EEFT

Reviewing RB open rec, i noticed Europnet Worldwide (EEFT). Its relatively small (~$1.6B revenue) payment processing company, primarily operating in Europe but growing rapidly RoW and in the US.

EEFT has three almost equal size businesses.
Electronic Financial Transaction (EFT) Processing, epay, and Money Transfer. First one is primarily operating own and third party ATMs. ePay is payment between consumer and business and money transfer is what it says.

Doing some due diligence, i found that company is growing revenue consistently for last 4 / 5 years… more interestingly, all three segments have been growing and their net and gross margin have been growing at healthy rate.

I like businesses who can achieve such growth consistently, and specially in this case despite all problems in Europe and currency headwinds.

I plugged revenue and adjusted cash EPS into 1yr PEG site.
http://www.1ypeg.com/EEFT

Its fairly valued right now at 1Yr aPEG at 0.84 - however, i think if Europe (or just say Euro) stabilizes a little bit this number will look much more attractive.

I took a small position and will watch closely.
Will apprecaite any insight or comment on this stock.

Nilvest

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