Despite its growth, NASDAQ:EEFT remains within the realm of affordability.

Last update: Nov 13, 2023

Our stock screener has singled out EURONET WORLDWIDE INC (NASDAQ:EEFT) as an attractive growth opportunity. NASDAQ:EEFT is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Analysis for NASDAQ:EEFT

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:EEFT, the assigned 7 reflects its growth potential:

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.
The Revenue has grown by 10.45% in the past year. This is quite good.
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.
EEFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
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.

Unpacking NASDAQ:EEFT's Valuation Rating

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 7 out of 10:

A Price/Earnings ratio of 11.59 indicates a reasonable valuation of EEFT.
EEFT is valuated cheaply when we compare the Price/Earnings ratio to 23.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.71 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.
EEFT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 18.84.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EEFT indicates a rather cheap valuation: EEFT is cheaper than 84.16% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EEFT indicates a rather cheap valuation: EEFT is cheaper than 82.18% of the companies listed 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.

How do we evaluate the Health for NASDAQ:EEFT?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:EEFT has achieved a 6 out of 10:

EEFT has a better Altman-Z score (2.24) than 81.19% 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.
Looking at the Debt to FCF ratio, with a value of 2.56, EEFT is in the better half of the industry, outperforming 77.23% of the companies in the same industry.
Looking at the Current ratio, with a value of 1.52, EEFT is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
The Quick ratio of EEFT (1.52) is better than 68.32% of its industry peers.

Assessing Profitability 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 6 for profitability:

With an excellent Return On Assets value of 5.20%, EEFT belongs to the best of the industry, outperforming 81.19% of the companies in the same industry.
EEFT's Return On Equity of 19.66% is amongst the best of the industry. EEFT outperforms 88.12% of its industry peers.
With an excellent Return On Invested Capital value of 8.91%, EEFT belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
The 3 year average ROIC (5.21%) for EEFT is below the current ROIC(8.91%), indicating increased profibility in the last year.
With a decent Gross Margin value of 40.14%, EEFT is doing good in 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.

Our latest full fundamental report of EEFT contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.