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Fund Manager Summary on EML Payments Ltd (ASX:EML)
In January 2026, DMX Asset Management commented that EML Payments had languished recently despite earlier leadership-driven improvements, noting a large sales pipeline but underwhelming growth to date and the need to convert prospects to drive a re-rating. EML Payments Ltd (ASX:EML) has attracted broad fund manager attention for a clear turnaround narrative: most managers describe an operational reset under “EML 2.0” that has removed legacy drag (divestments, liabilities and a class-action settlement of ~A$37.36m), refreshed senior leadership and materially de-risked the balance sheet, while management pursues a consolidated global platform (Visa Pismo / Project Arlo) and a rebuilt salesforce to convert a growing pipeline (c.$65m mid‑2025, c.$66m at June, target ~c.$90m by December) into recurring revenue; consensus sees structural tailwinds in sticky prepaid and payments revenues, potential tech-driven cost savings (management cites c.$12m from Arlo), and possible strategic interest from acquirers, but key near-term risks remain execution of sales conversion, long sales cycles, recent soft trading (a reported c.42% drop in Q1 underlying EBITDA year‑on‑year), and governance/compensation concerns around generous LTIs despite significant insider buys (~A$3m–3.5m by the Executive Chair signalling confidence). Actionable takeaways for investors and analysts are to prioritise monitoring pipeline conversion rates and customer wins, updates on platform integration and client rollouts, quarterly trading versus FY guidance (FY25 underlying EBITDA guidance of A$54–60m was reaffirmed), any changes to incentive structures or governance feedback from institutional holders, and signs of sustainable topline momentum before assuming valuation re‑rating or takeover outcomes.
Commentary From The Managers
There are 40 insights from 10 fund managers regarding their investment in EML Payments Ltd (ASX:EML) available on Thesis Tracker.
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Commentary From The Managers
Wilson Asset Management
28 Feb 2026
$0.62
Summary
- Wilson Asset Management continues to monitor EML Payments closely following results that came in below market expectations, with the share price trending downward throughout the month.
- EML reported FY2026 interim revenue below market expectations and tightened its FY2026 EBITDA guidance, with the update causing the share price to decline during the month.
- The results included details of a significant restructuring program planned for 2026, aimed at strengthening management capability, improving the cost base, and simplifying the organisation.
- EML continues to progress Project Arlo, a technology simplification initiative that will consolidate three existing processing platforms into a single unified service, expected to deliver a broader product set and more streamlined digital operations.
Tamim Funds Management
11 Feb 2026
$0.79
Summary
- Tamim Funds Management believes EML Payments is approaching an inflection point and continues to hold, viewing the current transitional weakness as temporary and the business as significantly undervalued relative to its recovery potential.
- FY26 is a deliberate rebuilding year — management's focus has been on stabilising the platform, modernising infrastructure, and rebuilding the commercial pipeline rather than maximising near-term revenue.
- 1H FY26 revenue was $108m (down 6% YoY), impacted by declining interest income (-12%) and customer attrition, though underlying EBITDA of $28m was broadly in line with expectations.
- Full-year EBITDA guidance was reaffirmed and tightened to $58–60m following a stronger Q2, driven by seasonal strength in Gifting and Incentives.
- The commercial pipeline has rebuilt to $102m, exceeding internal targets, with new customer wins expected to contribute ~$24m in annualised revenue once launched in 2H FY26.
- EML is entering the mobility payments vertical (fuel cards and mobility expense solutions), leveraging its existing salary packaging customer base and migrating programs onto the cloud-native Pismo platform.
- Management incentives are closely aligned: 63 million performance shares vest only if the share price reaches $1.50 by August 2027, creating strong motivation to deliver visible results.
- EML trades at approximately 4.5x EV/EBITDA, well below global payments peers at 8–12x, implying significant upside if execution continues and sentiment normalises.
DMX Asset Management
31 Jan 2026
$0.83
Summary
- DMX Asset Management believes EML Payments is poised to re-rate and continues to hold because management has repaired the business—divesting noncore assets, resolving litigation, onboarding experienced leadership and aligning incentives with substantial share-price upside.
