We assign a fundamental rating of 6 out of 10 to EEFT. EEFT was compared to 97 industry peers in the Financial Services industry. Both the profitability and the financial health of EEFT get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on EEFT. With these ratings, EEFT could be worth investigating further for value investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

EEFT had positive earnings in the past year.
In the past year EEFT had a positive cash flow from operations.
Of the past 5 years EEFT 4 years were profitable.
In the past 5 years EEFT always reported a positive cash flow from operatings.

1.2 Ratios

EEFT has a better Return On Assets (4.83%) than 75.26% of its industry peers.
EEFT's Return On Equity of 24.00% is amongst the best of the industry. EEFT outperforms 88.66% of its industry peers.
With an excellent Return On Invested Capital value of 14.63%, EEFT belongs to the best of the industry, outperforming 91.75% of the companies in the same industry.
EEFT had an Average Return On Invested Capital over the past 3 years of 10.46%. This is above the industry average of 8.46%.
The 3 year average ROIC (10.46%) for EEFT is below the current ROIC(14.63%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	4.83%
ROE	24%
ROIC	14.63%

ROA(3y)4.75%

ROA(5y)3.14%

ROE(3y)21.95%

ROE(5y)14.25%

ROIC(3y)10.46%

ROIC(5y)8.03%

1.3 Margins

The Profit Margin of EEFT (7.25%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EEFT has declined.
With a Operating Margin value of 13.18%, EEFT perfoms like the industry average, outperforming 51.55% of the companies in the same industry.
In the last couple of years the Operating Margin of EEFT has declined.
EEFT has a Gross Margin (41.04%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EEFT has declined.

		Industry Rank	Sector Rank
OM	13.18%
PM (TTM)	7.25%
GM	41.04%

OM growth 3Y19.28%

OM growth 5Y-6.1%

PM growth 3Y48.12%

PM growth 5Y-9.46%

GM growth 3Y3.14%

GM growth 5Y-1.56%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EEFT is creating value.
Compared to 1 year ago, EEFT has less shares outstanding
The number of shares outstanding for EEFT has been reduced compared to 5 years ago.
Compared to 1 year ago, EEFT has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.92 indicates that EEFT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.92, EEFT is in the better half of the industry, outperforming 74.23% of the companies in the same industry.
EEFT has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as EEFT would need 7.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.20, EEFT is in line with its industry, outperforming 50.52% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that EEFT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, EEFT perfoms like the industry average, outperforming 46.39% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.85
Debt/FCF	7.2
Altman-Z	1.92

ROIC/WACC2.02

WACC7.25%

2.3 Liquidity

EEFT has a Current Ratio of 1.15. This is a normal value and indicates that EEFT is financially healthy and should not expect problems in meeting its short term obligations.
EEFT's Current ratio of 1.15 is in line compared to the rest of the industry. EEFT outperforms 58.76% of its industry peers.
EEFT has a Quick Ratio of 1.15. This is a normal value and indicates that EEFT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.15, EEFT is doing good in the industry, outperforming 60.82% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.15
Quick Ratio	1.15

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

EEFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.26%, which is quite good.
EEFT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.27% yearly.
Looking at the last year, EEFT shows a small growth in Revenue. The Revenue has grown by 7.25% in the last year.
EEFT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.

EPS 1Y (TTM)11.26%

EPS 3Y32.91%

EPS 5Y4.27%

EPS Q2Q%19.47%

Revenue 1Y (TTM)7.25%

Revenue growth 3Y10.03%

Revenue growth 5Y7.73%

Sales Q2Q%4.22%

3.2 Future

Based on estimates for the next years, EEFT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.55% on average per year.
Based on estimates for the next years, EEFT will show a small growth in Revenue. The Revenue will grow by 6.94% on average per year.

EPS Next Y15.23%

EPS Next 2Y14.41%

EPS Next 3Y13.55%

EPS Next 5YN/A

Revenue Next Year6.54%

Revenue Next 2Y6.95%

Revenue Next 3Y6.94%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.72, the valuation of EEFT can be described as very cheap.
Based on the Price/Earnings ratio, EEFT is valued cheaply inside the industry as 83.51% of the companies are valued more expensively.
EEFT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
A Price/Forward Earnings ratio of 6.41 indicates a rather cheap valuation of EEFT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EEFT indicates a rather cheap valuation: EEFT is cheaper than 83.51% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. EEFT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	7.72
Fwd PE	6.41

4.2 Price Multiples

EEFT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EEFT is cheaper than 92.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EEFT is valued a bit cheaper than 74.23% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	9.52
EV/EBITDA	4.89

4.3 Compensation for Growth

EEFT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EEFT may justify a higher PE ratio.
EEFT's earnings are expected to grow with 13.55% in the coming years. This may justify a more expensive valuation.