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Bi-Weekly Finanial Technology Sector Report

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Bi-Weekly Finanial Technology Sector Report Financial Technology Sector Summary May 4, 2016 Financial Technology Sector Summary Financial Technology Sector Summary Table of Contents I. GCA Savvian Overview II. Market Summary III. Payments / Banking IV. Securities / Capital Markets / Data & Analytics V. Insurance / Benefits 2 Financial Technology Sector Summary I. GCA Savvian Overview 3 Financial Technology Sector Summary GCA Savvian Overview Financial Technology Team New York London Tokyo San Francisco th 48 Dover Street 11-1 Marunouchi 1-chome 150 California St., Ste. 2300 640 Fifth Avenue, 10 Fl. London W1S 4FF Chiyoda-ku, Tokyo 100-6230 San Francisco, CA 94111 New York, NY 10019 United Kingdom Japan (415) 318-3600 (212) 999-7090 +44 (0) 207 038-3200 +81 (3) 6212-7100 Sean Minnihan Peter Bang Derek Bell Paul DiNardo Steve Fletcher Managing Director Managing Director Managing Director Advisory Director Managing Director Phone: (212) 999-7077 Phone: (212) 999-7074 Phone: (212) 999-7089 Phone: (212) 999-7097 Phone: (415) 318-3661 Mobile: (917) 364-6230 Mobile: (917) 783-4057 Mobile: (914) 953-0689 Mobile: (650) 483-7246 Mobile: (415) 518-6725 [email protected] [email protected] [email protected] [email protected] [email protected] Rob Freiman David Krueger Saif Malik Alexander Berry David Ibarra Director Vice President Vice President Analyst Analyst Phone: (212) 999-7075 Phone: (212) 537-4534 Phone: +44 (0) 207 038-3216 Phone: (212) 999-7079 Phone: (212) 537-4532 Mobile: (973) 229-0436 Mobile: (616) 822-7179 Mobile: +44 (0) 778 606-8553 Mobile: (818) 851-2300 Mobile: (917) 471-0821 [email protected] [email protected] [email protected] [email protected] [email protected] 4 Financial Technology Sector Summary II. Market Summary 5 Financial Technology Sector Summary Market Summary Industry Stock Market Performance Last 12 Months Last 3 Months 115 125 110 115 105 100 105 95 95 90 85 85 80 75 75 70 65 4/29/15 5/29/15 6/29/15 7/29/15 8/28/15 9/28/15 10/28/15 11/27/15 12/28/15 1/27/16 2/26/16 3/28/16 4/27/16 1/29/16 2/7/16 2/15/16 2/23/16 3/2/16 3/10/16 3/18/16 3/27/16 4/4/16 4/12/16 4/20/16 4/28/16 (3) (4) (1) (2) Financial Data, Content, Information Processors / Payments Exchanges & Analytics Credit Bureaus (5) Banking & Lending (6) Investment Services, (7) Healthcare / Insurance (8) Online Broker Dealers Technology Software, & Technology Technology Notes: (1) Payments: ADS, AIM: PPT, AXP, BOVESPA: CIEL3, CATM, DFS, EEFT, ENXTPA: EDEN, FDC, FLT, GDOT, GPN, HPY, MA, MGI, ONE, OUTR, PYPL, PAR, SQ, TSS, UEPS, V, VNTV, WEX, LSE: WPG, WU, XTRA: WDI. (2) Exchanges: ASX: ASX, ATSE: EXAE, BMV: BOLSA A, BOVESPA: BVMF3, CATS: BME, CBOE, CME, ICE, JSE: JSE, KLSE: BURSA, LSE: LSE, NDAQ, SEHK: 388, SGX: S68, TSX: X, WSE: GPW, XTRA: DB1. (3) Financial Data, Content & Analytics: DNB, ENXTPA: FIM, FDS, HHS, HIS, MCO, MHP, MORN, MSCI, MRKT, RATE, TRI. (4) Information Processors / Credit Bureaus: ACXM, EFX, FICO, INTX, LSE: EXPN. (5) Online Broker Dealers: AMTD, ETFC, FXCM, GCAP, IBKR, SCHW. (6) Banking & Lending Technology: ACIW, BKFS, ELLI, EPAY, FIS, FISV, INTU, JKHY, LC, ONDK, PFMT, QTWO, SWX: TEMN, YDLE. (7) Investment Services, Software, & Technology: ADVS, BR, DST, ENV, FNGN, SEIC, SSNC. 6 (8) Healthcare / Insurance Technology: BSE:532254, ATHN, EBIX, CRD.B, GWRE, IMS, SLH, TSXV:SY, VRSK. Financial Technology Sector Summary Market Summary Price / Earnings Multiples and PEG Ratios 2016E Price / Earnings Multiples 2016E PE / Growth (“PEG” Ratio) Banking and Lending Technology 22.6x Healthcare / Insurance Technology 1.8 Information Processors / Credit Bureaus 20.2x Financial Data, Content, & Analytics 1.8 Financial Data, Content, & Analytics 19.5x Information Processors / Credit Bureaus 1.7 Investment Services, Software, & 19.0x Exchanges 1.7 Technology Healthcare / Insurance Technology 18.0x Banking and Lending Technology 1.3 Investment Services, Software, & 1.3 Online Broker Dealers 16.4x Technology Exchanges 15.3x Online Broker Dealers 1.1 Payments 13.1x Payments 1.1 0.0x 10.0x 20.0x 30.0x 0.0 0.5 1.0 1.5 2.0 Notes: 7 Numbers represent medians of sub-sectors. Details available in later pages. Financial Technology Sector Summary Market Summary Long-Term EPS Growth and LTM EBITDA Margins Long-Term EPS Growth LTM EBITDA Margins (1) Banking and Lending Technology 15.8% Financial Data, Content, & Analytics 35.5% Online Broker Dealers 15.6% Information Processors / Credit Bureaus 27.4% Investment Services, Software, & Technology 14.9% Banking and Lending Technology 21.8% Payments 13.4% Healthcare / Insurance Technology 12.2% Payments 21.6% Information Processors / Credit Bureaus 12.1% Investment Services, Software, & 19.9% Technology Financial Data, Content, & Analytics 11.3% Healthcare / Insurance Technology 18.0% Exchanges 8.6% 0% 5% 10% 15% 20% 0% 10% 20% 30% 40% Notes: Numbers represent medians of sub-sectors. Details available in later pages. 8 (1) Online Broker Dealers and Trading Platforms not material. Financial Technology Sector Summary Market Summary Indexed Price Performance by Sector Last 3 Months 1 Year 3 Years Online Broker Dealers 16.2% (6.4%) 77.2% Financial, Data, Content, & 14.8% 1.3% 54.1% Analytics Investment Services, Software, 13.0% 0.2% 83.6% & Technology Payments 11.3% 4.1% 53.7% Information Processors / 10.1% 10.0% 31.9% Credit Bureaus Healthcare / Insurance 9.0% 5.7% 31.9% Technology Exchanges 8.4% (4.2%) 35.4% Banking & Lending Technology 7.9% 5.9% 63.9% 0.0% 10.0% 20.0% (10.0%) (5.0%) 0.0% 5.0% 10.0% 15.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Notes: 9 Numbers represent medians of sub-sectors. Details available in later pages. Financial Technology Sector Summary Market Summary LTM Price Performance and 2016 P/E – Payments / Banking ($MM) ($MM) LTM Pri ce LTM Pri ce Network s Market Cap. Performance P/E 2016 Prepai d Market Cap. Performance P/E 2016 Visa Inc. $184,210 17% 27.1x Blackhawk Network Holdings, Inc. $1,793 (13%) 12.7x MasterCard Incorporated $106,597 8% 27.4x