- Corporate reset: divested noncore operations and resolved outstanding litigation, reducing legacy overhang and simplifying the business.
- New leadership: fresh, experienced management team with prior success in similar turnarounds (they've done this before).
- Incentive alignment: highly lucrative management incentives structured around a near-doubling of the current share price, tying pay to performance.
- Growth trajectory: market has been underwhelmed by growth to date due to long lead times, but the company is building a large pipeline of opportunities.
- Key monitorables: expansion of the pipeline and improved conversion rates—each could ratchet investor expectations and support a meaningful share-price uplift.
- Short-term impact: recent declines of ~11–14% in larger holdings made EML costly to the fund this month, reflecting execution timing risk and investor impatience.
- Ongoing focus: continued execution on long-term growth objectives; position viewed as attractively priced with material upside potential if pipeline conversion accelerates.
Tamim Funds Management
31 Dec 2025
$0.93
Summary
- Tamim Funds Management believes Stuart Will’s appointment as CFO and the return of trusted leadership materially strengthens EML’s ability to execute EML2.0 and continues to hold because it reduces execution risk and reinforces management cohesion.
- Appointment details: Stuart Will will assume the role of Chief Financial Officer effective 1 December, succeeding outgoing CFO James Georgeson.
- Strategic timing: The leadership change is aligned with advancing strategic execution and ongoing operational priorities under the EML2.0 initiative.
- Proven track record: Stuart was part of the Executive Chair team at a prior company that ultimately sold for $900m, evidencing experience in scaling and value realisation.
- “Band back together” dynamic: Reassembling this leadership group is expected to restore proven collaboration, accelerate decision-making, and drive disciplined execution.
- Operational impact: Anticipate enhanced financial stewardship, tighter operational coordination, and focused delivery on priority projects.
- Continuity and risk mitigation: The change preserves strategic continuity while refreshing financial leadership for the next growth phase.
- Investment implication from Tamim’s perspective: Strengthened management cohesion and demonstrated execution capability increase confidence in EML’s ability to deliver on its strategic plan.
Wilson Asset Management
30 Nov 2025
$0.84
Summary
- EML Payments is a global payment solutions company focused on enhancing business processes and customer experiences.
- Recently, the company's share price decreased following weaker-than-expected operating trends revealed at the annual general meeting.
- A FY2026 first quarter trading update indicated an approximate 42% fall in underlying EBITDA compared to the prior corresponding period.
- Despite the decline in revenue and EBITDA, full-year FY2026 EBITDA guidance has been reaffirmed.
- The market reacted to the update with concerns over weak trading results and soft top-line momentum.
- Wilson Asset Management continues to hold confidence in CEO Anthony Hynes to execute a turnaround and drive a re-rating of the share price.
Monash Investors
30 Sept 2025
$1.00
Summary
- Monash Investors continues to hold EML Payments as a top investment.
- Recent declines in payments-oriented positions, including EML, Findi, and Tyro Payments, have been noted.
- EML Payments has shown signs of improvement due to new leadership and a focus on organic growth.
- The company has exited non-core and troublesome operations.
- Despite a recent consolidation in share prices, September results were considered fine by Monash Investors.
- There is an expectation of potential upside surprises in revenue as sales cycles progress.
- Monash Investors believes that EML has a good chance of achieving organic growth in the coming years.
DMX Asset Management
30 Sept 2025
$1.00
Summary
- EML Payments Ltd has shown signs of recovery with new leadership in place.
- The company has exited non-core and troublesome operations, allowing for a clearer focus.
- DMX Asset Management notes a refocus on organic growth as a positive development.
- Shares have been reflecting these improvements, with some consolidation observed in September.
- Full-year results were deemed satisfactory, but lack strong evidence of organic growth.
- Considering the long sales cycles, there is potential for upside surprises as revenue wins materialize.
- DMX Asset Management continues to hold EML Payments Ltd, anticipating revenue growth in the coming years.
QVG Capital
30 Sept 2025
$1.00
Summary
- QVG Capital notes that EML Payments has faced challenges as investors recall that turnarounds take time.
- The company benefits from sticky customers and predictable revenues, which provide management with essential breathing space.
