Euronet Worldwide, Inc. (EEFT): A Bull Case Theory

We came across a bullish thesis on Euronet Worldwide, Inc. on The Catholic Capitalist’s Substack by Logan Shearer. In this article, we will summarize the bulls’ thesis on EEFT. Euronet Worldwide, Inc.'s share was trading at $86.13 as of October 16th. EEFT’s trailing and forward P/E were 12.5 and 7.91 respectively according to Yahoo Finance.

Euronet Worldwide, Inc. (EEFT) is a global payments infrastructure company that has evolved from its ATM roots into a diversified, full-stack payments platform spanning electronic funds transfer, prepaid card solutions, remittances, and issuer processing. Its EFT segment operates over 57,000 ATMs in more than 60 countries, primarily in high-tourist locations, offering dynamic currency conversion, bill payments, and cash recycling.

By shifting toward ATM managed services rather than outright ownership, Euronet captures higher pricing power while integrating its offerings digitally. The epay segment provides point-of-sale systems for prepaid cards across retail stores and kiosks, generating steady revenue through 1,000+ partnerships, while the money transfer segment, encompassing Ria, Xe, and Dandelion, enables cross-border and domestic remittances with an increasingly asset-light, high-margin B2B infrastructure approach, particularly through its Citi partnership.

Strategically, Euronet is extending into issuer processing via its CoreCard acquisition, enabling the company to issue cards, support BNPL, loyalty programs, and other financial products, effectively positioning itself as a publicly traded banking-as-a-service provider. The REN network ties its segments together, offering middleware for compliance, settlement, and rapid product integration, which enhances cross-selling potential and operational efficiency. Financially, EEFT reported $1.08 billion in combined revenue across its segments, with operating margins ranging from 11% in epay to 25% in EFT, and maintains strong cash generation with attractive EVA potential.

Catalysts for upside include scaling Dandelion as an enterprise wallet infrastructure and integrating CoreCard to enhance card issuance capabilities and expand international reach. While remittance compression, geopolitical exposure, and legacy ATM narratives create market skepticism, EEFT’s pivot toward full-stack payments and BaaS mitigates these risks.

Trading around 5x EV/EBITDA versus peers at 7x, the stock offers compelling risk/reward, with a base case target of $135 and upside to $175, reflecting both undervaluation and underappreciated growth potential. CEO Michael Brown’s long tenure and performance-linked ownership further align incentives, supporting execution of this multi-segment strategy.

Previously we covered a bullish thesis on Euronet Worldwide, Inc. (EEFT) by P14 Capital in May 2025, which highlighted the company’s transformation from an ATM operator into a global fintech infrastructure provider with resilient remittance flows and high-margin software growth. The stock has depreciated approximately by 17.28% since our coverage. The thesis still stands as EEFT remains undervalued. Logan Shearer shares a similar perspective but emphasizes CoreCard and banking-as-a-service as key catalysts.

Euronet Worldwide, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held EEFT at the end of the second quarter which was 27 in the previous quarter. While we acknowledge the potential of EEFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.