EML Payments (EML) AI Stock Analysis

• Market Cap: $413.23M
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 37.6
• Beta (1Y): -0.03
• Revenue Growth: -27.00%
• EPS Growth: N/A
• Country: AU
• Employees: 458
• Sector: Technology
• Sector Strength: 93
• Industry: Information Technology Services
• EPS (TTM): 0.02
• Shares Outstanding: 382,621,730
• 10 Day Avg. Volume: 1,068,713
• 30 Day Avg. Volume: 1,552,344
• PEG Ratio: 0.12
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.75
• Price Target Upside: 52.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: AU$1.00 ▼(-13.04%Downside)

The overall stock score for EML Payments Ltd. is driven primarily by positive technical analysis signals, with the stock price above key moving averages and moderate bullish momentum. However, financial performance presents concerns due to declining revenues and persistent net losses, posing significant risks. The high P/E ratio further suggests potential overvaluation given current financial challenges.

EML Payments Business Overview & Revenue Model

Company Description

EML Payments Limited provides payment solutions platform in Australia, Europe, and North America. It operates in three segments: General Purpose Reloadable, Gift and Incentives, and Digital Payments. The General Purpose Reloadable segment offers reloadable cards to various industries, such as government, salary packaging, gaming, and digital banking. This segment also provides issuance, processing, and program management services. The Gift and Incentives segment provides single load gift cards for shopping malls and incentive programs. The Digital Payments segment offers payment options for open banking, buy-now pay-later providers, and bill payment providers. The company also offers banking, credit, and disbursements services, as well as earned wage access, gifts, incentives and rewards, open banking, and forex payment solutions. The company was formerly known as Emerchants Limited. EML Payments Limited was incorporated in 2003 and is based in Brisbane, Australia.

How the Company Makes Money

EML Payments generates revenue through multiple streams. Primarily, the company earns money by issuing prepaid cards, which include gift cards, incentive cards, and salary disbursement cards for various clients. EML charges fees for card issuance, transaction processing, and account maintenance. Additionally, EML benefits from interchange fees, which are a percentage of the transaction value paid by merchants when cardholders make purchases. The company also collaborates with financial institutions and retailers, providing white-label solutions that allow these partners to offer branded payment products without developing the infrastructure themselves. Partnerships with banks and businesses to implement customized payment solutions further contribute to EML's revenue, as these partnerships often involve long-term contracts with recurring revenue streams.

EML Payments Financial Statement Overview

Summary

EML Payments Ltd. faces challenges with declining revenues and persistent net losses, impacting its income statement and balance sheet health. Operational efficiencies are showing improvement, but the negative net income and reduced stockholders' equity present risks. Cash flow remains a relative strength, indicating better cash generation capabilities despite accounting losses.

Income Statement

The company has experienced a significant decline in revenue from 2023 to 2024, dropping by approximately 34%. The gross profit margin remains relatively stable at around 69% in 2024. However, the net profit margin has been negative, with a net loss reported in recent years. The EBIT and EBITDA margins have shown improvement, indicating better operational efficiency, but the overall profitability remains a concern.

Balance Sheet

The debt-to-equity ratio is modest, reflecting a manageable level of debt relative to equity. However, the stockholders' equity has decreased significantly, impacting the equity ratio. The return on equity remains negative due to consecutive net losses. Despite this, the company's assets have been stable over the years.

Cash Flow

The company has seen fluctuating free cash flow, with a notable decline in 2024. The operating cash flow is positive but has decreased compared to previous years. The free cash flow to net income ratio indicates that cash flow generation is better than accounting profits suggest, which is a positive aspect.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	167.53M	254.43M	232.52M	192.40M	120.97M
Gross Profit	116.10M	130.26M	128.01M	98.76M	68.97M
EBITDA	32.49M	14.27M	37.55M	36.54M	29.55M
Net Income	-26.48M	-284.82M	-4.80M	-28.70M	-7.14M
Balance Sheet
Total Assets	2.48B	2.99B	2.68B	2.29B	1.88B
Cash, Cash Equivalents and Short-Term Investments	43.06M	2.33B	1.78B	1.55B	951.79M
Total Debt	90.64M	98.49M	91.41M	45.13M	45.00M
Total Liabilities	2.32B	2.82B	2.25B	1.87B	1.44B
Stockholders Equity	159.02M	174.55M	437.12M	414.89M	440.24M
Cash Flow
Free Cash Flow	4.84M	380.04M	248.76M	34.24M	9.75M
Operating Cash Flow	14.07M	391.78M	262.82M	46.86M	20.74M
Investing Cash Flow	-34.18M	-877.00K	-71.14M	-25.99M	-158.89M
Financing Cash Flow	-7.97M	-2.17M	46.25M	-623.00K	224.14M

EML Payments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EML, the sentiment is Positive. The current price of 1.15 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.07, and above the 200-day MA of 0.89, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 60.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EML.

