8.91%) than 85.15% of its industry peers.
The last Return On Invested Capital (8.91%) for EEFT is above the 3 year average (5.21%), which is a sign of increasing profitability.
Looking at the Gross Margin, with a value of 40.14%, EEFT is in the better half of the industry, outperforming 64.36% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of EEFT for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.