By analyzing existing basic indicators between Euronet Worldwide and BlackBerry, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in BlackBerry with a short position in Euronet Worldwide. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Euronet Worldwide has an asset utilization ratio of 112.65 percent. This implies that the company is making $1.13 for each dollar of assets. An increasing asset utilization means that Euronet Worldwide is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Euronet or Palo is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
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.
Correlation Between Euronet and Palo Alto Networks
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Euronet Worldwide together with similar or unrelated positions with a negative correlation. For example, you can also add Palo Alto to your portfolio. If Palo Alto is not perfectly correlated to Euronet Worldwide it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Euronet Worldwide, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Euronet Worldwide and Palo Alto in your portfolio? Please note if you are using this as a pair-trade strategy between Euronet Worldwide and Palo Alto, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between EEFT and PANW for more information.
What is driving Euronet Worldwide Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me take a closer look at Euronet Worldwide revenue. Based on the latest financial disclosure, Euronet Worldwide reported 2.47
B of revenue. This is 39.4% lower than that of the Technology sector and significantly higher than that of the
Software—Infrastructure industry. The revenue for all United States stocks is 73.82% higher than that of Euronet Worldwide. As for BlackBerry we see revenue of 965
M, which is much higher than that of the Software—Infrastructure
| Euronet | 2.47 Billion |
| Sector | 0.0 |
| BlackBerry | 965 Million |
Euronet is expecting lower volatility in March
Euronet Worldwide newest downside variance boosts over 6.28. Euronet Worldwide currently demonstrates below-verage downside deviation. It has Information Ratio of 0.15 and Jensen Alpha of 0.63. However, we do advice investors to further question Euronet Worldwide expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Takeaway on Euronet Worldwide Investment
Whereas many other companies under the software—infrastructure industry are still a bit expensive, Euronet Worldwide may offer a potential longer-term growth to private investors. All things considered, as of the 9th of February 2021, our research shows that Euronet Worldwide is a rather very steady investment opportunity with a
low probability of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be
overvalued. Our overall 30 days buy vs. sell advice on the firm is
Hold.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Euronet Worldwide. Please refer to our
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