Net 1 UEPS Technologies Inc

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UEPS : NASDAQ : Services
$10.27 | %
Today's Range: 10.16 - 11.30
Avg. Daily Volume: 203,600
08/26/16 - 4:00 PM ET

Financial Analysis


NET 1 UEPS TECHNOLOGIES INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. NET 1 UEPS TECHNOLOGIES INC has very weak liquidity. Currently, the Quick Ratio is 0.50 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.51% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)134.74151.12
EBITDA ($mil)35.4742.03
EBIT ($mil)26.1931.97
Net Income ($mil)18.4224.36


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)123.27111.0
Total Assets ($mil)1103.811272.05
Total Debt ($mil)61.0260.03
Equity ($mil)477.56461.35


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin53.0452.96
EBITDA Margin26.3227.8
Operating Margin19.4421.15
Sales Turnover0.550.49
Return on Assets7.427.81
Return on Equity17.1721.54
Debt Q3 FY16 Q3 FY15
Current Ratio1.391.34
Debt/Capital0.110.12
Interest Expense0.850.94
Interest Coverage30.7433.97


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)45.6446.61
Div / share0.00.0
EPS0.40.52
Book value / share10.469.9
Institutional Own % n/a n/a
Avg Daily Volume205706.0380869.0

Valuation


HOLD. NET 1 UEPS TECHNOLOGIES INC's P/E ratio indicates a significant discount compared to an average of 26.72 for the IT Services industry and a significant discount compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 0.97 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 7.87. 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 5.80 Peers 26.72   UEPS 4.10 Peers 19.93

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 5.26 Peers 21.20   UEPS NM Peers 2.34

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.

 

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.

UEPS's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UEPS 0.97 Peers 7.87   UEPS -16.75 Peers 20.51

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UEPS 0.76 Peers 5.31   UEPS -2.28 Peers 22.03

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

UEPS significantly trails its peers on the basis of sales growth

 

 

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