Worldline (WLN) AI Stock Analysis

• Market Cap: €1.01B
• Dividend Yield: N/A
• Average Volume (3M): 3.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 0.47%
• EPS Growth: 63.72%
• Country: FR
• Employees: 18,112
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Infrastructure
• EPS (TTM): 0.77
• Shares Outstanding: 283,571,620
• 10 Day Avg. Volume: 2,143,317
• 30 Day Avg. Volume: 3,933,184
• PEG Ratio: -0.05
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.22
• 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: €4.91
• Price Target Upside: 37.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 57 Neutral
• Price Target: €3.50 ▼(-1.96%Downside)

Worldline's overall stock score is driven by financial performance and technical analysis. The company's strong revenue growth is overshadowed by profitability challenges and bearish technical indicators. A negative P/E ratio and lack of dividends further weigh on 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.

New CEO Strategy

For the long-term, Pierre-Antoine Vacheron detailed that his focus will be on generating a growing and qualitative FCF by being more focused, competitive and innovative in addressing the SME market.

Operational Streamlining

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

High-Risk Portfolio Exposure

Multiple news outlets reported background articles on Worldline's high-risk merchant portfolio, which surfaced in 2023, causing a €130m revenue wind-down as Worldline exits those contracts.

Merchant Services Headwinds

Worldline saw no momentum reversal in Q2, with Merchant Services still facing headwinds in Hardware and Merchant Terminations.

Revenue Decline

Total revenues are expected to decline organically by 4%, which is below consensus estimates.

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 makes money primarily through transaction fees, service fees, and hardware sales. In the merchant services segment, the company generates revenue by processing payments for retailers and businesses, earning a percentage of each transaction. In the financial services segment, Worldline provides services like card issuing and payment processing for banks, charging fees based on the volume and value of transactions processed. The mobility and e-transactional services division earns revenue by offering digital solutions for sectors such as transportation and public administration, often through long-term contracts. Strategic partnerships with financial institutions, technology companies, and government agencies further bolster Worldline's revenue streams by expanding its customer base and enhancing its service offerings.

Worldline Financial Statement Overview

Summary

Worldline's financial statements show strong revenue growth but significant challenges with profitability. While the balance sheet is stable with balanced leverage, the negative return on equity and profitability issues are concerning. Cash flow generation remains a positive, but operational efficiency and profitability need improvement.

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
EBITDA	396.00M	-276.00M	831.50M	743.50M	458.40M
Net Income	-297.00M	-817.30M	299.20M	-751.40M	163.70M
Balance Sheet
Total Assets	19.42B	21.73B	21.86B	20.04B	19.67B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.95B	1.92B	1.14B	1.34B
Total Debt	4.03B	4.05B	4.13B	4.56B	4.85B
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: 3.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 3.57 is below the 20-day moving average (MA) of 3.79, below the 50-day MA of 4.55, and below the 200-day MA of 6.29, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 13.42 is Positive, 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 *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
WLN	57 Neutral	€1.01B	―	-3.53%	―	0.47%	63.72%
9LH	―	€70.09M	9.24	21.37%	―	―	―
7U7	―	€1.59B	136.03	6.29%	―	―	―