- Current efforts are focused on rebuilding the front-end sales engine, a crucial aspect that has been previously neglected.
- While there is confidence in the turnaround, short-term competition from Gold, A.I., and Defence stocks poses challenges.
- EML has seen only a slight softening in European interest rates, impacting float income minimally.
- The recent share price performance reflects a lack of patience for a turnaround that is expected to take an additional 6 months.
Jencay Capital
30 Sept 2025
$1.00
Summary
- Jencay Capital notes EML Payments Ltd as a provider of prepaid debit cards and payment solutions across Australia, North America, and Europe.
- Recent 2H results showed flat revenue, impacted by messy one-offs and adjustments.
- The reinvigorated business development team is creating a solid pipeline for future growth.
- EML Payments has signed significant new customers, which is encouraging for growth prospects.
- Jencay Capital continues to hold an investment as they observe potential in the evolving business landscape.
Forager Funds
19 Sept 2025
$0.98
Summary
- Forager Funds acknowledges EML Payments Ltd's littered history of challenges.
- The fund continues to hold its position in the stock.
- Despite past issues, there is a sense of optimism about the company's future.
- A new management team is in place, aiming to improve performance.
- The management has indicated they can keep the cost base flat while increasing revenue.
- This strategy could lead to a substantial change in profitability over the next few years.
- Forager believes this potential is not yet recognized by the market.
- The fund thinks there is a viable path for the company to deliver on its promises.
DMX Asset Management
31 Aug 2025
$1.09
Summary
- EML Payments reported revenue and underlying profit growth in-line with guidance and market expectations.
- Shares remained flat for the month, but confidence in EML 2.0 objectives is increasing among investors.
- After a challenging period, EML has resolved many legacy issues, including divesting non-core divisions and settling liabilities.
- The company is now refocused on growth and profitability.
- EML is expanding its sales pipeline, with a target increase from $66m at 30th June to ~$90m by 31st December.
- Growth is expected to better utilize operating infrastructure, leading to disproportionate gains to the bottom line.
- Aiming for a 13c EPS target by 2028 could render the current share price very attractive.
- EML’s assets are becoming prime targets for private equity and strategic suitors, potentially leading to greater value extraction.
- DMX Asset Management continues to hold because of the potential for material growth and further market re-rate.
- We look forward to monitoring progress in the year ahead.
Tamim Funds Management
31 Aug 2025
$1.09
Summary
- EML Payments (ASX: EML) is undergoing a comprehensive transformation, focusing on rebuilding its commercial strategy and technological infrastructure.
- The company has revitalised its leadership and sales capabilities.
- EML has signed 27 new clients and established a global technology partnership with Visa Pismo to enhance payment capabilities.
- Financially, EML achieved strong performance with total revenue of $221 million and EBITDA at the top of guidance at $58 million.
- The consolidation of the Arlo platform is expected to reduce technology costs by $12 million while enabling multi-product, multi-currency offerings.
- Strategic focus is on organic growth with a disciplined approach to pipeline management and customer acquisition.
- The sales pipeline has grown to $66 million as of June, with a $90 million target on track for December.
- The leadership team prioritises operational efficiency, global integration, and technology modernisation.
- Future plans include potential debt reduction and continued investment in the Arlo platform.
- Upcoming catalysts include the AGM and February results updates on pipeline conversion of new sales.
- A positive update could lead to a significant re-rate for the stock towards a $2.00+ valuation, indicating 100%+ upside.
Endeavor Asset Management
31 July 2025
$1.13
Summary
- EML Payments (EML) experienced a 3.4% decline in share price.
- Endeavor Asset Management remains confident in EML's FY28 strategy.
- Upcoming FY25 results are anticipated following successful rebasement of the business.
- EML is now positioned to focus on sustainable growth after overcoming regulatory and operational challenges.
- Recent partnership with Pismo (a subsidiary of Visa) aims to consolidate multiple processing platforms.
- This initiative marks the first step in the EML 2.0 direction, covering Australia, North America, UK, and Europe.
Tamim Funds Management
30 June 2025
$1.17
Summary
- EML Payments (ASX: EML) has reached an in-principle agreement to settle the shareholder class action proceeding.
