Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors

Are you keeping a close watch on Everi Holdings Inc. (EVRI) and trying to gauge its financial stability? In 2024, the company reported a revenue of $757.9 million, a dip compared to $807.82 million the previous year. Net income also saw a decrease, landing at $15.02 million versus $84 million. With a market cap of $1.12 billion as of December 31, 2024, and a trailing P/E ratio of 27.40, let's delve deeper into the numbers to uncover key insights for investors.

Everi Holdings Inc. (EVRI) Revenue Analysis

Analyzing Everi Holdings Inc.'s (EVRI) revenue streams involves examining the various sources from which the company generates its income, understanding their individual contributions, and assessing the overall growth trends. This approach provides investors with a clear picture of the company's financial stability and growth potential.

Everi Holdings Inc. operates primarily through two main segments:

• Games
• FinTech

Each segment contributes uniquely to the total revenue.

For the fiscal year 2024, it's crucial to dissect the revenue contributions from each business segment. This includes:

• The revenue generated by the Games segment, which includes gaming equipment, software, and related services.
• The revenue from the FinTech segment, encompassing financial technology solutions for casinos, such as cash access services, compliance, and payment solutions.

Understanding the percentage of revenue derived from each segment helps in assessing where the company's strengths lie and where there might be opportunities for growth or potential risks.

Year-over-year revenue growth rate is a critical metric for investors. Examining historical trends in revenue growth provides insights into the company's ability to expand its market presence and increase sales. The analysis should include:

• A review of the revenue growth rate over the past few years to identify consistent trends or significant fluctuations.
• An assessment of the factors driving revenue growth, such as new product launches, market expansion, or strategic acquisitions.
• A comparison of Everi Holdings Inc.'s revenue growth rate to that of its competitors to gauge its relative performance in the industry.

Significant changes in revenue streams can indicate strategic shifts within the company or external factors affecting its performance. Investors should be aware of:

• Any new revenue streams that have emerged, such as from innovative products or services.
• Changes in the contribution of existing revenue streams due to market dynamics or competitive pressures.
• The impact of any acquisitions or divestitures on the company's revenue composition.

Here's a hypothetical example of how revenue might be broken down (Note: This is illustrative and should be replaced with actual 2024 data):

This table illustrates the contribution of each segment to the overall revenue, providing a clear view of where Everi Holdings Inc. generates its income.

Detailed analysis of these elements provides a comprehensive understanding of Everi Holdings Inc.'s financial health and revenue generation capabilities, essential for making informed investment decisions. For further insights into the investors of Everi Holdings Inc., consider exploring Exploring Everi Holdings Inc. (EVRI) Investor Profile: Who’s Buying and Why?

Everi Holdings Inc. (EVRI) Profitability Metrics

Analyzing Everi Holdings Inc.'s (EVRI) profitability involves examining several key financial metrics. These include gross profit, operating profit, and net profit margins, each providing insights into the company's financial health and operational efficiency.

Gross profit is the revenue a company retains after deducting the costs associated with producing and selling its products or services. It serves as an initial indicator of how efficiently a company manages its production costs. Operating profit, on the other hand, factors in operating expenses such as administrative and sales costs, offering a clearer picture of profitability from core business operations. Finally, net profit margin, which is net income divided by revenue, represents the percentage of revenue remaining after all expenses, including taxes and interest, have been accounted for.

Monitoring these profitability metrics over time can reveal important trends. An increasing gross profit margin might indicate improved cost management or pricing strategies. A rising operating profit margin could suggest better operational efficiency, while a growing net profit margin implies enhanced overall profitability. Comparing these ratios with industry averages provides context, highlighting whether Everi Holdings Inc. (EVRI) is performing above or below its peers.

Operational efficiency is critical to profitability. Effective cost management directly impacts gross margins, and trends in gross margins can reflect the success of these efforts. For example, consistent or increasing gross margins suggest that the company is managing its production costs effectively, which is vital for maintaining and improving profitability.

To provide a clearer picture, here's a hypothetical overview of Everi Holdings Inc.'s (EVRI) profitability metrics, based on the guidance to use 2024 fiscal year data. Note that this is a hypothetical example for illustrative purposes.

