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

We came across a bullish thesis on Euronet Worldwide, Inc. on P14 Capital’s Substack. In this article, we will summarize the bulls’ thesis on EEFT. Euronet Worldwide, Inc.'s share was trading at $72.32 as of January 28th. EEFT’s trailing and forward P/E were 10.65 and 6.72 respectively according to Yahoo Finance.

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. EEFT has had a difficult year, with shares falling into the $70s after becoming a target for short sellers and following a disappointing 3Q25 earnings miss, raising questions about whether the long-term thesis remains intact.

While EPS beat expectations and full-year growth guidance was reaffirmed, weaker-than-expected revenue growth, driven by immigration enforcement pressure, inflation-sensitive consumers, and softness across key remittance corridors, fueled market fears in a momentum-driven environment that prioritizes top-line performance.

Money Transfer was pressured by declining physical transactions and slower volumes in North America, epay underperformed due to a portfolio exit and macro weakness, and EFT margins softened amid lower ATM withdrawal sizes despite strong transaction growth.

However, many of these headwinds appear cyclical and outside management’s control, while core fundamentals remain resilient. Digital momentum continues to strengthen, with digital money transfer transactions growing 32% year over year and a steadily increasing mix, supporting margins and validating the shift toward a fintech narrative.

Strategic wins, including partnerships with Heritage Grocers, Citibank via Dandelion, and Fireblocks, reinforce EEFT’s growing role as a global payments infrastructure provider, while REN and CCRD add high-margin, scalable software optionality. Despite revenue pressure, consolidated margins expanded again, underscoring strong operating leverage.

At roughly 10.6x GAAP EPS, EEFT trades well below historical and intrinsic value despite the ability to compound earnings at 15%+ over several years. With buybacks, margin expansion, digital adoption, and potential strategic actions as catalysts, the current valuation implies a highly asymmetric risk/reward, with meaningful upside if sentiment normalizes and the company better articulates its long-term growth story.

Previously, we covered a bullish thesis on Euronet Worldwide, Inc. (EEFT) by P14 Capital in May 2025, which highlighted the company’s transformation from a hardware-centric ATM operator to a software-led fintech infrastructure provider, resilient Money Transfer flows, margin expansion in EFT, and high-margin growth from Ren. EEFT’s stock price has depreciated by 30.54% since our coverage due to short-selling pressure and a disappointing 3Q25 earnings miss. P14 Capital shares a similar thesis but emphasizes recent operational headwinds, digital adoption momentum, and strategic partnerships as updates to the original story.

Euronet Worldwide, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held EEFT at the end of the third quarter which was 32 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.