Unveiling Euronet Worldwide (EEFT)'s Value:Euronet Worldwide Inc (NASDAQ:EEFT) has recently seen a daily gain of 7.19%, despite a 3-month loss of -28.27%. With an Earnings Per Share (EPS) of 5.23, the question arises - is the stock significantly undervalued?
Euronet Worldwide Inc operates as a provider of electronic financial transaction solutions. The company's network spans across Europe, offering an independent network of ATMs, a network for prepaid products such as mobile top-ups, and processing point-of-sale transactions. Euronet Worldwide also offers global money transfers, payment services and software, banking services, credit and debit card outsourcing services, and card issuing and merchant acquiring services. The company's largest segment by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. The largest country by revenue is the United States of America.
With a current stock price of $82.48, it's essential to compare this with the company's GF Value, an estimation of fair value. This comparison will pave the way for a more profound exploration of the company's value, ingeniously integrating financial assessment with essential company details.
Financial Strength
Companies with poor financial strength offer investors a high risk of permanent capital loss. To avoid this, an investor must do their research and review a company's financial strength before deciding to purchase shares. Both the cash-to-debt ratio and interest coverage of a company are a great way to understand its financial strength. Euronet Worldwide has a cash-to-debt ratio of 1, which ranks worse than 65.25% of 2734 companies in the Software industry. The overall financial strength of Euronet Worldwide is 6 out of 10, which indicates that the financial strength of Euronet Worldwide is fair.
Profitability and Growth
Investing in profitable companies, especially those that have demonstrated consistent profitability over the long term, poses less risk. A company with high profit margins is also typically a safer investment than one with low profit margins. Euronet Worldwide has been profitable 9 over the past 10 years. Over the past twelve months, the company had a revenue of $3.50 billion and Earnings Per Share (EPS) of $5.23. Its operating margin is 11.8%, which ranks better than 76.03% of 2762 companies in the Software industry. Overall, GuruFocus ranks the profitability of Euronet Worldwide at 8 out of 10, which indicates strong profitability.