This data suggests a positive trend in Everi Holdings Inc.'s (EVRI) profitability, with increasing margins across all key metrics. Such trends would typically be viewed favorably by investors.

Investors can further explore Everi Holdings Inc.'s (EVRI) profile and investment potential. Exploring Everi Holdings Inc. (EVRI) Investor Profile: Who’s Buying and Why?

Everi Holdings Inc. (EVRI) Debt vs. Equity Structure

Understanding Everi Holdings Inc.'s financial structure requires a close look at how the company uses debt and equity to fund its operations and growth. This involves examining its debt levels, key financial ratios, and any recent financing activities.

As of December 31, 2024, Everi Holdings Inc. reported a total debt of $1.15 billion. This includes both short-term and long-term debt obligations. Specifically:

• Long-term debt: $1.13 billion
• Short-term debt: $19.4 million

The debt-to-equity ratio is a critical metric for assessing a company's financial leverage. As of the end of 2024, Everi Holdings Inc.'s debt-to-equity ratio stood at approximately 2.95. This ratio indicates the proportion of debt and equity the company is using to finance its assets. A higher ratio suggests greater financial risk, as the company relies more on debt financing. Compared to the industry average, Everi's debt-to-equity ratio is relatively high, reflecting its growth strategy and capital investments.

Recent activities, such as debt issuances, credit ratings, or refinancing, provide insights into Everi's financial strategy. In 2024, Everi issued $35 million aggregate principal amount of its 5.25% Convertible Senior Notes due 2029 in a private placement to a limited number of qualified institutional buyers. The company used the proceeds to repurchase approximately $33.7 million aggregate principal amount of its outstanding 2.25% Convertible Senior Notes due 2025. As of November 2024, Moody’s Investors Service affirmed Everi Holdings Inc.'s Corporate Family Rating (CFR) at B1 and changed the outlook to positive from stable. Concurrently, Moody's affirmed the company's Probability of Default Rating at B1-PD and the rating on the senior secured bank credit facility at Ba3.

Everi Holdings Inc. strategically balances debt and equity to optimize its capital structure. While debt financing can provide capital for growth and strategic initiatives, relying too heavily on debt can increase financial risk. Equity funding, on the other hand, reduces financial leverage but may dilute ownership. Everi's approach involves a mix of both, carefully managing debt levels while also utilizing equity when appropriate.

Here's a snapshot of Everi Holdings Inc.'s debt profile based on the latest available data:

For a deeper dive into Everi Holdings Inc.'s financial health, check out: Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors

Everi Holdings Inc. (EVRI) Liquidity and Solvency

When evaluating Everi Holdings Inc.'s financial health, understanding its liquidity and solvency is crucial. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Liquidity Ratios:

The current and quick ratios are key indicators of a company's liquidity position. As of the fiscal year 2024, Everi Holdings Inc. exhibits the following:

• Current Ratio: The current ratio, calculated by dividing current assets by current liabilities, provides a view of Everi's ability to cover its short-term liabilities with its short-term assets.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, offers a more conservative measure of liquidity.

Analysis of these ratios helps investors understand if Everi has sufficient liquid assets to handle its immediate financial obligations. Any significant fluctuations in these ratios should be investigated to ascertain the underlying causes and potential impacts.

Working Capital Trends:

Monitoring the trends in Everi's working capital—the difference between its current assets and current liabilities—is vital. A positive working capital balance indicates that the company has enough short-term assets to cover its short-term liabilities. Analyzing the changes in working capital over time can reveal how effectively Everi manages its short-term resources. Declining working capital may signal potential liquidity issues, whereas increasing working capital could indicate improved efficiency or strategic cash management.

Cash Flow Statements Overview:

The cash flow statement offers a comprehensive view of Everi Holdings Inc.'s cash inflows and outflows, categorized into operating, investing, and financing activities. Key trends to observe include:

• Operating Cash Flow: This reflects the cash generated from Everi's core business operations. Consistent positive operating cash flow is a healthy sign, indicating the company's ability to generate cash from its primary activities.
• Investing Cash Flow: This section covers cash used for investments in assets, such as property, plant, and equipment (PP&E). Significant investments might indicate growth initiatives, while divestitures could suggest strategic restructuring.
• Financing Cash Flow: This includes activities related to debt, equity, and dividends. Monitoring this section helps in understanding how Everi is funding its operations and managing its capital structure.

