Euronet Offers Undervalued Leverage To Post-Pandemic Normalization And Growing Digital Payments

Summary

• Euronet's ATM business is doing well in terms of transaction volumes, but is still not back to normal, as European tourism and mobility is still well below pre-pandemic norms.
• Management is now offering access to its considerable cross-border payment capabilities to fintechs, banks, and other customers who can integrate this into their own offerings, throwing fees back to Euronet.
• These shares are looking more appealing, as mid-to-high single-digit revenue growth and low-to-mid-teens FCF margins can support attractive returns.

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The omicron variant caused problems for many companies, and Euronet (NASDAQ:EEFT) was no exception, as the company’s ATM business remains quite sensitive to European tourism. At the same time, though, I have to wonder whether the Street

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.