Worldline (WRDLY) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: N/A
• Average Volume (3M): 19.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 0.52%
• EPS Growth: 63.70%
• Country: US
• Employees: 18,112
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Infrastructure
• EPS (TTM): 0.40
• Shares Outstanding: 567,143,250
• 10 Day Avg. Volume: 23,097
• 30 Day Avg. Volume: 19,224
• 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: $2.50
• Price Target Upside: 23.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $2.00 ▼(-0.99%Downside)

Worldline's overall stock score reflects a balanced view of its financial foundation and strategic initiatives against the backdrop of technical and valuation challenges. The company's strong revenue base and cash flow management are offset by ongoing profitability issues and a bearish technical outlook. The cautious but strategic focus in the earnings call indicates potential for future improvement, albeit with existing headwinds.

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 through a diversified revenue model primarily driven by transaction-based fees, subscription services, and equipment sales. Key revenue streams include fees collected from processing electronic payments for merchants and financial institutions, which are often based on the volume and value of transactions processed. Additionally, Worldline generates income from selling point-of-sale terminals and other payment-related hardware. The company also earns subscription fees from clients who use its digital payment platforms and services. Strategic partnerships with banks and technology firms, as well as mergers and acquisitions, significantly bolster Worldline's market reach and revenue potential by expanding its portfolio of services and enhancing its geographical presence.

Worldline Financial Statement Overview

Summary

Worldline's financial performance is mixed, with strong revenue and asset management but persistent profitability issues. The income statement reveals consecutive net losses, impacting the return on equity negatively. Despite a stable balance sheet with moderate leverage and robust cash flow generation, the conversion of this cash into profit remains a challenge.

Income Statement

Worldline's revenue growth has been steady, with a notable increase over the years, though it faced a slight decline in 2024. The gross profit margin remains strong at around 56.5% in 2024. However, the company has struggled with profitability, recording a net loss for the past two years, with a significant net loss margin of -6.41% in 2024. EBIT and EBITDA margins have shown improvement, yet the negative net income is a concern.

Balance Sheet

The company maintains a relatively stable equity ratio of 42.45% in 2024, indicating a balanced use of debt and equity. The debt-to-equity ratio is reasonable at 0.49, which suggests moderate leverage. However, the return on equity is negative due to the net losses, highlighting a lack of profitability despite a solid asset base.

Cash Flow

Worldline's operating cash flow remains healthy, although it has decreased from previous years. The free cash flow has been positive, but the growth rate is declining. The free cash flow to net income ratio is not favorable due to consistent net losses, suggesting cash flow is not translating into profit effectively.

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	372.00M	-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	1.90B	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: 2.02
• 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 WRDLY, the sentiment is Negative. The current price of 2.02 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.55, and below the 200-day MA of 3.35, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 4.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRDLY.

Worldline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLO	81 Outperform	$3.19B	24.69	26.10%	―	―	―
FOUR	79 Outperform	$8.95B	34.94	30.28%	―	27.39%	115.40%
EVTC	76 Outperform	$2.15B	16.90	24.65%	0.59%	17.39%	100.46%
PAYO	74 Outperform	$2.47B	23.08	15.97%	―	14.86%	-0.94%
STNE	66 Neutral	$4.04B	8.73	-8.85%	―	-14.03%	-167.03%
Sector *	62 Neutral	£519.74M	22.62	-8.61%	2.56%	4.26%	-25.59%
WRDLY	51 Neutral	$1.18B	―	-3.57%	―	0.52%	63.70%