Net 1 UEPS Technologies Inc

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UEPS : NASDAQ : Services
$11.55 0.0 | 0.0%
Today's Range: 11.4 - 11.63
Avg. Daily Volume: 151100.0
01/18/17 - 10:37 AM ET

Financial Analysis


NET 1 UEPS TECHNOLOGIES INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 0.52 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.

During the same period, stockholders' equity ("net worth") has increased by 9.58% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)155.63154.47
EBITDA ($mil)42.3941.33
EBIT ($mil)32.1831.22
Net Income ($mil)24.6323.02


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)205.33125.61
Total Assets ($mil)1325.251209.28
Total Debt ($mil)27.2356.92
Equity ($mil)506.59462.27


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin51.9549.91
EBITDA Margin27.2326.75
Operating Margin20.6820.21
Sales Turnover0.450.52
Return on Assets6.347.74
Return on Equity16.5920.26
Debt Q1 FY17 Q1 FY16
Current Ratio1.431.36
Debt/Capital0.050.11
Interest Expense0.80.97
Interest Coverage40.4332.05


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)52.5247.32
Div / share0.00.0
EPS0.460.49
Book value / share9.659.77
Institutional Own % n/a n/a
Avg Daily Volume154220.0238728.0

Valuation


BUY. NET 1 UEPS TECHNOLOGIES INC's P/E ratio indicates a significant discount compared to an average of 27.94 for the IT Services industry and a significant discount compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 1.22 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 8.33. 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 6.95 Peers 27.94   UEPS 4.63 Peers 19.79

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 6.52 Peers 21.69   UEPS NM Peers 1.66

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 1.22 Peers 8.33   UEPS -15.08 Peers 12.63

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 1.04 Peers 5.35   UEPS -5.15 Peers 16.93

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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