Euronet Story

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EEFT -- USA Stock  

USD 90.19  4.08  4.33%

Euronet Worldwide is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 29th of July 2020. Euronet Worldwide Working Capital is comparatively stable at the moment as compared to the past year. Euronet Worldwide reported Working Capital of 1.28 Billion in 2019. Calculated Tax Rate is likely to grow to 29.00 in 2020, whereas Average Equity is likely to drop slightly above 1.2 B in 2020. As many of us are excited about technology space, it is fair to review Euronet Worldwide as a unique alternative. We will analyze why Euronet Worldwide investors may still consider a stake in the business.
Published over a month ago
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How much will Euronet Worldwide owe in August?
This firm currently holds 1.47 B in liabilities with Debt to Equity (D/E) ratio of 1.14, which is about average as compared to similar companies. The company has a current ratio of 1.66, which is within standard range for the sector. Euronet Worldwide has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.676, which means a somewhat significant risk relative to the market. Let's try to break down what Euronet's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Euronet Worldwide will likely underperform. Although it is extremely important to respect Euronet Worldwide historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Euronet Worldwide technical indicators, you can presently evaluate if the expected return of 0.0929% will be sustainable into the future. Euronet Worldwide right now shows a risk of 3.9%. Please confirm Euronet Worldwide standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Euronet Worldwide will be following its price patterns.
Euronet Worldwide financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Euronet Worldwide, including all of Euronet Worldwide's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Euronet Worldwide assets, the company is considered highly leveraged. Understanding the composition and structure of overall Euronet Worldwide debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Euronet Total Liabilities

Euronet Worldwide liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Euronet Worldwide has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Euronet Worldwide balance sheet include debt obligations and money owed to different Euronet Worldwide vendors, workers, and loan providers. Below is the chart of Euronet short long-term liabilities accounts currently reported on its balance sheet.
You can use Euronet Worldwide financial leverage analysis tool to get a better grip on understanding its financial position

How important is Euronet Worldwide's Liquidity

Euronet Worldwide financial leverage refers to using borrowed capital as a funding source to finance Euronet Worldwide ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Euronet Worldwide financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Euronet Worldwide's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Euronet Worldwide, but it might be worth checking our own buy vs. sell analysis

Breaking it down a bit more

Euronet Worldwide reported the previous year's revenue of 2.76 B. Net Income was 314.13 M with profit before overhead, payroll, taxes, and interest of 1.19 B.

Liabilities Breakdown

1.4 B
Current Liabilities
1.6 B
Long-Term Liabilities
Total Liabilities2.48 Billion
Current Liabilities1.42 Billion
Long-Term Liabilities1.56 Billion
Tax Liabilities92.32 Million

Another setback for Euronet Worldwide private investors

The risk adjusted performance is down to 0.13 as of today. Euronet Worldwide shows above-average downside volatility for the selected time horizon. We advise investors to inspect Euronet Worldwide further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Euronet Worldwide future alpha.

Our Takeaway on Euronet Worldwide Investment

Whereas some companies under the software?infrastructure industry are still a bit expensive, Euronet Worldwide may offer a potential longer-term growth to private investors. While some private investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Euronet Worldwide.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Euronet Worldwide. Please refer to our Terms of Use for any information regarding our disclosure principles.

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