EURONET WORLDWIDE INC (EEFT)
US2987361092 - Common Stock
We assign a fundamental rating of 5 out of 10 to EEFT. EEFT was compared to 100 industry peers in the Financial Services industry. EEFT has only an average score on both its financial health and profitability. EEFT may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, EEFT could be worth investigating further for value investing!.
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.
Of the past 5 years EEFT 4 years were profitable.
In the past 5 years EEFT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.67%, EEFT is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.30%, EEFT belongs to the top of the industry, outperforming 89.00% of the companies in the same industry.
EEFT has a better Return On Invested Capital (13.13%) than 91.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EEFT is in line with the industry average of 7.54%.
The last Return On Invested Capital (13.13%) for EEFT is above the 3 year average (7.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 23.3% | ||
| ROIC | 13.13% |
ROA(3y)3.5%
ROA(5y)3.58%
ROE(3y)15.52%
ROE(5y)13.66%
ROIC(3y)7.98%
ROIC(5y)7.71%
1.3 Margins
EEFT has a Profit Margin (7.43%) which is in line with 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 12.16%, EEFT is in line with its industry, outperforming 47.00% of the companies in the same industry.
In the last couple of years the Operating Margin of EEFT has declined.
EEFT has a better Gross Margin (39.88%) than 61.00% of its industry peers.
EEFT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.16% | ||
| PM (TTM) | 7.43% | ||
| GM | 39.88% |
OM growth 3Y23.88%
OM growth 5Y-4%
PM growth 3YN/A
PM growth 5Y-3.75%
GM growth 3Y2.87%
GM growth 5Y-0.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EEFT is creating value.
The number of shares outstanding for EEFT has been reduced compared to 1 year ago.
EEFT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EEFT is higher compared to a year ago.
2.2 Solvency
EEFT has an Altman-Z score of 1.99. 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.
Looking at the Altman-Z score, with a value of 1.99, EEFT is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
EEFT has a debt to FCF ratio of 4.42. This is a neutral value as EEFT would need 4.42 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.42, EEFT is doing good in the industry, outperforming 67.00% of the companies in the same industry.
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 (0.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.83
WACC7.16%
2.3 Liquidity
A Current Ratio of 1.19 indicates that EEFT should not have too much problems paying its short term obligations.
EEFT has a Current ratio (1.19) which is comparable to the rest of the industry.
EEFT has a Quick Ratio of 1.19. 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 1.19. This is comparable to the rest of the industry: EEFT outperforms 59.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
EEFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.40%, which is quite impressive.
EEFT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.09% yearly.
The Revenue has grown by 8.46% in the past year. This is quite good.
The Revenue has been growing slightly by 7.77% on average over the past years.
EPS 1Y (TTM)20.4%
EPS 3Y38.55%
EPS 5Y6.09%
EPS Q2Q%11.4%
Revenue 1Y (TTM)8.46%
Revenue growth 3Y14.1%
Revenue growth 5Y7.77%
Sales Q2Q%9.49%
3.2 Future
The Earnings Per Share is expected to grow by 13.81% on average over the next years. This is quite good.
EEFT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.99% yearly.
EPS Next Y17.01%
EPS Next 2Y14.88%
EPS Next 3Y13.81%
EPS Next 5YN/A
Revenue Next Year8.56%
Revenue Next 2Y8.24%
Revenue Next 3Y7.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.43, EEFT is valued correctly.
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.
Compared to an average S&P500 Price/Earnings ratio of 28.96, EEFT is valued rather cheaply.
EEFT is valuated reasonably with a Price/Forward Earnings ratio of 10.60.
Based on the Price/Forward Earnings ratio, EEFT is valued a bit cheaper than 62.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EEFT to the average of the S&P500 Index (23.82), we can say EEFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EEFT is valued cheaper than 84.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EEFT is valued a bit cheaper than 79.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 8.08 |
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.
EEFT has a very decent profitability rating, which may justify a higher PE ratio.
EEFT's earnings are expected to grow with 13.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)2.04
EPS Next 2Y14.88%
EPS Next 3Y13.81%
5. Dividend
5.1 Amount
EEFT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EURONET WORLDWIDE INC
NASDAQ:EEFT (11/21/2024, 8:24:05 PM)
After market: 104.75 -0.17 (-0.16%)104.92
+1.49 (+1.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 10.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.73
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 23.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.16% | ||
| PM (TTM) | 7.43% | ||
| GM | 39.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.4%
EPS 3Y38.55%
EPS 5Y
EPS Q2Q%
EPS Next Y17.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.46%
Revenue growth 3Y14.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y