Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, universal transaction system provider Net 1 UEPS Technologies
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 UEPS facts
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Headquarters (Founded) |
Johannesburg, South Africa (1989) |
|
Market Cap |
$838.1 million |
|
Industry |
Application software |
|
Trailing-12-Month Revenue |
$256.9 million |
|
Management |
CEO Dr. Serge Belamant (since 2000) |
|
Return on Equity (Average, Past 3 Years) |
26.9% |
|
Cash/Debt |
$152.9 million / $4.2 million |
|
Competitors |
MasterCard |
|
Other Highly Rated Application Software Stocks |
Adobe Systems |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, all of the 222 All-Star members who have rated Net 1 believe the stock will outperform the S&P 500 going forward. These bulls include cibient and Jognils, both of whom are ranked in the top 15% of our community.
Just last month, cibient brought the bargain to our community's attention:
Extremely strong balance sheet (about $3 cash net debt per share), positive cash flow, EV/EBITDA ratio of 5.89. Pullback over past few months from 52-week high of $22.47 puts it at roughly similar return of S&P over the past year or so, but is surely a much better buy than the index.
In an earlier pitch, Jognils expands on the stock as a particularly smart transaction. Here's an excerpt:
[Net 1] is already the standard in South Africa for cashless transactions and has the potential to become the standard for all developing economies. ...
Net1 has great margins... and are diversified into fee-based services, financial services, hardware and software, and smart card accounts. With their acquisition of BGS Smartcard Systems, they now have established operations in Russia, Ukraine, Uzbekistan, India, and Oman in addition to their existing operations throughout Africa and the Middle East. ...
[W]ith a potential market of 4 billion unbanked people in the world and no significant direct competitors, they have plenty of room left to grow.
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. On Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
