QIWI plc (QIWI)

QIWI plc (QIWI) Technology Profile & Competitive Position

QIWI plc, a technology company based in Cyprus, provides online payment and digital banking services primarily in Russia and surrounding countries. It operates through a network of kiosks, terminals, and its Qiwi Wallet platform, offering payment solutions to consumers and businesses with a focus on digital financial services.

What Is the Investment Thesis for QIWI?

QIWI plc presents an interesting investment case given its established presence in the Russian and surrounding markets for electronic payments. With a P/E ratio of 7.2 and a profit margin of 38.4%, the company demonstrates profitability. Key value drivers include the continued adoption of digital payment solutions in its core markets and the expansion of its digital banking services. Upcoming catalysts include potential partnerships to broaden its service offerings. However, investors may want to evaluate the risks associated with operating in the Russian market, including regulatory uncertainty and geopolitical factors. The company's beta of 0.68 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

QIWI Key Highlights

• Market Cap of $355.58M reflects its current valuation in the electronic payment systems market.
• P/E Ratio of 7.2 indicates a potentially undervalued stock compared to its earnings.
• Profit Margin of 38.4% demonstrates strong profitability in its operations.
• Gross Margin of 23.2% shows the efficiency of its core payment processing services.
• Beta of 0.68 suggests lower volatility compared to the broader market, potentially offering a more stable investment.

Who Are QIWI's Competitors?

QIWI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are QIWI's Key Strengths?

• Established presence in Russia and surrounding markets.
• Extensive network of kiosks and terminals.
• Strong brand recognition and customer loyalty.
• Integrated online and offline payment network.

What Are QIWI's Weaknesses?

• Concentration of operations in Russia exposes it to political and economic risks.
• Dependence on regulatory approvals for certain services.
• Competition from other fintech companies and traditional financial institutions.
• Exposure to currency fluctuations.

What Could Drive QIWI Stock Higher?

• Expansion of digital banking services under Rocketbank and Tochka brands.
• Increased adoption of Qiwi Wallet platform.
• Potential strategic partnerships with e-commerce platforms.
• Development and launch of new payment solutions incorporating blockchain technology.

What Are the Key Risks for QIWI?

• Financial-distress signal — its Altman Z-Score of 1.39 sits in the distress zone (elevated bankruptcy risk).
• Regulatory uncertainty in the Russian market.
• Geopolitical risks and economic instability in Russia and surrounding countries.
• Increased competition from other fintech companies.
• Cybersecurity threats and data breaches.
• Currency fluctuations between the Russian Ruble and the U.S. Dollar.

What Are the Growth Opportunities for QIWI?

• Expansion of Digital Banking Services: QIWI has the opportunity to grow its digital banking services under the Rocketbank and Tochka brands. The market for digital banking is expanding rapidly, driven by increasing internet penetration and demand for convenient online financial services. By offering innovative digital banking products and services, QIWI can attract new customers and increase its market share. This expansion aligns with the global trend towards digital transformation in the financial sector. The timeline for significant growth is estimated within the next 3-5 years.
• Strategic Partnerships and Acquisitions: QIWI can pursue strategic partnerships and acquisitions to expand its service offerings and geographic reach. Collaborating with other fintech companies or acquiring complementary businesses can enhance QIWI's competitive position and accelerate its growth. For example, partnering with e-commerce platforms or payment gateways can increase transaction volumes and revenue. The timeline for realizing benefits from partnerships and acquisitions is estimated within the next 2-3 years.
• Increased Adoption of Qiwi Wallet: QIWI can focus on increasing the adoption and usage of its Qiwi Wallet platform. By offering incentives, promotions, and new features, QIWI can attract more users and encourage them to use the wallet for a wider range of transactions. The market for mobile wallets is growing rapidly, driven by the convenience and security they offer. QIWI's established brand and extensive network give it a competitive advantage in this market. The timeline for increased wallet adoption is estimated within the next 1-2 years.
• Geographic Expansion: QIWI has the opportunity to expand its operations into new geographic markets. While it already has a presence in Russia, Kazakhstan, and other countries, there are opportunities to enter new markets with high growth potential. This expansion can be achieved through partnerships, acquisitions, or organic growth. The timeline for successful geographic expansion is estimated within the next 3-5 years, depending on the specific market and entry strategy.
• Development of New Payment Solutions: QIWI can invest in the development of new payment solutions to meet the evolving needs of its customers. This includes exploring new technologies such as blockchain and cryptocurrencies, as well as developing innovative payment methods for specific industries or use cases. By staying ahead of the curve and offering cutting-edge payment solutions, QIWI can maintain its competitive advantage and attract new customers. The timeline for developing and launching new payment solutions is estimated within the next 2-3 years.