- Settlement amount is set at $37,356,125, which includes interest and costs.
- The settlement is subject to the execution of a deed of settlement and approval by the Supreme Court of Victoria.
- EML has made no admission of liability in this settlement.
- The settlement will be funded by existing cash and debt facilities.
- This resolution eliminates the last legacy issue the company faced, which was seen as a potential obstacle for any prospective acquirers.
- With all legacy issues now resolved, management long-term incentives (LTIs) in place, and a new strategy gaining traction, Tamim Funds Management is confident that a takeover is only a matter of time.
Forager Funds
30 June 2025
$1.17
Summary
- Forager Funds continues to hold EML Payments (EML) due to its valuable core business.
- The company faced challenges with the departure of the former managing director shortly after announcing ambitious targets.
- A new managing director, previously a non-executive board member, has taken charge and is focused on rebuilding the sales team.
- The early urgency in execution is viewed positively by Forager Funds.
- EML's business is now much simpler compared to previous complexities.
- The ingredients for recovery are in place, though execution remains critical.
- The share price has risen 26% for the financial year, reflecting increased expectations.
DMX Asset Management
31 May 2025
$1.10
Summary
- DMX Asset Management continues to hold EML Payments due to a lucrative Long-Term Incentive package agreed with its Executive Chairman.
- The Chairman has invested approximately $3.5m in EML Payments by buying stock on-market in late 2024 and early 2025.
- Over the past year, EML Payments has made significant improvements by shedding non-core assets and refocusing on growth.
- Despite an abrupt CEO departure in December, strong results and the Chair’s significant on-market purchases have reassured the market.
- The Long-Term Incentive structure indicates internal confidence in EML Payments' potential.
- Renewed broker interest has contributed to a re-rating of EML Payments shares.
- DMX Asset Management has increased their conviction and progressively added to their holding, reaching a full 5% weight in the portfolio.
- Concerns were raised regarding aspects of the Chairman’s LTI, including its quantum, low hurdle, and share-price-based structure.
- DMX Asset Management has shared feedback with other institutional investors and the company regarding the LTI.
- The engagement on compensation issues is assessed on a case-by-case basis, reflecting the level of dissatisfaction and potential for change.
- Overall, despite concerns regarding the cost of the LTI, the underlying developments are viewed positively, and EML Payments is positioned for future performance.
Endeavor Asset Management
31 May 2025
$1.10
Summary
- EML Payments (EML) share price increased by 15.9% in May.
- Endeavor Asset Management expects EML to continue to outperform over the next 12-24 months.
- The transition from EML 1.0 to EML 2.0 is anticipated to attract new investors.
- EML 2.0 is viewed as cleaner and offers better earnings growth stability than its predecessor.
- At the current share price, EML is trading at less than 10x FY26 EV/EBITDA.
- As the new executive and board team execute their strategy, Endeavor Asset Management expects EML's valuation to reflect its new business model.
- Endeavor Asset Management continues to hold because they believe EML will be valued much greater than its current valuation.
Jencay Capital
31 Mar 2025
$0.97
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Oracle Advisory Group
31 Mar 2025
$0.97
Summary
- Oracle Advisory Group initiated a 2.0% position in EML Payments.
- EML Payments has overcome challenges from two ill-timed acquisitions during COVID.
- The company has refocused on its core strengths.
- Positive FY25 guidance at the AGM was followed by the unexpected sacking of the CEO in December.
- The Chairman stepped in as CEO, bringing relevant expertise to lead EML forward.
- The half-year result reaffirmed FY25 EBITDA guidance of AU$54–60 million.
- Notable deal closures and progress on the EML 2.0 strategy were highlighted.
- The market reacted positively, with share price rising above $1 (+19.8% contribution in February).
- Oracle Advisory Group remains cautiously optimistic as 2025 approaches.
- Broader economic uncertainty presents opportunities for acquiring high-quality businesses.
- The focus remains on companies with strong cash flows, clear strategic direction, and resilience.
- In response to economic uncertainty, Oracle added two gold producers to the portfolio.
- These two companies comprise 5% of the portfolio.
