Euronet Worldwide Stock (NASDAQ:EEFT), Trade Ideas

Euronet Worldwide

Euronet Worldwide Inc is a provider of electronic financial transaction solutions. The company operates an independent network of ATMs in Europe, along with a network for prepaid products such as mobile top-ups, and processes point-of-sale transactions. It operates in three segment EFT Processing Segment, epay Segment, and Money Transfer Segment. Its segment revenue comes from by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. It generates the majority if its geographic revenue from the United States of America.

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Euronet Worldwide Inc (NASDAQ: EEFT) reported Q3 FY23 revenue growth of 8% Y/Y (+3% Y/Y in constant currencies) to $1,004.0 million, exceeding the 

Euronet Worldwide Posts Q3 Earnings Beat, Sees Q4 EPS Above Consensus

Analyst Color

Price Target

Reiteration

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General

Needham analyst Mayank Tandon reiterated a Buy rating on Euronet Worldwide, Inc. (NASDAQ: EEFT), 

Analyst Raises Concerns About Euronet, Highlights Reduced Intra-European Travel Transactions Amid Inflationary Pressures

Euronet Worldwide Inc

Euronet and SOFTONE Group Announce Agreement to Provide Integrated Merchant Acquiring Services In Greece

Citigroup analyst Andrew Schmidt upgrades Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) from Neutral to Buy and raises the price target from $116 to $120.

Upgrades

Citigroup Upgrades Euronet Worldwide to Buy, Raises Price Target to $120

Throughout the last three months, 4 analysts have evaluated Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>), offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Euronet Worldwide, presenting an average target of $130.25, a high estimate of $140.00, and a low estimate of $120.00. Witnessing a positive shift, the current average has risen by 8.84% from the previous average price target of $119.67.
<img src="https://www.benzinga.com/files/images/story/2024/1713204029_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive Euronet Worldwide. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Peter Heckmann</td>
<td>DA Davidson</td>
<td>Maintains</td>
<td>Buy</td>
<td>$126.00</td>
<td>$126.00</td>
</tr>
<tr>
<td>David Togut</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>Outperform</td>
<td>$135.00</td>
<td>$118.00</td>
</tr>
<tr>
<td>Gus Gala</td>
<td>Monness, Crespi, Hardt</td>
<td>Announces</td>
<td>Buy</td>
<td>$140.00</td>
<td>-</td>
</tr>
<tr>
<td>Mayank Tandon</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$120.00</td>
<td>$115.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Euronet Worldwide. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Euronet Worldwide compared to the broader market.</li>
<li>Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Euronet Worldwide's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Euronet Worldwide's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/EEFT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Euronet Worldwide analyst ratings.</a>
<h2>Get to Know Euronet Worldwide Better</h2>
Euronet Worldwide Inc is a provider of electronic financial transaction solutions. The company operates an independent network of ATMs in Europe, along with a network for prepaid products such as mobile top-ups, and processes point-of-sale transactions. It operates in three segment EFT Processing Segment, epay Segment, and Money Transfer Segment. Its segment revenue comes from by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. It generates the majority if its geographic revenue from the United States of America.
<h3>Euronet Worldwide: Delving into Financials</h3>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Euronet Worldwide showcased positive performance, achieving a revenue growth rate of 10.63% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Euronet Worldwide's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 7.24%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Euronet Worldwide's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.79%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Euronet Worldwide's ROA stands out, surpassing industry averages. With an impressive ROA of 1.25%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Euronet Worldwide's debt-to-equity ratio surpasses industry norms, standing at 1.61. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>The Significance of Analyst Ratings Explained</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

4 Analysts Have This To Say About Euronet Worldwide

DA Davidson analyst Peter Heckmann maintains Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) with a Buy and maintains $126 price target.

DA Davidson Maintains Buy on Euronet Worldwide, Maintains $126 Price Target

Evercore ISI Group analyst David Togut maintains Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) with a Outperform and raises the price target from $118 to $135.

