Company Overview - Euronet Worldwide, Inc. is a leading global financial technology solutions and payments provider, established in Central Europe in 1994, and has developed a comprehensive global payments network [4][5] - The company operates a real-time digital and cash payments network with millions of touchpoints, facilitating money transfers, credit/debit card processing, ATMs, POS services, branded payments, and foreign currency exchange [4][5] Financial Performance - Euronet is set to release its first quarter 2025 earnings results on April 24, 2025, prior to market opening [1] - A conference call will be held on the same day at 9:00 a.m. Eastern Time to discuss the earnings results [1] Access to Information - The conference call and accompanying slide show presentation will be available via webcast, with a replay accessible approximately one hour after the event and available for one year [2][3] - Participants can register for the conference call to receive dial-in information, and it is recommended to join five minutes early [2] Global Presence - Euronet operates 55,248 installed ATMs and approximately 1,160,000 EFT POS terminals across 64 countries, along with a prepaid processing network of around 777,000 POS terminals at approximately 362,000 retailer locations [5] - The company has a global money transfer network with approximately 607,000 locations serving 197 countries and territories [5] Corporate Headquarters - Euronet is headquartered in Leawood, Kansas, USA, and has 67 worldwide offices [5]

Group 1 - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, using an alphabetic rating system from A to F based on value, growth, and momentum [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] - The Growth Score assesses a company's future prospects by examining projected and historical earnings, sales, and cash flow, catering to growth investors [4] - The Momentum Score capitalizes on price trends and earnings outlook changes, helping momentum traders identify optimal times to invest in high-momentum stocks [5] Group 3 - The VGM Score combines the Value, Growth, and Momentum Scores to provide a comprehensive rating, assisting investors in finding stocks with attractive value, strong growth forecasts, and promising momentum [6] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Group 4 - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B, ensuring higher potential for success [9] - The direction of earnings estimate revisions is crucial when selecting stocks, as stocks with lower ranks but high Style Scores may still face downward price pressure [10] Group 5 - Euronet Worldwide, a leading electronic payments solutions provider, is currently rated 3 (Hold) on the Zacks Rank and has a VGM Score of A, indicating potential for investors [11] - Euronet Worldwide has a Value Style Score of A, supported by a forward P/E ratio of 9.45, making it attractive to value investors [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.16 to $9.81 per share, with an average earnings surprise of 7%, positioning Euronet Worldwide as a noteworthy investment opportunity [12]

Core Viewpoint - Euronet Worldwide, Inc. (EEFT) is experiencing strong transaction growth across its segments, driven by strategic acquisitions, increased demand for contactless payment solutions, and a solid financial position [1] Financial Performance - Euronet's stock has gained 5.5% year to date, outperforming the industry's 5.6% decline and the S&P 500's 2.4% drop [2] - The Zacks Consensus Estimate for Euronet's 2025 earnings is $9.81 per share, reflecting a 13.9% increase from the previous year, with revenues expected to reach $4.3 billion, indicating 7.5% growth [4] - For 2026, earnings are estimated at $11.12 per share, implying 13.4% growth from 2025, with revenues projected at $4.6 billion, an 8% increase from 2025 [4] - Euronet's return on equity stands at 31.2%, significantly higher than the industry average of 17.3% [8] Business Segments - The EFT Processing segment processed 11.4 million transactions in 2024, a 35% increase year-over-year [10] - The epay segment saw a 6% year-over-year increase, while the Money Transfer segment grew by 8% [11] - Euronet's strategic focus on acquisitions has enhanced its market position and product offerings, particularly in contactless payments [12] Cash Flow and Financial Health - Euronet generated $732.8 million in operating cash flow during 2024, a 13.9% increase from the previous year, with cash reserves amounting to $1.3 billion as of December 31, 2024 [14]

