Net 1 UEPS Technologies Inc
Find Ratings ReportsNET 1 UEPS TECHNOLOGIES INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. NET 1 UEPS TECHNOLOGIES INC has weak liquidity. Currently, the Quick Ratio is 0.61 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 25.64% 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 | Q4 FY16 | Q4 FY15 |
|---|---|---|
| Net Sales ($mil) | 151.26 | 164.29 |
| EBITDA ($mil) | 42.6 | 42.91 |
| EBIT ($mil) | 32.18 | 32.61 |
| Net Income ($mil) | 24.36 | 23.91 |
| Balance Sheet | Q4 FY16 | Q4 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 223.64 | 117.58 |
| Total Assets ($mil) | 1263.5 | 1286.43 |
| Total Debt ($mil) | 51.81 | 59.63 |
| Equity ($mil) | 600.72 | 478.13 |
| Profitability | Q4 FY16 | Q4 FY15 |
|---|---|---|
| Gross Profit Margin | 53.2 | 50.95 |
| EBITDA Margin | 28.16 | 26.11 |
| Operating Margin | 21.28 | 19.85 |
| Sales Turnover | 0.47 | 0.49 |
| Return on Assets | 6.52 | 7.36 |
| Return on Equity | 13.72 | 19.81 |
| Debt | Q4 FY16 | Q4 FY15 |
|---|---|---|
| Current Ratio | 1.53 | 1.33 |
| Debt/Capital | 0.08 | 0.11 |
| Interest Expense | 0.54 | 1.1 |
| Interest Coverage | 59.27 | 29.76 |
| Share Data | Q4 FY16 | Q4 FY15 |
|---|---|---|
| Shares outstanding (mil) | 55.27 | 46.68 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.48 | 0.5 |
| Book value / share | 10.87 | 10.24 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 231426.0 | 291326.0 |
HOLD. NET 1 UEPS TECHNOLOGIES INC's P/E ratio indicates a significant discount compared to an average of 27.00 for the IT Services industry and a significant discount compared to the S&P 500 average of 24.84. For additional comparison, its price-to-book ratio of 0.84 indicates a significant discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 7.94. 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 5.30 | Peers 27.00 | UEPS 4.32 | Peers 20.19 | |||||||||||||||||||||
|
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 5.07 | Peers 21.67 | UEPS NM | Peers 2.36 | |||||||||||||||||||||
|
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. |
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| Price/Book |
|
Earnings Growth |
|
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| UEPS 0.84 | Peers 7.94 | UEPS -14.43 | Peers 22.22 | |||||||||||||||||||||
|
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 |
|
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| UEPS 0.85 | Peers 5.46 | UEPS -5.63 | Peers 23.27 | |||||||||||||||||||||
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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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