Worldline (WLN) AI Stock Analysis

• Market Cap: €1.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 0.47%
• EPS Growth: 63.72%
• Country: FR
• Employees: 18,112
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): -1.05
• Shares Outstanding: 283,571,620
• 10 Day Avg. Volume: 1,806,505
• 30 Day Avg. Volume: 1,816,497
• PEG Ratio: -0.25
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.19
• 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: €5.98
• Price Target Upside: 18.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 59 Neutral
• Price Target: €5.50 ▲(9.13%Upside)

Worldline's overall score is driven by strong revenue growth but hindered by profitability challenges and negative valuation metrics. While cash flow generation is positive, technical indicators suggest a bearish trend. The absence of recent earnings call data and corporate events means these factors could not influence the score.

Positive Factors

Debt management

Proceeds from the sale of the Indian business could help service Worldline's debt burden, potentially improving the company's financial health.

Leadership and strategy

The company has finally announced the appointment of a new CEO with Pierre-Antoine Vacheron, a 15-year payments veteran who spent eight years in executive roles at Ingenico from 2009 to 2017.

Strategic realignment

The potential sale of Worldline's Indian business aligns with management's strategy to right-size the company's portfolio after years of acquisitions.

Negative Factors

Financial outlook

Weak 2025 guidance announced, but further details to be provided during Q1.

Profitability concerns

Revenue mix in Merchant Services is having a negative impact on the contribution margin.

Revenue challenges

Revenue from Belgium, the Netherlands, and Germany is contracting.

Worldline Business Overview & Revenue Model

Company Description

Worldline SA provides payments and transactional services to financial institutions, merchants, corporations, and government agencies in France, rest of Europe, and internationally. The company operates through Merchant Services; Financial Services; and Mobility & e-Transactional Services segments. The Merchant Services segment offers commercial acquiring, terminal, omnichannel payment acceptance, private label card and loyalty, and digital retail services. The Financial Services segment provides issuing processing, acquiring processing, digital and mobile banking, and account payments, as well as payments processing back-office, clearing and settlement, and trade order management and financial data services; and fraud risk management, ATM management, trusted authentication, and payment software licensing solutions. The Mobility & e-Transactional Services segment offers trusted digitization, e-ticketing, e-consumer and mobility, customer engagement, and mobility and traceability solutions and services, as well as digital identity, digital signature, and cloud services. The company was formerly known as Atos Worldline S.A.S. and changed its name to Worldline SA in April 2014. Worldline SA was founded in 1973 and is headquartered in Puteaux, France.

How the Company Makes Money

Worldline generates revenue primarily through its comprehensive suite of payment solutions and services. Key revenue streams include merchant services, where the company earns fees from processing credit and debit card transactions for businesses, and financial services, which involve providing secure payment processing solutions for banks and financial institutions. Additionally, Worldline benefits from its mobility and e-transactional services segment, offering digital ticketing and e-government services. Strategic partnerships and acquisitions also play a significant role in expanding Worldline's market reach and enhancing its service offerings, further contributing to its revenue growth.

Worldline Financial Statement Overview

Summary

Worldline shows strong revenue growth, but profitability challenges are evident with negative net income and inconsistent margins. The balance sheet is stable, yet improvements in profitability are necessary. Positive cash flow generation is a strength, highlighting operational cash generation despite net losses.

Income Statement

Worldline's revenue has grown steadily over the years, with a slight increase from 2023 to 2024. However, profitability metrics like gross profit margin and net profit margin have faced challenges. The company reported a negative net income in recent years, reflecting profitability issues. The EBIT and EBITDA margins have also been inconsistent, indicating operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the return on equity is negative due to recent net losses, which is a concern. The equity ratio remains stable, reflecting a solid capital structure, but improvements in profitability are needed.

Cash Flow

Cash flow analysis reveals positive operating cash flow and free cash flow, which is encouraging despite net losses. The operating cash flow to net income ratio is favorable, indicating cash generation from operations. However, the free cash flow has decreased since 2022, and capital expenditures are notable.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.63B	4.61B	4.36B	3.69B	2.46B
	Gross Profit
2.61B	2.52B	1.92B	1.33B	878.00M
	EBIT
104.70M	-870.00M	531.80M	435.90M	322.30M
	EBITDA
396.00M	-276.00M	831.50M	743.50M	458.40M
	Net Income Common Stockholders
-297.00M	-817.30M	299.20M	-751.40M	163.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80B	1.95B	1.92B	1.14B	1.34B
	Total Assets
19.42B	21.73B	21.86B	20.04B	19.67B
	Total Debt
4.03B	4.05B	4.13B	4.56B	4.85B
	Net Debt
2.26B	2.16B	2.53B	3.44B	3.51B
	Total Liabilities
10.20B	12.17B	11.32B	10.13B	9.28B
	Stockholders Equity
8.25B	8.58B	9.38B	9.04B	9.48B
Cash Flow		Free Cash Flow
321.60M	458.90M	724.10M	727.50M	367.50M
	Operating Cash Flow
603.10M	791.80M	1.05B	953.10M	507.60M
	Investing Cash Flow
-245.80M	-212.40M	28.00M	-537.70M	-1.15B
	Financing Cash Flow
-585.20M	-415.80M	-606.60M	-416.40M	1.47B

Worldline Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.04
• 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 FR:WLN, the sentiment is Negative. The current price of 5.04 is below the 20-day moving average (MA) of 5.07, below the 50-day MA of 5.23, and below the 200-day MA of 6.70, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 58.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:WLN.

Worldline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
WLN	59 Neutral	€1.46B	―	-3.53%	―	0.47%	63.72%
9LH		€57.58M	7.55	21.37%	―	―	―
7U7		€2.13B	181.98	6.29%	―	―	―