Q: Would you buy NVEI here or is it too expensive?
5i Research Answer:
NVEI is a $7.6B payment technology company that has quickly shown its progression towards profitability, low levels of debt, strong free cash flows, an expanding balance sheet, good levels of cash, and a strong buyback program in place. It trades at 4.5X forward sales and 19.3X forward earnings and for a company that is growing ~15%+ a year, we feel this is a good valuation. We would be comfortable buying NVEI here.