Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, universal transaction system provider Net 1 UEPS Technologies (Nasdaq: UEPS ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Net 1's business and see what CAPS investors are saying about the stock right now.
Net 1 facts
| Headquarters (Founded) |
Johannesburg, South Africa (1989) |
| Market Cap |
$394.1 million |
| Industry |
Application software |
| Trailing-12-Month Revenue |
$294.28 million |
| Management |
CEO Dr. Serge Belamant (since 2000)
CFO Herman Kotze (since 2004)
|
| Return on Equity (Average, Past 3 Years) |
20.1% |
| Cash/Debt |
$71.4 million / $120.7 million |
| Competitors |
American Express (NYSE: AXP )
MasterCard (NYSE: MA )
Visa (NYSE: V )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 581 members who have rated Net 1 believe the stock will outperform the S&P 500 going forward. These bulls include Pennyperson and London2485.
Just last month, Pennyperson urged Fools to pounce on Net 1's severely slumping stock price: "Undervalued and time to pull the trigger. Like the lady on the Progressive Insurance commercial -- you have to yell DISCOUNT!"
In fact, Net 1 currently sports a paltry forward P/E of 5.2. That represents a clear discount to competitors American Express (11.3), MasterCard (13.6), and Visa (13.6).
CAPS member London2485 elaborates on the bargain opportunity:
I predict Net 1 will become increasingly globalized as they get squeezed by the South African government. They have already expanded into Korea and Iraq (Iran? can't remember), and my guess is they look to continue their global influence as South Africa gets stingier with their contracts.
The company has a healthy history, with the only catalyst for their precipitous downturn being the South African government. While they ARE the biggest client of [Net 1], the company appears to be in the process of adjusting and responding appropriately.
Insiders shed the stock in early 2010 after the SA squeeze. They've yet to reinvest. Now may be the time to jump into the stock if you are behind the profile.
What do you think about Net 1, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
RSS Headlines
Fool UK