Evercore ISI Group Maintains Outperform on Euronet Worldwide, Raises Price Target to $135

Monness, Crespi, Hardt analyst Gus Gala initiates coverage on Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) with a Buy rating and announces Price Target of $140.

Initiation

Monness, Crespi, Hardt Initiates Coverage On Euronet Worldwide with Buy Rating, Announces Price Target of $140

Euronet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>), a leading global financial technology solutions and payments provider, today announced the acquisition of Infinitium Holdings Pte. Ltd (Infinitium), a digital payments company and provider of risk management and payments authentication services based in Singapore. Infinitium's products will be integrated with Euronet's <a href="https://www.globenewswire.com/Tracker?data=n8R2lA1kb9AKQrQD7FAlf6iE6STAbcqXzeMex3ASh6QeCTKWPt4ekXQ8zoA4-c5yl_XZMdcM8OPej1WnENLovbu_hoIY1D9X8S6SJfVphFw=">Ren payments platform</a> to provide additional protection against consumer fraud and merchant chargebacks in online transactions. &nbsp;
Infinitium is a leader in providing risk management and payment authentication services such as 3D Secure (3DS), which helps address fraud in eCommerce or "card not present" (CNP) transactions. This authentication step adds an extra level of security, reducing the risk of unauthorized transactions and enhancing overall online payment security. The company also offers next-generation, omnichannel payment gateway services for merchants and acquirers, enabling them to operate their services efficiently across diverse channels. Its customers include large banks and merchants in Singapore, Malaysia, Indonesia, Hong Kong, Brunei, Cambodia, the Philippines and India.
Regulators in the European Union, India, Singapore and other countries have made 3DS mandatory to provide additional protection against consumer fraud and merchant chargebacks. Regions such as the United States and Latin America have not yet mandated 3DS, but the need to reduce CNP fraud is expected to grow as the global e-commerce market reaches an expected US$8.1T by 20261. In 2020, the value of global e-commerce losses to online payment fraud was $17.5B, which surged to an estimated $48B in 20232. The 3DS market is estimated to be US$1.2B and is forecasted to reach US$2.8B by 2030 – a compounded annualized growth of 13.3%3.
"Every stakeholder in the payments ecosystem has a strong incentive to adopt 3DS soon," said Kevin J. Caponecchi, Euronet Executive VP and CEO, epay, Software and EFT Asia Pacific Division. "With this acquisition, we have enhanced our Ren payments platform with industry-leading technology that provides modern, multi-channel transaction authentication across issuing and acquiring domains. With Infinitium's next-generation payment gateway, we have added significantly more addressable market opportunity with this valuable enhancement to the Ren platform."
"Infinitium has developed industry-leading fraud detection solutions for risk-based authentication of CNP transactions by leveraging modern technologies," said Himanshu Pujara, Senior Vice President and MD Asia Pacific and Ren Payments. "These solutions address CNP fraud while ensuring high success rates for merchants and issuers. Leading issuers in Southeast Asia use the Infinitium solution. This represents an opportunity for us to provide integrated payment offerings of Ren to these customers and other prospects in Asia and globally."
Infinitium possesses a highly diversified workforce of approximately 200 software developers and architects, plus a seasoned senior management team that will remain with Euronet following the successful completion of the acquisition.
"The Infinitium team is happy to find a new home in Euronet," said Ho Ching Wee, Founder and CEO of Infinitium. "This arrangement will yield numerous synergies leveraging our joint technologies for our customers, enabling us to provide enhanced capabilities. We aim to maximize our potential over the next few years by delivering stronger and superior offerings to our customers worldwide."

Euronet Announces Acquisition Of Infinitium, A Digital Payments Company In Southeast Asia; No Financial Terms Disclosed

Needham analyst Mayank Tandon maintains Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) with a Buy and raises the price target from $115 to $120.