Green Dot Corporation $1,154 38% 16.0x American Express Company $62,226 (16%) 12.1x Net 1 Ueps Technologies Inc. $555 (13%) 6.0x PayPal Holdings, Inc. $47,487 NA 26.2x Higher One Holdings, Inc. $183 35% 19.0x Discover Financial Services $23,196 (3%) 9.9x Sector Average $921 12% 13.4x Sector Average $84,743 2% 20.5x LTM Pri ce LTM Pri ce ATM / Kiosks Market Cap. Performance P/E 2016 Merchant Processing Market Cap. Performance P/E 2016 Cardtronics Inc. $1,783 4% 12.6x Cielo S.A. $21,195 (4%) 19.5x Outerwall Inc. $712 (38%) 6.7x Global Payments Inc. $11,116 44% 22.7x Everi Holdings Inc. $111 (77%) 2.5x First Data Corporation $10,271 NA 8.7x Sector Average $868 (37%) 7.3x Total System Services, Inc. $9,367 29% 18.2x Vantiv, Inc. $8,527 39% 20.7x LTM Pri ce Worldpay Group plc $7,762 NA 24.9x POS Hardware / Technology Market Cap. Performance P/E 2016 Wirecard AG $5,365 (4%) 22.1x Square, Inc. $4,993 NA NM Ingenico Group $7,199 (8%) 21.3x EVERTEC, Inc. $1,025 (35%) 8.3x NCR Corporation $3,604 6% 9.9x Planet Payment, Inc. $200 106% 26.3x VeriFone Systems, Inc. $3,136 (20%) 12.3x JetPay Corporation $39 (10%) NM PAR Technology Corporation $100 55% NA Sector Average $7,260 21% 19.0x Sector Average $3,510 8% 14.5x LTM Pri ce LTM Pri ce Money Transfer Market Cap. Performance P/E 2016 Banking and Lending Technology Market Cap. Performance P/E 2016 The Western Union Company $9,912 (1%) 12.2x Intuit Inc. $25,911 1% 27.2x Euronet Worldwide, Inc. $4,010 32% 20.0x Fiserv, Inc. $21,791 26% 22.3x Moneygram International Inc. $331 (21%) 6.9x Fidelity National Information Services, Inc. $21,435 5% 17.5x Sector Average $4,751 3% 13.1x Jack Henry & Associates Inc. $6,390 22% 27.4x Temenos Group AG $3,401 46% 26.2x LendingClub Corporation $3,013 (55%) 28.2x LTM Pri ce DH Corporation $2,732 (23%) 14.0x Closed Loop Market Cap. Performance P/E 2016 Ellie Mae, Inc. $2,506 52% 43.5x FleetCor Technologies, Inc. $14,326 (4%) 23.5x ACI Worldwide, Inc. $2,329 (13%) 38.3x Alliance Data Systems Corporation $12,018 (32%) 12.1x Black Knight Financial Services, Inc. $2,210 NA 28.6x Edenred SA $4,533 (28%) 19.6x Q2 Holdings, Inc. $938 17% NM WEX Inc. $3,657 (16%) 22.1x Bottomline Technologies (de), Inc. $931 (8%) 18.2x Sector Average $8,633 (20%) 19.3x On Deck Capital, Inc. $608 (55%) NM Performant Financial Corporation $89 (40%) NM Sector Average $6,735 (2%) 26.5x LTM Pri ce Information Processors / Credit Bureaus Market Cap. Performance P/E 2016 0 Experian plc $17,060 7% 20.1x Equifax Inc. $14,311 24% 23.1x Fair Isaac Corporation $3,348 21% 22.0x Acxiom Corporation $1,708 26% 37.9x Sector Average $9,107 19% 25.8x Notes: 10 Source: CapitalIQ and Wall Street Research. Market data as of April 1, 2016. Financial Technology Sector Summary Market Summary LTM Price Performance and 2016 P/E – Securities / Cap. Mkts. / Data & Analytics ($MM) ($MM) LTM Pri ce Investment Services, Software, & LTM Pri ce Exchanges - Americas Market Cap. Performance P/E 2016 Technol ogy Market Cap. Performance P/E 2016 0 CME Group Inc.
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