EVRI

Everi Holdings Inc

Finance/Real Estate, Consumer


Presented:09/20/2016
Price:$2.28
Cap:$0.15B
Current Price:$13.24
Cap:$1.14B

Presented

Date09/20/2016
Price$2.28
Market Cap$0.15B
Ent Value$1.11B
P/E RatioN/A
Book Value$1.75
Div Yield0%
Shares O/S66.04M
Ave Daily Vol634,433
Short Int1.08%

Current

Price$13.24
Market Cap$1.14B
Everi Holdings, Inc. engages in the provision of cash access services and related equipment and services to the gaming industry. It operates through Games and Payments segments. The Games segment provides solutions directly to gaming establishments to offer patrons gaming entertainment related experiences including: leased gaming equipment, sales and maintenance related services of gaming equipment, gaming systems, and ancillary products and services. The Payments segment provides solutions directly to gaming establishments to offer patrons cash access related services and products including: access to cash at gaming facilities via Automated Teller Machine (ATM) cash withdrawals, credit card cash access transactions, and point of sale debit card transactions, check-related services, kiosks and maintenance services, compliance, audit and data software, casino credit data and reporting services, and ancillary offerings. The company was founded on February 4, 2004 and is headquartered in Las Vegas, NV.

Publicly traded companies mentioned herein: Apollo Global Management LLC (APO), Everi Holdings Inc (EVRI), Scientific Games Corp (SGMS)

Highlights

The presenter is long shares of Everi Holdings (EVRI) at present levels (~$2.30) and sees meaningful upside potential for shareholders if management can meet investors’ - and the Street’s - expectations and deliver results that are either in line with or slightly ahead of guidance over the next 2 - 3 quarters. He briefly described how EVRI (formerly known as Global Cash Access Holdings) had a string of disappointing earnings announcements following its 2014 acquisition of casino-games maker Multimedia Games for $1.12 billion that sent shares from over $7 down to just over $1 (July 2015 - July 2016). He characterized the position as a levered equity play, and explained how having Michael Rumbolz lead the company’s turnaround is “a huge positive”. He sees the stock trading at less than 6x his 2017 EBITDA estimate, and in his opinion shares would be more fairly valued at $3.80 (8x Gaming EBITDA and 6.5x Payments EBITDA).

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.