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Are Euronet Worldwide (NASDAQ:EEFT) private investors starting to panic?
 | By Rifka Kats | Macroaxis Story |
It appears Euronet Worldwide may not have a good chance to recover from the newest drop as its shares fell again. Euronet Worldwide's current daily volatility is 1.93 percent, with a beta of 0.05 and an alpha of -0.05 over DOW. While many traders are getting carried away by overanalyzing market volatility, it is reasonable to review Euronet Worldwide based on how it reacts to the newest economic swings. We will evaluate why we are still optimistic in anticipation of a recovery.
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Reviewed by Ellen Johnson
Euronet Worldwide currently holds roughly 1.28 B in cash with 626.33 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 24.39. Macroaxis provides advice on Euronet Worldwide to complement and cross-verify current analyst consensus on Euronet Worldwide. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Euronet Worldwide. Your research has to be compared to or analyzed against Euronet Worldwide's peers to derive any actionable benefits. When done correctly, Euronet Worldwide's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Euronet Worldwide.
Investing in Euronet Worldwide, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Euronet Worldwide along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Euronet Worldwide's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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. Financial leverage can amplify the potential profits to Euronet Worldwide's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Euronet Worldwide's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Euronet Worldwide's total debt and its cash.
Euronet Worldwide Gross Profit
Euronet Worldwide Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Euronet Worldwide previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Euronet Worldwide Gross Profit growth over the last 10 years. Please check Euronet Worldwide's gross profit and other fundamental indicators for more details.
Euronet Worldwide Correlation with Peers
Investors in Euronet can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Euronet Worldwide. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Euronet Worldwide and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Euronet is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Euronet for more details
What is driving Euronet Worldwide Investor Appetite?
Euronet Worldwide secures Sharpe Ratio (or Efficiency) of -0.0147, which denotes the company had -0.0147% of return per unit of risk over the last month. Macroaxis standpoint towards predicting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Euronet Worldwide exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Euronet Worldwide mean deviation of 1.51, and Coefficient Of Variation of (5,721) to check the risk estimate we provide.
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