EML Payments - hero banner - 18062019 - JPG

EML Payments

AU: EML

Market CapAU$1213.7m

Last Close AU$3.25

EML Payments is a payment solutions company specialising in the prepaid stored value market, with mobile, physical and virtual card offerings. It manages thousands of programmes across 27 countries in Europe, North America and Australia.

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Investment summary

EML provided a Q122 trading update at its AGM, confirming GDV growth of 14% y-o-y, revenue growth of 29% and underlying EBITDA growth of 11%. Management updated guidance for FY22, tightening the revenue range and leaving the underlying EBITDA and NPATA ranges unchanged. EML is in ongoing dialogue with the Irish regulator and is aiming to substantially complete its remediation plan by the end of CY21. We have revised our forecasts to reflect updated guidance, maintaining our underlying EBITDA and NPATA forecasts this year and reducing them in FY23 and FY24 to reflect slightly lower GDV forecasts for GPR and Digital Payments.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 121.0 32.5 21.6 5.489 59.2 31.7
2021A 192.2 42.2 30.2 6.579 49.4 28.4
2022E 234.2 58.9 41.5 8.799 36.9 20.8
2023E 284.6 85.3 62.8 13.225 24.6 14.4
Industry outlook

In terms of market size, US$1,848bn was loaded onto prepaid cards in 2019 and this is forecast to grow to US$5,511bn by 2027, a CAGR of 14.6% (source: Applied Market Research). EML is keen to gain share of this fast growing market, and as part of its Project Accelerator strategy to position the company at the forefront of payment-related technology, has made its first two investments via its FinLabs incubator.

Last updated on 18/01/2022
Content on EML Payments
EML Payments – Reassuring Q1 update
TMT | Update | 18 November 2021
EML Payments - hero banner - 18062019 - JPG
EML Payments – Bringing Sentenial into the fold
TMT | Flash note | 30 September 2021
EML Payments - hero banner - 18062019 - JPG
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Share price graph
Balance sheet
Forecast net cash (A$m) 48.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 6.9 6.9 (12.9)
Relative* 5.4 6.3 (21.9)
52-week high/low A$5.8/A$2.7
*% relative to local index
Key management
Robert Shore Group CFO
Tom Cregan MD and CEO

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