Euronet Worldwide, Inc.
Euronet Worldwide, Inc. Fundamental Analysis
Euronet Worldwide, Inc. (EEFT) shows moderate financial fundamentals with a PE ratio of 11.39, profit margin of 7.32%, and ROE of 23.71%. The company generates $3.6B in annual revenue with moderate year-over-year growth of 6.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EEFT's fundamental strength across five key dimensions:
Efficiency Score
WeakEEFT struggles to generate sufficient returns from assets.
Valuation Score
ModerateEEFT shows balanced valuation metrics.
Growth Score
ModerateEEFT shows steady but slowing expansion.
Financial Health Score
ModerateEEFT shows balanced financial health with some risks.
Profitability Score
ModerateEEFT maintains healthy but balanced margins.
Key Financial Metrics
Is EEFT Expensive or Cheap?
P/E Ratio
EEFT trades at 11.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EEFT's PEG of 15.90 indicates potential overvaluation.
Price to Book
The market values Euronet Worldwide, Inc. at 2.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.61 times EBITDA. This is generally considered low.
How Well Does EEFT Make Money?
Net Profit Margin
For every $100 in sales, Euronet Worldwide, Inc. keeps $7.32 as profit after all expenses.
Operating Margin
Core operations generate 12.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.71 in profit for every $100 of shareholder equity.
ROA
Euronet Worldwide, Inc. generates $4.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Euronet Worldwide, Inc. generates limited operating cash flow of $326.85M, signaling weaker underlying cash strength.
Free Cash Flow
Euronet Worldwide, Inc. produces free cash flow of $246.48M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.86 in free cash annually.
FCF Yield
EEFT converts 9.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How EEFT Stacks Against Its Sector Peers
| Metric | EEFT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.39 | 35.19 | Better (Cheaper) |
| ROE | 23.71% | 1155.00% | Weak |
| Net Margin | 7.32% | -127067.00% (disorted) | Weak |
| Debt/Equity | 1.72 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.11 | 4.71 | Neutral |
| ROA | 4.79% | -314918.00% (disorted) | Weak |
EEFT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Euronet Worldwide, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
96.63%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
10573.32%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-100.00%
Industry Style: Growth, Innovation, High Beta
Declining