_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Euronet Worldwide, Inc. (XNAS:EEFT) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
EEFT
Name:
EURONET WORLDWIDE, INC. (XNAS:EEFT)
Sector:
- 18114.00K
Industry:
Software�Infrastructure
CEO:
Mr. Michael Brown
Total Employees:
8,800
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -66.09% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF EURONET WORLDWIDE, INC.(EEFT) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SOFTWARE�INFRASTRUCTURE INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
86.93
One Month Price Target:
$87.58
Six Month Price Target :
$90.86
Likely Price in One Year's Time:
Ticker:
$94.79
Likely Trading Range Today Under (Normal Volatility)
$86.44
Price Upper limit ($) :
$87.36
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$81.35
This week:
$74.46
This month :
$61.99
Other Primary facts
Market Cap:
4.30B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
49.58M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
21.21%
-15.09%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$112.84
$101.13
$61.02
$72.73
Medium risk (<10%) entry points
Buy Call
Sell Call
$97.32
Buy Put:
Sell Put:
$94.82
$76.51
$79.04
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
EEFT
Sharpe Ratio:
-1.45%
Comparison:
EEFT, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -188.39% lower than the industry
& is -163.40% lower than the market/S&P 500 average
Average Returns/Yield of
EEFT
Daily returns:
-0.04%
Weekly returns:
-0.18%
Monthly returns:
-0.72%
Yearly returns:
14.38%
Comparison of returns:
Average annual returns/yield (last 3 years) is -160.14% below industry average
Classification:
EEFT, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.52
Statistical test of Returns:
EEFT has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.11%
Weekly Volatility:
6.95%
Monthly Volatility:
13.89%
Yearly Volatility:
48.12%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.48%
Volatility in last five trading days has been -84.66% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.42%
Weekly VaR:
-14.34%
Monthly VaR:
-28.69%
How Much Can the price of
EEFT
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-26%
Worst case (decline):
>85%
This translates to price declining to:
$64.51
This translates to price declining to:
$13.04
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
EEFT is a 102.48% riskier investment compared to the market/S&P 500 & is 73.47% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -6.78% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
EEFT
Beta in relation to market/S&P 500--1.34
Expected beta in 1 year's time:
0.809
Expected beta in 3 year's time:
1.144
Unlevered (debt free) Beta:
0.717
Beta in relation to Nasdaq (XNAS):
0.597
Beta in relation to all global stocks::
0.957
Beta Comparison & Analysis
Beta of competitors/peers::
1.515
Beta is -11.23% lower than peers
Average Industry Beta:
1.112
Beta is 20.97% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
9.97%
Sustainable growth rate is -97.30% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.210
Alpha is -680.79% below industry average alpha yield
Alpha is -1338% below the market average
Analysis of Cost of Capital of
EEFT
Equity cost of capital:
0.124
Equity cost of capital is 14.84% above industry mean WACC
Unlevered (without debt) cost of capital:
6.59%
Before-tax cost of debt:
1.82%
After-tax cost of debt:
1.44%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.44%
WACC is 6.99% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$61.74
Revenue growth rate per share of (3Y):
3.77
Annual revenue growth rate is -78.37% below industry average
EPS:
$1.63
Expected Annual growth rate of EPS (3Y):
-40.90%
Expected future EPS growth rate is -235.78% lower than the Software�Infrastructure industry
Free cash flow (FCF) per share:
$6.34
-
-
Debt per share
$37.78
EBITDA per share
$6.75
Valuation Analysis Today of
EEFT
P/E Ratio:
34.27
P/E Ratio of Competitors/Peers:
862.93
P/E ratio is -96.03% lower than main peers & is -47.46% lower than the industry
