Is Wall Street Undervaluing EEFT Stock?

September 6th, 2025 by Trefis Team
EEFT: Euronet Worldwide logo
EEFT
Euronet Worldwide

Here is why we think Euronet Worldwide (EEFT) deserves consideration as a value stock.

  • Reasonable Revenue Growth: 8.7% LTM and 9.1% last 3 year average.
  • Cash Generative: Nearly 14.2% free cash flow margin and 13.0% operating margin LTM.
  • No Major Shocks: EEFT has avoided any revenue collapses in the last 3 years.
  • Modest Valuation: Despite encouraging fundamentals, EEFT trades at a PE multiple of 11.5
  • Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, but lower margins

As a quick background, Euronet Worldwide provides payment and transaction processing solutions, including prepaid mobile airtime and electronic payment products, to financial institutions, retailers, merchants, content providers, and consumers.

  EEFT S&P Median
Sector Financials –
Industry Transaction & Payment Processing Services –
PE Ratio 11.5 24.1
   
LTM* Revenue Growth 8.7% 5.1%
3Y Average Annual Revenue Growth 9.1% 5.3%
Min Annual Revenue Growth Last 3Y 8.0% -0.1%
   
LTM* Operating Margin 13.0% 18.7%
3Y Average Operating Margin 12.3% 17.9%
LTM* Free Cash Flow Margin 14.2% 13.4%

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell EEFT Stock to see if Euronet Worldwide still has an edge that holds up under the hood.

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That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

Stocks Like These Can Outperform. Here Is Data

For 65 similar value stocks chosen as of mid 2024, consider the following stats for the subsequent 1 year period.

  • Average peak return of 39.3% vs 14.4% for S&P, with maximum peak return of 133%
  • Win rate of 60%; win rate represents % of stocks with positive return
  • Average 1-year return of 14.6%, similar to S&P’s despite tariff instability

But Consider The Risk

Eeft isn’t immune to big sell-offs either. It plunged nearly 62% in the Dot-Com Bubble and over 77% during the Global Financial Crisis. The Covid crash wiped out about 59%, and the Inflation Shock took it down 55%. Even the milder 2018 Correction hit it with a 29% drop. Solid fundamentals matter, but in major downturns, Eeft faces serious downside along with the rest of the market.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read EEFT Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.