Needham Maintains Buy on Euronet Worldwide, Raises Price Target to $120

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Earnings Scheduled For February 7, 2024

Taking into consideration recent trends in the business and the global economy,&nbsp;the Company anticipates its 2024 adjusted&nbsp;EPS will grow&nbsp;10%&nbsp;to&nbsp;15%&nbsp;year-over-year, consistent with its 10 and 20 year compounded annualized growth rates.&nbsp;

Euronet Worldwide Anticipates 2024 Adjusted EPS Growth Of 10%-15% YoY

Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) reported quarterly adjusted earnings of $1.88 per share which beat the analyst consensus estimate of $1.76 by 6.82 percent. This is a 35.25 percent increase over earnings of $1.39 per share from the same period last year. The company reported quarterly sales of $957.70 million which beat the analyst consensus estimate of $944.71 million by 1.38 percent. This is a 10.63 percent increase over sales of $865.70 million the same period last year.

Euronet Worldwide Q4 Adj. EPS $1.88 Beats $1.76 Estimate, Sales $957.70M Beat $944.71M Estimate

Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) is set to give its latest quarterly earnings report on Wednesday, 2024-02-07. Here's what investors need to know before the announcement.
Analysts estimate that Euronet Worldwide will report an earnings per share (EPS) of $1.76. 
Euronet Worldwide bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Past Earnings Performance</h3>
Last quarter the company beat EPS by $0.02, which was followed by a 0.0% drop in the share price the next day.
Here's a look at Euronet Worldwide's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>2.70</td>
<td>2.01</td>
<td>0.85</td>
<td>1.24</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>2.72</td>
<td>2.03</td>
<td>0.87</td>
<td>1.39</td>
</tr>
<tr>
<td>Price Change %</td>
<td>8.93%</td>
<td>-19.98%</td>
<td>-0.39%</td>
<td>-6.6%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1707235392_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Euronet Worldwide were trading at $102.23 as of February 05. Over the last 52-week period, shares are down 6.56%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release. 
<a href="https://www.benzinga.com/quote/EEFT/earnings">To track all earnings releases for Euronet Worldwide visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Preview: Euronet Worldwide's Earnings

Euronet Expands ATM Network Into Belgium And Mexico

Stephens &amp; Co. analyst Charles Nabhan upgrades Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) from Equal-Weight to Overweight.

Stephens & Co. Upgrades Euronet Worldwide to Overweight

As part of the initial switching and future projects, Ren will provide the following benefits to the bank during the partnership:
<ul>
<li>Phased Migration and Zero-Downtime Transition: Euronet's strategic approach to Banco Guayaquil's needs includes a phased migration plan, ensuring zero downtime and seamless integration with existing systems. This process underscores Euronet's commitment to maintaining uninterrupted service and operational excellence during critical transition phases.</li>
<li>Compliance and Uptime Improvements: Ren's solution is uniquely designed to help keep Banco Guayaquil ahead of industry compliance mandates, assisting with preventing penalties and solidifying its position as a proactive, forward-thinking institution. Additionally, the platform's high availability and reliability significantly reduce downtime, enhancing customer trust and satisfaction.</li>
<li>Adoption of Open Banking and New Technologies: The service agreement will explore new horizons in digital banking, with opportunities to integrate innovative Euronet platforms and services such as <a href="https://www.dandelionpayments.com/">Dandelion</a>, <a href="https://www.epayskylight.com/">Skylight</a>, and merchant acquiring. These initiatives align with Ecuador's emerging real-time payment (RTP) trends, positioning Banco Guayaquil at the forefront of digital innovation.</li>
</ul>

Contracts

Euronet Collaborates With Banco Guayaquil; Deployment Of Euronet's Ren Payments Platform And SaaS Model

