Everi Holdings Inc. (EVRI) | Investment Case

1. Company Snapshot

1.a. Company Description

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.It also provides financial access services, such as funds dispensed, credit card and POS debit card financial access transactions; check warranty; CashClub, a software payments platform that provides gaming establishments with a personal computer workstation software user interface and point-of-sale terminal; CashClub Wallet, a digital payments platform for gaming establishments; fully integrated kiosks that provide multiple functions to the casino floor; loyalty kiosk and related equipment; and other integrated kiosk solutions.In addition, the company offers non-funds dispensing terminals that perform authorizations for credit card financial access and POS debit card financial access transactions; and database services.

Further, it provides Everi Compliance solutions to assist casino operators with meeting regulatory requirements; Central Credit, a gaming patron credit bureau service; JackpotXpress, a jackpot payout and tax form management platform; and loyalty platform, as well as support and maintenance services.The company was formerly known as Global Cash Access Holdings, Inc.and changed its name to Everi Holdings Inc.

in August 2015.Everi Holdings Inc.was founded in 1998 and is headquartered in Las Vegas, Nevada.

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1.b. Last Insights on EVRI

Everi Holdings Inc.'s recent performance was driven by the launch of its full suite venue app, including an integrated wagering experience for horse racing fans at Gulfstream Park, developed with 1/ST. This strategic partnership utilizing Everi's BeOn Mobile Services is expected to enhance the user experience and increase revenue. Furthermore, the company's strong financial position was demonstrated by a share buyback program, which reduces outstanding shares and benefits shareholders.

1.c. Company Highlights

Last Price	14.24
Change Percentage	0.07%
Open	14.25
Previous Close	14.23
Market Cap ( Millions)	1237
Volume	1510549
Year High	14.25
Year Low	7.97
M A 50	14.09
M A 200	13.65

FCF Yield	37.28%
Dividend Yield	0.00%
ROE	5.66%
Debt / Equity	360.16%
Net Debt / EBIDTA	121.61%
Price To Book	4.58
Price Earnings Ratio	84.17
Price To FCF	2.68
Price To sales	1.65
EV / EBITDA	7.51

2. Transcript Summary

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3. NewsRoom

Everi Enters Seven-Year Strategic Relationship with Churchill Downs Incorporated for Financial Technology Related Services

Oct -08

Source: prnewswire.com

New Strong Sell Stocks for June 6th

Jun -06

Source: zacks.com

Everi Holdings (EVRI) Lags Q1 Earnings Estimates

May -12

Source: zacks.com

PENN ENTERTAINMENT LAUNCHES "PENN Wallet" AT M RESORT SPA CASINO, POWERED BY EVERI'S DIGITAL CASHCLUB WALLET® TECHNOLOGY

May -05

Source: prnewswire.com

EVERI TO SHOWCASE IN-DEMAND CABINETS AND GAMES, FINTECH SOLUTIONS WITH EMPHASIS ON DIGITAL TRANSFORMATIONS AND EXPANDED CASHLESS PRODUCTS AT THE INDIAN GAMING TRADESHOW & CONVENTION 2025

Apr -01

Source: prnewswire.com

Are Business Services Stocks Lagging Everi (EVRI) This Year?

Mar -07

Source: zacks.com

1/ST LAUNCHES FULL SUITE VENUE APP, INCLUDING AN INTEGRATED WAGERING EXPERIENCE FOR HORSE RACING FANS AT GULFSTREAM PARK, DEVELOPED WITH EVERI

Jan -29

Source: prnewswire.com

Everi Stockholders Approve Acquisition by Apollo Funds

Nov -14

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.47%)

6. Segments

Games

Expected Growth: 4.0%

Everi Holdings Inc.'s 4.0% growth in games is driven by increasing demand for interactive gaming experiences, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, such as the development of cashless and contactless gaming solutions, has contributed to its growth. Furthermore, the rising popularity of online gaming and the increasing adoption of digital payment systems have also fueled the segment's growth.

