Everi Holdings (NYSE:EVRI) - Share price, News & Analysis

EVRI fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

EVRI Stock Overview

Rewards

Trading at 55.2% below our estimate of its fair value

Earnings are forecast to grow 8.7% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results

Shareholders have been diluted in the past year

Everi Holdings Competitors

International Game Technology

NYSE:IGT

US$4.1b

Golden Entertainment

NasdaqGM:GDEN

US$1.2b

Accel Entertainment

NYSE:ACEL

US$954.6m

Inspired Entertainment

NasdaqCM:INSE

US$267.6m

Price History & Performance

Summary of all time highs, changes and price drops for Everi Holdings
Historical stock prices
Current Share Price	US$16.92
52 Week High	US$26.61
52 Week Low	US$15.05
Beta	2.61
1 Month Change	-8.79%
3 Month Change	-27.29%
1 Year Change	-12.74%
3 Year Change	54.66%
5 Year Change	152.92%
Change since IPO	13.10%

Shareholder Returns

	EVRI	US Hospitality	US Market
7D	2.2%	0.2%	1.0%
1Y	-12.7%	-27.5%	-15.1%

Return vs Industry: EVRI exceeded the US Hospitality industry which returned -29.1% over the past year.

Return vs Market: EVRI matched the US Market which returned -13.2% over the past year.

Price Volatility

Is EVRI's price volatile compared to industry and market?
EVRI volatility
EVRI Average Weekly Movement	8.1%
Hospitality Industry Average Movement	9.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: EVRI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: EVRI's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	1,550	Randy Taylor	https://www.everi.com

Everi Holdings Inc. provides entertainment and technology solutions for the casino and digital gaming industries in the United States, Canada, the United Kingdom, Europe, the Caribbean, Central America, and Asia. It operates in two segments, Games and FinTech. The company offers local and wide-area progressive gaming products, such as classic mechanical reel games and video reel games, as well as TournEvent, a slot tournament terminal and system machine; and sells player terminals, licenses, game content, and related equipment.

Everi Holdings Fundamentals Summary

How do Everi Holdings's earnings and revenue compare to its market cap?
EVRI fundamental statistics
Market Cap	US$1.56b
Earnings (TTM)	US$163.91m
Revenue (TTM)	US$696.89m

9.5x

P/E Ratio

2.2x

P/S Ratio

Is EVRI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EVRI income statement (TTM)
Revenue	US$696.89m
Cost of Revenue	US$125.71m
Gross Profit	US$571.18m
Other Expenses	US$407.27m
Earnings	US$163.91m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.78
Gross Margin	81.96%
Net Profit Margin	23.52%
Debt/Equity Ratio	463.2%

How did EVRI perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EVRI ($16.92) is trading below our estimate of fair value ($37.78)

Significantly Below Fair Value: EVRI is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: EVRI is good value based on its Price-To-Earnings Ratio (9.5x) compared to the US Hospitality industry average (17x).

PE vs Market: EVRI is good value based on its Price-To-Earnings Ratio (9.5x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: EVRI is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: EVRI is overvalued based on its Price-To-Book Ratio (7.4x) compared to the US Hospitality industry average (2.4x).

Future Growth

How is Everi Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVRI's forecast earnings growth (8.7% per year) is above the savings rate (1.9%).

Earnings vs Market: EVRI's earnings (8.7% per year) are forecast to grow slower than the US market (12.1% per year).

High Growth Earnings: EVRI's earnings are forecast to grow, but not significantly.

Revenue vs Market: EVRI's revenue (6.6% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: EVRI's revenue (6.6% 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 EVRI's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Everi Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

64.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EVRI has a large one-off loss of $32.5M impacting its March 31 2022 financial results.

Growing Profit Margin: EVRI became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: EVRI has become profitable over the past 5 years, growing earnings by 64.5% per year.

Accelerating Growth: EVRI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EVRI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (157.9%).

Return on Equity

High ROE: Whilst EVRI's Return on Equity (77.42%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Everi Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EVRI's short term assets ($539.4M) exceed its short term liabilities ($407.0M).

Long Term Liabilities: EVRI's short term assets ($539.4M) do not cover its long term liabilities ($997.3M).

Debt to Equity History and Analysis

Debt Level: EVRI's net debt to equity ratio (332.1%) is considered high.

Reducing Debt: EVRI had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: EVRI's debt is well covered by operating cash flow (29.1%).

Interest Coverage: EVRI's interest payments on its debt are well covered by EBIT (3.8x coverage).

Balance Sheet

Dividend

What is Everi Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate EVRI'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 EVRI's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EVRI has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure

CEO

Randy Taylor (58 yo)

8.17yrs

Tenure

US$2,565,950

Compensation

Mr. Randy L. Taylor has been the Chief Financial Officer, Executive Vice President and Treasurer at Multimedia Games Holding Company, Inc. since December 19, 2014. Mr. Taylor serves as Chief Executive Offi...

CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD2.57M) is below average for companies of similar size in the US market ($USD5.44M).

Compensation vs Earnings: Randy's compensation has been consistent with company performance over the past year.

Leadership Team

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

Board Members

Experienced Board: EVRI's board of directors are considered experienced (4.2 years average tenure).

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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31