Buy Signal on Worldline (WLN-FR)
Worldline is a € 22.8 Bn market cap company, and one of the leading European providers of electronic payment and transactional services. Revenue is split between :
1/merchants and distributors (45% of revenues ), acquisition of payment orders, acceptance and management of online payments, sale and rental of payment terminals, sale of security modules for cryptographic purposes,
2/banks and financial institutions (33%) including issuance and management of credit and debit cards, acquisition and processing of electronic payment transactions, provision of online banking services,
3/businesses and government entities (22% of revenues) consists in provision of electronic ticketing services for public transport and rail companies, provision to authorities of solutions for automatic regulation of traffic and parking.
The company has proceeded to the buying out of Ingenico in 2020, and consequently will see its 2021 revenue almost double to €5.06 bn coupled with an EBIT margin that is expected to reach 20% at € 1 bn. EPS are expected to more than double to €1.73, then grow by 30% in 2022.
The newco Worldline will generate approximately €800M in free cash flow after taking the full unlocking of the estimated €250M in synergy benefits of the Ingenico acquisition.
Short term catalyst : Synergies of the Ingenico merger.