Net 1 UEPS Technologies Inc
Find Ratings Reports
0.07 |
0.73%
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 ($mil) | 147.94 | 134.74 |
| EBITDA ($mil) | 34.84 | 33.56 |
| EBIT ($mil) | 24.55 | 24.28 |
| Net Income ($mil) | 18.39 | 18.42 |
| Balance Sheet | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 267.71 | 123.27 |
| Total Assets ($mil) | 1321.7 | 1103.81 |
| Total Debt ($mil) | 25.28 | 61.02 |
| Equity ($mil) | 701.52 | 477.56 |
| Profitability | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Gross Profit Margin | 52.07 | 53.04 |
| EBITDA Margin | 23.54 | 24.91 |
| Operating Margin | 16.59 | 18.02 |
| Sales Turnover | 0.46 | 0.55 |
| Return on Assets | 6.5 | 7.42 |
| Return on Equity | 12.26 | 17.17 |
| Debt | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Current Ratio | 1.65 | 1.39 |
| Debt/Capital | 0.03 | 0.11 |
| Interest Expense | 0.47 | 0.85 |
| Interest Coverage | 52.56 | 28.5 |
| Share Data | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Shares outstanding (mil) | 57.59 | 45.64 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.34 | 0.4 |
| Book value / share | 12.18 | 10.46 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 117098.0 | 148067.0 |
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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| 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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