A significant insider transaction involving the exercise of company stock options was reported on December 15, by Juan Bianchi, CEO at Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>), as per the latest SEC filing.
What Happened: Disclosed in a Form 4 filing on Friday with the <a href="https://www.sec.gov/Archives/edgar/data/0001029199/000121390023095850//Archives/edgar/data/1029199/000121390023095850/0001213900-23-095850-index.htm">U.S. Securities and Exchange Commission</a>, Bianchi, CEO at Euronet Worldwide, executed a strategic derivative sale. This involved exercising stock options for 37,777 shares of EEFT, resulting in a transaction value of $95,764.
As of Friday morning, Euronet Worldwide shares are down by 0.0%, with a current price of $94.19. This implies that Bianchi's 37,777 shares have a value of $95,764.
<h3>About Euronet Worldwide</h3>
Euronet Worldwide Inc is a provider of electronic financial transaction solutions. The company operates an independent network of ATMs in Europe, along with a network for prepaid products such as mobile top-ups, and processes point-of-sale transactions. Euronet Worldwide also offers global money transfers, payment services and software, banking services, credit and debit card outsourcing services, and card issuing and merchant acquiring services. The largest segment by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. The largest country by revenue is the United States of America.
<h3>A Deep Dive into Euronet Worldwide's Financials</h3>
Revenue Growth: Euronet Worldwide's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 7.81%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Profitability Metrics:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 42.56%, suggesting potential challenges in cost control and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Euronet Worldwide's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.15.
</li>
</ul>
Debt Management: Euronet Worldwide's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.63, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Financial Valuation Breakdown:
<ul>
<li>
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 17.51 is lower than the industry average, indicating potential undervaluation for the stock.
</li>
<li>
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.38, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With a lower-than-industry-average EV/EBITDA ratio of 8.03, Euronet Worldwide presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
</li>
</ul>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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<h3>Delving Into the Significance of Insider Transactions</h3>
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
<h3>A Closer Look at Important Transaction Codes</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001029199">Check Out The Full List Of Euronet Worldwide's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Insider Decision: Juan Bianchi Exercises Options At Euronet Worldwide For $95K

A large exercise of company stock options by Nikos Fountas, CEO at Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) was disclosed in a new SEC filing on December 15, as part of an insider exercise.
What Happened: Disclosed in a Form 4 filing on Friday with the <a href="https://www.sec.gov/Archives/edgar/data/0001029199/000121390023095885//Archives/edgar/data/1029199/000121390023095885/0001213900-23-095885-index.htm">U.S. Securities and Exchange Commission</a>, Fountas, CEO at Euronet Worldwide, executed a strategic derivative sale. This involved exercising stock options for 37,777 shares of EEFT, resulting in a transaction value of $95,764.
Euronet Worldwide shares are trading, exhibiting down of 0.0% and priced at $94.19 during Friday's morning. This values Fountas's 37,777 shares at $95,764.
<h3>Discovering Euronet Worldwide: A Closer Look</h3>
Euronet Worldwide Inc is a provider of electronic financial transaction solutions. The company operates an independent network of ATMs in Europe, along with a network for prepaid products such as mobile top-ups, and processes point-of-sale transactions. Euronet Worldwide also offers global money transfers, payment services and software, banking services, credit and debit card outsourcing services, and card issuing and merchant acquiring services. The largest segment by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. The largest country by revenue is the United States of America.
<h3>Understanding the Numbers: Euronet Worldwide's Finances</h3>
Revenue Growth: Euronet Worldwide's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 7.81%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Key Profitability Indicators:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 42.56%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
</li>
<li>
Earnings per Share (EPS): Euronet Worldwide's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.15.
</li>
</ul>
Debt Management: Euronet Worldwide's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.63, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Financial Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 17.51, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.38 is lower than the industry average, implying a discounted valuation for Euronet Worldwide's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio lower than industry averages at 8.03, Euronet Worldwide could be considered undervalued.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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<h3>Delving Into the Significance of Insider Transactions</h3>
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
<h3>Exploring Key Transaction Codes</h3>
Delving into transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001029199">Check Out The Full List Of Euronet Worldwide's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Activity Update: Nikos Fountas Executes Options Exercise, Resulting In $95K At Euronet Worldwide

