Net 1 U.E.P.S. Technologies Inc.

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UEPS : NASDAQ : Technology Services
$9.94 -0.41 | -4.0%
Today's Range: 9.87 - 10.36
Avg. Daily Volume: 617400.0
02/20/18 - 1:01 PM ET

Financial Analysis


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, however the growth has outpaced the average competitor within the industry. 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 ($mil)148.42151.43
EBITDA ($mil)25.0336.21
EBIT ($mil)16.3125.59
Net Income ($mil)9.6218.64


Balance Sheet Q2 FY18 Q2 FY17
Cash & Equiv. ($mil)64.9198.89
Total Assets ($mil)1370.241042.28
Total Debt ($mil)105.9523.16
Equity ($mil)774.78612.73


Profitability Q2 FY18 Q2 FY17
Gross Profit Margin50.1451.45
EBITDA Margin16.8623.91
Operating Margin10.9916.9
Sales Turnover0.440.57
Return on Assets4.298.25
Return on Equity7.5814.04
Debt Q2 FY18 Q2 FY17
Current Ratio1.31.75
Debt/Capital0.120.04
Interest Expense2.330.51
Interest Coverage7.0150.17


Share Data Q2 FY18 Q2 FY17
Shares outstanding (mil)56.8352.52
Div / share0.00.0
EPS0.170.35
Book value / share13.6311.67
Institutional Own % n/a n/a
Avg Daily Volume637157.0159319.0

Valuation


HOLD. NET 1 UEPS TECHNOLOGIES INC's P/E ratio indicates a significant discount compared to an average of 68.05 for the IT Services industry and a significant discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 0.70 indicates a significant discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 11.34. 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 9.04 Peers 68.05   UEPS 15.34 Peers 24.45

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 5.91 Peers 24.89   UEPS 0.34 Peers 1.81

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UEPS 0.70 Peers 11.34   UEPS -37.87 Peers 21.78

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 0.89 Peers 6.97   UEPS 1.84 Peers 15.77

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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