How big of a deal is it that nvei is partnering with Microsoft for payments? Partnering with a mega cap like Microsoft seems almost game changing for a small cap name like nvei. This being said it is perplexing that nvei keeps scoring global deals with big names and yet its numbers don’t reflect the profitability one would almost expect . Your take on the name going forward would be much appreciated, and the potential that now exists being partnered with Microsoft .
Thanks ,
Shane
The deal is good, but very small for now. It only includes the regions of Africa and the Middle East. But it has the potential to expand into other regions. It is a good marquee win that may help NVEI win other business. The stock is recovering, and remains quite cheap, IF it can make its numbers. Guidance has improved, but the last quarter was mixed, and it has missed three of the past eight quarters. Net debt of $1.1B is also high, at 4X cash flow. It hasn't fully addressed why it lost a large customer in the 2Q, either. On the plus side, we have growth, with EPS expected to grow at least 25% in 2024. The sector is rebounding. As noted it is cheap and very cheap vs peers. Its dividend now yields 1.8%. We would be OK holding it today into a (potential) continued recovery.