In a new SEC filing on December 15, it was revealed that Caponecchi, CEO at Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>), executed a significant exercise of company stock options.
What Happened: The latest Form 4 filing on Friday with the <a href="https://www.sec.gov/Archives/edgar/data/0001029199/000121390023095879//Archives/edgar/data/1029199/000121390023095879/0001213900-23-095879-index.htm">U.S. Securities and Exchange Commission</a> uncovered Caponecchi, CEO at Euronet Worldwide, exercising stock options for 37,777 shares of EEFT. The total transaction was valued at $82,164.
The Friday morning market activity shows Euronet Worldwide shares down by 0.0%, trading at $94.19. This implies a total value of $82,164 for Caponecchi's 37,777 shares.
<h3>Delving into Euronet Worldwide's Background</h3>
Euronet Worldwide Inc is a provider of electronic financial transaction solutions. The company operates an independent network of ATMs in Europe, along with a network for prepaid products such as mobile top-ups, and processes point-of-sale transactions. Euronet Worldwide also offers global money transfers, payment services and software, banking services, credit and debit card outsourcing services, and card issuing and merchant acquiring services. The largest segment by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. The largest country by revenue is the United States of America.
<h3>Financial Insights: Euronet Worldwide</h3>
Revenue Growth: Over the 3 months period, Euronet Worldwide showcased positive performance, achieving a revenue growth rate of 7.81% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 42.56%, indicating potential difficulties in maintaining profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Euronet Worldwide's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.15.
</li>
</ul>
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.63, caution is advised due to increased financial risk.
Insights into Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 17.51 is lower than the industry average, indicating potential undervaluation for the stock.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.38 is lower than the industry average, implying a discounted valuation for Euronet Worldwide's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 8.03, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
</li>
</ul>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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<h3>Delving Into the Significance of Insider Transactions</h3>
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Navigating the World of Insider Transaction Codes</h3>
For <a href="https://www.benzinga.com/money/investing-tools">investors</a>, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001029199">Check Out The Full List Of Euronet Worldwide's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Witnessing An Insider Decision, Kevin J Caponecchi Exercises Options Valued At $82K At Euronet Worldwide

Euronet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>), a leading global financial technology solutions and payments provider, today announced a multi-year partnership with Banco Pichincha (Pichincha), Ecuador's largest private bank, for prepaid and debit card issuing and processing services provided through a software as a service (SaaS) installation of Euronet's Ren payments platform.
Pichincha will rely on Ren to enhance its uptimes, meet service level agreements (SLAs), comply with regulatory mandates, modernize its payments platform and introduce innovative products while expanding regionally. This pivotal partnership with Euronet will unfold in multiple phases, enabling Pichincha to roll out pioneering products swiftly and seamlessly transition their legacy debit and prepaid card portfolios. Using Ren's SaaS-based card issuing facilities, Pichincha will leverage Euronet's expansive private cloud, operational excellence, monitoring and elite security capabilities.
The expansive multi-year agreement also encompasses integration with Visa and Mastercard and paves the way for the bank's digital transformation into future new technologies such as real-time payment processing and the addition of new services such as Dandelion, a real-time, cross-border payments network offered by Euronet's money transfer segment.
"Banco Pichincha's choice to align with Euronet and our Ren platform highlights our always-on scalable technology, timely compliance with mandates required by the card networks and the high security standards used by our redundant global infrastructure," said Oscar Munoz, Head of Sales for Ren, Americas. "Banco Pichincha is a leading innovator in Latin America, and this partnership stands as a testament to our shared commitment and abilities to deliver innovative financial solutions to the market quickly. Together, we are ushering in a new era of financial technology to empower millions of consumers and set new industry standards."
About Ren
Ren is a modern payments platform specializing in processing mission-critical transactions and fostering innovative experiences across core switching, acquiring, issuing and payment hubs. Ren's robust architecture consistently delivers unparalleled performance, even in the most demanding high-traffic environments.
The platform's microservices-based architecture showcases its adaptability in the ever-evolving payments landscape. Ren provides ample deployment options, whether integrating with prominent cloud environments such as AWS, Microsoft Azure, or Google Cloud or connecting with Euronet's global data centers via open APIs. Moreover, Ren's ability to integrate seamlessly with legacy systems means businesses can elevate their payment operations without extreme system overhauls.