Endeavor Asset Management
28 Feb 2025
$0.97
Summary
- EML Payments (EML) increased 17.6% following a cleaner 1H25 result
- Company reaffirmed FY25 guidance and showed an improving outlook
- Market responded positively to further details on the proposed strategy for achieving FY28 goals
- Focus is on existing and new product verticals
- Endeavor Asset Management believes the stock remains very cheap
- Expect a re-rating as earnings quality improves
- EML is set to execute on its building contract pipeline of $65 million by mid-2025
Tamim Funds Management
28 Feb 2025
$0.97
Summary
- EML Payments (ASX: EML) has shown significant financial recovery and strategic repositioning in H1 FY25.
- Reported a 15% revenue increase to $115.1 million and a 50% surge in underlying EBITDA to $33.4 million.
- Transitioned from a net loss of $4.7 million to a net profit of $9.5 million, indicating improved profitability.
- Key financial highlights include a 6% growth in customer revenue and a 49% increase in interest revenue.
- Cash balance stands at $50.6 million, with a net improvement of $7.5 million in the half.
- EML's strategic "2.0" transformation focuses on global operating model, reviving revenue, and deploying a single technology platform.
- Leadership has made strides in restructuring and expanding the business development team.
- Initiated Project Arlo to streamline operations and improve cost efficiencies.
- Geographic performance varies: Europe up 30%, Asia-Pacific steady at 6%, North America down 7%.
- EML aims to build a sales pipeline of $65 million by FY25 year-end and $90 million for the calendar year.
- Management sees more growth opportunities in new verticals rather than new markets.
- Executive Chair Anthony Hynes is committed to a "one EML" culture focused on efficiency and innovation.
- Financial guidance remains at $54-60 million in underlying EBITDA for FY25.
- Following the results, the Executive Chair acquired $3 million of shares, showcasing confidence in the outlook.
- EML is at the start of a new growth phase, with potential for stock re-rating as management executes.
- At an EV/EBITDA of 6x, there is good upside potential with high likelihood of takeover appeal.
Monash Investors
28 Feb 2025
$0.97
Summary
- EML Payments rose 18% as the company refocuses and turns its fortunes around.
- Market enthusiasm grew with the Executive Chairman purchasing $3m of stock on market post-result.
- Monash Investors has been gradually rebuilding a meaningful stake over the past six months.
- EML has faced challenging years but is now shedding non-core operations and cutting costs.
- Management is focusing on organic growth to rebuild shareholder value.
- What was less than a 1% position six months ago has been added to in the 60c and 80c ranges.
- Post the December shock departure of its CEO, further additions were made.
- With shares nearing $1, it is now a 4% weight in the portfolio.
- Monash Investors believes EML is well-placed to benefit from positive operating momentum and potential share price rerating.
DMX Asset Management
28 Feb 2025
$0.97
Summary
- EML Payments rose 18% as the company continues to re-focus and turn its fortunes around.
- The market’s renewed enthusiasm was supported by the new Executive Chairman purchasing $3m of stock post-result.
- DMX Asset Management has been gradually building a meaningful stake in EML Payments over the past year.
- The company has faced challenging years, but has proactively shed non-core operations and cut costs.
- EML is focusing on organic growth to rebuild shareholder value.
- A relatively small position six months ago has been increased in the 60c range, 80c range, and again on the dip after the CEO's departure.
- With shares now approaching $1, EML has become a top holding for the Fund at a 4% weight.
- DMX Asset Management believes they are well placed to benefit from further positive operating momentum and potential share price re-rating.
Monash Investors
31 Dec 2024
$0.84
Summary
- EML Payments has experienced a significant decline of 17% due to the unexpected departure of its CEO, Ron Hynes.
- The Board terminated Hynes's employment shortly before Christmas, emphasizing the need for leadership aligned with the company's EML 2.0 strategy.
- Monash Investors recognizes that reassessing companies during leadership changes is crucial for making informed decisions.
- The decision to replace the CEO was deemed necessary to avoid future complications from maintaining ineffective leadership.
- EML Payments has made notable progress in improving its operations, including the divestment of non-core assets.
