We assign a fundamental rating of 6 out of 10 to EEFT. EEFT was compared to 97 industry peers in the Financial Services industry. Both the profitability and the financial health of EEFT get a neutral evaluation. Nothing too spectacular is happening here. EEFT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make EEFT a good candidate for value investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

EEFT had positive earnings in the past year.
EEFT had a positive operating cash flow in the past year.
EEFT had positive earnings in 4 of the past 5 years.
In the past 5 years EEFT always reported a positive cash flow from operatings.

1.2 Ratios

EEFT's Return On Assets of 4.83% is fine compared to the rest of the industry. EEFT outperforms 74.23% of its industry peers.
EEFT has a better Return On Equity (24.00%) than 88.66% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.63%, EEFT belongs to the top of the industry, outperforming 91.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EEFT is in line with the industry average of 8.50%.
The last Return On Invested Capital (14.63%) for EEFT is above the 3 year average (10.46%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	4.83%
ROE	24%
ROIC	14.63%

ROA(3y)4.75%

ROA(5y)3.14%

ROE(3y)21.95%

ROE(5y)14.25%

ROIC(3y)10.46%

ROIC(5y)8.03%

1.3 Margins

EEFT's Profit Margin of 7.25% is in line compared to the rest of the industry. EEFT outperforms 48.45% of its industry peers.
In the last couple of years the Profit Margin of EEFT has declined.
With a Operating Margin value of 13.18%, EEFT perfoms like the industry average, outperforming 50.52% of the companies in the same industry.
EEFT's Operating Margin has declined in the last couple of years.
EEFT has a Gross Margin (41.04%) which is in line with its industry peers.
In the last couple of years the Gross Margin of EEFT has declined.

		Industry Rank	Sector Rank
OM	13.18%
PM (TTM)	7.25%
GM	41.04%

OM growth 3Y19.28%

OM growth 5Y-6.1%

PM growth 3Y48.12%

PM growth 5Y-9.46%

GM growth 3Y3.14%

GM growth 5Y-1.56%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EEFT is creating value.
Compared to 1 year ago, EEFT has less shares outstanding
The number of shares outstanding for EEFT has been reduced compared to 5 years ago.
EEFT has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.92 indicates that EEFT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.92, EEFT is doing good in the industry, outperforming 75.26% of the companies in the same industry.
The Debt to FCF ratio of EEFT is 7.20, which is on the high side as it means it would take EEFT, 7.20 years of fcf income to pay off all of its debts.
EEFT has a Debt to FCF ratio (7.20) which is in line with its industry peers.
EEFT has a Debt/Equity ratio of 0.85. This is a neutral value indicating EEFT is somewhat dependend on debt financing.
EEFT has a Debt to Equity ratio of 0.85. This is comparable to the rest of the industry: EEFT outperforms 46.39% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.85
Debt/FCF	7.2
Altman-Z	1.92

ROIC/WACC1.99

WACC7.35%

2.3 Liquidity

EEFT has a Current Ratio of 1.15. This is a normal value and indicates that EEFT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.15, EEFT perfoms like the industry average, outperforming 58.76% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that EEFT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, EEFT is in the better half of the industry, outperforming 60.82% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.15
Quick Ratio	1.15

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

EEFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.26%, which is quite good.
EEFT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.27% yearly.
EEFT shows a small growth in Revenue. In the last year, the Revenue has grown by 7.25%.
EEFT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.

EPS 1Y (TTM)11.26%

EPS 3Y32.91%

EPS 5Y4.27%

EPS Q2Q%19.47%

Revenue 1Y (TTM)7.25%

Revenue growth 3Y10.03%

Revenue growth 5Y7.73%

Sales Q2Q%4.22%

3.2 Future

EEFT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.55% yearly.
EEFT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.94% yearly.

EPS Next Y15.23%

EPS Next 2Y14.41%

EPS Next 3Y13.55%

EPS Next 5YN/A

Revenue Next Year6.54%

Revenue Next 2Y6.95%

Revenue Next 3Y6.94%

Revenue Next 5YN/A

3.3 Evolution

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.70, which indicates a rather cheap valuation of EEFT.
Based on the Price/Earnings ratio, EEFT is valued cheaply inside the industry as 82.47% of the companies are valued more expensively.
EEFT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.41.
EEFT is valuated cheaply with a Price/Forward Earnings ratio of 6.39.
Based on the Price/Forward Earnings ratio, EEFT is valued cheaply inside the industry as 83.51% of the companies are valued more expensively.
EEFT is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	7.7
Fwd PE	6.39

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EEFT indicates a rather cheap valuation: EEFT is cheaper than 92.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EEFT is valued a bit cheaper than 74.23% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	9.5
EV/EBITDA	4.86

4.3 Compensation for Growth

The 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 13.55% in the coming years. This may justify a more expensive valuation.