Group 1 - Zacks Premium offers tools for investors to enhance their stock market confidence and knowledge, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market over the next 30 days, based on value, growth, and momentum [2][3] Group 2 - Each stock is rated from A to F based on its value, growth, and momentum qualities, with A being the highest score indicating a better chance of outperforming the market [3] - The Value Score identifies attractive and discounted stocks using various financial ratios, appealing to value investors [3][4] - The Growth Score focuses on a company's financial health and future outlook, assessing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends, using factors like price changes and earnings estimate shifts [5] Group 3 - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors looking for the best value, growth, and momentum [6] - The Zacks Rank, a proprietary stock-rating model, utilizes earnings estimate revisions to assist in building a successful portfolio [7][8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Group 4 - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [10][11] - The direction of earnings estimate revisions is crucial when selecting stocks, as a declining forecast can negatively impact share prices [11] Group 5 - Euronet Worldwide (EEFT) is highlighted as a stock to watch, currently rated 3 (Hold) with a VGM Score of B and a Value Style Score of A, indicating attractive valuation metrics [12][13] - EEFT has a forward P/E ratio of 11.07 and has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.16 to $9.81 per share [13]

Company Overview - Euronet Worldwide (EEFT) shares have decreased by approximately 2.9% since the last earnings report, although this performance has outpaced the S&P 500 [1] - The consensus estimate for Euronet Worldwide has shifted downward by 19.61% over the past month, indicating a negative trend in earnings expectations [2] Performance Metrics - Euronet Worldwide has an average Growth Score of C and a Momentum Score of D, but it received an A grade for value, placing it in the top quintile for this investment strategy [3] - The aggregate VGM Score for Euronet Worldwide is B, which is relevant for investors not focused on a single strategy [3] Outlook - The overall trend for estimates has been downward, suggesting a negative shift in expectations for Euronet Worldwide [4] - Despite the downward revisions, Euronet Worldwide holds a Zacks Rank of 2 (Buy), indicating an expectation of above-average returns in the coming months [4] Industry Comparison - Euronet Worldwide is part of the Zacks Financial - Miscellaneous Services industry, where another player, Royalty Pharma (RPRX), has seen a slight gain of 0.7% over the past month [5] - Royalty Pharma reported revenues of $742 million for the last quarter, reflecting a year-over-year increase of 0.8% [5] - For the current quarter, Royalty Pharma is projected to post earnings of $1.02 per share, which represents a 4.1% increase from the previous year [6]

