-0.07 | -0.95%
NET 1 UEPS TECHNOLOGIES INC's gross profit margin for the third quarter of its fiscal year 2013 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. NET 1 UEPS TECHNOLOGIES INC has very weak liquidity. Currently, the Quick Ratio is 0.26 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.83% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
| Income Statement | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Net Sales ($mil) | 111.14 | 90.66 |
| EBITDA ($mil) | 5.83 | 21.8 |
| EBIT ($mil) | -4.73 | 12.48 |
| Net Income ($mil) | -4.68 | 7.77 |
| Balance Sheet | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 42.62 | 88.25 |
| Total Assets ($mil) | 1073.01 | 630.33 |
| Total Debt ($mil) | 89.76 | 102.93 |
| Equity ($mil) | 340.39 | 350.31 |
| Profitability | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Gross Profit Margin | 53.7 | 64.16 |
| EBITDA Margin | 5.24 | 24.04 |
| Operating Margin | -4.25 | 13.76 |
| Sales Turnover | 0.41 | 0.6 |
| Return on Assets | -0.3 | 9.43 |
| Return on Equity | -0.96 | 16.97 |
| Debt | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Current Ratio | 1.17 | 1.84 |
| Debt/Capital | 0.21 | 0.23 |
| Interest Expense | 2.02 | 2.24 |
| Interest Coverage | -2.34 | 5.56 |
| Share Data | Q3 FY13 | Q3 FY12 |
|---|---|---|
| Shares outstanding (mil) | 45.74 | 45.55 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.1 | 0.17 |
| Book value / share | 7.44 | 7.69 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 168646.0 | 603836.0 |
HOLD. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 1.01 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 7.07. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, NET 1 UEPS TECHNOLOGIES INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| UEPS NM | Peers 27.69 | UEPS 41.43 | Peers 20.11 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. UEPS's P/E is negative making this valuation measure meaningless. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. UEPS is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| UEPS 6.53 | Peers 24.71 | UEPS NA | Peers 0.76 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. UEPS is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| UEPS 1.01 | Peers 7.07 | UEPS -104.54 | Peers -92.79 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. UEPS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, UEPS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| UEPS 0.78 | Peers 8.67 | UEPS 16.27 | Peers 16.46 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. UEPS is trading at a significant discount to its industry on this measurement. |
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share. UEPS is keeping pace with its peers on the basis of sales growth. |
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