- The business is now focused on growth and cost reduction, with attractive valuation metrics.
- In the global payments sector, Monash Investors sees potential for EML to become appealing to strategic or financial acquirers.
- Given EML's complex background, there may be opportunities for corporate activity in the near future.
Forager Funds
31 Dec 2024
$0.84
Summary
- Forager Funds recognizes that EML Payments Ltd is on a winding path to redemption after challenging international acquisitions.
- Over the past 18 months, EML has focused on cleaning up regulatory issues and streamlining operations.
- A new managing director was appointed in the second half of 2024, indicating potential for future growth.
- In November, EML announced a coherent strategy with clear targets for 2028, which led to a 58% increase in share price.
- Despite the positive developments, EML's turnaround path is not straightforward, as management changes can impact investor sentiment.
- Following recent management upheaval, where the board ousted the new managing director and reappointed the Chairman, Forager Funds believes there is still a solid underlying business.
- The board has reaffirmed commitment to the 2028 targets, suggesting a focus on long-term growth.
Jencay Capital
31 Dec 2024
$0.84
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Endeavor Asset Management
31 Dec 2024
$0.84
Summary
- Endeavor Asset Management views EML Payments as a global payments company navigating recent volatility.
- The launch of the "EML 2.0 Strategy Plan" in November aims to drive organic profit growth and simplify operations.
- The strategy aspires for $95 million EBITDA by FY28, targeting a 13% annual growth.
- Initial market reaction to the strategy was positive, but sentiment shifted following the termination of CEO Ron Hynes.
- This shift led to a 17% decline in share price in December.
- EML is currently trading at 12x FY25 P/E and 6.5x EV/EBITDA, indicating an attractive valuation.
- Endeavor Asset Management remains optimistic about EML's ability to overcome leadership challenges.
- Commend the board's focus on selecting personnel that aligns with EML's long-term strategic goals.
DMX Asset Management
31 Dec 2024
$0.84
Summary
- DMX Asset Management is reassessing its investment thesis in EML Payments Ltd after recent leadership changes.
- The sudden departure of the new CEO highlights the importance of effective leadership in executing the company’s strategy.
- Despite the leadership transition, EML has shown significant progress in its turnaround efforts.
- The company has divested non-core assets and is focusing on growth while reducing costs.
- Valuation metrics are attractive, positioning EML favorably in the current market.
- In the global payments landscape, EML may attract interest from strategic or financial acquirers.
- DMX Asset Management continues to hold because of the potential for corporate activity in the future.
QVG Capital
31 Dec 2024
$0.84
Summary
- EML Payments faced a setback by removing their recently appointed CEO shortly after announcing a three-year strategy plan.
- QVG Capital is closely monitoring the situation following this significant leadership change.
- Guidance has been maintained, indicating some stability amidst the changes.
- The chairman is actively involved, taking on an executive role, which suggests confidence in the strategic direction.
- QVG Capital will watch closely how the new management executes the strategic plan.
Salter Brothers
31 Dec 2024
$0.84
Summary
- Strong share price performance in November
- Decline in share price due to leadership changes
- Board decided to terminate Mr. Ron Hynes as Managing Director
- New leadership is deemed necessary for executing EML 2.0 strategy
- Medium-term strategy EML 2.0 communicated at recent AGM
- EBITDA guidance of $54-60m reaffirmed
- Manager supports the decisions of the reformed Board
- Sold shares at $1 per share in November
- Reweighting into position with a medium-term view
QVG Capital
30 Nov 2024
$0.99
Summary
- QVG Capital identifies EML Payments as a significant contributor to their portfolio.
- EML Payments has a complex history but is progressing through a turnaround phase.
- Recent actions include sensible divestments and improvements in the management team.
- The company has enhanced its float revenue and cost base.
- EML has provided three-year forward earnings guidance of 13 cents per share, with a current share price of 68.5 cents.
- This guidance implies a 5x FY28 P/E, which has rerated to 7.5x.
- The next phase of EML’s turnaround focuses on returning to strong revenue growth.
- QVG Capital is monitoring the execution of this strategy and sees potential for further upside if successful.
