EML Payments

AU: EML

AU$1458.2m market cap

AU$4.03 last close

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 28 countries in Europe, North America and Australia.

Investment summary

EML Payments is a specialist payment solutions provider with a focus on the prepaid market. The group’s strategy is to use acquisitions supported by organic development to establish strong positions across a diverse range of use cases and markets. EML now operates in 28 countries and has grown revenues at a five-year CAGR of 53%. While COVID-19 has slowed the pace of growth in the short term, the business is well-funded and remains profitable and cash generative. The launch of Project Accelerator is designed to keep EML at the forefront of innovation in payments technology and to support the company’s aim to be ‘the fintech’s fintech’.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 97.2 29.7 25.6 7.8 51.7 34.4
2020A 121.0 32.5 21.6 5.5 73.3 53.7
2021E 173.4 48.4 35.3 7.6 53.0 29.7
2022E 218.8 70.6 53.7 11.6 34.7 23.3
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, in particular by providing innovative solutions that enable fintech disruption.

Last updated on 21/01/2021
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Sector
TMT
Share price graph
Balance sheet
Forecast net cash (A$m) 112.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.0) 11.6 (21.3)
Relative* (6.6) 0.6 (20.5)
52-week high/low A$5.7/A$1.3
*% relative to local index
Key management
Robert Shore Group CFO
Tom Cregan MD and CEO

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