EURONET WORLDWIDE INC (EEFT) Stock Fundamental Analysis
NASDAQ:EEFT - Nasdaq - US2987361092 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EEFT. EEFT was compared to 101 industry peers in the Financial Services industry. EEFT has only an average score on both its financial health and profitability. EEFT is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, EEFT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year EEFT was profitable.
EEFT had a positive operating cash flow in the past year.
EEFT had positive earnings in 4 of the past 5 years.
EEFT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.24%, EEFT is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
The Return On Equity of EEFT (24.90%) is better than 85.15% of its industry peers.
EEFT has a better Return On Invested Capital (13.31%) than 89.11% of its industry peers.
EEFT had an Average Return On Invested Capital over the past 3 years of 10.46%. This is above the industry average of 7.51%.
The last Return On Invested Capital (13.31%) for EEFT is above the 3 year average (10.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 24.9% | ||
| ROIC | 13.31% |
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 has a worse Profit Margin (7.67%) than 63.37% of its industry peers.
In the last couple of years the Profit Margin of EEFT has declined.
Looking at the Operating Margin, with a value of 12.61%, EEFT is in line with its industry, outperforming 43.56% of the companies in the same industry.
EEFT's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 40.11%, EEFT is doing good in the industry, outperforming 60.40% of the companies in the same industry.
EEFT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.61% | ||
| PM (TTM) | 7.67% | ||
| GM | 40.11% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EEFT is still creating some value.
The number of shares outstanding for EEFT has been reduced compared to 1 year ago.
Compared to 5 years ago, EEFT has less shares outstanding
EEFT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.18 indicates that EEFT is not a great score, but indicates only limited risk for bankruptcy at the moment.
EEFT's Altman-Z score of 2.18 is fine compared to the rest of the industry. EEFT outperforms 78.22% of its industry peers.
EEFT has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as EEFT would need 3.24 years to pay back of all of its debts.
The Debt to FCF ratio of EEFT (3.24) is better than 71.29% of its industry peers.
EEFT has a Debt/Equity ratio of 0.92. This is a neutral value indicating EEFT is somewhat dependend on debt financing.
EEFT's Debt to Equity ratio of 0.92 is in line compared to the rest of the industry. EEFT outperforms 44.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.11
WACC12%
2.3 Liquidity
EEFT has a Current Ratio of 1.25. This is a normal value and indicates that EEFT is financially healthy and should not expect problems in meeting its short term obligations.
EEFT has a Current ratio of 1.25. This is in the better half of the industry: EEFT outperforms 61.39% of its industry peers.
EEFT has a Quick Ratio of 1.25. This is a normal value and indicates that EEFT is financially healthy and should not expect problems in meeting its short term obligations.
EEFT has a Quick ratio of 1.25. This is in the better half of the industry: EEFT outperforms 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
EEFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.20%, which is quite good.
Measured over the past 5 years, EEFT shows a small growth in Earnings Per Share. The EPS has been growing by 4.27% on average per year.
EEFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.18%.
The Revenue has been growing slightly by 7.73% on average over the past years.
EPS 1Y (TTM)15.2%
EPS 3Y32.91%
EPS 5Y4.27%
EPS Q2Q%10.64%
Revenue 1Y (TTM)8.18%
Revenue growth 3Y10.03%
Revenue growth 5Y7.73%
Sales Q2Q%9.36%
3.2 Future
The Earnings Per Share is expected to grow by 14.61% on average over the next years. This is quite good.
Based on estimates for the next years, EEFT will show a small growth in Revenue. The Revenue will grow by 7.43% on average per year.
EPS Next Y15.71%
EPS Next 2Y14.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.3%
Revenue Next 2Y7.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.80, which indicates a very decent valuation of EEFT.
Based on the Price/Earnings ratio, EEFT is valued a bit cheaper than 62.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of EEFT to the average of the S&P500 Index (29.35), we can say EEFT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.20, the valuation of EEFT can be described as reasonable.
EEFT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EEFT is cheaper than 62.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. EEFT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 10.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EEFT is valued cheaper than 85.15% of the companies in the same industry.
81.19% of the companies in the same industry are more expensive than EEFT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
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 14.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)2.76
EPS Next 2Y14.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for EEFT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.97
+3.87 (+3.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.5%
Inst Owner Change1.64%
Ins Owners6.51%
Ins Owner Change6.05%
Market Cap4.46B
Analysts82.35
Price Target131.58 (29.04%)
Short Float %3.52%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.73%
Min EPS beat(2)-4.78%
Max EPS beat(2)-0.68%
EPS beat(4)1
Avg EPS beat(4)3.15%
Min EPS beat(4)-4.78%
Max EPS beat(4)20.63%
EPS beat(8)2
Avg EPS beat(8)1.86%
EPS beat(12)5
Avg EPS beat(12)2.13%
EPS beat(16)6
Avg EPS beat(16)-2.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-1.75%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-3.97%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
Revenue beat(12)4
Avg Revenue beat(12)-1.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.5%
PT rev (1m)1.66%
PT rev (3m)1.04%
EPS NQ rev (1m)-16.5%
EPS NQ rev (3m)-16.72%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 10.2 | ||
| P/S | 1.12 | ||
| P/FCF | 7.42 | ||
| P/OCF | 6.09 | ||
| P/B | 3.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.06 |
EPS(TTM)8.64
EY8.47%
EPS(NY)10
Fwd EY9.8%
FCF(TTM)13.74
FCFY13.47%
OCF(TTM)16.75
OCFY16.43%
SpS91.22
BVpS28.09
TBVpS-1.05
PEG (NY)0.75
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 24.9% | ||
| ROCE | 19.29% | ||
| ROIC | 13.31% | ||
| ROICexc | 50.64% | ||
| ROICexgc | N/A | ||
| OM | 12.61% | ||
| PM (TTM) | 7.67% | ||
| GM | 40.11% | ||
| FCFM | 15.06% |
ROA(3y)4.75%
ROA(5y)3.14%
ROE(3y)21.95%
ROE(5y)14.25%
ROIC(3y)10.46%
ROIC(5y)8.03%
ROICexc(3y)49.68%
ROICexc(5y)34.34%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.16%
ROCE(5y)11.63%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y97.6%
ROICexc growth 5Y39.18%
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%
F-Score8
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.24 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 100% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 6.43 | ||
| Cash Conversion | 115.4% | ||
| Profit Quality | 196.41% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.18 |
F-Score8
WACC12%
ROIC/WACC1.11
Cap/Depr(3y)86.76%
Cap/Depr(5y)83.38%
Cap/Sales(3y)3.15%
Cap/Sales(5y)3.41%
Profit Quality(3y)221.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.2%
EPS 3Y32.91%
EPS 5Y4.27%
EPS Q2Q%10.64%
EPS Next Y15.71%
EPS Next 2Y14.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.18%
Revenue growth 3Y10.03%
Revenue growth 5Y7.73%
Sales Q2Q%9.36%
Revenue Next Year7.3%
Revenue Next 2Y7.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.32%
EBIT growth 3Y31.24%
EBIT growth 5Y1.15%
EBIT Next Year47.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y11.38%
FCF growth 3Y25.15%
FCF growth 5Y10.43%
OCF growth 1Y13.95%
OCF growth 3Y21.7%
OCF growth 5Y7.75%