Everi Holdings (EVRI) AI Stock Analysis

1,034 Followers

Top Page

Everi Holdings

(NYSE:EVRI)

62Neutral

Everi Holdings' overall stock score is primarily influenced by solid technical indicators and a strong cash flow position. However, the high P/E ratio and declining profit margins are significant concerns. The company's high leverage and lack of dividend yield also weigh negatively on the overall score. Continued focus on reducing debt and improving profitability is essential for enhancing investor confidence.

Everi Holdings (EVRI) vs. S&P 500 (SPY)

Market Cap

$1.17B

Dividend YieldN/A

Average Volume (3M)1.60M

Price to Earnings (P/E)80.2

Beta (1Y)0.34

Revenue Growth-6.97%

EPS Growth-81.42%

CountryUS

Employees2,300

SectorConsumer Cyclical

Sector Strength62

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)0.17

Shares Outstanding86,437,710

10 Day Avg. Volume2,411,223

30 Day Avg. Volume1,601,431

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

$14.25

Price Target Upside4.17% Upside

Rating ConsensusHold

Number of Analyst Covering1

Everi Holdings Business Overview & Revenue Model

Company DescriptionEveri Holdings Inc. (EVRI) is a prominent provider of technology solutions to the casino gaming industry. The company operates within two primary segments: Games and Financial Technology Solutions. Everi offers a wide array of products and services, including electronic gaming machines, gaming content, and gaming systems, as well as financial equipment, software, and services that facilitate convenient and secure cash and cashless monetary transactions for casino patrons.

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

Neutral

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price13.68

Price Trends

50DMA

13.66

Positive

100DMA

13.58

Positive

200DMA

12.88

Positive

Market Momentum

MACD

>-0.01

Negative

RSI

57.47

Neutral

STOCH

49.56

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVRI, the sentiment is Positive. The current price of 13.68 is above the 20-day moving average (MA) of 13.59, above the 50-day MA of 13.66, and above the 200-day MA of 12.88, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 49.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVRI.

Everi Holdings Risk Analysis

Everi Holdings disclosed 31 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
MCRI	79 Outperform	$1.43B	20.14	18.25%	1.62%	4.13%	17.73%
IGT	74 Outperform	$3.22B	9.35	8.08%	5.19%	-22.16%	123.24%
ACEL	72 Outperform	$918.93M	26.44	15.55%	―	5.17%	-20.75%
AGS	65 Neutral	$492.21M	10.07	53.82%	―	10.75%	10405.31%
EVRI	62 Neutral	$1.17B	80.23	6.23%	―	-6.97%	-81.42%
Sector *	59 Neutral	$11.38B	10.18	-0.84%	4.04%	1.25%	-16.04%
BALY	47 Neutral	$741.76M	―	-170.41%	―	0.06%	-248.51%

* Consumer Cyclical Sector Average

Performance Comparison

EVRI

Everi Holdings

13.68

4.53

49.51%

IGT

International Game Technology

15.65

-3.51

-18.32%

MCRI

Monarch Casino & Resort

74.62

5.14

7.40%

ACEL

Accel Entertainment

10.96

-0.05

-0.45%

AGS

Playags

11.95

2.86

31.46%

BALY

Bally's Corporation

15.46

-6.61

-29.95%

Everi Holdings Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -0.73% | 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

Executive/Board ChangesBusiness Operations and Strategy

Everi Holdings Reappoints Michael Rumbolz as Executive Chair

Neutral

Mar 21, 2025

On March 20, 2025, Everi Holdings Inc. reappointed Michael D. Rumbolz as Executive Chair of the Board of Directors, effective April 1, 2025. The agreement includes monthly cash compensation, a potential discretionary bonus, and equity compensation contingent on a merger transaction. The agreement also imposes non-competition and non-solicitation covenants on Mr. Rumbolz after his tenure.

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.