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On Thursday, William Blair reiterated its Outperform rating on Euronet Worldwide shares, traded on (NASDAQ:EEFT). The firm’s analyst, Cristopher Kennedy, highlighted the modest valuation multiples of the company’s stock, which currently trades at a P/E ratio of 15.45x and a favorable PEG ratio of 0.78. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model. Kennedy pointed out that the diverse set of international businesses Euronet operates, along with concerns regarding the longevity of its cash-centric operations, such as tourist-driven ATMs, and the growth sustainability within the money transfer segment, are factors affecting the stock’s valuation. Despite these concerns, InvestingPro data shows the company maintains a GOOD overall financial health score, with liquid assets exceeding short-term obligations.
Kennedy expressed confidence that increased investor understanding of Euronet’s business mix and growth potential could lead to an expansion of the company’s valuation multiples. The analyst’s comments suggest that clarity on these aspects might contribute positively to the company’s stock performance in the future.
Euronet Worldwide is known for providing payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers. Its primary segments include electronic financial transactions, epay, and money transfer, which operate in a complex and dynamic international market. The company generated revenue of $4.05 billion in the last twelve months, with a solid 7.73% year-over-year growth.
The company has faced questions about the future of its cash-focused businesses, especially in a financial world that is increasingly moving towards digital transactions. However, Kennedy’s remarks indicate a belief that the company’s diverse operations and its potential for growth in money transfers are not fully appreciated by the market.
The reiteration of the Outperform rating by William Blair comes as a positive note for Euronet Worldwide, suggesting that the firm sees underlying value and opportunities for growth that could eventually be recognized by the broader investment community. This view aligns with the broader analyst consensus, as revealed in InvestingPro’s comprehensive analysis, which includes 8+ additional key insights and a detailed Pro Research Report available to subscribers.
In other recent news, Euronet Worldwide reported strong financial results for the first quarter of 2025, exceeding earnings expectations. The company achieved an adjusted earnings per share (EPS) of $1.13, surpassing the forecast of $1.09, alongside record revenues of $916 million, slightly higher than the anticipated $912.44 million. Euronet’s diversified business model contributed to a 10% revenue growth across all segments, reinforcing its competitive position in the global payments market. The company reaffirmed its guidance for 12-16% earnings growth for the year. Additionally, Euronet held its annual meeting where shareholders elected three Class I directors and approved executive compensation. The appointment of KPMG LLP as the independent auditor for fiscal year 2025 was also ratified. These developments underscore the shareholders’ support for Euronet’s leadership and strategic direction.
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