Worldline (WRDLY) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: N/A
• Average Volume (3M): 8.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 0.52%
• EPS Growth: 63.70%
• Country: US
• Employees: 18,112
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.40
• Shares Outstanding: 567,143,250
• 10 Day Avg. Volume: 17,820
• 30 Day Avg. Volume: 8,844
• PEG Ratio: -0.12
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $1.50 ▼(-15.25%Downside)

Worldline's overall stock score reflects persistent financial performance issues, particularly net losses and negative valuation metrics. Technical indicators confirm a downward trend, while earnings call insights offer a mixed outlook with strategic improvements offset by revenue challenges.

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 diverse revenue model that includes transaction fees, subscription services, and software licensing. Its primary revenue streams come from merchant services, where it charges fees for processing payments made through its platforms, including card transactions and e-commerce payments. Additionally, Worldline generates income through financial services by providing digital banking and payment solutions to banks and financial institutions. The company also earns revenue from mobility and e-transactional services, offering solutions for transportation ticketing and secure digital identity verification. Strategic partnerships with banks, retailers, and technology providers enhance Worldline's market reach and contribute significantly to its earnings.

Worldline Financial Statement Overview

Summary

Worldline shows a solid revenue base and stable asset management, but profitability issues persist due to consecutive annual net losses. While the balance sheet reflects moderate leverage and a stable equity ratio, the negative ROE is concerning. The cash flow statements reveal strong operational cash generation, but the inability to convert this into net income is a critical issue that needs addressing for future growth.

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: 1.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.77 is below the 20-day moving average (MA) of 2.77, below the 50-day MA of 2.83, and below the 200-day MA of 3.50, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 22.14 is Neutral, 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
EVTC	81 Outperform	$2.30B	17.99	24.65%	0.55%	17.39%	100.46%
DLO	81 Outperform	$3.28B	25.42	26.10%	―	33.84%	0.29%
FOUR	79 Outperform	$8.55B	33.16	30.28%	―	27.39%	115.40%
PAYO	69 Neutral	$2.44B	22.81	15.97%	―	14.86%	-0.94%
STNE	64 Neutral	$4.17B	8.73	-8.85%	―	-14.03%	-167.03%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.92%	5.54%	-19.87%
WRDLY	47 Neutral	$1.03B	―	-3.57%	―	0.52%	63.70%