NasdaqGM:EVOP

Stock Analysis Report

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Executive Summary

EVO Payments, Inc. operates as an integrated merchant acquirer and payment processor in the Americas and Europe. More Details


Snowflake Analysis

High growth potential with adequate 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: EVOP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: EVOP's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

EVOP

-2.5%

US IT

-3.6%

US Market


1 Year Return

0.7%

EVOP

39.3%

US IT

36.4%

US Market

Return vs Industry: EVOP underperformed the US IT industry which returned 38.9% over the past year.

Return vs Market: EVOP underperformed the US Market which returned 38.5% over the past year.


Shareholder returns

EVOPIndustryMarket
7 Day-2.9%-2.5%-3.6%
30 Day3.0%5.8%0.9%
90 Day1.4%5.2%6.7%
1 Year0.7%0.7%40.7%39.3%39.4%36.4%
3 Yearn/a96.9%89.5%53.4%43.5%
5 Yearn/a209.3%187.6%117.3%93.0%

Long-Term 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

Valuation

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

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EVOP ($25.46) is trading below our estimate of fair value ($31.1)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EVOP has negative assets, so we can't compare its PB Ratio to the US 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 9 analysts?

77.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVOP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: EVOP's revenue (11% per year) is forecast to grow faster than the US market (10.4% per year).

High Growth Revenue: EVOP's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EVOP's Return on Equity is forecast to be high in 3 years time (20.3%)


Next Steps

Past Performance

How has EVO Payments performed over the past 5 years?

-28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVOP is currently unprofitable.

Growing Profit Margin: EVOP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EVOP is unprofitable, and losses have increased over the past 5 years at a rate of 28.4% per year.

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

Earnings vs Industry: EVOP is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (6.5%).


Return on Equity

High ROE: EVOP has a negative Return on Equity (-1.19%), as it is currently unprofitable.


Next Steps

Financial Health

How is EVO Payments's financial position?


Financial Position Analysis

Short Term Liabilities: EVOP's short term assets ($761.8M) exceed its short term liabilities ($599.0M).

Long Term Liabilities: EVOP's short term assets ($761.8M) do not cover its long term liabilities ($808.2M).


Debt to Equity History and Analysis

Debt Level: EVOP's debt to equity ratio (170.5%) is considered high.

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


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

Forecast Cash Runway: EVOP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 58.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jim Kelly (58 yo)

3.83yrs

Tenure

US$6,563,292

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 ($USD6.56M) is above average for companies of similar size in the US market ($USD4.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Kelly
CEO & Director3.83yrsUS$6.56m0.11%
$ 2.2m
Thomas Panther
Executive VP & CFO1.25yrsUS$1.54m0.0081%
$ 171.4k
Michael Reidenbach
Executive VP & Chief Information Officer3.83yrsUS$1.99m0.038%
$ 792.3k
Brendan Tansill
President of The Americas3.83yrsUS$2.12m0.032%
$ 678.5k
Darren Wilson
President of International3.83yrsUS$2.05m0.15%
$ 3.1m
Anthony Radesca
Senior VP & Chief Accounting Officer1.83yrsno data0.0030%
$ 63.2k
Edward O'Hare
Senior Vice President of Investor Relationsno datano datano data
Steven de Groot
Executive VP3.83yrsno data0.22%
$ 4.7m
Sarah Perry
Investor Relations & Corporate Communications Managerno datano datano data
Catherine Lafiandra
Executive VP & Chief Human Resources Officer3.83yrsno data0.017%
$ 350.7k
David Goldman
Executive Vice President of Business Development & Strategy3.83yrsno data0.019%
$ 393.6k

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: EVOP's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Kelly
CEO & Director3.83yrsUS$6.56m0.11%
$ 2.2m
Vahe Dombalagian
Independent Director2.75yrsno datano data
Mark Chancy
Independent Director0.92yrno data0.011%
$ 227.1k
Matthew Raino
Independent Director0.83yrno datano data
Gregory Pope
Independent Director2.75yrsUS$257.05k0.16%
$ 3.3m
John Garabedian
Independent Director2.75yrsUS$242.73k0.083%
$ 1.7m
Rafik Sidhom
Chairman of the Board2.75yrsUS$292.28kno data
David Leeds
Independent Director2.58yrsUS$248.75k0.045%
$ 954.0k
Laura Miller
Independent Director1.42yrsUS$156.63k0.0095%
$ 199.1k

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: EVOP's board of directors are not considered experienced ( 2.8 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 13%.


Top Shareholders

Company Information

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


Key Information

  • Name: EVO Payments, Inc.
  • Ticker: EVOP
  • Exchange: NasdaqGM
  • Founded: 1989
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: US$2.105b
  • Market Cap: US$1.182b
  • Shares outstanding: 82.68m
  • 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 in the Americas and Europe. Its payment and commerce solutions consist of gateway solutions, online fraud prevention and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 00:40
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.