Euronet Story

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EEFT -- USA Stock  

USD 152.51  3.76  2.41%

As many millenniums are excited about technology space, we are going to shadow both, Euronet Worldwide and BlackBerry as a potential short-horizon opportunity. We are going to break down some of the competitive aspects of both Euronet and BlackBerry.
Published over two weeks ago
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Should we be acquiring BlackBerry or Euronet Worldwide?
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 companies, such as Euronet or Blackberry 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. 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

Correlation Between Euronet and Blackberry

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 Blackberry to your portfolio. If Blackberry 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, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between EEFT and BB for more information.

Breaking it down a bit more

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

Euronet2.47 Billion
Sector0.0
BlackBerry965 Million
2.5 B
Euronet
Sector
965 M
BlackBerry

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.

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 Achuva Shats 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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