Global

Euronet Partners With Banco Pichincha To Modernize Card Processing And Issuing In Ecuador

Truist Securities analyst Andrew Jeffrey maintains Euronet Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEFT#NASDAQ">EEFT</a>) with a Buy and raises the price target from $90 to $95.

Truist Securities Maintains Buy on Euronet Worldwide, Raises Price Target to $95

D.A. Davidson analyst Peter Heckmann maintained a Buy rating on Euronet Worldwide (EEFT – Research Report) today. The company's shares closed yeste...

D.A. Davidson Keeps Their Buy Rating on Euronet Worldwide (EEFT)

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Euronet Worldwide (EEFT) has issued an announcement. Euronet Worldwide, Inc. has expanded its Board of Directors from eight to nine members, with t...

Euronet Worldwide Announces Expansion of Board, New Director

Euronet Worldwide: Valuation Suggests Future Growth Is Priced In

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Wall Street Analysts Are Bullish on Top Technology Picks

The use of advanced technologies and shifting consumer preferences are driving the rapid growth of the financial industry, forcing traditional institutions to innovate and offer new products and services. Amid this backdrop, investors could consider buying fundamentally strong financial stocks H&R Block (HRB), Euronet Worldwide (EEFT), and EZCORP (EZPW). Read more... The financial sector thrives thanks to robust demand from individuals and enterprises, resulting in rapid industry growth and innovation. Technology has transformed traditional financial services by enabling personalized, risk-aware, and secure offerings.
Given the industry's bright prospects, fundamentally strong financial stocks H&amp;R Block, Inc. (<a href="https://stocknews.com/stock/HRB/">HRB</a>), Euronet Worldwide, Inc. (<a href="https://stocknews.com/stock/EEFT/">EEFT</a>), and EZCORP, Inc. (<a href="https://stocknews.com/stock/EZPW/">EZPW</a>) could be solid additions to your portfolio now.
The financial services industry plays a vital role in the economy's functioning. It helps promote economic growth, maximize returns, and minimize risks. The financial services industry is expected to reach $44.93 trillion by 2028, growing at a <a href="https://www.thebusinessresearchcompany.com/report/financial-services-global-market-report">CAGR of 7.6%</a>.
Consumer financial services include online banking, credit card processing, insurance, investment and wealth management services, on-demand credit. The global consumer finance market is expected to grow at a <a href="https://www.kingsresearch.com/consumer-finance-market-302">7.2% CAGR</a>, reaching a value of $1.65 trillion by 2030.
The projected increase can be attributed to rising wealth among high-net-worth individuals, expanding demand for alternative investments, and increased adoption of digital platforms for investment purposes. Increasing access to various loans and credits via digital payment platforms creates lucrative growth opportunities for market players.
The financial services technology sector is undergoing a tremendous digital transition. CIOs are prioritizing innovative technologies to improve client experiences and operational efficiency.
Fintech trends, which began with electronic trading and online banking, have grown with advances in AI, machine learning, big data analytics, and blockchain technology, changing risk management, fraud detection, and customer service.
Furthermore, Generative AI transforms financial services by automating processes, improving customer experiences, and generating revenue through personalized financial advice, risk assessment models, and predictive analytics. By 2033, the global generative AI in financial services market is estimated to be worth approximately $10.40 billion, expanding at a <a href="https://market.us/report/generative-ai-in-financial-services-market/">CAGR of 28.2%</a>.
Gen AI has the potential to revolutionize how financial institutions operate, allowing for more efficient and accurate decision-making. By harnessing the power of data and machine learning, generative AI is paving the way for a more streamlined and innovative financial industry.
With these favorable trends in mind, let's delve into the fundamentals of the three <a href="https://stocknews.com/category/consumer-finance/">Consumer Financial Services</a> stock picks, beginning with the third choice.
Stock #3: H&amp;R Block, Inc. (<a href="https://stocknews.com/stock/HRB/">HRB</a>)
HRB provides assisted income tax return preparation and do-it-yourself (DIY) tax return preparation services and products to the general public in the U.S., Canada, and Australia. The company offers its services through a system of retail offices operated by the company or its franchisees. It also provides Refund Transfers and H&amp;R Block Emerald Prepaid Mastercard.
HRB's trailing-12-month Return on Total Assets of 21.34% is 405.4% higher than the 4.22% industry average. Its 25.56% trailing-12-month <a href="https://www.investopedia.com/terms/e/ebitda-margin.asp">EBITDA margin</a> is 135.2% higher than the 10.87% industry average. Also, its 25.74% trailing-12-month Return on Total Capital is 327% higher than the 6.03% industry average.
For the fiscal second quarter that ended December 31, 2023, HRB's revenues increased 7.6% year-over-year to $179.08 million. The company's total financial services revenue rose 6.1% from the year-ago value to $26.94 million. In addition, the company's total current liabilities were reduced from $938.78 million as of June 30, 2023, to $745.59 million as of December 31, 2023.