EML Payments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
CCR	63 Neutral	AU$112.53M	―	-7.65%	―	20.24%	27.33%
EML	62 Neutral	$413.23M	37.58	7.22%	―	-27.00%	―
CNGFF	―	$39.76M	―	-39.85%	―	―	―

EML Payments Corporate Events

EML Payments Announces New Securities Quotation on ASX

EML Payments Limited has announced the issuance of 521,516 ordinary fully paid securities, which are to be quoted on the Australian Securities Exchange (ASX) as of July 1, 2025. This move is part of an employee incentive scheme, indicating the company’s strategy to motivate and retain talent, potentially impacting its operational efficiency and market positioning positively.

The most recent analyst rating on (AU:EML) stock is a Buy with a A$1.20 price target. To see the full list of analyst forecasts on EML Payments stock, see the AU:EML Stock Forecast page.

EML Payments Settles Shareholder Class Action

EML Payments Limited has reached an in-principle agreement to settle a shareholder class action for $37,356,125, pending approval by the Supreme Court of Victoria. The settlement, which does not admit liability, allows EML to focus on its EML2.0 strategy and will be funded through existing cash and debt facilities.

The most recent analyst rating on (AU:EML) stock is a Buy with a A$1.70 price target. To see the full list of analyst forecasts on EML Payments stock, see the AU:EML Stock Forecast page.

EML Payments Announces Change in Substantial Holders’ Voting Power

EML Payments Limited has announced a change in the voting power of its substantial holders. The Wilson Asset Management Group now holds an 8.83% voting power, up from 6.59%. This change reflects a shift in the distribution of voting shares within the company, potentially impacting the company’s governance and decision-making processes.

The most recent analyst rating on (AU:EML) stock is a Buy with a A$1.20 price target. To see the full list of analyst forecasts on EML Payments stock, see the AU:EML Stock Forecast page.

EML Payments Issues Unquoted Equity Securities to Boost Employee Incentives

EML Payments Limited announced the issuance of unquoted equity securities in the form of performance rights under an employee incentive scheme. This move is likely to impact the company’s operations by potentially enhancing employee motivation and retention, while also strengthening its position in the competitive fintech industry.

The most recent analyst rating on (AU:EML) stock is a Buy with a A$1.20 price target. To see the full list of analyst forecasts on EML Payments stock, see the AU:EML Stock Forecast page.

EML Payments Expands Market Presence with New Securities Quotation

EML Payments Limited has announced the quotation of new securities on the Australian Securities Exchange (ASX), with a total of 209,646 ordinary fully paid securities being issued under an employee incentive scheme. This move is likely to enhance the company’s market presence and provide additional capital for its operations, potentially impacting its positioning within the fintech industry and offering benefits to its stakeholders.

The most recent analyst rating on (AU:EML) stock is a Buy with a A$1.20 price target. To see the full list of analyst forecasts on EML Payments stock, see the AU:EML Stock Forecast page.

EML Payments Launches Long Term Incentive Plan to Drive Growth

EML Payments Limited has announced a Long Term Incentive Plan for FY25 to FY27, as part of its EML2.0 strategic plan aimed at transforming operations and achieving sustainable growth. The plan includes a performance rights award for Executive Chairman Anthony Hynes, aligning leadership incentives with shareholder interests and supporting the recruitment of high-performance leaders in a competitive market.

EML Payments Announces Change in Substantial Holding

EML Payments Limited has announced a change in the substantial holding of its voting securities. The change reflects a shift in the voting power of Wilson Asset Management Group, which now holds a 6.59% stake, up from the previous 5.34%. This adjustment in voting power could influence future decision-making processes within the company, potentially impacting its strategic direction and stakeholder interests.