EEFT - COVID-19 Pressuring Euronet But The Future Is Bright For This Stock

• Euronet's epay and money transfer businesses have been performing well, but profitability has been undermined by pandemic-driven weakness in tourism and high-margin cross-border transaction revenue from the ETF (ATM) business.
• European tourism may not normalize until 2023/24, and that's a meaningful headwind for the business, but management is pursuing growth in LatAm and bank outsourcing agreements.
• epay has become less about mobile top-up and more about connecting consumer-oriented business to consumer digital wallets, and many emerging markets are largely skipping over cards for digital/mobile wallets.
• Management is looking to leverage its core underlying money transfer technologies to offer more C2B and B2B real-time international payment transfers.
• This looks like a buy-the-dip opportunity, as mid-single-digit revenue growth and high-single-digit FCF growth can drive significant returns from here.

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