Oct. 8 at 2:23 PM
$EEFT Looking undervalued here imo
Key metrics screaming value:
Forward P/E of just under 8 (vs market avg ~20+)
PEG ratio 0.56 (under 1 = undervalued)
Trading at 12.15x trailing earnings
Strong FCF
$432M levered free cash flow
ROE: 25.84% - exceptional capital efficiency
Top line growth 8.9% YoY with 17.4% earnings growth
EV/EBITDA at 5.57 is compressed vs historical. Price/Sales 0.98 near multi-year lows.
Balance sheet is solid...
$2.27B cash vs
$2.59B debt - essentially net neutral. Not overleveraged at all for a payments company.
Market's overlooking the fundamentals here. In this expensive market, finding quality growth with 26% ROE trading at <8x forward earnings is rare.