Fact based stock research
Net 1 UEPS Tech (NasdaqGS:UEPS)

US64107N2062

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Net 1 UEPS Tech stock research in summary

net1.com

ANALYSIS: With an Obermatt Combined Rank of 16 (worse than 84% compared with investment alternatives), Net 1 UEPS Tech (Data Processing & Outsourcing, South Africa) shares have lower financial characteristics compared with similar stocks. Shares of Net 1 UEPS Tech are a good value (attractively priced) with a consolidated Value Rank of 61 (better than 61% of alternatives), show above-average growth (Growth Rank of 53) but are riskily financed (Safety Rank of 4), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 16, is a sell recommendation based on Net 1 UEPS Tech's financial characteristics. As the company Net 1 UEPS Tech's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 61) and above-average growth (Obermatt Growth Rank of 53), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 4) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	61
Growth Rank	53
Safety Rank	4
Combined Rank	16

Country	South Africa
Industry	Data Processing & Outsourcing
Index	JSE All Shares, NASDAQ
Size class	Small

18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Net 1 UEPS Tech

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	45	62	66	61
GROWTH
GROWTH	7	63	21	53
SAFETY
SAFETY	76	46	8	4
SENTIMENT
SENTIMENT	n/a	8	35	^new
360° VIEW
360° VIEW	n/a	31	6	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Jan-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Net 1 UEPS Tech is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	45	62	66	61
GROWTH
GROWTH	7	63	21	53
SAFETY
SAFETY	76	46	8	4
COMBINED
COMBINED	41	58	6	16

Last update of combined financial performance: 18-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Net 1 UEPS Tech the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 61 (better than 61% compared with alternatives), Net 1 UEPS Tech shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Net 1 UEPS Tech. Price-to-Sales (P/S) is 91, which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value regarding Net 1 UEPS Tech's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 86% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 79. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Net 1 UEPS Tech (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 61, is a buy recommendation based on Net 1 UEPS Tech's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76	78	95	91
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	21	10	86	86
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	90	91	85	79
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	45	62	66	61

Last update of Value Rank: 18-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Net 1 UEPS Tech; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), Net 1 UEPS Tech shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Net 1 UEPS Tech. Sales Growth has a rank of 58, which means that, currently, professionals expect the company to grow more than 58% of its competitors. Profit Growth with a rank of 85 is also above average. But Capital Growth has only a rank of 16, and Stock Returns with 40 are also below-average. Stock returns for Net 1 UEPS Tech have recently been below 60% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Net 1 UEPS Tech. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	1	31	28	58
PROFIT GROWTH
PROFIT GROWTH	25	55	82	85
CAPITAL GROWTH
CAPITAL GROWTH	n/a	93	9	16
STOCK RETURNS
STOCK RETURNS	82	35	25	40
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	7	63	21	53

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Net 1 UEPS Tech.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 4 (better than 4% compared with alternatives), the company Net 1 UEPS Tech has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Net 1 UEPS Tech is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Net 1 UEPS Tech and the other two below average. Refinancing is at 70, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 70% of its competitors. But Leverage is high with a rank of 7, meaning the company has an above-average debt-to-equity ratio. It has more debt than 93% of its competitors. Liquidity is also on the riskier side with a rank of 4, meaning the company generates less profit to service its debt than 96% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 4 (worse than 96% compared with alternatives), Net 1 UEPS Tech has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Net 1 UEPS Tech are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Net 1 UEPS Tech and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	98	72	10	7
REFINANCING
REFINANCING	92	92	80	70
LIQUIDITY
LIQUIDITY	14	1	4	4
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	46	8	4

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Net 1 UEPS Tech and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	62	82	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	89	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	20	8	^new
MARKET PULSE
MARKET PULSE	n/a	9	9	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	8	35	^new

Last update of Sentiment Rank: 18-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Net 1 UEPS Tech.
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