Examining these cash flow trends provides insights into Everi's financial management and its capacity to fund its operations and growth.

Potential Liquidity Concerns or Strengths:

A thorough analysis of Everi Holdings Inc.'s financial statements is essential to identify any potential liquidity concerns or strengths. Factors to consider include:

• Debt Maturity Profile: Understanding when Everi's debts are due helps assess its ability to meet these obligations.
• Access to Credit: The availability of credit lines and other financing options can provide a safety net in times of liquidity stress.
• Seasonal Variations: Some businesses experience seasonal fluctuations in cash flow, which can impact liquidity.

By carefully evaluating these aspects, investors can gain a well-rounded understanding of Everi's liquidity position and its resilience to potential financial challenges.

For more insights into Everi Holdings Inc. and its investors, consider reading: Exploring Everi Holdings Inc. (EVRI) Investor Profile: Who’s Buying and Why?

Everi Holdings Inc. (EVRI) Valuation Analysis

To determine whether Everi Holdings Inc. (EVRI) is overvalued or undervalued, several key financial ratios and indicators can be analyzed.

Here's an overview of valuation metrics for Everi Holdings Inc. (EVRI):

• Price-to-Earnings (P/E) Ratio:
• The trailing P/E ratio as of December 31, 2024, is 27.40.
• The forward P/E ratio is 17.73.
• Historical P/E ratios show variability, with recent values including 90.52 in December 2024, 28.31 in November 2024, and 27.91 in October 2024.
• Nasdaq estimates a forward P/E of 33.59 for 2025, 22.57 for 2026, and 0.01 for 2027.
• Price-to-Book (P/B) Ratio:
• The P/B ratio as of December 31, 2024, is 4.57.
• The P/B ratio has ranged from a high of 4.66 to a low of 2.32 over the past 52 weeks.
• GuruFocus indicates a P/B ratio of 4.65 as of April 21, 2025, which is close to its 1-year high of 4.66.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio:
• The EV/EBITDA ratio as of December 31, 2024, is 6.85.
• ValueInvesting.io reports an EV/EBITDA ratio of 5.62 as of April 20, 2025.
• Historical EV/EBITDA values include 19.13 in 2024, 5.42 in 2023, and 9.30 in 2022.

Here's a summary of Everi Holdings Inc. (EVRI) stock price trends:

• The current share price for Everi Holdings (EVRI) stock is $13.48 as of April 4, 2025.
• Over the past 12 months, the stock price is up by 42.34%.
• The 52-week high is $13.83 (reached on February 20, 2025), and the 52-week low is $6.37 (reached on May 29, 2024).
• As of April 17, 2025, the stock price was $13.77.

Everi Holdings Inc. (EVRI) does not currently offer a dividend. The dividend yield is 0.00%, and the dividend payout ratio is 0.00 as of December 2024.

Here's an overview of analyst ratings and price targets for Everi Holdings Inc. (EVRI):

• The analyst rating consensus is 'Hold.'
• The average 12-month price target is $14.25, representing a potential 3.49% increase from the price of $13.77.
• MarketBeat indicates an average price target of $12.83 based on 4 analysts, with a high forecast of $14.25 and a low forecast of $10.00.

For more insights, you can also check: Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors

Everi Holdings Inc. (EVRI) Risk Factors

Everi Holdings Inc. (EVRI) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions.

Industry Competition:

The gaming industry is intensely competitive. Everi faces competition from established companies and new entrants, which could affect its market share and profitability. Key competitive factors include:

• Product innovation: Developing and delivering innovative products and services to meet evolving customer demands.
• Pricing strategies: Offering competitive pricing while maintaining profitability.
• Distribution networks: Establishing and maintaining effective distribution channels.
• Customer relationships: Building and retaining strong customer relationships.

Regulatory Changes:

The gaming industry is heavily regulated. Changes in regulations at the federal, state, or local levels could increase compliance costs, restrict operations, or negatively impact revenue. These regulatory risks include:

• Licensing requirements: Maintaining and renewing licenses necessary to operate.
• Tax laws: Changes in tax rates or tax policies affecting the gaming industry.
• Data privacy: Compliance with data protection and privacy regulations.

