Net 1 UEPS Technologies Inc

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UEPS : NASDAQ : Services
$9.25 | %
Today's Range: 9.04 - 9.28
Avg. Daily Volume: 215,200
09/23/16 - 4:00 PM ET

Financial Analysis


NET 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 ($mil)151.26164.29
EBITDA ($mil)42.642.91
EBIT ($mil)32.1832.61
Net Income ($mil)24.3623.91


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)223.64117.58
Total Assets ($mil)1263.51286.43
Total Debt ($mil)51.8159.63
Equity ($mil)600.72478.13


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin53.250.95
EBITDA Margin28.1626.11
Operating Margin21.2819.85
Sales Turnover0.470.49
Return on Assets6.527.36
Return on Equity13.7219.81
Debt Q4 FY16 Q4 FY15
Current Ratio1.531.33
Debt/Capital0.080.11
Interest Expense0.541.1
Interest Coverage59.2729.76


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)55.2746.68
Div / share0.00.0
EPS0.480.5
Book value / share10.8710.24
Institutional Own % n/a n/a
Avg Daily Volume231426.0291326.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UEPS 0.85 Peers 5.46   UEPS -5.63 Peers 23.27

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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