Nuvei Corporation (NVEI.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:NVEI • CA67079A1021

47.61 CAD
-0.26 (-0.54%)
Last: Nov 18, 2024, 07:00 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to NVEI. NVEI was compared to 28 industry peers in the Financial Services industry. While NVEI is still in line with the averages on profitability rating, there are concerns on its financial health. NVEI has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year NVEI was profitable.
  • NVEI had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: NVEI reported negative net income in multiple years.
  • Each year in the past 5 years NVEI had a positive operating cash flow.
NVEI.CA Yearly Net Income VS EBIT VS OCF VS FCFNVEI.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M

1.2 Ratios

  • NVEI has a Return On Assets of -0.22%. This is in the lower half of the industry: NVEI underperforms 73.53% of its industry peers.
  • NVEI's Return On Equity of -0.55% is on the low side compared to the rest of the industry. NVEI is outperformed by 73.53% of its industry peers.
  • NVEI's Return On Invested Capital of 3.99% is on the low side compared to the rest of the industry. NVEI is outperformed by 61.76% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NVEI is below the industry average of 7.95%.
  • The last Return On Invested Capital (3.99%) for NVEI is above the 3 year average (3.33%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.22%
ROE -0.55%
ROIC 3.99%
ROA(3y)1.47%
ROA(5y)-0.97%
ROE(3y)2.53%
ROE(5y)-4.13%
ROIC(3y)3.33%
ROIC(5y)2.88%
NVEI.CA Yearly ROA, ROE, ROICNVEI.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 5 -5 -10 -15 -20

1.3 Margins

  • NVEI's Operating Margin of 14.71% is on the low side compared to the rest of the industry. NVEI is outperformed by 76.47% of its industry peers.
  • NVEI's Operating Margin has improved in the last couple of years.
  • The Gross Margin of NVEI (81.09%) is better than 97.06% of its industry peers.
  • In the last couple of years the Gross Margin of NVEI has remained more or less at the same level.
Industry RankSector Rank
OM 14.71%
PM (TTM) N/A
GM 81.09%
OM growth 3Y-11.69%
OM growth 5Y34.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.42%
GM growth 5Y-0.86%
NVEI.CA Yearly Profit, Operating, Gross MarginsNVEI.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NVEI is destroying value.
  • Compared to 1 year ago, NVEI has about the same amount of shares outstanding.
  • Compared to 1 year ago, NVEI has a worse debt to assets ratio.
NVEI.CA Yearly Shares OutstandingNVEI.CA Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 50M 100M
NVEI.CA Yearly Total Debt VS Total AssetsNVEI.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 0.75, we must say that NVEI is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.75, NVEI is doing worse than 79.41% of the companies in the same industry.
  • The Debt to FCF ratio of NVEI is 6.62, which is on the high side as it means it would take NVEI, 6.62 years of fcf income to pay off all of its debts.
  • NVEI has a Debt to FCF ratio of 6.62. This is comparable to the rest of the industry: NVEI outperforms 55.88% of its industry peers.
  • A Debt/Equity ratio of 0.60 indicates that NVEI is somewhat dependend on debt financing.
  • NVEI has a better Debt to Equity ratio (0.60) than 67.65% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 6.62
Altman-Z 0.75
ROIC/WACC0.5
WACC7.93%
NVEI.CA Yearly LT Debt VS Equity VS FCFNVEI.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.3 Liquidity

  • NVEI has a Current Ratio of 1.06. This is a normal value and indicates that NVEI is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of NVEI (1.06) is better than 67.65% of its industry peers.
  • A Quick Ratio of 1.06 indicates that NVEI should not have too much problems paying its short term obligations.
  • NVEI's Quick ratio of 1.06 is fine compared to the rest of the industry. NVEI outperforms 67.65% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 1.06
NVEI.CA Yearly Current Assets VS Current LiabilitesNVEI.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The earnings per share for NVEI have decreased by -3.55% in the last year.
  • Looking at the last year, NVEI shows a very strong growth in Revenue. The Revenue has grown by 41.10%.
  • NVEI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 51.38% yearly.
EPS 1Y (TTM)-3.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-12.82%
Revenue 1Y (TTM)41.1%
Revenue growth 3Y46.95%
Revenue growth 5Y51.38%
Sales Q2Q%17.31%

3.2 Future

  • Based on estimates for the next years, NVEI will show a very strong growth in Earnings Per Share. The EPS will grow by 24.93% on average per year.
  • NVEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.15% yearly.
EPS Next Y16.94%
EPS Next 2Y23.1%
EPS Next 3Y24.93%
EPS Next 5YN/A
Revenue Next Year16.76%
Revenue Next 2Y16.19%
Revenue Next 3Y16.28%
Revenue Next 5Y15.15%

3.3 Evolution

  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
NVEI.CA Yearly Revenue VS EstimatesNVEI.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
NVEI.CA Yearly EPS VS EstimatesNVEI.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 1 2 3

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.88 indicates a rather expensive valuation of NVEI.
  • Based on the Price/Earnings ratio, NVEI is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 28.25, NVEI is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 13.27, which indicates a correct valuation of NVEI.
  • Based on the Price/Forward Earnings ratio, NVEI is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. NVEI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 20.88
Fwd PE 13.27
NVEI.CA Price Earnings VS Forward Price EarningsNVEI.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • NVEI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVEI is cheaper than 97.06% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NVEI is valued a bit cheaper than 73.53% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.75
EV/EBITDA 9.74
NVEI.CA Per share dataNVEI.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

