EML Payments (EML) AI Stock Analysis

• Market Cap: AU$312.12M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -5.87%
• EPS Growth: -540.18%
• Country: AU
• Employees: 458
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.02
• Shares Outstanding: 387,725,130
• 10 Day Avg. Volume: 1,200,984
• 30 Day Avg. Volume: 1,259,064
• PEG Ratio: -0.08
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 2.81
• P/FCF Ratio: 41.16
• 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: AU$1.55
• Price Target Upside: 84.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): AU$223.70M

• Rating: 41 Neutral
• Price Target: AU$1.00 ▲(19.05% Upside)

The overall stock score of 40.6 reflects significant financial and technical challenges. The most impactful factor is the company's weak financial performance, characterized by declining revenues and profitability issues. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages and showing oversold signals. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, highlighting the company's current financial difficulties.

Positive Factors

Strategic Alliances

Strategic alliances bolster EML's market position by expanding its service offerings and customer base, contributing to long-term revenue growth.

Market Leadership

Being a global leader in digital payments provides EML with a competitive edge, enabling it to capitalize on industry growth and innovation trends.

Revenue Streams

Diverse revenue streams from transaction fees and management fees provide EML with a stable financial foundation and resilience against market fluctuations.

Negative Factors

Declining Revenue

A significant drop in revenue indicates challenges in maintaining market share and could hinder future growth prospects if not addressed.

Profitability Issues

Ongoing profitability issues suggest operational inefficiencies and could impact EML's ability to reinvest in growth opportunities.

Cash Flow Challenges

Severe decline in cash flow generation limits EML's financial flexibility and could constrain its ability to fund strategic initiatives.

EML Payments Business Overview & Revenue Model

Company Description

EML Payments (EML) is a global leader in digital payment solutions, specializing in the provision of prepaid and virtual payments across various sectors including retail, financial services, and corporate sectors. The company offers a range of products and services including prepaid cards, digital wallets, and virtual accounts, enabling businesses to streamline their payment processes and enhance customer experiences.

How the Company Makes Money

EML generates revenue primarily through transaction fees charged on the use of its prepaid cards and digital payment solutions. Additionally, the company earns money from the issuance and management fees associated with its payment programs. Key revenue streams include partnerships with financial institutions and businesses that utilize EML's services to manage disbursements, rewards, and incentives. EML also benefits from float income, which is the interest earned on funds held in customer accounts before they are disbursed. Strategic alliances with technology providers and retailers further enhance EML's market reach and contribute to its overall earnings.

EML Payments Financial Statement Overview

Summary

EML Payments is facing significant financial challenges, with declining revenues, persistent losses, and weak cash flow generation. The company's balance sheet shows manageable leverage, but profitability issues are evident with negative returns on equity. The overall financial health of the company is concerning, with a need for strategic improvements to address revenue and profitability declines.

Income Statement

EML Payments has faced declining revenue, with a significant drop of 23.76% in the latest year. The company has struggled with profitability, as indicated by negative net profit margins and EBIT margins over the past few years. Gross profit margins have decreased from 69.30% to 65.10% in the latest year, reflecting challenges in maintaining cost efficiency. Overall, the income statement reflects a company facing revenue contraction and profitability challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.37, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses and a lack of shareholder returns. The equity ratio remains stable, suggesting a reasonable level of equity financing relative to total assets. Despite manageable debt levels, the negative ROE highlights profitability issues.

Cash Flow

Cash flow analysis reveals a sharp decline in free cash flow growth, down 97.31% in the latest year, indicating cash generation challenges. The operating cash flow to net income ratio is low, suggesting limited cash flow relative to net losses. While free cash flow to net income is relatively better, it still reflects the company's struggle to convert earnings into cash. Overall, cash flow performance is weak, highlighting liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	157.94M	157.94M	167.53M	254.43M	232.52M	192.40M
Gross Profit	102.82M	102.82M	116.10M	130.26M	128.01M	98.76M
EBITDA	11.53M	-20.59M	32.49M	-243.10M	37.55M	36.54M
Net Income	-53.18M	-53.39M	-26.48M	-284.82M	-4.80M	-28.70M
Balance Sheet
Total Assets	2.68B	2.68B	2.48B	2.99B	2.68B	2.29B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.93B	43.06M	2.33B	1.78B	1.55B
Total Debt	54.08M	54.08M	90.64M	98.49M	91.41M	45.13M
Total Liabilities	2.54B	2.54B	2.32B	2.82B	2.25B	1.87B
Stockholders Equity	146.44M	146.44M	159.02M	174.55M	437.12M	414.89M
Cash Flow
Free Cash Flow	103.71M	10.79M	4.84M	380.04M	248.76M	34.24M
Operating Cash Flow	104.08M	16.75M	14.07M	391.78M	262.82M	46.86M
Investing Cash Flow	39.24M	39.24M	-34.18M	-877.00K	-71.14M	-25.99M
Financing Cash Flow	-43.29M	-43.29M	-7.97M	-2.17M	46.25M	-623.00K

EML Payments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 0.84 is above the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.90, and below the 200-day MA of 0.99, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 30.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EML.