Salter Brothers
30 Nov 2024
$0.99
Summary
- Salter Brothers continues to hold EML Payments Ltd (EML) as it was added to the top 5 portfolio holdings.
- The company experienced a substantial re-rate in November, influenced by the strategic vision presented by the new executive team.
- The executive team outlined a comprehensive roadmap for “EML 2.0”, which includes key financial targets.
- Highlighted targets include an underlying EBITDA for FY25 in the range of $54-60m.
- Long-term targets established for FY28 include 10-12% p.a. transaction revenue growth, a 35% EBITDA margin, and an EPS of 13c.
- The market responded positively, resulting in a substantial 50.7% increase in the company’s share price for the month.
Wilson Asset Management
30 Nov 2024
$0.99
Summary
- EML Payments is a global payments company operating in Australia, the UK, Europe, and the US.
- The company recently held an investor day with its new management team outlining growth ambitions.
- EML Payments set a FY2028 target for earnings per share of 13 cents with an EBITDA margin of 35%.
- This target eased market concerns and contributed to an increase in EML Payments' share price.
- Wilson Asset Management remains positive on EML Payments' medium-term plan.
- There is potential upside to the underlying EBITDA guidance range of $54 to $60 million in FY2025.
DMX Asset Management
30 Nov 2024
$0.99
Summary
- DMX Asset Management has a long-term investment in EML Payments Ltd, initially misjudging its prospects, leading to an 80%+ decline in value.
- Challenges: EML faced significant hurdles due to regulatory issues with its Irish subsidiary, Prepaid Financial Services, which has now been exited.
- Balance Sheet Strength: The balance sheet has improved following the sale of the Open Banking unit, Sentential.
- Reassessed Position: After a thorough reassessment, DMX Asset Management has increased its holdings in EML as conditions have become more favorable.
- Positive Update: EML recently reported a 64% increase in EBITDA and reaffirmed full-year guidance, bolstering confidence.
- Long-Term Goals: EML aims for 13 cents earnings per share by FY 2028 through growth initiatives and cost savings.
- Investment Thesis: Clarity around EML's strategy and targets enhances the positive investment case, suggesting significant upside potential.
- Acquisition Interest: EML may attract the attention of global strategic or financial acquirers.
- Position Size: Recent positive updates have increased DMX's position in EML to nearly 4%, making it a Top 5 holding for the Fund.
- Recovery Potential: DMX Asset Management is well-positioned to capitalize on EML’s recovery if progress continues.
Monash Investors
30 Nov 2024
$0.99
Summary
- November marks peak AGM season, providing operational updates and long-term guidance.
- EML Payments reported a 51% increase for the month, showing positive momentum.
- Monash Investors are long-suffering shareholders due to past regulatory challenges, particularly with the Irish subsidiary.
- The Irish subsidiary, Prepaid Financial Services, has been wound down and exited in 2024.
- The balance sheet has strengthened significantly due to the sale of its Open Banking unit, Sentential.
- EML has consolidated its operations by divesting non-core assets, improving the investment outlook.
- Monash Investors' position in EML has increased as the company's situation improves.
- A 64% increase in EBITDA was reported in the first quarter, reaffirming full-year guidance.
- Long-term goals include earnings per share of 13 cents by FY 2028, driven by growth and cost savings.
- The strategy and financial targets provide clarity and support for a positive investment case.
- EML is seen as having significant upside potential from current price levels.
- Monash Investors believe EML could perform well as a newly re-focused independent operation and attract interest from acquirers.
- Recent additions to the holding reflect confidence in the recovery story following positive updates and performance.
Endeavor Asset Management
30 Sept 2024
$0.65
Summary
- EML Payments continues to face headwinds.
- Challenges are primarily due to the lack of a formal growth strategy.
- Endeavor Asset Management is optimistic that upcoming AGM will address these challenges.
- The AGM is expected to provide clearer direction for EML Payments' future growth path.
- Endeavor Asset Management continues to hold because of the potential for improvement.
Jencay Capital
30 Sept 2024
$0.65
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Endeavor Asset Management
31 Aug 2024
$0.71
Summary
- EML Payments (EML) pulled their forward-looking guidance at FY24 result.
