Everi Holdings Inc (EVRI, Financial), a prominent player in the travel and leisure industry, has recently experienced a remarkable surge in its stock price. Over the past week alone, the company's shares have climbed by an impressive 55.24%, and over the last three months, they have gained 53.76%. This surge has brought the company's market capitalization to approximately $1.09 billion, with the current stock price standing at $13. Despite these gains, the GF Value, which is a measure of the stock's intrinsic value, suggests a valuation of $21.41, indicating that the stock might still be undervalued.
Overview of Everi Holdings Inc
Everi Holdings Inc provides cutting-edge entertainment and technology solutions across two main segments: Games and Financial Technology Solutions. The Games segment supplies a variety of gaming technology products including slot machines and leased gaming equipment, while the Financial Technology Solutions segment offers products and services that facilitate casino transactions like ATM and point-of-sale systems. This dual approach allows Everi to cater comprehensively to the gaming and casino industries.
Assessing Everi's Profitability
Everi's financial health, as indicated by its Profitability Rank of 6/10, showcases a stable position within the industry. The company's Operating Margin stands at 19.08%, which is higher than 78.74% of its peers. Additionally, its Return on Equity (ROE) is an impressive 25.24%, surpassing 85.43% of competitors. The Return on Assets (ROA) at 3.16% and Return on Invested Capital (ROIC) at 7.60% further highlight its efficiency in utilizing assets and capital to generate profits. These metrics not only reflect Everi's strong market position but also its ability to sustain profitability over time.
Growth Trajectory of Everi Holdings
The company's Growth Rank of 7/10 reflects a promising upward trajectory. Everi has demonstrated a robust 25.00% growth in revenue per share over the past three years, outperforming 59.19% of its industry counterparts. Over a five-year period, this growth rate stands at 7.50%, better than 74.25% of competitors. Looking ahead, the estimated total revenue growth rate for the next three to five years is projected at 2.75%, although this is lower compared to industry standards. This suggests that while Everi has had significant past growth, its future pace might slow down, warranting careful observation by investors.
Significant Shareholders and Market Position
Everi's stock is held by notable investors including Private Capital (Trades, Portfolio), which owns 2,791,180 shares, representing 3.32% of the company. Other major shareholders include HOTCHKIS & WILEY and Jim Simons, holding 1% and 0.54% of the shares, respectively. These investments reflect confidence in Everi's market strategy and future prospects.
Competitive Landscape
When compared to its competitors, Everi holds a strong position. Rush Street Interactive Inc (RSI, Financial) has a market cap of $817.108 million, Accel Entertainment Inc (ACEL, Financial) is valued at $892.622 million, and PlayAGS Inc (AGS, Financial) stands at $457.984 million. Everi's larger market cap of $1.09 billion suggests a leading position in the market, potentially offering greater stability and resources to adapt to industry changes.
Conclusion
In conclusion, Everi Holdings Inc's recent stock performance has been exceptionally strong, with significant gains over the past quarter. The company's robust profitability metrics and historical growth rates paint a picture of a solid enterprise with the potential for continued success. However, the modest future revenue growth projections and the current GF Valuation indicating a possible value trap suggest that investors should proceed with caution. As Everi navigates its competitive landscape, it remains a noteworthy contender in the travel and leisure industry, warranting close attention from investors seeking growth and stability.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
