We came across a bullish thesis on Euronet Worldwide, Inc. (EEFT) on Substack by P14 Capital. In this article, we will summarize the bulls’ thesis on EEFT. Euronet Worldwide, Inc. (EEFT)'s share was trading at $104.13 as of May 5th. EEFT’s trailing and forward P/E were 15.43 and 10.56 respectively according to Yahoo Finance.
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A customer using a mobile banking app at home to securely transfer money.
Euronet Worldwide (EEFT), once a niche ATM operator in Eastern Europe, has evolved into a global fintech infrastructure provider with operations spanning over 200 countries and territories. Founded in 1994 by Michael J. Brown, Euronet now generates $3.9 billion in annual revenue, split almost evenly across three complementary segments: Electronic Funds Transfer (EFT), epay Solutions, and Money Transfer. Each of these businesses is not only geographically diversified but also structurally resilient, underpinned by secular growth trends. The Money Transfer segment, the company’s largest by revenue, includes the Ria, Xe, and Dandelion brands. Despite market fears that tighter U.S. immigration policies might impair the key remittance corridor between the U.S. and Latin America, remittance flows have remained robust. Deportations are down, and while immigration inflows may be moderating, the need for remittances remains non-discretionary for many families. Even under a severe downside scenario in which 20% of corridor revenue is lost, the impact to Euronet’s overall business would be limited to roughly 2% of consolidated revenue—an easily digestible hit given the company’s diversification and growth in other regions.
Meanwhile, Euronet’s EFT business is benefiting from significant operating leverage and pricing tailwinds. A recent legal win against Visa and Mastercard allowed the company to unlock interchange fee growth that had been artificially constrained since the pandemic. Concurrently, increases in Domestic Access Fee caps in several countries have enabled Euronet to raise ATM surcharges, which are nearly pure profit since they bypass card networks. Though these changes may not be fully captured in average per-transaction revenue due to a mix shift to lower-value transactions, the financial impact is clear, with EBITDA margins improving for eight consecutive quarters. The summer travel season adds further upside, especially in Europe and Asia where Euronet has deep ATM penetration in tourism-heavy areas. As travel volumes rebound, higher foreign exchange volumes and surcharge fees further boost margins.
Adding another layer to the story is Ren, Euronet’s proprietary cloud-native payments platform, which is fast becoming the company’s crown jewel. Unlike traditional, monolithic banking systems, Ren is microservices-based, database-agnostic, and offers real-time processing capabilities for issuing, acquiring, switching, and ATM network management. It is used both internally and by external financial institutions, generating recurring high-margin revenue. In 2024, Ren contributed 15% of EFT revenue and as much as 25% of EFT EBITDA, with gross margins reaching 80%. As Ren scales, it further shifts the company’s valuation narrative—from a hardware-centric ATM operator to a software-led fintech infrastructure play.
Despite this transformation, the market continues to misprice Euronet’s assets, valuing it through the lens of outdated ATM dependency. Yet cash remains widely used in many countries, travel is recovering, and the company is increasingly software-centric. With GAAP EPS projected to grow 16.4% in FY25 to $7.50—after 17.3% growth in FY24—and trading at just 14.6x earnings, Euronet offers a compelling valuation. A modest re-rating to 18x P/E implies a $135 stock price, 43% upside from current levels. Even in a no-growth scenario, the downside appears limited to the mid-$80s to low-$90s, levels that have historically held during market pullbacks. Like NCR Voyix, Euronet is a misunderstood, multi-segment fintech whose undervalued platform has multiple catalysts for rerating. The combination of resilient remittance flows, margin expansion in EFT, and Ren’s high-margin software growth presents a compelling investment case for both equity and credit investors seeking asymmetric return potential.
Euronet Worldwide, Inc. (EEFT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held EEFT at the end of the fourth quarter which was 33 in the previous quarter. While we acknowledge the risk and potential of EEFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EEFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
