TSX:NVEI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Nuvei Corporation provides payment technology solutions to merchants and partners in North America, Europe, the Asia Pacific, and Latin America. More Details

Rewards

Earnings are forecast to grow 81.94% per year

Revenue grew by 52.6% over the past year

Risk Analysis

No risks detected for NVEI from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Nuvei's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NVEI is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: Insufficient data to determine NVEI's volatility change over the past year.


Market Performance


7 Day Return

2.7%

NVEI

-0.2%

CA IT

-0.5%

CA Market


1 Year Return

n/a

NVEI

-5.4%

CA IT

1.6%

CA Market

Return vs Industry: Insufficient data to determine how NVEI performed against the Canadian IT industry.

Return vs Market: Insufficient data to determine how NVEI performed against the Canadian Market.


Shareholder returns

NVEIIndustryMarket
7 Day2.7%-0.2%-0.5%
30 Day-5.8%-0.6%2.9%
90 Day23.7%17.2%12.2%
1 Yearn/a-5.4%-5.4%5.3%1.6%
3 Yearn/a43.2%43.1%13.1%2.3%
5 Yearn/a81.5%81.1%66.1%40.5%

Long-Term Price Volatility Vs. Market

How volatile is Nuvei's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nuvei undervalued compared to its fair value and its price relative to the market?

6.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NVEI (CA$67.84) is trading above our estimate of fair value (CA$34.42)

Significantly Below Fair Value: NVEI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NVEI is unprofitable, so we can't compare its PE Ratio to the CA IT industry average.

PE vs Market: NVEI is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NVEI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NVEI's PB Ratio (6.1x) is in line with the CA IT industry average.


Next Steps

Future Growth

How is Nuvei forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

81.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVEI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: NVEI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NVEI's is expected to become profitable in the next 3 years.

Revenue vs Market: NVEI's revenue (18.5% per year) is forecast to grow faster than the Canadian market (7.9% per year).

High Growth Revenue: NVEI's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NVEI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Nuvei performed over the past 5 years?

-118.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NVEI is currently unprofitable.

Growing Profit Margin: NVEI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NVEI's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare NVEI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NVEI is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (2.4%).


Return on Equity

High ROE: NVEI has a negative Return on Equity (-11.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nuvei's financial position?


Financial Position Analysis

Short Term Liabilities: NVEI's short term assets ($444.5M) exceed its short term liabilities ($365.5M).

Long Term Liabilities: NVEI's short term assets ($444.5M) exceed its long term liabilities ($115.9M).


Debt to Equity History and Analysis

Debt Level: NVEI's debt to equity ratio (8.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NVEI's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NVEI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NVEI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 9.2% per year.


Next Steps

Dividend

What is Nuvei current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NVEI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NVEI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NVEI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NVEI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NVEI's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Philip Fayer (41 yo)

no data

Tenure

Mr. Philip Fayer serves as Chair and Chief Executive Officer at Nuvei Corporation and Nuvei Technologies Inc. since February 2018. He is the founder of Nuvei. Mr. Fayer serves as Group Chairman and Chief E...


Leadership Team

NamePositionTenureCompensationOwnership
Philip Fayer
Chair & CEOno datano data24.76%
$ 2.3b
David Schwartz
CFO & Corporate Secretary2.17yrsno data0.025%
$ 2.4m
Keith Birdsong
Chief Technology Officer10.33yrsno data0.30%
$ 27.8m
Amy Satov
Senior Legal Counsel0.75yrno data0.00069%
$ 64.7k
Philip Atherton
Global Compliance Officer1yrno data0.0028%
$ 260.6k
Neil Erlick
Chief Corporate Development Officerno datano datano data
Jocelyne Gagnon
Vice President of Human Resources3.08yrsno data0.00087%
$ 81.6k
Edi Kadashev
Chief Information Officer1.17yrsno datano data
Max Attias
Chief Operating Officer of Digital Payments1.17yrsno datano data
Ofer Nissim
Chief Information Security Officer1.67yrsno datano data
Yuval Ziv
Managing Director1.25yrsno data0.026%
$ 2.5m
Edward Garcia
Chief Operating Officer of North America5.08yrsno data0.21%
$ 20.0m

1.5yrs

Average Tenure

50yo

Average Age

Experienced Management: NVEI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Philip Fayer
Chair & CEOno datano data24.76%
$ 2.3b
Pascal Tremblay
Directorno datano datano data
Michael Hanley
Independent Lead Director1yrno data0.028%
$ 2.6m
Daniela Mielke
Director0.33yrno data0.011%
$ 1.0m
David Lewin
Director3.33yrsno datano data

1.0yrs

Average Tenure

51yo

Average Age

Experienced Board: NVEI's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: NVEI only recently listed within the past 12 months.


Top Shareholders

Company Information

Nuvei Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nuvei Corporation
  • Ticker: NVEI
  • Exchange: TSX
  • Founded: 2003
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$9.374b
  • Shares outstanding: 138.17m
  • Website: https://www.nuvei.com

Number of Employees


Location

  • Nuvei Corporation
  • 1100 René-Lévesque Boulevard West
  • Suite 900
  • Montreal
  • Quebec
  • H3B 4N4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NUVC.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDSep 2020
NVEITSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADSep 2020

Biography

Nuvei Corporation provides payment technology solutions to merchants and partners in North America, Europe, the Asia Pacific, and Latin America. It provides Native Commerce Platform, a cloud-based platform...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 23:26
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.