What Opportunities Does QIWI Have?

• Expansion of digital banking services.
• Strategic partnerships and acquisitions.
• Increased adoption of Qiwi Wallet.
• Geographic expansion into new markets.

What Threats Does QIWI Face?

• Changes in regulations governing electronic payments and digital banking.
• Increased competition from new entrants and existing players.
• Economic downturn in Russia and surrounding markets.
• Cybersecurity threats and data breaches.

What Are QIWI's Competitive Advantages?

• Extensive network of kiosks and terminals provides a physical presence in key markets.
• Established brand recognition and customer loyalty in Russia and surrounding countries.
• Integrated online and offline payment network offers convenience and flexibility.
• Proprietary technology platform enables efficient and secure payment processing.

What Does QIWI Do?

Qiwi plc was founded in 2007 and has grown to become a significant player in the electronic payment systems market, particularly in Russia, Kazakhstan, Moldova, Belarus, and the United Arab Emirates. The company operates through three main segments: Payment Services, Consumer Financial Services, and Rocketbank. Its core offering is the Qiwi Wallet, an online and mobile payment processing and money transfer system. This allows users to pay for goods and services, as well as transfer money peer-to-peer. Beyond the digital wallet, Qiwi manages a network of approximately 75,000 kiosks and 18,000 terminals that facilitate cash-based online payments. Qiwi also offers Visa prepaid cards and payment-by-installment card systems under the SOVEST brand. Furthermore, the company provides digital banking services to retail customers under the Rocketbank name and to small and medium businesses under the Tochka name. Qiwi's integrated approach combines online and offline payment channels to serve a diverse customer base in its operating regions.

What Products and Services Does QIWI Offer?

• Operates electronic online payment systems.
• Provides payment services through online, mobile, and physical channels.
• Manages a network of approximately 75,000 kiosks and 18,000 terminals.
• Offers Qiwi Wallet for online and mobile payment processing and money transfers.
• Provides Visa prepaid cards.
• Offers payment-by-installments card systems under the SOVEST brand.
• Provides digital banking services to retail customers under the Rocketbank name.
• Provides digital banking services to small and medium businesses under the Tochka name.

How Does QIWI Make Money?

• Generates revenue from transaction fees on payments processed through its network.
• Earns interest income from balances held in Qiwi Wallets and other accounts.
• Derives revenue from fees charged for digital banking services.
• Collects fees from merchants for payment processing services.

What Industry Does QIWI Operate In?

QIWI plc operates within the rapidly evolving fintech industry, specifically in the electronic payments and digital banking sectors. The industry is characterized by increasing adoption of mobile payments, growth in e-commerce, and demand for convenient financial services. Competition includes traditional financial institutions and other fintech companies. QIWI differentiates itself through its integrated online and offline payment network, particularly its extensive kiosk and terminal network in Russia and surrounding countries. The fintech market is expected to continue growing, driven by technological advancements and changing consumer preferences.

Who Are QIWI's Key Customers?

• Consumers who use Qiwi Wallet for online and mobile payments.
• Merchants who accept Qiwi payments for goods and services.
• Retail customers who use Rocketbank for digital banking services.
• Small and medium businesses who use Tochka for digital banking services.

Company Profile

QIWI plc operates in the Software - Infrastructure industry within the Technology sector. It is headquartered in Nicosia, RU. The company is led by CEO Alexey Mashchenkov. QIWI has traded publicly since 2013.

F-Score 5/9Financial Health

QIWI plc's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.39 places it in the distress zone, a signal of elevated financial risk.

ROE 5%Key Financial Metrics

Return on equity for QIWI plc stands at 4.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.3%, showing how much profit it generates from its asset base. QIWI trades at a trailing price-to-earnings ratio of 7.16, below the Technology sector average of ~38x. Its free cash flow yield is 44.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.90 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 14.0%, the inverse of the P/E and a quick read on earnings relative to price.

QIWI Valuation & Market Position

With a $355.58M market cap, QIWI plc sits in the small-cap segment of the market.

QIWI Financials

QIWI Latest News

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QIWI Analyst Consensus

QIWI MoonshotScore

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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