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EML Payments Ltd. (AU:EML)
ASX:EML

EML Payments (EML) AI Stock Analysis

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AU

EML Payments

(Sydney:EML)

Rating:54Neutral
Price Target:
AU$1.00
▼(-12.28%Downside)
The most significant factor affecting the score is the company's financial performance, marked by declining revenues and net losses, which presents a major risk. Technical analysis shows positive momentum, but the stock may be overbought. Valuation concerns arise from a high P/E ratio and the lack of a dividend yield, further impacting the overall attractiveness.

EML Payments (EML) vs. iShares MSCI Australia ETF (EWA)

EML Payments Business Overview & Revenue Model

Company DescriptionEML 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 MoneyEML Payments Ltd. generates revenue through a variety of streams, primarily from fees associated with its prepaid card programs and payment processing services. The company earns interchange fees when its prepaid cards are used for transactions, as well as management fees for maintaining and operating these card programs. Additionally, EML charges transaction fees for its payment processing services. The company's growth is supported by strategic partnerships with businesses across various sectors, which leverage EML's payment solutions to enhance their own customer offerings. EML also benefits from economies of scale as it expands its client base and transaction volumes, further driving its revenue potential.

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. While operational efficiencies are improving, the negative net income and reduced stockholders’ equity present risks. The cash flow remains a relative strength, showing better cash generation capabilities despite accounting losses.
Income Statement
45
Neutral
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
50
Neutral
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
60
Neutral
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
207.17M167.53M254.43M232.52M192.40M120.97M
Gross Profit
174.95M116.10M130.26M128.01M98.76M68.97M
EBIT
41.96M-55.68M-33.70M7.61M6.71M10.43M
EBITDA
45.51M32.49M14.27M37.55M36.54M29.55M
Net Income Common Stockholders
13.21M-26.48M-284.82M-4.80M-28.70M-7.14M
Balance SheetCash, Cash Equivalents and Short-Term Investments
256.81M43.06M2.33B1.78B1.55B951.79M
Total Assets
902.45M2.48B2.99B2.68B2.29B1.88B
Total Debt
7.34M90.64M98.49M91.41M45.13M45.00M
Net Debt
-249.47M47.58M27.13M17.71M-96.10M-73.38M
Total Liabilities
502.78M2.32B2.82B2.25B1.87B1.44B
Stockholders Equity
399.67M159.02M174.55M437.12M414.89M440.24M
Cash FlowFree Cash Flow
400.58M4.84M380.04M248.76M34.24M9.75M
Operating Cash Flow
408.16M14.07M391.78M262.82M46.86M20.74M
Investing Cash Flow
12.76M-34.18M-877.00K-71.14M-25.99M-158.89M
Financing Cash Flow
-47.18M-7.97M-2.17M46.25M-623.00K224.14M

EML Payments Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.14
Price Trends
50DMA
0.97
Positive
100DMA
0.93
Positive
200DMA
0.84
Positive
Market Momentum
MACD
0.05
Negative
RSI
65.90
Neutral
STOCH
88.55
Negative
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 1.14 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 0.97, and above the 200-day MA of 0.84, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 88.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EML.

EML Payments Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.81B10.34-7.44%2.91%7.41%-7.93%
AUCCR
56
Neutral
AU$89.18M-7.65%20.24%27.33%
AUEML
54
Neutral
$437.50M37.427.22%-27.00%
$29.97M-39.85%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EML
EML Payments
1.15
0.25
27.22%
CNGFF
Change Financial Ltd
0.15
0.11
275.00%
AU:CCR
Credit Clear Limited
0.21
-0.03
-12.50%

EML Payments Corporate Events

EML Payments Expands Market Presence with New Securities Quotation
May 16, 2025

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
May 7, 2025

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
Apr 29, 2025

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.

EML Payments Announces Sydney Registry Office Relocation
Apr 15, 2025

EML Payments Limited has announced a change in the address of its registry office in Sydney, effective from April 14, 2025. The registry, managed by MUFG Corporate Markets (AU) Limited, will relocate to Liberty Place on Castlereagh Street, with telephone numbers and postal addresses remaining unchanged. This move is part of EML’s ongoing operational updates and may reflect strategic positioning within the financial services industry.

EML Payments Ltd. Announces Quotation of New Securities
Mar 25, 2025

EML Payments Ltd. announced the quotation of 80,000 ordinary fully paid securities on the Australian Securities Exchange. This move, part of an employee incentive scheme, may strengthen EML’s market position by aligning employee interests with company performance, potentially impacting stakeholders positively.

EML Payments Ltd. Announces Cessation of Securities
Mar 25, 2025

EML Payments Ltd. announced the cessation of 21,235 securities due to the lapse of conditional rights, as the conditions were not met or became unachievable. This development may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic positioning in the market.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.