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Everi Holdings Inc (EVRI)
NYSE:EVRI
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Everi Holdings
(NYSE:EVRI)
62Neutral
Everi Holdings (EVRI) vs. S&P 500 (SPY)
Market Cap
$1.18B
Dividend YieldN/A
Average Volume (3M)734.29K
Price to Earnings (P/E)79.6
Beta (1Y)0.54
Revenue Growth-6.97%
EPS Growth-81.42%
CountryUS
Employees2,200
SectorConsumer Cyclical
Sector Strength50
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)0.17
Shares Outstanding86,437,710
10 Day Avg. Volume1,186,765
30 Day Avg. Volume734,290
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.56
Price to Cash Flow (P/CF)0.80
P/FCF Ratio0.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.25Price Target Upside4.93% Upside
Rating ConsensusHold
Number of Analyst Covering1
Everi Holdings Business Overview & Revenue Model
Company DescriptionEveri Holdings, Inc. engages in the provision of technology solutions to the casino gaming industry. It operates through the Games and FinTech segments. The Games segment provides solutions directly to gaming establishments to offer patrons gaming entertainment related experiences such as: leased gaming equipment; sales and maintenance related services of gaming equipment; gaming systems; and ancillary products and services. The FinTech segment includes gaming establishments to offer patrons cash access services and products including: access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions and point of sale debit card cash access transactions; check-related services; fully integrated kiosks and maintenance services; compliance, audit and data software; casino credit data; and reporting services and other ancillary offerings. The company was founded on February 4, 2004 and is headquartered in Las Vegas, NV.
How the Company Makes MoneyEveri Holdings generates revenue through multiple streams primarily associated with its two segments: Games and Financial Technology Solutions. The Games segment earns income by leasing electronic gaming machines and selling gaming content and systems to casinos. This includes participation agreements where Everi earns a percentage of the revenue generated by its machines on the casino floor. The Financial Technology Solutions segment generates revenue by providing cash access services, such as ATMs and point-of-sale transactions, along with compliance and security services to gaming operators. Additionally, Everi earns from its comprehensive suite of loyalty and marketing solutions that help casinos enhance customer engagement. Strategic partnerships with casinos and gaming establishments, along with ongoing development and deployment of innovative gaming and financial solutions, significantly contribute to the company's earnings.
Everi Holdings Financial Statement Overview
Summary
Everi Holdings faces challenges with declining revenue and profitability margins, and high leverage is a concern. However, strong operating cash flows and a slightly improved equity position provide some resilience. Efforts to further improve cash management and reduce debt are critical for future stability.Income Statement
Everi Holdings shows a decline in both gross and net income from 2023 to 2024. Gross profit margin remains healthy, but net profit margin has decreased significantly, indicating increased expenses or reduced operational efficiency. Revenue growth has been inconsistent with a recent decline, impacting overall profitability. EBIT and EBITDA margins have also declined, showing challenges in maintaining operational profitability.55
Neutral
Balance Sheet
The company's debt-to-equity ratio is high due to substantial debt, which poses a risk, yet it has been reduced over the years. Return on equity has decreased, which might concern investors about returns. However, the equity ratio improved slightly, suggesting a better balance between assets and liabilities. Overall, while leverage remains a concern, there is a modest improvement in equity positioning.65
Positive
Cash Flow
Operating cash flow has been strong, indicating decent operational cash generation, although free cash flow growth is modest. The operating cash flow to net income ratio is high, demonstrating efficient cash conversion. Free cash flow relative to net income has been positive, indicating good cash management despite fluctuations in net income.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 757.90M | 807.82M | 782.52M | 660.38M | 383.67M | Gross Profit |
| 656.72M | 646.58M | 617.20M | 544.94M | 317.84M | EBIT |
| 89.19M | 179.28M | 213.35M | 197.51M | 2.04M | EBITDA |
| 89.19M | 318.02M | 213.35M | 197.51M | 137.35M | Net Income Common Stockholders |
| 15.02M | 84.00M | 120.49M | 152.93M | -81.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 400.68M | 272.40M | 293.39M | 302.01M | 251.71M | Total Assets |
| 1.92B | 2.12B | 1.92B | 1.64B | 1.48B | Total Debt |
| 958.51M | 1.01B | 978.00M | 981.52M | 1.13B | Net Debt |
| 557.84M | 741.26M | 684.60M | 679.52M | 883.20M | Total Liabilities |
| 1.67B | 1.90B | 1.70B | 1.46B | 1.49B | Stockholders Equity |
| 255.94M | 226.14M | 217.64M | 174.50M | -7.90M |
| Cash Flow | Free Cash Flow | |||
| 161.98M | 147.12M | 145.07M | 286.92M | -40.25M | Operating Cash Flow |
| 318.41M | 292.23M | 272.64M | 391.63M | 36.18M | Investing Cash Flow |
| -156.16M | -204.31M | -179.34M | -151.91M | -94.12M | Financing Cash Flow |
| -23.65M | -110.94M | -100.57M | -188.36M | 15.07M |
Everi Holdings Technical Analysis
Neutral
13.58
Price Trends
13.65
Negative
13.53
Positive
12.22
Positive
Market Momentum
<0.01
Positive
32.17
Neutral
13.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVRI, the sentiment is Neutral. The current price of 13.58 is below the 20-day moving average (MA) of 13.74, below the 50-day MA of 13.65, and above the 200-day MA of 12.22, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 32.17 is Neutral, neither overbought nor oversold. The STOCH value of 13.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVRI.
