DB:E19

Stock Analysis Report

Executive Summary

EVO Payments, Inc. operates as an integrated merchant acquirer and payment processor servicing approximately 550,000 merchants.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: E19 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

E19

-3.3%

DE IT

-0.9%

DE Market


1 Year Return

21.1%

E19

32.2%

DE IT

12.8%

DE Market

Return vs Industry: E19 underperformed the German IT industry which returned 32.2% over the past year.

Return vs Market: E19 exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

E19IndustryMarket
7 Day3.8%-3.3%-0.9%
30 Day7.1%-2.1%-0.4%
90 Day8.8%14.1%2.3%
1 Year21.1%21.1%33.0%32.2%16.3%12.8%
3 Yearn/a158.4%151.3%15.8%5.7%
5 Yearn/a230.5%216.9%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: E19 (€27.2) is trading below our estimate of fair value (€28)

Significantly Below Fair Value: E19 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: E19 is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: E19 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate E19's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: E19 has negative assets, so we can't compare its PB Ratio to the DE IT industry average.


Next Steps

Future Growth

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

121.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: E19 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: E19 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: E19's is expected to become profitable in the next 3 years.

Revenue vs Market: E19's revenue (10.1% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: E19's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: E19's Return on Equity is forecast to be high in 3 years time (27.5%)


Next Steps

Past Performance

How has EVO Payments performed over the past 5 years?

-53.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E19 is currently unprofitable.

Growing Profit Margin: E19 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: E19 is unprofitable, and losses have increased over the past 5 years at a rate of -53% per year.

Accelerating Growth: Unable to compare E19's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: E19 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (13.9%).


Return on Equity

High ROE: E19 has a negative Return on Equity (-27.14%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EVO Payments's financial position?


Financial Position Analysis

Short Term Liabilities: E19's short term assets ($681.4M) exceed its short term liabilities ($609.0M).

Long Term Liabilities: E19's short term assets ($681.4M) do not cover its long term liabilities ($845.2M).


Debt to Equity History and Analysis

Debt Level: E19's debt to equity ratio (498.7%) is considered high.

Reducing Debt: Insufficient data to determine if E19's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: E19 has a low level of unsold assets or inventory.

Debt Coverage by Assets: E19's debt is not covered by short term assets (assets are 0.9x debt).


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 E19 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: E19 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 88.5% per year.


Next Steps

Dividend

What is EVO Payments's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage0.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate E19's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate E19's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if E19's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if E19'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 E19's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jim Kelly (57yo)

2.8yrs

Tenure

US$5,542,475

Compensation

Mr. James G. Kelly, also known as Jim, has been Chief Executive Officer of EVO Payments, Inc. since April 20, 2017 and Director since May 2018. Mr. Kelly has been Chief Executive Officer and a member of th ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD5.54M) is above average for companies of similar size in the German market ($USD1.52M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
James Kelly
CEO & Director2.8yrsUS$5.54m0.031% $678.8k
Brendan Tansill
President of The Americas2.8yrsUS$2.18m0.010% $218.5k
Darren Wilson
President of International2.8yrsUS$2.57m0.20% $4.4m
Thomas Panther
Executive VP & CFO0.3yrsno datano data
Anthony Radesca
Senior VP & Chief Accounting Officer0.8yrsno data0.0017% $36.9k
Michael Reidenbach
Executive VP & Chief Information Officer2.8yrsno data0.0095% $207.5k
Edward O'Hare
Senior Vice President of Investor Relations0yrsno datano data
Steven de Groot
Executive VP2.8yrsno datano data
Sarah Perry
Investor Relations & Corporate Communications Manager0yrsno datano data
Catherine Lafiandra
Chief Human Resources Officer2.8yrsno data0.0083% $182.9k

2.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: E19's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Kelly
CEO & Director2.8yrsUS$5.54m0.031% $678.8k
Vahe Dombalagian
Independent Director1.8yrsno datano data
Gregory Pope
Independent Director1.8yrsUS$211.40k0.14% $3.1m
John Garabedian
Independent Director1.8yrsUS$199.99k0.043% $948.5k
Rafik Sidhom
Chairman of the Board1.8yrsUS$276.36kno data
David Leeds
Independent Director1.6yrsUS$184.84k0.027% $596.2k
Laura Miller
Independent Director0.4yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: E19's board of directors are not considered experienced ( 1.8 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: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.8%.


Top Shareholders

Company Information

EVO Payments, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EVO Payments, Inc.
  • Ticker: E19
  • Exchange: DB
  • Founded: 1989
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: US$2.385b
  • Market Cap: US$1.103b
  • Listing Market Cap: US$2.196b
  • Shares outstanding: 82.09m
  • Website: https://www.evopayments.com

Number of Employees


Location

  • EVO Payments, Inc.
  • South Tower
  • Suite 950
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVOPNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDMay 2018
E19DB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2018
0YGULSE (London Stock Exchange)YesClass A Common StockGBUSDMay 2018

Biography

EVO Payments, Inc. operates as an integrated merchant acquirer and payment processor servicing approximately 550,000 merchants. The company processes approximately 950 million transactions in North America and approximately 2.1 billion transactions in Europe. Its payment and commerce solutions consist of gateway solutions, online fraud prevention and management reporting, online hosted payments page capabilities, security tokenization, and encryption solutions at the point-of-sale and online; dynamic currency conversion; loyalty offers; and other ancillary solutions. The company also offers processing capabilities for specific industries and provides merchants with recurring billing, multi-currency authorization and settlement, and cross-border processing. In addition, it provides other services that enable through technical integrations with third-party providers. The company was founded in 1989 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:11
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.