Euronet Worldwide (EEFT) AI Stock Analysis

• Market Cap: $4.75B
• Dividend Yield: N/A
• Average Volume (3M): 522.33K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.74
• Revenue Growth: 8.18%
• EPS Growth: 17.94%
• Country: US
• Employees: 10,600
• Sector: Technology
• Sector Strength: 48
• Industry: Software - Infrastructure
• EPS (TTM): 6.47
• Shares Outstanding: 43,742,542
• 10 Day Avg. Volume: 637,595
• 30 Day Avg. Volume: 522,330
• PEG Ratio: 0.94
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.18
• Price to Cash Flow (P/CF): 14.70
• P/FCF Ratio: 28.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $131.71
• Price Target Upside: 20.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Euronet Worldwide's overall score reflects strong financial performance and positive earnings guidance, tempered by neutral technical analysis and moderate valuation. The strategic expansion and solid market position underpin its potential for future growth, despite minor challenges like operational cost pressures and currency fluctuations.

Positive Factors

Earnings

Euronet delivered EBITDA/EPS/topline beats with digital transaction growth hitting a fifth consecutive quarter of acceleration.

Geographic Expansion

The acquisition of Swedbank’s ATMs and servicing contracts throughout Lithuania, Estonia, and Latvia should aid growth with the addition of a fleet in Malaysia expected to boost performance.

Growth Opportunities

The opportunity for commercialization of Dandelion in larger corridors offers a meaningful opportunity for growth and margin expansion.

Negative Factors

ATM Business Concerns

The longer-run hindrance on shares is the narrative around the terminal value of the ATM business.

B&M Exposure Risk

The main headline risk and the largest driver of the intra-quarter decline is the narrative around B&M exposure at Ria.

Market Confusion

There is likely to be some confusion with numbers across the street given they are going from a one quarter out guide, to a full year guide.

Euronet Worldwide Business Overview & Revenue Model

Company Description

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, agents, retailers, merchants, content providers, and individual consumers worldwide. The company's Electronic Fund Transfer Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions, as well as delivers non-cash products. This segment operates a network of 42,713 ATMs and approximately 438,000 POS terminals. Its epay segment distributes and processed prepaid mobile airtime and other electronic payment products; and provides payment processing services for various prepaid products, cards, and services, as well as vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operates a network of approximately 775,000 POS terminals. The company's Money Transfer segment offers consumer-to-consumer and account-to-account money transfer, customers bill payment, check cashing, foreign currency exchange, mobile top-up, and cash management and foreign currency risk management services, as well as payment alternatives, such as money orders and prepaid debit cards. This segment operates a network of approximately 510,000 money transfer locations. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.

How the Company Makes Money

Euronet 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 displays solid financial health with strong revenue growth and profitability improvements in both net profit margin and ROE. The company has effectively reduced its debt burden, enhancing financial stability. Despite some operational cost pressures affecting the EBITDA margin, the overall cash flow position is strong, supporting future investments and growth. The balance sheet improvements and cash flow strength position the company well for continued performance in the software industry.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 109.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 109.62 is above the 20-day moving average (MA) of 103.15, above the 50-day MA of 101.21, and above the 200-day MA of 101.87, indicating a bullish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 85.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EEFT.

Euronet Worldwide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
V	84 Outperform	$673.24B	35.13	50.51%	0.65%	10.35%	16.40%
MA	75 Outperform	$497.03B	39.15	191.95%	0.50%	12.07%	17.27%
EEFT	73 Outperform	$4.75B	16.78	24.69%	―	8.18%	17.94%
GPN	73 Outperform	$24.32B	16.07	6.94%	1.01%	4.68%	63.39%
WU	69 Neutral	$3.53B	3.83	129.04%	8.96%	-3.38%	63.33%
Sector *	58 Neutral	$22.44B	10.62	-18.43%	2.37%	4.68%	-25.09%
FIS	51 Neutral	$39.29B	52.39	4.65%	1.94%	-17.38%	―

Euronet Worldwide Corporate Events

Euronet Worldwide Expands Credit Facility for Growth

Euronet Worldwide has amended its unsecured revolving credit facility, raising the total amount from $1.25 billion to $1.9 billion and extending the maturity date to December 2029. This adjustment, supported by a syndicate of domestic and international financial institutions, enhances Euronet’s capital flexibility, allowing the company to pursue growth opportunities and deliver increased value to shareholders.