|Shares Out. (in M):||63||P/E||0||0|
|Market Cap (in $M):||534||P/FCF||33.5||8.3|
|Net Debt (in $M):||774||EBIT||132||137|
|Money Transfer Revenue (million)||4,467||1,275||516|
|# of Money Transfers (million)||255||85||49|
|$ Volume of Money Transfers (million)||85,400||29,000||24,400||14,400||428,800||582,000|
|Market Share (by $ Volume)||14.7%||5.0%||4.2%||2.5%||73.7%||100.0%|
|Total Remittance Market Size(World Bank)||457,000,000||429,000,000||453,000,000||501,000,000||531,000,000||551,000,000||582,000,000||608,000,000||636,000,000||667,000,000|
|Total Remittance Market Size To Developing Countries(World Bank)||324,000,000||308,000,000||332,000,000||372,000,000||400,000,000||414,000,000||435,000,000||454,000,000||475,000,000||499,000,000|
|Cost of sending Remittances % of Value Sent (Using US$200) - AVG||9.8%||8.9%||7.9%|
|Cost of sending Remittances % of Value Sent (Using US$200) - WAVG||8.7%||6.6%||5.7%|
|Total Remittance Size x Cost of sending Remittances - WAVG||39,759,000||36,366,000||33,174,000|
|Total Remittance Size to Developing Countries x Cost of sending Remittances - Average||31,752,000||36,846,000||34,365,000|
- Dominant MT provider.
- Highest price by 20-30% in most corridors.
- 3x larger than MGI in terms of $ Volume of Money Transfers
- 8.6x EBITDA (significantly higher than MGI).
RIA: Owned by Euronet which is $2.8B market cap and $2.8B Enterprise Value. They charge the lowest fees of any traditional MTO.
- Lowest price in many corridors; their US-to-Mexico is ~60% cheaper than MGI.
- Walmart partnered with them in April 2014 to provide private label Walmert-to-Walmart US for <$900 transfers, at a 35-40% discount to MGI’s then prices. MGI lowered US-to-US prices by WAVG 34% on 10/31/14 as a result.
- MGI’s contract (signed in 2012) with Walmart US expires in April 2016. Allowed Walmart to have private label in US-to-US but not US-to-Intl. When possible Walmart could potentially partner with RIA on Walmart to Mexico. Company won’t comment on US-to-Walmart Intl (particularly Mexico).
Return to high-single-digit+ revenue growth starting in Q4 2015.
Continued share repurchases.
Possible additional recoveries on past securities losses.
Possible acquisition target by a larger competitor (Euronet or WU).