EML Payments (EML) AI Stock Analysis

• Market Cap: $437.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.09
• Revenue Growth: -27.00%
• EPS Growth: N/A
• Country: AU
• Employees: 458
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): 0.02
• Shares Outstanding: 382,100,220
• 10 Day Avg. Volume: 2,545,029
• 30 Day Avg. Volume: 1,662,234
• PEG Ratio: 0.13
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.09
• 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: $1.70
• Price Target Upside: 49.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• 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 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 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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
207.17M	167.53M	254.43M	232.52M	192.40M	120.97M
	Gross Profit
174.95M	116.10M	130.26M	128.01M	98.76M	68.97M
	EBIT
41.96M	-55.68M	-33.70M	7.61M	6.71M	10.43M
	EBITDA
45.51M	32.49M	14.27M	37.55M	36.54M	29.55M
	Net Income Common Stockholders
13.21M	-26.48M	-284.82M	-4.80M	-28.70M	-7.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
256.81M	43.06M	2.33B	1.78B	1.55B	951.79M
	Total Assets
902.45M	2.48B	2.99B	2.68B	2.29B	1.88B
	Total Debt
7.34M	90.64M	98.49M	91.41M	45.13M	45.00M
	Net Debt
-249.47M	47.58M	27.13M	17.71M	-96.10M	-73.38M
	Total Liabilities
502.78M	2.32B	2.82B	2.25B	1.87B	1.44B
	Stockholders Equity
399.67M	159.02M	174.55M	437.12M	414.89M	440.24M
Cash Flow		Free Cash Flow
400.58M	4.84M	380.04M	248.76M	34.24M	9.75M
	Operating Cash Flow
408.16M	14.07M	391.78M	262.82M	46.86M	20.74M
	Investing Cash Flow
12.76M	-34.18M	-877.00K	-71.14M	-25.99M	-158.89M
	Financing Cash Flow
-47.18M	-7.97M	-2.17M	46.25M	-623.00K	224.14M

EML Payments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
CCR	56 Neutral	AU$89.18M	―	-7.65%	―	20.24%	27.33%
EML	54 Neutral	$437.50M	37.42	7.22%	―	-27.00%	―
CNGFF		$29.97M	―	-39.85%	―	―	―

EML Payments Corporate Events

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.

EML Payments Announces Sydney Registry Office Relocation

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

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

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.