Net 1 UEPS Technologies Inc

Find Ratings Reports
UEPS : NASDAQ : Services
$12.54 -0.38 | -2.94%
Today's Range: 12.51 - 12.97
Avg. Daily Volume: 149600.0
03/24/17 - 4:00 PM ET

Financial Analysis


NET 1 UEPS TECHNOLOGIES INC's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. NET 1 UEPS TECHNOLOGIES INC has weak liquidity. Currently, the Quick Ratio is 0.86 which 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 35.56% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)151.43150.28
EBITDA ($mil)36.2135.37
EBIT ($mil)25.5924.78
Net Income ($mil)18.6416.66


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)198.89101.42
Total Assets ($mil)1042.28903.47
Total Debt ($mil)23.1658.59
Equity ($mil)612.73452.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin51.4547.65
EBITDA Margin23.9123.53
Operating Margin16.916.49
Sales Turnover0.570.69
Return on Assets8.259.73
Return on Equity14.0419.45
Debt Q2 FY17 Q2 FY16
Current Ratio1.751.62
Debt/Capital0.040.11
Interest Expense0.511.05
Interest Coverage50.1723.51


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)52.5246.57
Div / share0.00.0
EPS0.350.35
Book value / share11.679.71
Institutional Own % n/a n/a
Avg Daily Volume146909.0212353.0

Valuation


BUY. NET 1 UEPS TECHNOLOGIES INC's P/E ratio indicates a significant discount compared to an average of 29.22 for the IT Services industry and a significant discount compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 1.13 indicates a significant discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 9.98. 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 7.79 Peers 29.22   UEPS 4.80 Peers 20.95

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 7.12 Peers 21.57   UEPS 1.90 Peers 1.39

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UEPS 1.13 Peers 9.98   UEPS -9.14 Peers 4.34

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 1.17 Peers 5.54   UEPS -4.37 Peers 12.42

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

 

 

Latest Stock Upgrades/Downgrades