🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Crédit Agricole becomes major Worldline shareholder with 7% stake

EditorNatashya Angelica
Published 01/22/2024, 01:20 AM
© Reuters.

PARIS - In a strategic move to bolster its position in the digital payments sector, French banking group Crédit Agricole has acquired approximately a 7% stake in payment services provider Worldline. This acquisition marks Crédit Agricole not only as a significant shareholder but also as a key player in the ongoing partnership between the two entities, which began in the first half of 2023.

The collaboration between Crédit Agricole and Worldline is centered around a joint venture with a clear focus: to become a leader in the French payment market. By combining Worldline's advanced technological infrastructure with Crédit Agricole's extensive commercial network, the partnership is poised to enhance and expand digital payment solutions across France.

Worldline's financial strength is underscored by its 2022 revenue report, which showed earnings of €4.4 billion, reflecting the company's robust standing in the market. The strategic alliance with Crédit Agricole is expected to further solidify Worldline's market position and contribute to its growth trajectory.

Looking ahead, the financial community is eagerly anticipating the release of Worldline's full-year financial results for the fiscal year 2023, set to be published on February 28, 2024. These results will provide further insight into the company's performance and the impact of its strategic initiatives, including its partnership with Crédit Agricole.

InvestingPro Insights

As Crédit Agricole takes a pivotal step into the digital payments arena through its stake in Worldline, the financial metrics and market sentiment surrounding Worldline become particularly relevant. According to InvestingPro data, Worldline boasts a market capitalization of $4.04 billion and is trading at an attractive Price / Book multiple of 0.4, as of the last twelve months ending Q2 2023. This low multiple could indicate that the market is undervaluing the company's net assets, making it a potentially interesting entry point for investors.

The company's P/E ratio also stands at a modest 8.28 for the same period, suggesting that its shares might be trading at a discount relative to its earnings capacity. Moreover, the PEG ratio, which measures a stock's valuation against its expected earnings growth rate, is at a mere 0.11, hinting at the potential for future earnings growth not yet priced into the stock.

InvestingPro Tips highlight that Worldline's net income is expected to grow this year, which aligns with the company's strategic partnership goals with Crédit Agricole. In addition, analysts predict Worldline will be profitable this year, which is supported by the company's strong gross profit margin of 66.63% over the last twelve months.

Investors should note that Worldline's stock has experienced significant price volatility and has seen a substantial decline over the past year, with a price total return of -66.96%. While this could raise concerns, it may also present a buying opportunity for those who believe in the company's fundamentals and the potential of its partnership with Crédit Agricole.

For those looking to delve deeper into Worldline's financials and future prospects, InvestingPro offers a wealth of additional tips. By subscribing to InvestingPro+, investors can access these insights at a special New Year sale discount of up to 50%. Use the coupon code "SFY24" to get an additional 10% off a 2-year subscription, or "SFY241" to get an additional 10% off a 1-year subscription. With these resources at hand, investors can make more informed decisions as they watch how Worldline's strategic moves unfold in the digital payment sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.