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Euronet Worldwide (EEFT)
NASDAQ:EEFT
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Euronet Worldwide
(NASDAQ:EEFT)
75Outperform
Positive Factors
Earnings Performance
EEFT capped off FY24 on a positive note, outperforming Street expectations on both the top and bottom lines driven by healthy transaction growth, success in scaling in new markets, and cost management efforts.
Revenue Growth
Certain initiatives to diversify the businesses, such as expanding ATM footprint into new geographies and digital remittances, are driving meaningful contributions to organic revenue and profit growth.
Share Repurchases
Share repurchases have reduced share count by 5.5%, positively impacting the stock value.
Negative Factors
Business Sustainability
Some investors remain concerned about the sustainability of Euronet’s various cash-centric businesses such as ATMs, along with competition/pricing concerns within the money transfer business.
Economic Environment
Results could be choppy given the uncertain global macroeconomic environment.
Market Sensitivity
The European travel ATM business remains the largest driver of the EFT segment, making results sensitive to the European travel season.
Euronet Worldwide (EEFT) vs. S&P 500 (SPY)
Market Cap
$4.80B
Dividend YieldN/A
Average Volume (3M)504.08K
Price to Earnings (P/E)16.4
Beta (1Y)0.79
Revenue Growth7.73%
EPS Growth19.76%
CountryUS
Employees10,600
SectorTechnology
Sector Strength76
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.13
Shares Outstanding43,244,858
10 Day Avg. Volume408,821
30 Day Avg. Volume504,080
Financial Highlights & Ratios
PEG Ratio-2.50
Price to Book (P/B)3.81
Price to Sales (P/S)0.00
P/FCF Ratio7.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$125.71Price Target Upside13.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Euronet Worldwide Business Overview & Revenue Model
Company DescriptionEuronet Worldwide, Inc. (EEFT) is a leading electronic payments provider, offering payment and transaction processing solutions to financial institutions, retailers, service providers, and individual consumers. The company operates through three primary segments: Electronic Fund Transfer (EFT) Processing, epay, and Money Transfer. Euronet delivers services that include ATM network participation, card issuing, and merchant acquiring services, as well as electronic distribution of prepaid mobile airtime and other prepaid products. Additionally, the company facilitates cross-border money transfers and bill payment services, leveraging its extensive global network.
How the Company Makes MoneyEuronet Worldwide makes money through several key revenue streams. The Electronic Fund Transfer (EFT) Processing segment generates revenue by providing ATM outsourcing services, network participation, and card issuing services. Fees are collected from transactions conducted at ATMs and for services offered to financial institutions. The epay segment earns money by distributing digital and physical products, like mobile top-ups and gift cards, through a network of retailers. This segment benefits from partnerships with telecom operators and digital content providers. The Money Transfer segment generates revenue from fees charged for money transfer services, both domestic and international, as well as from foreign exchange margins. Euronet's comprehensive network and strategic partnerships with banks, retailers, and telecom operators significantly contribute to its earnings.
Euronet Worldwide Financial Statement Overview
Summary
Euronet Worldwide shows strong financial health with significant revenue growth, improved net profit margin, and effective debt reduction. However, operational cost pressures have affected the EBITDA margin.Income Statement
Euronet Worldwide has demonstrated strong revenue growth with a 8.18% increase in total revenue from 2023 to 2024. The gross profit margin is impressive at 83.76%, highlighting efficient cost management. However, the EBITDA margin has decreased to 5.38%, indicating some operational cost pressures. The EBIT margin is stable at 12.62%, and the net profit margin has improved to 7.67%, suggesting enhanced profitability.78
Positive
Balance Sheet
The company's debt-to-equity ratio has improved significantly from 1.61 in 2023 to 0.77 in 2024, reflecting a reduction in leverage and improved financial stability. The equity ratio is steady at 21.05%, indicating consistent equity funding relative to total assets. Return on equity has increased to 24.90%, showcasing effective use of equity capital to generate profits.70
Positive
Cash Flow
Euronet Worldwide's free cash flow has grown by 12.19% year-over-year, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is robust at 2.39, indicating efficient conversion of income to cash. The free cash flow to net income ratio is high at 2.01, demonstrating strong cash flow relative to profit.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.99B | 3.69B | 3.36B | 3.00B | 2.48B | Gross Profit |
| 3.34B | 1.47B | 1.34B | 1.10B | 906.00M | EBIT |
| 503.20M | 432.60M | 385.34M | 222.65M | 153.22M | EBITDA |
| 661.20M | 588.90M | 496.04M | 309.63M | 280.25M | Net Income Common Stockholders |
| 306.00M | 279.70M | 231.00M | 70.70M | -3.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.28B | 1.78B | 1.65B | 1.80B | 1.83B | Total Assets |
| 5.83B | 5.89B | 5.40B | 4.74B | 4.93B | Total Debt |
| 948.40M | 2.01B | 1.77B | 1.59B | 1.61B | Net Debt |
| -330.40M | 234.00M | 119.50M | -212.50M | -221.50M | Total Liabilities |
| 4.61B | 4.64B | 4.16B | 3.49B | 3.48B | Stockholders Equity |
| 1.23B | 1.25B | 1.24B | 1.26B | 1.45B |
| Cash Flow | Free Cash Flow | |||
| 615.60M | 548.70M | 644.03M | 314.37M | 155.88M | Operating Cash Flow |
| 732.80M | 643.10M | 748.29M | 406.58M | 253.50M | Investing Cash Flow |
| -223.30M | -157.60M | -453.78M | -98.11M | -105.53M | Financing Cash Flow |
| -135.70M | -143.20M | -1.15M | -212.24M | 35.40M |
Euronet Worldwide Technical Analysis
Positive
111.08
Price Trends
102.17
Positive
101.27
Positive
101.18
Positive
Market Momentum
3.12
Negative
65.90
Neutral
75.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EEFT, the sentiment is Positive. The current price of 111.08 is above the 20-day moving average (MA) of 103.03, above the 50-day MA of 102.17, and above the 200-day MA of 101.18, indicating a bullish trend. The MACD of 3.12 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 75.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EEFT.
