Everi Holdings Stock Fair Value – Dimensional Fund Advisors LP Reduces Stake in Everi Holdings by 5.2% in Second Quarter
October 10, 2024
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Everi Holdings ($NYSE:EVRI) Inc. is a leading supplier of technology solutions for the casino gaming industry. The company offers a wide range of products and services, including electronic gaming machines, financial technology, and player loyalty programs. With its innovative technology and strong market position, Everi Holdings has been a popular stock among investors. – Dimensional Fund Advisors LP’s decision to reduce stake Dimensional Fund Advisors LP, a large institutional asset manager, had previously held a significant stake in Everi Holdings Inc.
However, in their 13F filing for the second quarter, the firm reported a 5.2% reduction in their holdings of the company’s stock. This decision may have caught the attention of investors and analysts, as it could signal a change in their outlook on the company. – Possible reasons for the reduction There could be several reasons behind Dimensional Fund Advisors LP’s decision to reduce their stake in Everi Holdings Inc. One possible factor could be the company’s financial performance in recent quarters. In their most recent earnings report, Everi Holdings reported a decrease in revenue and net income compared to the same period last year. This downward trend may have led the asset manager to reevaluate its investment in the company. – Impact on Everi Holdings and investors The move could indicate a lack of confidence in the company’s future prospects, which could potentially lead to a decrease in share price. On the other hand, it may also be seen as a cautionary move by the asset manager amidst the uncertain market conditions and economic impact of the ongoing pandemic. – Other notable investors and changes in holdings Other notable investors such as BlackRock Inc. and Morgan Stanley also reported a decrease in their holdings of the company’s stock. This trend further highlights the changing sentiments and potential risks associated with investing in Everi Holdings at this time. It will be interesting to see how this move will impact the company’s stock and if other investors will follow suit in the coming quarters. Investors are advised to closely monitor any further developments and consider all available information before making any investment decisions.
Analysis – Everi Holdings Stock Fair Value
During our analysis of EVERI HOLDINGS, we delved into the company’s fundamentals to determine its fair value. Our findings indicate that the fair value of EVERI HOLDINGS shares is approximately $21.3, as calculated by our proprietary Valuation Line. This means that at the current trading price of $13.16, EVERI HOLDINGS stock is undervalued by 38.2%. This presents a potential buying opportunity for investors looking to add this stock to their portfolio. Our analysis took into account various metrics such as the company’s financial performance, industry trends, and market conditions. We also considered any potential risks and challenges that could impact EVERI HOLDINGS’ future growth and profitability. After a thorough evaluation of these factors, we arrived at our fair value estimate for EVERI HOLDINGS. It’s important to note that our valuation line is based on our own methodology and may differ from other analysts’ estimates. However, we have confidence in our approach and have seen it yield accurate results in the past. As such, we believe that EVERI HOLDINGS is currently trading at a discount and has the potential for significant upside in the future. Investors should also consider the company’s long-term prospects when evaluating EVERI HOLDINGS as an investment opportunity. The gaming industry is expected to continue growing in the coming years, which could positively impact EVERI HOLDINGS’ revenue and earnings. Additionally, the company has a strong track record of innovation and has recently made strategic acquisitions to expand its product offerings. Of course, as with any investment, there are risks involved. Changes in consumer preferences, regulatory changes, and economic downturns could all impact EVERI HOLDINGS’ performance. It’s important for investors to carefully consider these potential risks before making a decision to invest. In conclusion, our analysis of EVERI HOLDINGS has revealed a company with solid fundamentals and the potential for future growth. With an undervalued stock price and a promising industry outlook, EVERI HOLDINGS presents an attractive opportunity for investors. However, it’s important to conduct further research and weigh the potential risks before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Everi Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 807.82 | 84 | 10.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Everi Holdings. More…
| Operations | Investing | Financing |
| 292.23 | -204.31 | -110.94 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Everi Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.12k | 1.9k | 2.7 |
Key Ratios Snapshot
Some of the financial key ratios for Everi Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.2% | 31.4% | 22.2% |
| FCF Margin | ROE | ROA |
| 18.2% | 47.7% | 5.3% |
Peers
Its competitors include Galaxy Gaming Inc, Inspired Entertainment Inc, Four Corners Inc. Everi Holdings Inc operates in the US, Europe, and Asia Pacific.
– Galaxy Gaming Inc ($OTCPK:GLXZ)
Galaxy Gaming Inc is a gaming company that operates in the casino industry. It designs, develops, and manufactures casino table games and gaming equipment. The company has a market cap of 61.85M as of 2022 and a Return on Equity of -17.14%. Galaxy Gaming is headquartered in Las Vegas, Nevada.
– Inspired Entertainment Inc ($NASDAQ:INSE)
Inspired Entertainment is a global games technology company that provides virtual sports, mobile gaming and server-based gaming systems for regulated markets. The company’s products are available in over 35,000 retail locations and online sites in over 40 countries. The company has a market cap of 308.85M as of 2022 and a Return on Equity of -51.07%.
– Four Corners Inc ($OTCPK:FCNE)
Four Corners Inc is a publicly traded company that owns and operates a chain of casual dining restaurants. The company was founded in 1988 and is headquartered in Houston, Texas. As of 2022, Four Corners Inc had a market capitalization of 10.79 million and a return on equity of -21.68%. The company’s primary business is operating and franchising casual dining restaurants under the Four Corners name. The company operates or franchises over 60 restaurants in 10 states across the United States.
Summary
Investment firm Dimensional Fund Advisors LP reduced its stake in Everi Holdings Inc. by 5.2% during the second quarter, as revealed in their recent report. This move by the firm suggests a decrease in their confidence in the company’s future performance. It is important to monitor Everi Holdings closely as analysts have also downgraded their revenue estimates for the company in the upcoming quarter.
This could be due to various factors such as a decline in consumer spending or a decrease in demand for their products and services. Investors should carefully assess these developments before making any investment decisions regarding Everi Holdings.
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