EEFT

Euronet Worldwide Inc

TMT, Finance/Real Estate, Event Driven/Special Sit


Presented:01/19/2018
Price:$95.31
Cap:$5.32B
Current Price:$99.07
Cap:$4.45B

Presented

Date01/19/2018
Price$95.31
Market Cap$5.32B
Ent Value$4.86B
P/E Ratio25.21x
Book Value$22.72
Div Yield0%
Shares O/S55.78M
Ave Daily Vol485,679
Short Int5.70%

Current

Price$99.07
Market Cap$4.45B
Euronet Worldwide, Inc. engages in the provision of electronic payment and transaction processing solutions for financial institutions, retailers, service providers, and individual consumers. It operates through the following segments: electronic financial transaction processing, epay, and money transfer. The electronic financial transaction processing segment involves in providing electronic payment solutions such as automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and management solutions. The epay segment offers prepaid mobile airtime top-up services, prepaid and payment products on network terminals. The money transfer segment refers to money transfer services under the Ria and HiFX. The company was founded by Daniel R. Henry and Michael J. Brown in 1994 and is headquartered in Leawood, KS.

Publicly traded companies mentioned herein: Euronet Worldwide Inc (EEFT), MoneyGram International Inc (MGI), Wal-Mart Stores Inc (WMT)

Highlights

As a result of his curiosity about how dynamic currency conversion (DCC) impacted his own withdrawals of money from ATMs in Europe, the presenter is short shares of Euronet Worldwide (EEFT). EEFT is a US-based payment services provider with meaningful operations concentrated in Central and Eastern Europe (e.g., Poland and Romania). The presenter sees headwinds for all three of EEFT’s business segments, with the potential for some strong near-term catalysts and long-term structural issues to impact results. Broader awareness of the spread earned by EEFT on DCC withdrawals could, by the presenter’s estimates, place 30-50% of EEFT’s earnings at risk over the next 12–24 months. If his estimates are accurate, there may be 50% downside for the stock in two years’ time.

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