Everi Holdings Risk Analysis
Everi Holdings disclosed 44 risk factors in its most recent earnings report. Everi Holdings reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Everi Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.57B | 22.14 | 18.25% | 1.41% | 4.13% | 17.73% | |
74 Outperform | $5.60B | 10.72 | 34.76% | 1.02% | 5.13% | 2.04% | |
71 Outperform | $3.44B | 10.35 | 8.08% | 4.70% | -22.16% | 123.24% | |
67 Neutral | $850.48M | 23.98 | 15.55% | ― | 5.17% | -20.75% | |
62 Neutral | $1.18B | 79.65 | 6.23% | ― | -6.97% | -81.42% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
49 Neutral | $5.90B | ― | -6.38% | ― | -2.45% | -135.17% |
* Consumer Cyclical Sector Average
Performance Comparison
EVRI
Everi Holdings
13.58
4.54
50.22%
BYD
Boyd Gaming
67.21
4.97
7.99%
IGT
International Game Technology
16.84
-3.82
-18.49%
MCRI
Monarch Casino & Resort
84.65
13.63
19.19%
CZR
Caesars Entertainment
27.32
-14.29
-34.34%
ACEL
Accel Entertainment
9.93
-1.47
-12.89%
Everi Holdings Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -1.45% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The call highlighted strategic opportunities through the merger with IGT and expansion into new markets, alongside growth in digital and fintech segments. However, these were countered by declines in the games business, flat gaming equipment sales, and reduced adjusted EBITDA.Highlights
Merger with IGT's Global Gaming and Play Digital
Anticipated to close in late 2024 or early 2025, promising $75 million in cash synergies and $10 million in capital savings.
Expansion to New Markets
Final stages of approval to enter Illinois with VLTs, opening a 50,000 unit opportunity.
Fintech Cash Access Services Growth
Processed a record 39 million transactions, delivering $12.4 billion of funding, a 2.1% increase from the prior year.
Digital Segment Growth
Year-over-year growth of approximately 12-13%, with expansion into U.K. markets.
Lowlights
Decline in Games Business
Revenue for gaming operations and systems declined year-over-year, and installed base declined by 595 units.
Gaming Equipment and System Sales Flat
Sales were flat compared to the fourth quarter, with unit sales below expectations.
Adjusted EBITDA Decline
Adjusted EBITDA declined from $92.5 million to $80.3 million, reflecting lower revenues and higher expenses.
Fintech Hardware Sales Decline
Decline in hardware sales, impacted by foreign jurisdictions and delayed customer readiness.
Company Guidance
During the Everi Holdings Q1 2024 earnings call, the company provided guidance on its anticipated merger with IGT's Global Gaming and Play Digital businesses, which is expected to close in late 2024 or early 2025. The merger aims to generate approximately $75 million in cash synergies and $10 million in capital savings, with a pro forma net leverage of 3.2 to 3.4x. Revenue growth opportunities are anticipated from leveraging global networks and a combined product offering. Additionally, the company expects a return to revenue growth in the second half of 2024, with an emphasis on improving daily win per unit and increasing unit sales, particularly through new cabinets and game content. Everi's Fintech segment is expected to grow through increased financial access volumes and hardware sales. Despite challenges in Q1, the company remains confident in its growth strategy, supported by strong free cash flow and an effective tax rate projected at 22% to 25% for the year. Adjusted EBITDA is expected to decline year-over-year but improve in the latter half of 2024.Everi Holdings Corporate Events
M&A TransactionsBusiness Operations and Strategy
Everi Holdings and IGT Announce Major Merger Deal
Neutral
Dec 5, 2024
Everi Holdings Inc. and International Game Technology PLC are set for a major merger, creating a new holding company owned by Apollo Global Management funds. The transaction, expected to close by Q3 2025, will form three business units: Gaming, Digital, and FinTech. Hector Fernandez will lead the combined enterprise as CEO, with interim leadership by Nick Khin. This merger promises to reshape the involved companies, appealing to those tracking dynamic shifts in the financial markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.