EML Payments (ASX: EML)

Last close As at 28/02/2024

AUD0.91

0.07 (7.74%)

Market capitalisation

AUD340m

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.

EML provides payment solutions for banking, credit and disbursement services, earned wage access, gifts, incentives and rewards, and open banking and FX. The company estimates it has a serviceable addressable market worth A$114bn, which is growing at c 7% pa. It estimates it has less than a 0.2% share of this market, providing plenty of scope for growth.

Latest Insights

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TMT | Update

EML Payments — Major source of losses stemmed

TMT | Update

EML Payments — Turning the ship around

TMT | Update

EML Payments — Considering its options

Sector

TMT

Equity Analyst

Key Management

  • Jonathan Gatt

    Group CFO

  • Kevin Murphy

    Interim CEO

Balance Sheet

Forecast net debt (A$m)

28.1

Forecast gearing ratio (%)

17

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 2.3 (17.4) 104.1
Relative 0.6 (24.6) 91.3
52 week high/low A$1.3/A$0.4

Financials

As part of its strategy to focus on profitable, cash-generative businesses, the boards of EML Payments and PFS Card Services Ireland Limited (PCSIL) have decided to wind down the PCSIL business. This removes a source of considerable cash burn and management distraction and leaves the group better positioned to support the Gifting and the Australian and UK General Purpose Reloadable (GPR) businesses. The strategic review is ongoing and management noted it had received several expressions of interest for Sentenial. FY24 guidance given in November is maintained despite the PCSIL liquidation. We have revised our forecasts to reflect the November trading update and the PCSIL liquidation, upgrading our underlying EBITDA forecasts by 14.9% in FY24 and 6.0% in FY25.

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 232.4 34.3 16.0 3.398 26.6 10.1
2023A 254.2 (2.6) (22.8) (4.869) N/A N/A
2024E 251.0 46.5 25.1 5.234 17.3 7.3
2025E 242.9 59.7 37.3 7.766 11.7 5.7

Thematics

thematic

TMT

MediaWatch – Rinse and repeat

thematic

TMT

MediaWatch – Still waiting…

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