EURONET WORLDWIDE INC (EEFT) Stock Fundamental Analysis
NASDAQ:EEFT - Nasdaq - US2987361092 - Common Stock - Currency: USD
Overall EEFT gets a fundamental rating of 5 out of 10. We evaluated EEFT against 100 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make EEFT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year EEFT was profitable.
In the past year EEFT had a positive cash flow from operations.
Of the past 5 years EEFT 4 years were profitable.
Each year in the past 5 years EEFT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.26%, EEFT is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.44%, EEFT belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
The Return On Invested Capital of EEFT (10.31%) is better than 84.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EEFT is in line with the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 24.44% | ||
| ROIC | 10.31% |
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
With a Profit Margin value of 7.86%, EEFT perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
EEFT's Profit Margin has declined in the last couple of years.
EEFT's Operating Margin of 12.71% is in line compared to the rest of the industry. EEFT outperforms 43.00% of its industry peers.
EEFT's Operating Margin has declined in the last couple of years.
The Gross Margin of EEFT (40.31%) is comparable to the rest of the industry.
EEFT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.71% | ||
| PM (TTM) | 7.86% | ||
| GM | 40.31% |
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.
EEFT has less shares outstanding than it did 1 year ago.
EEFT has less shares outstanding than it did 5 years ago.
EEFT has a worse debt/assets ratio than last year.
2.2 Solvency
EEFT has an Altman-Z score of 2.28. This is not the best score and indicates that EEFT is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of EEFT (2.28) is better than 78.00% of its industry peers.
The Debt to FCF ratio of EEFT is 3.84, which is a good value as it means it would take EEFT, 3.84 years of fcf income to pay off all of its debts.
EEFT has a Debt to FCF ratio of 3.84. This is in the better half of the industry: EEFT outperforms 71.00% of its industry peers.
EEFT has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EEFT (1.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.37
WACC7.52%
2.3 Liquidity
EEFT has a Current Ratio of 1.60. 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 1.60. This is in the better half of the industry: EEFT outperforms 69.00% of its industry peers.
EEFT has a Quick Ratio of 1.60. 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 decent Quick ratio value of 1.60, EEFT is doing good in the industry, outperforming 71.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
EEFT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.33%.
EEFT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.27% yearly.
Looking at the last year, EEFT shows a small growth in Revenue. The Revenue has grown by 7.73% in the last year.
Measured over the past years, EEFT shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
EPS 1Y (TTM)7.33%
EPS 3Y32.91%
EPS 5Y4.27%
EPS Q2Q%-11.72%
Revenue 1Y (TTM)7.73%
Revenue growth 3Y10.03%
Revenue growth 5Y7.73%
Sales Q2Q%6.83%
3.2 Future
The Earnings Per Share is expected to grow by 14.11% 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 7.94% on average per year.
EPS Next Y16.17%
EPS Next 2Y15.03%
EPS Next 3Y14.11%
EPS Next 5YN/A
Revenue Next Year8.34%
Revenue Next 2Y8.13%
Revenue Next 3Y7.94%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.76, the valuation of EEFT can be described as reasonable.
Based on the Price/Earnings ratio, EEFT is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. EEFT is valued rather cheaply when compared to this.
EEFT is valuated reasonably with a Price/Forward Earnings ratio of 8.73.
Based on the Price/Forward Earnings ratio, EEFT is valued a bit cheaper than 63.00% of the companies in the same industry.
EEFT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
EEFT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EEFT is cheaper than 83.00% of the companies in the same industry.
83.00% 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 | 7.54 | ||
| EV/EBITDA | 7.05 |
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.
A more expensive valuation may be justified as EEFT's earnings are expected to grow with 14.11% in the coming years.
PEG (NY)0.73
PEG (5Y)2.75
EPS Next 2Y15.03%
EPS Next 3Y14.11%
5. Dividend
5.1 Amount
No dividends for EEFT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
99.85
-2.88 (-2.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.92%
Inst Owner Change0%
Ins Owners6.41%
Ins Owner Change-0.72%
Market Cap4.32B
Analysts82.35
Price Target127.88 (28.07%)
Short Float %6.31%
Short Ratio6.14
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)1
Avg EPS beat(2)2.22%
Min EPS beat(2)-0.68%
Max EPS beat(2)5.13%
EPS beat(4)1
Avg EPS beat(4)-0.72%
Min EPS beat(4)-4.78%
Max EPS beat(4)5.13%
EPS beat(8)3
Avg EPS beat(8)2.53%
EPS beat(12)6
Avg EPS beat(12)3.1%
EPS beat(16)7
Avg EPS beat(16)1%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-1.75%
Max Revenue beat(2)-1.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-3.97%
Max Revenue beat(4)0.21%
Revenue beat(8)2
Avg Revenue beat(8)-1.32%
Revenue beat(12)4
Avg Revenue beat(12)-1.12%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)-3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 8.73 | ||
| P/S | 1.07 | ||
| P/FCF | 7.54 | ||
| P/OCF | 6.13 | ||
| P/B | 3.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.05 |
EPS(TTM)8.49
EY8.5%
EPS(NY)11.43
Fwd EY11.45%
FCF(TTM)13.24
FCFY13.26%
OCF(TTM)16.29
OCFY16.32%
SpS93.62
BVpS30.12
TBVpS-0.17
PEG (NY)0.73
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 24.44% | ||
| ROCE | 14.93% | ||
| ROIC | 10.31% | ||
| ROICexc | 26.28% | ||
| ROICexgc | 853.45% | ||
| OM | 12.71% | ||
| PM (TTM) | 7.86% | ||
| GM | 40.31% | ||
| FCFM | 14.15% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 3.84 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 100.38% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 6 | ||
| Cash Conversion | 109.11% | ||
| Profit Quality | 179.98% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 2.28 |
F-Score8
WACC7.52%
ROIC/WACC1.37
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)7.33%
EPS 3Y32.91%
EPS 5Y4.27%
EPS Q2Q%-11.72%
EPS Next Y16.17%
EPS Next 2Y15.03%
EPS Next 3Y14.11%
EPS Next 5YN/A
Revenue 1Y (TTM)7.73%
Revenue growth 3Y10.03%
Revenue growth 5Y7.73%
Sales Q2Q%6.83%
Revenue Next Year8.34%
Revenue Next 2Y8.13%
Revenue Next 3Y7.94%
Revenue Next 5YN/A
EBIT growth 1Y14.06%
EBIT growth 3Y31.24%
EBIT growth 5Y1.15%
EBIT Next Year50.3%
EBIT Next 3Y21.55%
EBIT Next 5YN/A
FCF growth 1Y-10.43%
FCF growth 3Y25.15%
FCF growth 5Y10.43%
OCF growth 1Y-5.55%
OCF growth 3Y21.7%
OCF growth 5Y7.75%