Euronet Worldwide Risk Analysis
Euronet Worldwide disclosed 28 risk factors in its most recent earnings report. Euronet Worldwide reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Euronet Worldwide Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.04B | 30.68 | 30.28% | ― | 27.39% | 115.40% | |
75 Outperform | $4.80B | 16.41 | 25.00% | ― | 7.73% | 19.76% | |
74 Outperform | $5.13B | 19.26 | 19.69% | ― | 13.11% | 91.21% | |
66 Neutral | $4.65B | ― | -0.71% | ― | 34.37% | 95.80% | |
61 Neutral | $3.63B | 8.73 | -8.85% | ― | -14.03% | -167.03% | |
60 Neutral | $11.59B | 10.39 | -7.23% | 2.94% | 7.46% | -10.76% | |
60 Neutral | $4.77B | 17.95 | 24.37% | ― | 0.90% | 26.13% |
* Technology Sector Average
Performance Comparison
EEFT
Euronet Worldwide
111.08
-3.81
-3.32%
ACIW
ACI Worldwide
48.87
11.58
31.05%
WEX
WEX
139.41
-54.68
-28.17%
STNE
Stoneco
13.36
-1.49
-10.03%
FOUR
Shift4 Payments
90.70
21.88
31.79%
RELY
Remitly Global
22.79
8.37
58.04%
Euronet Worldwide Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 13.95%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
Euronet Worldwide's Q1 2025 earnings call highlighted strong growth across several segments, with record revenue and significant digital transaction growth. Despite a decline in adjusted EPS due to one-time charges, the company maintains a positive outlook for the year, supported by robust segment performances and continued market expansion.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Euronet achieved revenue of $916 million, adjusted operating income of $75 million, and adjusted EBITDA of $119 million for Q1 2025, marking a record first quarter across all three metrics. Operating income increased by 18% year-over-year.
Strong Performance in Money Transfer Segment
The Money Transfer segment showed notable performance with digital transaction growth of 31% and double-digit cross-border transaction growth. Adjusted operating income increased by 23% year-over-year.
EFT Segment Expansion
EFT segment revenue grew by 10%, with a 15% increase in adjusted operating income and a 10% increase in adjusted EBITDA, driven by international cash withdrawal transactions and market expansion.
Positive Outlook for 2025
Euronet reaffirmed its expectation of 12% to 16% adjusted EPS growth for the year 2025, indicating confidence in continued strong performance.
Negative Updates
Adjusted EPS Decline
Adjusted EPS for Q1 2025 was $1.13, down from $1.28 the previous year, due to a one-time charge of $0.20 per share for the repurchase of convertible bonds, despite an 18% year-over-year growth on a pro forma basis.
Impact of Regulatory Environment
Concerns about regulatory changes such as FinCEN's geographic targeting orders in the U.S. could impact the money transfer segment, although Euronet maintains a strong compliance record.
Company Guidance
During the first quarter of 2025, Euronet Worldwide delivered strong financial results, achieving revenue of $916 million, an adjusted operating income of $75 million, and an adjusted EBITDA of $119 million. This performance was bolstered by a robust contribution from the Money Transfer segment, which saw a 31% increase in digital transactions and a 23% rise in adjusted operating income. The company's adjusted EPS was $1.13, down from $1.28 in the prior year, but this included a $0.20 per share charge related to the repurchase of convertible bonds. On a pro forma basis, considering a $0.15 per share tax benefit in the prior year, adjusted EPS grew by 18% year-over-year. Euronet's diverse business model and global presence underpin its reaffirmed expectation of 12% to 16% earnings growth for the full year. The EFT segment saw 10% revenue growth, supported by increased cash withdrawal transactions and international market expansion. Meanwhile, epay's revenue grew by 8%, driven by digital channel sales and mobile activations, despite a $4.5 million tax-related payment affecting operational earnings. Overall, Euronet's consolidated operating margins expanded by 80 basis points, reflecting volume growth and effective cost management.Euronet Worldwide Corporate Events
Executive/Board ChangesShareholder Meetings
Euronet Worldwide Elects Directors at Annual Meeting
Neutral
May 15, 2025
On May 14, 2025, Euronet Worldwide, Inc. held its Annual Meeting of Stockholders, where Michael J. Brown, Sergi Herrero, and Brad Sprong were elected as Class I directors for a three-year term. Additionally, stockholders approved executive compensation and ratified KPMG LLP as the independent registered public accounting firm for the 2025 fiscal year, indicating strong support for the company’s current management and financial oversight.
The most recent analyst rating on (EEFT) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Euronet Worldwide stock, see the EEFT Stock Forecast page.
Spark’s Take on EEFT Stock
According to Spark, TipRanks’ AI Analyst, EEFT is a Outperform.
Euronet Worldwide scores a 75, reflecting its strong financial performance and positive earnings outlook, offset by mixed technical indicators and valuation considerations. The company’s robust revenue growth, improved profitability, and effective debt management are significant strengths. While technical indicators suggest caution, the overall valuation appears reasonable, supporting potential future gains. The positive earnings call sentiment further underscores confidence in the company’s continued growth.
To see Spark’s full report on EEFT stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.