New Lifetime High Reached By Euronet Worldwide (EEFT)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Euronet Worldwide ( EEFT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Euronet Worldwide as such a stock due to the following factors:

  • EEFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.0 million.
  • EEFT has traded 18,641 shares today.
  • EEFT is trading at a new lifetime high.

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More details on EEFT:

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. The company operates in three segments: EFT Processing, epay, and Money Transfer. EEFT has a PE ratio of 28.8. Currently there are 4 analysts that rate Euronet Worldwide a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Euronet Worldwide has been 283,400 shares per day over the past 30 days. Euronet Worldwide has a market cap of $2.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.36 and a short float of 4.2% with 6.29 days to cover. Shares are up 8.5% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Euronet Worldwide as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 15.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • EURONET WORLDWIDE INC has improved earnings per share by 8.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EURONET WORLDWIDE INC increased its bottom line by earning $1.70 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $1.70).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 13.2% when compared to the same quarter one year prior, going from $18.11 million to $20.50 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.00% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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