- Share price has declined by 25% following the result in August.
- Management plans to reissue guidance and present a refined strategy at the AGM.
- This will occur after the completion of their restructuring and asset sales.
- Endeavor Asset Management took advantage of a large sale transaction from a shareholder closing their fund.
- While residual selling may keep pressure on the share price, we expect a reset of market expectations ahead of the AGM.
- Endeavor Asset Management continues to hold due to the potential catalyst from upcoming developments.
Endeavor Asset Management
30 Apr 2024
$1.01
Summary
- Endeavor Asset Management has noted positive developments from EML Payments regarding the settlement of PFS Group liabilities.
- The settlement occurred at a discount to face value.
- Restrictions on PFS UK customers have been lifted, signaling potential growth opportunities.
- Despite these positives, EML's share price experienced a decline of 17.9% in April, following a previous 24% rally in March.
- Endeavor Asset Management anticipates near term churn in the share register.
- However, there is confidence that EML Payments is well positioned to resume growth at sustainable rates.
Endeavor Asset Management
31 Mar 2024
$1.20
Summary
- Endeavor Asset Management invested in EML Payments to capitalize on a turnaround opportunity.
- EML has exited the problematic PCSIL subsidiary, eliminating a drain on profitability.
- The sale of Sentenial further strengthens their financial position, with proceeds used to reduce debt and build a cash buffer.
- EML is now focused on core profitable businesses – Australian and Global Gifting, and the successful UK arm of PFS (PFSL).
- EML is poised for growth.
- Analyst projections suggest significant upside based on future earnings.
- EML's management team is actively implementing a turnaround strategy focused on cost reduction, margin expansion, and core business growth.
- Endeavor Asset Management believes the streamlined operations, clear path to profitability, and valuable core business put the company in a good position.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in EML Payments Ltd (ASX:EML)?
Fund managers including Endeavor Asset Management, DMX Asset Management, Salter Brothers, Monash Investors, Forager Funds, Jencay Capital, Oracle Advisory Group, QVG Capital, Wilson Asset Management and Tamim Funds Management have invested in EML Payments Ltd (ASX:EML).
Why do fund managers invest in EML Payments Ltd?
Fund managers invest in EML Payments Ltd due to its recovery and strategic repositioning after previous challenges. The company is focused on organic growth, shedding non-core operations, and improving profitability. Key factors include a $65 million contract pipeline, a strong balance sheet, and renewed leadership confidence, evidenced by significant stock purchases from executives. Analysts see potential for substantial growth and a favorable risk/reward profile, as EML's performance improves alongside its strategic objectives.
What happened to EML Payments Ltd (ASX:EML)?
Fund managers are optimistic about EML Payments Ltd due to new leadership, a strategic focus on organic growth, and the exit of non-core operations. They believe the company is on a path to substantial profitability improvements, driven by a flat cost base while increasing revenue. Despite recent challenges, including some disappointing financial results, the management team is rebuilding its sales operations and has begun to establish a solid customer pipeline, suggesting potential for upside revenue surprises in the coming years. Overall, there is confidence that EML Payments is positioned for recovery and growth.
What is the short interest in EML Payments Ltd (ASX:EML)?
The short interest in EML Payments Ltd (ASX:EML) is 2.82% which makes it the 86th most shorted stock on the ASX. Of the 387.7M shares that EML Payments Ltd has on issue, 11.0M have been sold short.
What does EML Payments Ltd (ASX:EML) do?
EML Payments Ltd. engages in the provision of payment solutions and financial services. It operates through the following segments: Gift & Incentive (G&I), General Purpose Reloadable (GPR), Digital Payments (DP), and Group. The Gift & Incentive (G&I) products provides single load gift cards for shopping malls and incentive programs across the world. The General Purpose Reloadable segment includes reloadable cards to a variety of industries including, but not limited to Government, Salary Packaging, Gaming and Digital Banking. The Digital Payments segment focuses on the payment options for consumers. Its operations include funds disbursement, social and welfare payments, loyalty and rewards programs, loan disbursements, corporate expenses, procurement, and salary packaging. The company was founded in 2001 and is headquartered in Brisbane, Australia.
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