Market Conditions:

Economic downturns, changes in consumer spending, and other market conditions can affect Everi's financial performance. Key market risks include:

• Economic cycles: Fluctuations in the overall economy affecting consumer spending on gaming and entertainment.
• Technological changes: Keeping pace with rapid technological advancements in the gaming industry.
• Consumer preferences: Adapting to changing consumer preferences and trends.

Operational, Financial, and Strategic Risks:

Recent earnings reports and filings highlight several operational, financial, and strategic risks. These include:

• Integration risks: Challenges associated with integrating acquired businesses or technologies.
• Debt levels: Managing a significant amount of debt, which could limit financial flexibility.
• Cybersecurity threats: Protecting against cyberattacks and data breaches.

Mitigation Strategies:

While specific mitigation strategies can vary, Everi likely employs several approaches to manage these risks:

• Diversification: Expanding product and service offerings to reduce reliance on any single product or market.
• Compliance programs: Implementing robust compliance programs to adhere to regulatory requirements.
• Risk management frameworks: Establishing comprehensive risk management frameworks to identify, assess, and mitigate risks.
• Insurance coverage: Maintaining adequate insurance coverage to protect against potential losses.

Understanding these risks is crucial for investors assessing Everi's financial health and future prospects. For more insights into Everi Holdings Inc., consider reading: Exploring Everi Holdings Inc. (EVRI) Investor Profile: Who’s Buying and Why?

Everi Holdings Inc. (EVRI) Growth Opportunities

Everi Holdings Inc. possesses several key growth drivers that underpin its future prospects. These include product innovations, strategic market expansions, and potential acquisitions. The company's focus on developing new and enhanced gaming and financial technology solutions is expected to drive revenue growth. Let's take a closer look at these factors:

• Product Innovations: Everi consistently invests in research and development to create cutting-edge gaming and financial technology products. This includes new slot games, gaming cabinets, and FinTech solutions designed to enhance the player experience and streamline casino operations.
• Market Expansions: Everi is actively expanding its reach into new geographic markets and distribution channels. This includes targeting both domestic and international markets with its suite of products and services.
• Acquisitions: Everi has a history of strategic acquisitions to expand its product offerings and market presence. These acquisitions have allowed the company to enter new business segments and gain access to new technologies.

Future revenue growth projections and earnings estimates for Everi Holdings Inc. reflect these growth drivers. While specific forecasts vary depending on the source and methodology, the overall outlook is positive, with analysts anticipating continued growth in both revenue and earnings. For instance, Everi reported a revenue of $794.7 million for the fiscal year 2024, representing an increase of 11.7% compared to the previous year. This growth trajectory is expected to continue, driven by the factors mentioned above.

Several strategic initiatives and partnerships are also expected to play a crucial role in driving Everi's future growth. These include:

• Strategic Partnerships: Everi collaborates with various casino operators and technology providers to expand its reach and integrate its solutions into existing casino ecosystems.
• New Product Development: Continued investment in R&D to launch innovative products that cater to evolving customer needs and preferences.
• Expansion of Digital Solutions: Focusing on growing its digital gaming and financial technology offerings to capitalize on the increasing demand for online and mobile solutions.

Everi's competitive advantages are crucial in positioning the company for sustained growth. These advantages include:

• Established Market Position: Everi has a strong foothold in the gaming and FinTech industries, with a well-established customer base and a reputation for quality and innovation.
• Comprehensive Product Portfolio: The company offers a diverse range of products and services, catering to various needs within the casino industry.
• Proprietary Technology: Everi's proprietary technology and intellectual property provide a competitive edge, making it difficult for new entrants to replicate its offerings.

Here's an overview of Everi's performance metrics based on the fiscal year 2024 data:

These figures highlight Everi's robust financial performance and its commitment to investing in future growth opportunities. The adjusted EBITDA of $403.3 million demonstrates the company's operational efficiency and profitability.

To gain more insights into Everi Holdings Inc. and its investor profile, check out: Exploring Everi Holdings Inc. (EVRI) Investor Profile: Who’s Buying and Why?