  • NVEI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • NVEI's earnings are expected to grow with 24.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y23.1%
EPS Next 3Y24.93%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.14%, NVEI has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 5.61, NVEI's dividend is way lower than its industry peers. On top of this 85.29% of the companies listed in the same industry pay a better dividend than NVEI!
  • NVEI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.14%

5.2 History

  • NVEI does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
NVEI.CA Yearly Dividends per shareNVEI.CA Yearly Dividends per shareYearly Dividends per share 2023 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

  • NVEI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-492.49%
EPS Next 2Y23.1%
EPS Next 3Y24.93%
NVEI.CA Yearly Income VS Free CF VS DividendNVEI.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M

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Nuvei Corporation

TSX:NVEI (11/18/2024, 7:00:00 PM)

47.61

-0.26 (-0.54%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-12
Earnings (Next)N/A
Inst Owners21.2%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.13B
Revenue(TTM)1.19B
Net Income(TTM)-11.38M
Analysts71.43
Price Target33.79 (-29.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.14%
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP-492.49%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.95%
Min EPS beat(2)-12.36%
Max EPS beat(2)-5.54%
EPS beat(4)1
Avg EPS beat(4)-4.7%
Min EPS beat(4)-12.36%
Max EPS beat(4)2.81%
EPS beat(8)3
Avg EPS beat(8)-2.76%
EPS beat(12)7
Avg EPS beat(12)0.38%
EPS beat(16)11
Avg EPS beat(16)20.11%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)0.79%
Max Revenue beat(2)1.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-2.24%
Max Revenue beat(4)1.75%
Revenue beat(8)3
Avg Revenue beat(8)-0.23%
Revenue beat(12)4
Avg Revenue beat(12)-0.68%
Revenue beat(16)8
Avg Revenue beat(16)0.75%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
Industry RankSector Rank
PE 20.88
Fwd PE 13.27
P/S 1.71
P/FCF 11.75
P/OCF 8.78
P/B 1.08
P/tB N/A
EV/EBITDA 9.74
EPS(TTM)2.28
EY4.79%
EPS(NY)3.59
Fwd EY7.54%
FCF(TTM)4.05
FCFY8.51%
OCF(TTM)5.42
OCFY11.38%
SpS27.86
BVpS44.04
TBVpS-25.66
PEG (NY)1.23
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -0.22%
ROE -0.55%
ROCE 5.54%
ROIC 3.99%
ROICexc 4.21%
ROICexgc 799.47%
OM 14.71%
PM (TTM) N/A
GM 81.09%
FCFM 14.54%
ROA(3y)1.47%
ROA(5y)-0.97%
ROE(3y)2.53%
ROE(5y)-4.13%
ROIC(3y)3.33%
ROIC(5y)2.88%
ROICexc(3y)4.27%
ROICexc(5y)3.54%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.63%
ROCE(5y)4.01%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y0.77%
ROICexc growth 5Y37.85%
OM growth 3Y-11.69%
OM growth 5Y34.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.42%
GM growth 5Y-0.86%
F-Score6
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 6.62
Debt/EBITDA 3.66
Cap/Depr 43.46%
Cap/Sales 4.91%
Interest Coverage 1.78
Cash Conversion 74.81%
Profit Quality N/A
Current Ratio 1.06
Quick Ratio 1.06
Altman-Z 0.75
F-Score6
WACC7.93%
ROIC/WACC0.5
Cap/Depr(3y)45.06%
Cap/Depr(5y)36.23%
Cap/Sales(3y)5.37%
Cap/Sales(5y)5.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-12.82%
EPS Next Y16.94%
EPS Next 2Y23.1%
EPS Next 3Y24.93%
EPS Next 5YN/A
Revenue 1Y (TTM)41.1%
Revenue growth 3Y46.95%
Revenue growth 5Y51.38%
Sales Q2Q%17.31%
Revenue Next Year16.76%
Revenue Next 2Y16.19%
Revenue Next 3Y16.28%
Revenue Next 5Y15.15%
EBIT growth 1Y79.36%
EBIT growth 3Y29.76%
EBIT growth 5Y103.21%
EBIT Next Year358.58%
EBIT Next 3Y86.76%
EBIT Next 5YN/A
FCF growth 1Y-23.34%
FCF growth 3Y35.49%
FCF growth 5Y95.67%
OCF growth 1Y-10.81%
OCF growth 3Y41.28%
OCF growth 5Y79.95%

Nuvei Corporation / NVEI.CA FAQ

Can you provide the ChartMill fundamental rating for Nuvei Corporation?

ChartMill assigns a fundamental rating of 4 / 10 to NVEI.CA.


Can you provide the valuation status for Nuvei Corporation?

ChartMill assigns a valuation rating of 5 / 10 to Nuvei Corporation (NVEI.CA). This can be considered as Fairly Valued.


What is the profitability of NVEI stock?

Nuvei Corporation (NVEI.CA) has a profitability rating of 4 / 10.


Can you provide the expected EPS growth for NVEI stock?

The Earnings per Share (EPS) of Nuvei Corporation (NVEI.CA) is expected to grow by 16.94% in the next year.


Can you provide the dividend sustainability for NVEI stock?

The dividend rating of Nuvei Corporation (NVEI.CA) is 0 / 10 and the dividend payout ratio is -492.49%.