When you look at NASDAQ:EEFT, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Our stock screening tool has pinpointed EURONET WORLDWIDE INC (NASDAQ:EEFT) as an undervalued stock option. NASDAQ:EEFT retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

A Closer Look at Valuation for NASDAQ:EEFT

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:EEFT has received a 8 out of 10:

• Based on the Price/Earnings ratio of 11.27, the valuation of EEFT can be described as reasonable.
• Based on the Price/Earnings ratio, EEFT is valued a bit cheaper than 61.39% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 24.66. EEFT is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 9.44 indicates a reasonable valuation of EEFT.
• 60.40% of the companies in the same industry are more expensive than EEFT, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 18.30. EEFT is valued slightly cheaper when compared to this.
• EEFT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EEFT is cheaper than 85.15% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, EEFT is valued cheaper than 80.20% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• EEFT has a very decent profitability rating, which 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.

Profitability Analysis for NASDAQ:EEFT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:EEFT was assigned a score of 7 for profitability:

• EEFT has a better Return On Assets (5.20%) than 80.20% of its industry peers.
• EEFT's Return On Equity of 19.66% is amongst the best of the industry. EEFT outperforms 86.14% of its industry peers.
• EEFT has a Return On Invested Capital of 8.91%. This is amongst the best in the industry. EEFT outperforms 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.
• EEFT has a Gross Margin of 40.14%. This is in the better half of the industry: EEFT outperforms 64.36% of its industry peers.

Health Analysis for NASDAQ:EEFT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:EEFT has earned a 6 out of 10:

• The Altman-Z score of EEFT (2.21) is better than 82.18% of its industry peers.
• The Debt to FCF ratio of EEFT is 2.56, which is a good value as it means it would take EEFT, 2.56 years of fcf income to pay off all of its debts.
• EEFT has a Debt to FCF ratio of 2.56. This is in the better half of the industry: EEFT outperforms 78.22% of its industry peers.
• Looking at the Current ratio, with a value of 1.52, EEFT is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
• Looking at the Quick ratio, with a value of 1.52, EEFT is in the better half of the industry, outperforming 68.32% of the companies in the same industry.

Deciphering NASDAQ:EEFT's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:EEFT has received a 7 out of 10:

• The Earnings Per Share has grown by an impressive 31.65% over the past year.
• EEFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.45%.
• Measured over the past years, EEFT shows a quite strong growth in Revenue. The Revenue has been growing by 8.32% on average per year.
• EEFT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.50% yearly.
• 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.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of EEFT

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.