Street expects HRB's revenue and EPS for the quarter ending March 31, 2024, to increase 2.1% and 9.9% year-over-year to $2.14 billion and $4.62, respectively. It surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past nine months, the stock has gained 44.5% to close the last trading session at $48.21.
HRB's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
HRB has a B grade for Quality. Within the B-rated <a href="https://stocknews.com/category/consumer-finance/">Consumer Financial Services</a> industry, it is ranked #16 out of 46 stocks. To see HRB's additional ratings for Growth, Value, Momentum, Stability, and Sentiment, <a href="https://stocknews.com/stock/HRB/">click here</a>.
Stock #2: Euronet Worldwide, Inc. (<a href="https://stocknews.com/stock/EEFT/">EEFT</a>)
EEFT provides innovative payment solutions to financial institutions, retailers, and consumers through its Electronic Fund Transfer Processing; epay; and Money Transfer segments. The company's other services encompass ATM and POS currency conversion, surcharge, customer relationship management, fraud management, and more.
On February 13, 2024, EEFT announced the acquisition of Infinitium Holdings Pte. Ltd., a Singapore-based digital payments company that provides risk management and payment authentication services. Infinitium's products will be incorporated into Euronet's Ren payments platform, providing extra security against consumer fraud and merchant chargebacks in online transactions.
This acquisition will strengthen Euronet's position in the digital payments industry and enhance its ability to provide customers with secure and reliable payment solutions worldwide.
EEFT's trailing-12-month Return on Common Equity of 22.43% is 105.2% higher than the industry average of 10.93%. Its trailing-12-month asset turnover ratio of 0.65x is 211.9% higher than the industry average of 0.21x. Its 2.56% trailing-12-month CAPEX / Sales is 25.4% higher than the 2.04% industry average.
During the fourth quarter that ended December 31, 2023, EEFT's revenues increased 10.6% year-over-year to $957.70 million. Its consolidated adjusted EBITDA rose 16.2% from the year-ago value to $147.60 million. Additionally, adjusted net income and EPS attributable to EEFT stockholders grew 25% and 35.3% from the prior year's period to $87.40 million and $1.88, respectively.
For the quarter ending March 31, 2024, EEFT's EPS and revenue are expected to increase 21.4% and 7.4% year-over-year to $1.06 and $845.63 million, respectively. It surpassed the Street EPS estimates in each of the trailing four quarters. Over the past six months, the stock has gained 37.3% to close the last trading session at $110.
EEFT's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to a Buy in our proprietary rating system.
It is ranked #9 in the same industry. It has an A grade for Growth and a B for Momentum and Sentiment. <a href="https://stocknews.com/stock/EEFT/">Click here</a> to see EEFT's additional ratings for Value, Stability, and Quality.
Stock #1: EZCORP, Inc. (<a href="https://stocknews.com/stock/EZPW/">EZPW</a>)
EZPW provides pawn services. The company operates through three segments: U.S. Pawn, Latin America Pawn, and Other Investments. It offers pawn loans collateralized by tangible personal property, jewelry, consumer electronics, and musical instruments. The company also sells merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise.
EZPW's trailing-12-month asset turnover ratio of 0.75x is 259.5% higher than the 0.21x industry average. Likewise, the stock's trailing-12-month CAPEX / Sales of 3.73% is 82.7% higher than the industry average of 2.04%. It trailing-12-month Return on Total Assets 3.39% is 208.1% higher than the industry average of 1.10%.
EZPW's total revenues for the first quarter that ended December 31, 2023, increased 13.5% year-over-year to $300 million. Its adjusted gross profit rose 10.7% over the prior-year quarter to $168.80 million. The company's adjusted net income increased 30.6% year-over-year to $28.20 million. Also, its adjusted EPS came in at $0.36, representing an increase of 28.6% year-over-year.
Analysts expect EZPW's revenue and EPS for the quarter ending March 31, 2024, to increase 8.8% and 4.4% year-over-year to $281.05 million and $0.24, respectively. It surpassed the consensus EPS estimates in each of the trailing four quarters. Shares of EZPW have gained 36.8% over the past six months to close the last trading session at $10.71.
It's no surprise that EZPW has an overall A rating, equating to a Strong Buy in our POWR Ratings system.
It has a B grade for Growth, Value, and Momentum. It is ranked #2 in the Consumer Financial Services industry. Beyond what is stated above, we've also rated EZPW for Stability, Sentiment, and Quality. Get all EZPW ratings <a href="https://stocknews.com/stock/EZPW/">here</a>.
What To Do Next?
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HRB shares were trading at $47.90 per share on Friday morning, down $0.31 (-0.64%). Year-to-date, HRB has declined -0.31%, versus a 9.96% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rashmi Kumari</h2> <img src='https:/wp-content/uploads/2022/10/Rashmi-Kumari_headshot_2-1.jpg' style="float:left; padding:5px;width:125px;">Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.<a href="https://stocknews.com/authors/?author=rashmi-kumari">More...</a>The post <a href=https://stocknews.com/news/hrb-eeft-ezpw-3-financial-stocks-on-the-rise-for-april-gains/>3 Financial Stocks on the Rise for April Gains</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Financial Stocks on the Rise for April Gains

