The EML Payments Ltd (ASX: EML) share price has continued its stellar run with it reaching a new all-time high today. EML shares opened at $4.43 this morning but soon after shot up to print the new all-time high of $4.54 around 2 o'clock this afternoon. EML shares have since cooled slightly and are swapping hands for $4.52 at the time of writing.
It's been an incredible year for EML Payments, with the company's shares starting off 2019 at just $1.50 and banking a YTD of 202% on today's new high. Even in the last month alone, EML shares have returned nearly 30% for the lucky investors who owned them.
Who is EML Payments?
EML is a payment solutions and software business that "aims to empower people to pay any way they choose". EML works with a range of clients, from gaming companies like Sportsbet and Star Entertainment Group Ltd (ASX: SGR) to the Queensland Government (through its single-load prepaid 'disaster' cards). The company has a major presence in Europe, North America and (of course) Australia.
Why has the EML share price exploded this year?
Well things really started to take off when EML announced strong half-year results in February and ramped up when the company put out is FY19 annual report in August. Some numbers from the latter report included profit growth of 283%, gross payment volume increases of 34% and a 37% rise in revenues.
A number of successful acquisitions, including the PerfectCard DAC and Flex-e-Card platforms have also gotten investors hot under the collar.
Together with ASX companies like Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), the payments space is one of the hottest growth areas of the year, and EML is smack bang in the middle.
Foolish Takeaway
Seeing as this company is trading on a price that is 138x earnings, I think EML stock is now at risky levels, despite its high-growth business. Thus, I personally will be staying away from this one at the current time, but it is one worth watching, that's for sure!
