EML Payments - hero banner - 18062019 - JPG

EML Payments

ASX: EML

Market CapAU$241m

Last Close AU$0.65

EML Payments is a payment solutions company managing thousands of programmes across 32 countries in Europe, North America and Australia. It provides payment solutions for banking, credit and disbursement services, earned wage access, gifts, incentives and rewards, and open banking and FX.

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Investment summary

The Irish regulator has extended the growth cap on European General Purpose Reloadable (GPR) volumes for an additional 12 months to the end of CY23. This limits growth of volumes in Europe (ex-UK) to 10% over the baseline volume in the first nine months of CY22. This restriction could be lifted early, if third-party assurance of ongoing remediation work is finalised before the end of CY23. We have revised our forecasts to reflect slower volume growth in GPR and higher compliance-related overheads.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2021A 192.2 42.2 30.2 6.579 9.9 5.7
2022A 232.4 34.3 16.0 3.398 19.1 7.2
2023E 244.1 30.4 7.3 1.531 42.5 8.2
2024E 273.9 39.3 12.5 2.641 24.6 6.3
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 30/11/2022
Content on EML Payments
EML Payments – Irish regulator extends growth cap
TMT | research Update | 15 November 2022
EML Payments - hero banner - 18062019 - JPG
EML Payments – UK regulator raises concerns
TMT | research Flash note | 1 November 2022
EML Payments - hero banner - 18062019 - JPG
EML Payments – Strategic review for sustainable growth
TMT | research Update | 9 September 2022
EML Payments - hero banner - 18062019 - JPG
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Share price graph
Balance sheet
Forecast net cash (A$m) 13.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 59.3 (31.4) (82.1)
Relative* 50.2 (33.7) (81.8)
52-week high/low A$3.5/A$0.4
*% relative to local index
Key management
Emma Shand MD and CEO
Robert Shore Group CFO