Net 1 UEPS Technologies Inc

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UEPS : NASDAQ : Services
$9.7 up 0.07 | 0.73%
Today's Range: 9.55 - 9.72
Avg. Daily Volume: 120400.0
06/23/17 - 3:35 PM ET

Financial Analysis


NET 1 UEPS TECHNOLOGIES INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged 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 weak liquidity. Currently, the Quick Ratio is 0.74 which 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 greatly increased by 46.89% 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.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)147.94134.74
EBITDA ($mil)34.8433.56
EBIT ($mil)24.5524.28
Net Income ($mil)18.3918.42


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)267.71123.27
Total Assets ($mil)1321.71103.81
Total Debt ($mil)25.2861.02
Equity ($mil)701.52477.56


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin52.0753.04
EBITDA Margin23.5424.91
Operating Margin16.5918.02
Sales Turnover0.460.55
Return on Assets6.57.42
Return on Equity12.2617.17
Debt Q3 FY17 Q3 FY16
Current Ratio1.651.39
Debt/Capital0.030.11
Interest Expense0.470.85
Interest Coverage52.5628.5


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)57.5945.64
Div / share0.00.0
EPS0.340.4
Book value / share12.1810.46
Institutional Own % n/a n/a
Avg Daily Volume117098.0148067.0

Valuation


HOLD. NET 1 UEPS TECHNOLOGIES INC's P/E ratio indicates a significant discount compared to an average of 31.61 for the IT Services industry and a significant discount compared to the S&P 500 average of 25.73. For additional comparison, its price-to-book ratio of 0.79 indicates a significant discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 9.84. 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 5.93 Peers 31.61   UEPS 5.05 Peers 21.57

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 5.23 Peers 22.05   UEPS 1.45 Peers 1.69

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UEPS 0.79 Peers 9.84   UEPS -6.33 Peers -0.20

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 0.92 Peers 5.64   UEPS 0.41 Peers 11.46

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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