WLN FP

Worldline SA

Finance/Real Estate, TMT


Presented:06/17/2020
Price:€72.06
Cap:$14.64B
Current Price:€6.62
Cap:$2.09B

Presented

Date06/17/2020
Price€72.06
Market Cap$14.64B
Ent Value$14.09B
P/E Ratio42.26x
Book Value€17.66
Div Yield0%
Shares O/S182.45M
Ave Daily Vol735,610
Short IntN/A

Current

Price€6.62
Market Cap$2.09B
Worldline SA engages in the provision of electronic payment services and banking. It operates through the following segments: Merchant Services; Financial Services; and Mobility & e-Transactional Services. The Merchant Services segment includes commercial acquiring, terminal services, omni channel payment acceptance, private label card & loyalty services, and digital retail. The Financial Services segment comprises Services issuing processing, acquiring processing, digital banking, and account payment. The Mobility & e-Transactional Services segment consists digitization, e-ticketing, contact & consumer cloud, and connected living mobility. The company was founded on July 31, 1990 and is headquartered in Bezons, France.

Publicly traded companies mentioned herein: Fidelity National Information Services Inc (FIS), Global Payments Inc (GPN), Ingenico Group SA (ING FP), Worldline SA/France (WLN FP)

Highlights

The presenter is long shares of Worldline SA/ France (WLN FP), a French merchant processor that also has an acquiring segment. The company trades at 18x EBITDA while its American peers trade at 16x - 17x. He believes this premium is justified for two reasons: WLN is the only company among its peer group that hasn’t withdrawn its 2020 guidance, and it has significant strategic optionality. The presenter has a standalone price target of €83/share based on 29x 2022 EPS or ~14% upside, and also believes he faces a win-win if a strategic buyer emerges. 

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Idea Discussion

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