D.A. Davidson analyst Peter Heckmann maintained a Buy rating on Euronet Worldwide (EEFT – Research Report) today and set a price target of $126.00....

D.A. Davidson Sticks to Their Buy Rating for Euronet Worldwide (EEFT)

Euronet and SOFTONE Group collaborate for merchant acquiring solutions in Greece.

Euronet and SOFTONE Group collaborate for merchant acquiring solutions in Greece

EZPW

PDFS

SNCR

SSTI

Press Releases

Euronet Partners with Banco Pichincha to Modernize Card Processing and Issuing in Ecuador

Dividends

KBW Announces Index Rebalancing for Fourth-Quarter 2023

Euronet Announces Fourth Quarter and Full Year 2023 Earnings Release Date and Conference Call Details

Euronet Collaborates with Banco Guayaquil to Enhance Transaction Switching Solutions and Enable Advanced Banking Technology Integrations in Ecuador

Euronet Expands Independent ATM Network Into Belgium and Mexico

Euronet Reports Fourth Quarter and Full Year Financial Results

Euronet Announces Acquisition of Infinitium, a Leading Digital Payments Company in Southeast Asia

Management

Euronet Announces Appointment of Sara Baack to Its Board of Directors

Euronet Announces First Quarter 2024 Earnings Release Date and Conference Call Details

Euronet and SOFTONE Group Announce Agreement to Provide Integrated Merchant Acquiring Services in Greece