EEFT - Embedded Expectations Analysis - 2021 06 14
Euronet Worldwide, Inc. (EEFT:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 27.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their current growth rate, EFT transactions, and REN technologySpecifically, management is confident Money Transfer's international outbound transactions grew by 27% and that their epay results were outstanding. Additionally, they are confident electronic fund transfer (EFT) transactions should recovery in the third quarter, that they will see the economic benefits of their Piraeus Bank merchant unit acquisition beginning next year, and that they can continue to outpace the market growth rate. Moreover, they are confident their REN technology is ready to support banks as they start to participate in the real-time payments trend, that their retail network has now reached 475,000 locations across 159 countries, and that it only takes 2 days to turn on ATMs due to having on-the-ground offices around Europe
Euronet Worldwide is an electronic payments provider. The company provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. The company operates three segments: Electronic Financial Transaction Processing, which processes transactions for a network of automated teller machines and point-of-sale terminals; epay, which provides distribution and processing of prepaid mobile airtime and other electronic content and payment processing services for various prepaid products, cards and services; and Money Transfer, which provides consumer-to-consumer and global account-to-account money transfer services.
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