Core Insights - Euronet Worldwide reported a revenue of $1.05 billion for the quarter ended December 2024, reflecting a year-over-year increase of 9.4% [1] - The company's EPS for the quarter was $2.08, up from $1.88 in the same quarter last year, exceeding the consensus estimate of $2.02 by 2.97% [1] Revenue Breakdown - EFT Processing Segment revenue was $265.60 million, surpassing the estimated $264.60 million, with a year-over-year increase of 11.6% [4] - Money Transfer Segment revenue reached $441.90 million, exceeding the average estimate of $428.13 million, representing a year-over-year growth of 9.1% [4] - epay Segment revenue was reported at $342.20 million, slightly below the estimated $348.53 million, but still showing an 8.1% increase year-over-year [4] - Corporate services, Eliminations and Other segment reported a revenue of -$2.40 million, which was worse than the estimated -$2.10 million, but showed a year-over-year change of +20% [4] Stock Performance - Euronet Worldwide's shares have returned +4% over the past month, outperforming the Zacks S&P 500 composite, which declined by -1.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Euronet Worldwide (EEFT) shows potential for significant upside, with a mean price target of $125.33 indicating a 25.7% increase from the current price of $99.73 [1] Price Target Analysis - The mean estimate consists of nine short-term price targets with a standard deviation of $14.81, suggesting variability among analysts [2] - The lowest estimate of $106 indicates a 6.3% increase, while the highest estimate of $150 suggests a potential surge of 50.4% [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement [7] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about EEFT's earnings prospects, with a positive trend in earnings estimate revisions [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 1.4%, with three estimates moving higher and no negative revisions [10] - EEFT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - While price targets are a common tool for investors, they can often mislead and should not be the sole basis for investment decisions [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Financial Performance - Annual consolidated revenues increased by 8.2% for 2024, driven by higher transaction volumes across all segments[250]. - Annual consolidated operating income rose by 16.3% for 2024, primarily due to increased transaction volumes[250]. - Net income attributable to Euronet for 2024 was $306.0 million, or $6.45 per diluted share, compared to $279.7 million, or $5.50 per diluted share in 2023[251]. - Euronet's revenues for the year ended December 31, 2024, were primarily derived from three segments: Money Transfer (42%), epay (29%), and EFT Processing (29%) of total consolidated revenues[239][238][237]. - Money Transfer Segment revenues were $1,686.5 million for 2024, up from $1,555.2 million in 2023[248]. - epay Segment total revenues reached $1,150.5 million for 2024, reflecting a 6.3% increase from 2023[266]. - EFT Processing Segment total revenues were $1,161.2 million for 2024, an increase of 9.7% compared to 2023[255]. - Operating income for the Money Transfer Segment was $201.0 million for the year ended December 31, 2024, an increase of $15.6 million or 8.4% compared to 2023, with an operating margin of 11.9%[283]. - Gross profit increased to $766.8 million for the year ended December 31, 2024, up by $51.1 million or 7.1% compared to 2023, with a gross margin of 45.5%[278]. Transaction Volumes - The EFT Processing Segment processed 11,424 million transactions in 2024, up from 8,473 million in 2023, reflecting a compound annual growth rate (CAGR) of approximately 36.7% over the past five years[32]. - The number of transactions processed on the epay POS networks increased at a CAGR of approximately 16.2%, reaching 4,374 million transactions in 2024[76]. - The Money Transfer Segment processed approximately $71.3 billion in money transfers in 2024[90]. - The number of transactions in the Money Transfer Segment increased at a CAGR of approximately 11.0%, reaching 176.9 million transactions in 2024[89]. - Transactions processed in the EFT Processing Segment increased by 34.8% to 11,424 million in 2024[254]. ATM and POS Network Expansion - The company operated 55,248 ATMs as of December 31, 2024, compared to 47,303 ATMs at the end of 2023, indicating a growth of 16.4%[30]. - The EFT Processing Segment's strategy includes expanding ATM and POS terminal networks into new and existing markets, focusing on diversifying the business and increasing the penetration of value-added services[48]. - The company has a network of approximately 777,000 POS terminals across 362,000 retailer locations, processing prepaid mobile airtime and other electronic content[58]. - Active ATMs as of December 31, 2024, totaled 49,945, an increase of 5.6% from 2023[254]. Revenue Sources and Growth Strategies - Revenue growth from lower value, digitally initiated payment processing transactions is not proportionate to the increase in transaction volume due to lower associated revenue[32]. - The company offers dynamic currency conversion (DCC) services, which increase revenue from ATM transactions by earning a foreign exchange margin on conversions[41]. - The epay Segment aims to grow revenue by increasing distribution of electronic content and expanding into new geographic markets[77]. - The company has established relationships with global consumer product brands, including iTunes, Google Play, Sony, and Microsoft, to enhance its product offerings[77]. - The company plans to continue expanding its technology and business methods into other markets, leveraging relationships with mobile operators and financial institutions[53]. Compliance and Regulatory Environment - The company is subject to various regulations, including anti-money laundering and consumer protection laws, which could impact operations if not complied with[103][111]. - The company holds payment institution licenses in multiple European countries and has obtained an e-money license in the U.K., allowing it to provide payment services[106]. - The company has developed risk-based compliance policies and programs to adhere to existing laws and regulations, including anti-money laundering measures[119]. - Intellectual property, including trademarks and patents, is crucial for the Money Transfer Segment, with brand names like "Ria" and "Xe" being registered in most operational markets[121]. - The company is actively monitoring compliance with privacy and information security regulations, including the GDPR, to avoid potential fines that could affect financial results[113]. Operational Challenges and Workforce - Employee count increased from approximately 9,500 in 2022 to 10,600 in 2024, reflecting growth in workforce[101]. - Euronet faces operational challenges in maintaining licenses and navigating regulations that govern DCC transactions, particularly in the EU[243]. - The primary competitor, The Western Union Company, has revenues approximately twice that of the company, highlighting a significant competitive challenge[100]. Cash Flow and Capital Management - Cash flows provided by operating activities increased to $732.8 million for the year ended December 31, 2024, compared to $643.1 million for the same period in 2023[305]. - Cash flows used in investing activities were $223.3 million for the year ended December 31, 2024, with $117.2 million allocated for purchases of property and equipment and $91.6 million for acquisitions[307]. - The Company had $1,278.8 million of unrestricted cash as of December 31, 2024, compared to $1,254.2 million as of December 31, 2023, with access to $2,289.8 million in available cash[303]. - The Company amended its revolving credit agreement to increase the facility from $1.25 billion to $1.9 billion, extending the expiration to December 17, 2029[309]. - The Company anticipates that cash generated from operations, along with cash on hand and amounts available under the Credit Facility, will be sufficient to meet its debt, leasing, and capital expenditure obligations[316]. Share Repurchase and Stock Management - The Company repurchased $265.2 million of common stock during the year ended December 31, 2024, compared to $378.4 million for the same period in 2023[308]. - The company completed its initial share repurchase program, repurchasing 850,528 shares at an average price of $113.63 for a total value of $96.6 million during 2024[317]. - A new repurchase program was initiated on September 13, 2023, allowing for the repurchase of up to $350 million in value, with a maximum of 7.0 million shares through September 13, 2025[318]. - During 2024, the company repurchased 1,625,005 shares at an average price of $103.73 for a total value of $168.6 million under the new program[318]. - A third repurchase program was initiated on September 11, 2024, with the same terms as previous programs, but no shares were repurchased under this plan during 2024[319]. - The Inflation Reduction Act imposes a 1% excise tax on net share repurchases, which may impact future repurchase strategies[320]. Miscellaneous Financial Information - Working capital decreased to $810.5 million as of December 31, 2024, from $1,462.1 million as of December 31, 2023, with a current assets to current liabilities ratio of 1.25[300]. - Total capital expenditures for 2024 were $117.2 million, primarily for expanding the IAD network in Europe and purchasing POS terminals, with estimated capital expenditures for 2025 projected to be between $85 million and $95 million[314]. - The Company recorded a net loss on translation adjustments of $117.8 million for 2024, compared to a net gain of $47.9 million for 2023, due to the strengthening of the U.S. dollar against key foreign currencies[299]. - There are significant off-balance sheet arrangements, including guarantees for subsidiaries, but no significant claims have been reported as of December 31, 2024[322]. - Critical accounting policies involve estimates related to income taxes, acquisitions, and potential impairments, which could materially affect financial results[323]. - Deferred income tax effects are recorded under ASC Topic 740, considering future tax consequences of deferred items[324]. - The company has significant tax loss carryforwards and other temporary differences recorded as deferred tax assets and liabilities[325].

