Net 1 U.E.P.S. Technologies Inc.
Find Ratings Reports
-0.03 |
-0.36%
NET 1 UEPS TECHNOLOGIES INC's gross profit margin for the second quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. NET 1 UEPS TECHNOLOGIES INC has weak liquidity. Currently, the Quick Ratio is 0.54 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 26.44% 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 | Q2 FY18 | Q2 FY17 |
|---|---|---|
| Net Sales ($mil) | 148.42 | 151.43 |
| EBITDA ($mil) | 25.03 | 36.21 |
| EBIT ($mil) | 16.31 | 25.59 |
| Net Income ($mil) | 9.62 | 18.64 |
| Balance Sheet | Q2 FY18 | Q2 FY17 |
|---|---|---|
| Cash & Equiv. ($mil) | 64.9 | 198.89 |
| Total Assets ($mil) | 1370.24 | 1042.28 |
| Total Debt ($mil) | 105.95 | 23.16 |
| Equity ($mil) | 774.78 | 612.73 |
| Profitability | Q2 FY18 | Q2 FY17 |
|---|---|---|
| Gross Profit Margin | 50.14 | 51.45 |
| EBITDA Margin | 16.86 | 23.91 |
| Operating Margin | 10.99 | 16.9 |
| Sales Turnover | 0.44 | 0.57 |
| Return on Assets | 4.29 | 8.25 |
| Return on Equity | 7.58 | 14.04 |
| Debt | Q2 FY18 | Q2 FY17 |
|---|---|---|
| Current Ratio | 1.3 | 1.75 |
| Debt/Capital | 0.12 | 0.04 |
| Interest Expense | 2.33 | 0.51 |
| Interest Coverage | 7.01 | 50.17 |
| Share Data | Q2 FY18 | Q2 FY17 |
|---|---|---|
| Shares outstanding (mil) | 56.83 | 52.52 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.17 | 0.35 |
| Book value / share | 13.63 | 11.67 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 343954.0 | 525209.0 |
HOLD. NET 1 UEPS TECHNOLOGIES INC's P/E ratio indicates a significant discount compared to an average of 70.44 for the IT Services industry and a significant discount compared to the S&P 500 average of 24.51. For additional comparison, its price-to-book ratio of 0.65 indicates a significant discount versus the S&P 500 average of 3.18 and a significant discount versus the industry average of 11.81. 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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| UEPS 8.41 | Peers 70.44 | UEPS 14.27 | Peers 24.84 | |||||||||||||||||||||
|
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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| UEPS NA | Peers 24.59 | UEPS NA | Peers 0.90 | |||||||||||||||||||||
|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
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. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| UEPS 0.65 | Peers 11.81 | UEPS -37.87 | Peers 17.65 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| UEPS 0.83 | Peers 7.13 | UEPS 1.84 | Peers 16.77 | |||||||||||||||||||||
|
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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