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Net 1 Ueps Technologies Inc
UEPS : NASDAQ : Services
$12.94 -0.19 | -1.45%
Today's Range: 12.59 - 13.20
Avg. Daily Volume: 499,500
11/26/14 - 1:24 PM ET

Financial Analysis


NET 1 UEPS TECHNOLOGIES INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing net income growth, but not when comparing revenue growth. NET 1 UEPS TECHNOLOGIES INC has very weak liquidity. Currently, the Quick Ratio is 0.34 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 23.23% 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.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)156.44123.49
EBITDA ($mil)43.328.53
EBIT ($mil)33.1318.5
Net Income ($mil)24.0911.6


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)81.1947.67
Total Assets ($mil)1347.511232.79
Total Debt ($mil)75.5685.38
Equity ($mil)439.35356.51


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin52.4454.2
EBITDA Margin27.6723.1
Operating Margin21.1714.98
Sales Turnover0.440.38
Return on Assets6.131.44
Return on Equity18.85.0
Debt Q1 FY15 Q1 FY14
Current Ratio1.261.17
Debt/Capital0.150.19
Interest Expense1.311.75
Interest Coverage25.2510.56


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)46.4845.78
Div / share0.00.0
EPS0.510.25
Book value / share9.457.79
Institutional Own % n/a n/a
Avg Daily Volume521519.0152408.0

Valuation


BUY. NET 1 UEPS TECHNOLOGIES INC's P/E ratio indicates a significant discount compared to an average of 36.38 for the Software industry and a significant discount compared to the S&P 500 average of 19.91. To use another comparison, its price-to-book ratio of 1.32 indicates a discount versus the S&P 500 average of 2.75 and a significant discount versus the industry average of 6.53. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UEPS 7.17 Peers 36.38   UEPS 7.50 Peers 25.52

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

UEPS is trading at a significant discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UEPS 5.55 Peers 56.06   UEPS 0.19 Peers 8.34

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.

 

Discount. 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.

UEPS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UEPS 1.32 Peers 6.53   UEPS 346.15 Peers -21.01

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

UEPS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UEPS 0.99 Peers 6.58   UEPS 26.73 Peers 15.52

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

UEPS has a sales growth rate that significantly exceeds its peers.

 

 

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