EML Payments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CCR	61 Neutral	AU$126.84M	31.55	5.74%	―	11.72%	―
CCA	45 Neutral	AU$46.95M	-15.45	-13.21%	―	43.85%	29.03%
EML	41 Neutral	AU$312.12M	-5.61	-32.98%	―	-5.87%	-540.18%

EML Payments Corporate Events

EML Payments Appoints New CFO to Drive Growth Strategy

EML Payments Limited has announced the appointment of Mr. Stuart Will as the new Chief Financial Officer, effective December 1, 2025, following the resignation of Mr. James Georgeson. Mr. Will, who has extensive experience in the fintech, financial services, and retail sectors, will work alongside Mr. Georgeson to ensure a smooth transition. The company credits Mr. Georgeson with strengthening EML’s market standing and strategic partnerships through critical refinancings and asset sales. The leadership transition is expected to maintain the momentum of EML’s growth strategy, known as EML2.0, as Mr. Will leverages his expertise to enhance the company’s global operations.

EML Payments Concludes 2025 AGM with All Resolutions Passed

EML Payments Limited held its 2025 Annual General Meeting where all resolutions were passed by poll. Key resolutions included the approval of the remuneration report, election of a director, and various equity-related plans. These decisions are likely to influence EML’s strategic direction and stakeholder engagement positively.

EML Payments Highlights Strategic Progress and Growth Plans at AGM

EML Payments Limited, during its 2025 Annual General Meeting, highlighted its significant progress in executing the EML 2.0 Strategy under the leadership of the new Executive Chairman. The company has focused on building a clear strategy and transformation plan, enhancing its leadership team, and improving operational efficiency, which has resulted in achieving underlying EBITDA towards the top of the guidance range. The company aims to foster growth by strengthening partnerships with a core group of clients seeking innovation and collaboration.

EML Payments Affirms FY26 EBITDA Guidance Amid Steady Q1 Performance

EML Payments Limited has affirmed its FY26 underlying EBITDA guidance, projecting a range of A$58-63 million. The company reported a stable Q1 FY26 trading performance, with a slight increase in Gross Debit Volume (GDV) and customer revenue, despite a decrease in interest revenue and underlying EBITDA. The company is on track with its gross profit margin and new program pipeline, aiming to achieve its December 2025 target. EML is also optimizing its program launch times and maintaining overheads in line with budget, with efficiency programs expected to reduce overheads in the latter half of FY26.

EML Payments Announces New Securities Issuance Under Employee Incentive Scheme

EML Payments Limited has announced the issuance of 255,102 ordinary fully paid securities to be quoted on the ASX, effective from October 20, 2025. This issuance, part of an employee incentive scheme, reflects the company’s ongoing efforts to enhance employee engagement and align interests with stakeholders, potentially strengthening its market position and operational capabilities.

EML Payments Announces Director Retirement

EML Payments Limited announced the retirement of Non-Executive Director Mr. Manoj Kheerbat following the 2025 Annual General Meeting. Mr. Kheerbat, who joined the board in December 2022, contributed significantly with his international experience and expertise in regulated financial services markets, particularly benefiting EML’s governance and operations in European markets.

EML Payments Appoints New Company Secretary

EML Payments Limited has announced the appointment of Anna Gorton as the new Company Secretary, effective immediately. Gorton brings over 20 years of experience in legal and company secretary roles, previously serving at SMS Management & Technology Ltd and Aconex Limited. This change signifies a strategic move for EML Payments, as Gorton will be responsible for communication with the ASX, potentially impacting the company’s operations and stakeholder relations.

EML Payments Issues New Securities Under Employee Incentive Scheme

EML Payments Limited announced the issuance of new ordinary fully paid securities, totaling 1,944,445 shares, to be quoted on the Australian Securities Exchange. This issuance is part of an employee incentive scheme, reflecting the company’s efforts to align employee interests with corporate performance and potentially enhancing its market position.

EML Payments Appoints Andre Reich as Non-Executive Director

EML Payments Limited has appointed Andre Reich as a non-executive Director, effective September 25, 2025. Andre, known for his expertise in large-scale transformation programs and experience in the Australian retail sector, will join the Audit and Risk Committee and the Remuneration and Nomination Committees. His appointment is part of EML’s strategic initiative to align its board capabilities with its business needs, particularly as it executes its EML2.0 strategy. This move is expected to bolster the company’s operational expertise and drive shareholder value.

EML Payments Expands Market Presence with New Securities Quotation

EML Payments Limited has announced the quotation of 1,411,186 ordinary fully paid securities on the Australian Securities Exchange (ASX) as part of an employee incentive scheme. This move is expected to enhance the company’s market presence and provide liquidity options for its stakeholders, reflecting its commitment to employee engagement and growth in the fintech sector.

EML Payments Announces 2025 AGM Date and Director Election Details

EML Payments Limited has announced that its 2025 Annual General Meeting will be held on November 19, 2025, with the election of Directors as a key agenda item. The company has set September 18, 2025, as the deadline for director nominations, and further details will be provided in a forthcoming Notice of Meeting.