FinTech

Expected Growth: 5.0%

Everi Holdings Inc.'s FinTech segment growth of 5.0% is driven by increasing adoption of digital payments, rising demand for cashless gaming solutions, and strategic partnerships with casinos and resorts. Additionally, the company's investments in product innovation, such as its CashClub Wallet and Jackpot Xpress, are contributing to its growth momentum.

7. Detailed Products

Games

Everi Holdings Inc. offers a diverse portfolio of slot machines and other electronic gaming devices, including reel spinning games, video slots, and stepper games.

FinTech Solutions

Everi's FinTech solutions provide cash access and compliance products, including ATM and debit solutions, check warranty, and AML compliance.

TournEvent of Champions

TournEvent of Champions is a slot tournament system that allows casinos to host tournaments and promotions, increasing player engagement and loyalty.

Digital Gaming

Everi's digital gaming solutions provide online and mobile gaming experiences, including social casino and real-money gaming.

Cashless Gaming Solutions

Everi's cashless gaming solutions provide a digital wallet and cashless payment systems for gaming operators, enhancing the player experience and reducing cash handling costs.

8. Everi Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Everi Holdings Inc. operates in a niche market, providing gaming technology and services. While there are some substitutes available, they are not as comprehensive as Everi's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Everi Holdings Inc. has a diverse customer base, including casinos and gaming operators. While customers have some bargaining power, Everi's strong relationships and customized solutions reduce their bargaining power.

Bargaining Power Of Suppliers

Everi Holdings Inc. relies on a few key suppliers for components and services. While suppliers have some bargaining power, Everi's scale and negotiating power mitigate this threat.

Threat Of New Entrants

Entering the gaming technology and services market requires significant investment and expertise. Barriers to entry, including regulatory hurdles and high development costs, reduce the threat of new entrants.

Intensity Of Rivalry

The gaming technology and services market is highly competitive, with several established players competing for market share. Everi Holdings Inc. must continually innovate and differentiate its offerings to maintain its position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	81.27%
Debt Cost	9.32%
Equity Weight	18.73%
Equity Cost	14.42%
WACC	10.27%
Leverage	434.04%

11. Quality Control: Everi Holdings Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Inspired Entertainment

A-Score: 5.4/10

Value: 9.1

Growth: 6.9

Quality: 6.0

Yield: 0.0

Momentum: 5.5

Volatility: 5.0

1-Year Total Return ->

PlayAGS

A-Score: 5.3/10

Value: 5.1

Growth: 6.7

Quality: 5.7

Yield: 0.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Everi

A-Score: 4.8/10

Value: 5.1

Growth: 4.7

Quality: 4.8

Yield: 0.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Canterbury Park

A-Score: 4.3/10

Value: 3.6

Growth: 2.3

Quality: 5.2

Yield: 3.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

Century Casinos

A-Score: 3.6/10

Value: 8.8

Growth: 2.9

Quality: 3.8

Yield: 0.0

Momentum: 4.5

Volatility: 2.0

1-Year Total Return ->

Ballys

A-Score: 2.1/10

Value: 5.2

Growth: 4.4

Quality: 1.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.61%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.27%

Everi Holdings Inc. - US30034T1034

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EVRI

1.c. Company Highlights

Weak Momentum

Average Growth

Average Yield

Earnings Miss

Higher Growth

Medium Volatility

Revenues Miss

Stable Momentum

Fairly Valued

Strong Momentum

Better Quality

Average Quality

Less Volatile

Earnings Beats

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.47%)

6. Segments

Games

Expected Growth: 4.0%

FinTech

Expected Growth: 5.0%

7. Detailed Products

Games

FinTech Solutions

TournEvent of Champions

Digital Gaming

Cashless Gaming Solutions

8. Everi Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Everi Holdings Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.24$

Current Price

14.24$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA