市场见解

Here’s why the EML (ASX:EML) share price is up 8% in the last month

What’s behind the share price gain?
The post Here’s why the EML (ASX:EML) share price is up 8% in the last month appeared first on The Motley Fool Australia. –

The EML Payments Ltd (ASX: EML) share price has had a stellar month thus far.

Shares in the payments company have surged more than 8% in the last 30 days.

Let’s take a look at what’s been prompting investors to bid the EML share price higher.

What’s been moving the EML share price?

There have been several catalysts that have helped propel the EML share price higher this past month.

Shares in the payment company rebounded strongly after providing an update on its acquisition of Prepaid Financial Services (PFS).

EML informed investors that it had identified historical deficiencies in cash for dormant e-money accounts in PFS.  

Bullish price action in the buy-now-pay-later sector and commentary from the Reserve Bank of Australia also had the potential to move EML’s shares.

The largest catalyst that shook the EML share price was the company’s full-year result for FY21.

How did EML perform in FY21?

For FY21, EML reported a record year with growth across a majority of its financial metrics.

Highlights from the company’s full-year report included;

Group gross debit volume (GDV) up 42% to $19.7 billion.
Record revenue of $194.2 million, an increase of 60% on FY20.
Record underlying group earnings before interest, tax, depreciation, and amortisation (EBITDA) of $53.5 million, up 65%.
Gross profit margins of 67%, down from 73% in FY20 due to a shift in business segments.
New business GDV pipeline of $10.5 billion, with more than 300 prospects.
Costs and provisions totalling $11.4 million in FY21 in relation to the Central Bank of Ireland regulatory investigation.

For FY22, EML is expecting to generate underlying EBITDA in a range of between $58 million to $65 million.

In response, the EML share price tanked more than 5% after releasing its report.

However, shares in the payment company recovered strongly, finishing the day more than 4% higher.

Snapshot of the EML share price

Despite EML’s bullish price action this past month, it’s important to put the performance in context.

Since the start of the year, shares in the payment company are relatively flat for the year.

The EML share price was rocked earlier this year after the Central Bank of Ireland voiced concerns over the company’s anti-money laundering financing compliance.

Several brokers remain bullish on their outlook for the EML share price.

Leading broker UBS has slated the payments company as a buy, with a share price target of $4.80.

At market close, shares in EML finished the day, trading at around $4.17, down 0.48%.

The post Here’s why the EML (ASX:EML) share price is up 8% in the last month appeared first on The Motley Fool Australia.

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Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and EML Payments wasn’t one of them.

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More reading

The EML Payments (ASX:EML) share price is rated as a strong buy
2 ASX shares rated as strong buys by brokers

EML (ASX:EML) share price plunges 8% after reporting record results
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Why the EML (ASX:EML) share price is gaining today

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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