EEFT Stock Study (10-21-26)

Posted by Mark on November 6, 2026 at 07:08 | Last modified: October 21, 2026 11:58

I recently did a stock study on Euronet Inc. (EEFT, $66.15). The previous study is here.

M* writes:

     > Euronet Worldwide Inc is a provider of electronic financial
     > transaction solutions. It offers payment and transaction
     > processing and distribution solutions to financial institutions,
     > retailers, service providers, and individual consumers. The
     > company’s product offerings include comprehensive ATM, POS,
     > card outsourcing, card issuing, and merchant acquiring services,
     > software solutions, money transfer services, etc. Its reportable
     > operating segments are EFT Processing, epay, and Money Transfer.
     > Maximum revenue is derived from its Money Transfer segment,
     > which provides money transfer services across the world under
     > the brand names Ria, AFEX, IME, and xe. Geographically, the
     > company generates maximum revenue from the United States,
     > followed by Germany, India, France, Greece, and other regions.

Over the past decade, this medium-size company has grown sales and EPS at annualized rates of 8.5% and 8.0%, respectively (excluding ’20-’21 from the entire study due to COVID-19). Lines are mostly up, straight, and parallel except for EPS dip in ’17 and decline in ’22. Ten-year EPS R^2 is 0.64, and Value Line (VL) gives an Earnings Predictability score of 45. Shares outstanding decrease 14.7% (1.8% per year).

Over the past decade, PTPM leads peer averages but trails the industry while ranging from 9.6% in ’22 to 15.8% in ’19 with a last-4-year mean of 10.6%. ROE leads peer averages but trails the industry despite increasing from 18.4% to 21.3% (’25) with a last-4-year mean of 21.4% (shareholder equity consistently positive but rocky, increasing only 4.2%/year). Debt-to-Capital is less than peer and industry averages despite increasing from 40.2% to 62.5% (’25) with a last-4-year mean of 61.4%.

Quick ratio is 0.81 and interest coverage 7.2 per M* who assigns no economic moat and a C grade for Financial Health (per BI website). VL gives a B++ rating for Financial Strength.

RightStock—a new tool on the BI website that I am tracking for informational purposes—gives a fitness score of 59 (“poor,” citing inconsistent earnings growth) and opportunity score of N/A (minimum fitness score not met). I agree with inconsistent GAAP earnings growth especially because $6.34/share in 2019 is not eclipsed until ’24 ($6.45). Asking Google AI to plot adjusted, non-GAAP EPS generates an upsloping curve until $7.01 in ’19 followed by $2.82 (’20), $3.69, $6.51, $7.46, $8.61, and $9.61 (’25). For me, that is definitely up, straight, and parallel with a COVID-19-related interruption in the middle.

With regard to sales growth:

• YF gives YOY ACE 5.3% and 4.8% for ’26 and ’27, respectively (based on 7 analysts).
• Zacks gives YOY ACE 5.3% and 4.4% for ’26 and ’27, respectively (3 analysts).
• VL projects 6.3% per year from ’25-’30.
• CFRA projects 5.3% YOY and 5.1% per year for ’26 and ’25-’27.
• M* gives 2-year annualized ACE of 4.6%.

My 4.0% forecast is below the range.

With regard to EPS growth:

• MarketWatch gives ACE 10.5% and 10.1% per year for ’25-’27 and ’25-’28 (based on 12 analysts).
• Nasdaq.com gives ACE 11.4% YOY for ’27 (3 analysts).
• Seeking Alpha projects 4-year annualized growth of 12.1%.
• Finviz gives 5-year annualized ACE of 10.9% (6).
• LSEG has LTG at 13.0%.
• YF gives YOY ACE of 10.8% for both ’26 and ’27 (9).
• Zacks gives YOY ACE 10.6% and 10.8% for ’26 and ’27 along with 5-year annualized 13.0% (3).
• VL projects 10.9% per year from ’25-’30.
• CFRA projects 56.3% YOY and 31.7%/year for ’26 and ’25-’27 (11.2% and 11.1% based on the $9.61 from above).
• M* gives long-term ACE of 13.0%.

My 8.0% forecast is below the long-term-estimate range (mean of six: 12.2%). Initial value is ’25 EPS of $6.84/share rather than ’25 adjusted $9.61.

My Forecast High P/E is 14.0. Over the past 10 years, high P/E falls from 26.1 to 16.7 (’25) with last-4-year mean of 22.8 and a last-4-year-mean average P/E of 18.1. I am below the range.

My Forecast Low P/E is 7.0. Over the past 10 years, low P/E falls from 16.0 to 10.0 (’26) with a last-4-year mean of 13.5. I am forecasting below the range.

My Low Stock Price Forecast (LSPF) of $47.90 is default based on initial value from above: 27.6% less than previous close and 22.2% less than the 52-week low. I don’t find this unreasonable as previous close is less than LSPF from my 7/29/24 First Cut.

These inputs land EEFT in the BUY zone with a U/D ratio of 4.1. Total Annualized Return (TAR) is 16.3%.

PAR (using Forecast Average—not High—P/E) of 9.8% is less than I seek for a medium-size company. If a solid margin of safety (MOS) backs this study, then I can proceed based on TAR instead.

To assess MOS, I start by comparing my inputs with those of Member Sentiment (MS). Based on 27 studies done in the past 90 days (my study and eight outliers excluded), averages (lower of mean/median) for projected sales growth, projected EPS growth, Forecast High P/E, and Forecast Low P/E are 5.9%, 8.6%, 18.0, and 10.0, respectively. I am lower across the board. VL projects a future average P/E of 12.0 that is less than MS (14.0) but greater than mine (10.5).

MS high / low EPS are $9.86 / $6.37 versus my $10.05 / $6.84 (per share). My high EPS is greater due to a higher initial value (went with ’25 GAAP instead of 2026 Q2 EPS of $6.37). VL high EPS of $16.10 (based on ’25 GAAP) soars above both.

MS LSPF of $56.40 implies a Forecast Low P/E of 8.9: less than the above-stated 10.0. MS LSPF is 11.5% less than the default $6.37/share * 10.0 = $63.70 resulting in more conservative zoning. MS LSPF is still 17.7% greater than mine.

MOS is robust in the study because my inputs are below/near most historical/analyst/MS estimates and ranges. Supporting the MOS is MS TAR exceeding mine by 4.5% per year and my lower LSPF.

With regard to valuation, PEG is 0.48 and 1.2 per Zacks and my projected P/E, respectively: undervalued (0.43 per M*). Relative Value [(current P/E) / 5-year-mean average P/E] is extremely low at 0.56. “Quick and dirty” cash flow has stock undervalued by 61% (even with capex excluded, which Google AI instructs against). M* reports stock at a 23% discount.

Per my SSG, EEFT is a U/D BUY right now under $71 share. [140.7 / ((14.87 / 100 ) +1 ) ^ 5] ~ $70 meets the BetterInvesting® TAR criterion given forecast high price ~$141.

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