Stock price/value with industry average P/E ratio: $106.33
EEFT is -18.25% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
1.41
Price to sales ratio is -87.18% below the industry mean
P/B (Price to book value ratio):
3.77
Price to free cash flow: 13.70
-
Net income growth rate (3Y):
-70.22%
Net income growth rate is -100.83% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
163.79%
Net debt to equity ratio:
26.04%
Debt to assets ratio:
38.24%
Net debt to assets ratio:
6.08%
Debt-to-asset ratio is -45.16% below industry average
Ability to repay debt:
Interest coverage ratio:
9.52
Interest coverage ratio is -104.51% less than industry average
Looking forward:
Debt growth rate:
-0.95%
Annual debt growth is -101% lower than industry average debt growth rate
Debt repayment rate in last quarter: 45.60%
Analysis of Key Statistics
Correlation of price movement with the market:
0.451
Statistical significance of correlation:
EEFT has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.48
Stock price is -5.88% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.48
Correlation of price movement with Nasdaq (^IXIC):
0.008
Covariance of price movement with the market:
0.014
Kurtosis
6.179
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.337
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
EEFT
Gross Profit Margin Ratio:
148%
Operating Profit Margin Ratio:
6.87%
Operating profit margin is -157.87% lower than the industry
Net Profit Margin Ratio:
148%
Effective Tax Rate:
46.54%
Effective tax rate is 48.57% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
7.67%
Return on equity (ROE) is -92.82% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.79%
Return on assets (ROA) is -147.27% lower than the industry
Financial Leverage:
1.6x
Current Ratio:
1.77
Current ratio is -24.18% below industry average
Cash Conversion Cycle (days):
-26.1
Cash conversion cycle is -123.17% below industry average
The remaining useful life of property plant & equipment is: 1.7 years
Stock based compensation to net income ratio:
11.18%
In-depth Efficiency Analysis
Revenue generated per employee:
347.9K
Each employee generates -12% less revenue than industry average revenue per employee
EBITDA generated per employee:
38.0K
Each employee generates -42% less EBITDA than industry average revenue per employee
Profit generated per employee:
10.0K
Each employee generates -52% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 2.1K
Each employee generates -110% less free cash flow than industry average revenue per employee
Assets/Capital per employee
201.4K
Each employee generates -110% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
EEFT
COHERENT, INC. (XNAS:COHR)
SUNRUN INC. (XNAS:RUN)
JCOM
The Descartes Systems Group Inc. (XNAS:DSGX)
HANCOCK WHITNEY CORPORATION (XNAS:HWCPZ)
CYBERARK SOFTWARE LTD. (XNAS:CYBR)
ALLEGRO MICROSYSTEMS, INC (XNAS:ALGM)
FRESHWORKS INC. (XNAS:FRSH)
Braze, Inc. (XNAS:BRZE)
Current Analyst Ratings
Strong buy�8%
Buy�21%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
3.06B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.92B
1.14B
-
752.95M
752.95M
-
135.48M
888.43M
627.00K
35.14M
135.48M
334.50M
210.27M
87.69M
163.68M
76.18M
87.69M
Statement of Cash Flow
Date:
Period:
32.99M
Differed Income Tax :
5.39M
Stock Based Compensation :
9.80M
Change in Working Capital :
- 57440.00K
Accounts Receivables:
120.20M
Other Working Capital:
- 24991.00K
Other Non-Cash Items:
6.64M
Net Cash Provided by Operating Activities:
5.67M
Investments in PP&E:
- 23785.00K
Net Acquisitions:
- 330960.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.63B
-
1.63B
180.07M
-
1.31B
3.13B
505.84M
846.24M
214.49M
-
-
205.92M
1.77B
-
4.90B
157.74M
55.63M
48.05M
71.61M
1.49B
1.77B
1.87B
73.50M
1.98B
-
3.75B
1.28M
1.13B
- 193659.0K
210.41M
March 31, 2022 at 6:00:00 AM
2.81B
1.14B
4.90B
-
1.93B
297.8M
-
- 2103.00K
- 356848.00K
- 1570300.00K
2.32M
- 70529.00K
-
1.87B
235.31M
- 37542.00K
- 153407.00K
1.93B
2.09B
5.67M
- 23785.00K
- 18114.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
EEFT
2023
2024
2025
2026
2027
$95.26
$300.18
$327.31
$356.89
$389.15