Core Insights - Euronet Worldwide (EEFT) is currently viewed as a better value opportunity compared to Brookfield Asset Management (BAM) based on various financial metrics and rankings [1] Valuation Metrics - EEFT has a forward P/E ratio of 10.81, significantly lower than BAM's forward P/E of 35.24, indicating that EEFT may be undervalued [5] - The PEG ratio for EEFT is 0.72, while BAM's PEG ratio is 2.19, suggesting that EEFT has a more favorable growth outlook relative to its price [5] - EEFT's P/B ratio stands at 3.79, compared to BAM's P/B of 7.79, further supporting the notion that EEFT is a more attractive investment based on valuation metrics [6] Earnings Outlook - EEFT holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while BAM has a Zacks Rank of 3 (Hold), suggesting a less favorable earnings outlook [3] - The solid earnings outlook for EEFT contributes to its Value grade of A, in contrast to BAM's Value grade of F, reinforcing the conclusion that EEFT is the superior value option at this time [6]

Core Viewpoint - Euronet Worldwide (EEFT) is identified as a strong value stock with a favorable Zacks Rank and various attractive valuation metrics indicating it may be undervalued in the current market [4][8]. Valuation Metrics - EEFT has a P/E ratio of 11.21, significantly lower than the industry average of 16.48, suggesting it is undervalued [4]. - The company has a PEG ratio of 0.80, compared to the industry average of 0.99, indicating a favorable valuation relative to its expected earnings growth [5]. - EEFT's P/S ratio stands at 1.2, while the industry average is 1.91, further supporting the notion of undervaluation [6]. - The P/CF ratio for EEFT is 11.65, compared to the industry average of 18.56, highlighting its strong cash flow outlook [7]. Investment Outlook - The combination of EEFT's strong earnings outlook and its attractive valuation metrics positions it as an impressive value stock in the current market [8].