Sound bite for Twitter and StockTwits is: Dividend Paying Tech. Results of stock price testing is that the stock price is testing as cheap, but the company only when public in September 2020 and it is a Tech stock. Debt Ratios mostly fine, but all the ratios have declined between 2022 year-end and the third quarter of 2023. The Dividend Payout Ratios (DPR) are good with dividends just starting in 2023. The current dividend yield is Low with dividend growth for the future unknown. See my spreadsheet on Nuvei Corp.
Is it a good company at a reasonable price? This company has only been around for a few years, so it is really hard to tell the future. However, Caisse de depot et placement du Quebec has invested in this company. Quebec does seem to be able to grow companies. This company is a speculative buy. The stock price is quite volatile. It is testing as cheap, but has only been around since September 2020 and is down from its IPO price.
I own this stock of Nuvei Corp (TSX- NVEI, NASDAQ- NVEI). I was looking for another stock to follow and used G&M Stock Screener to find a dividend paying stock that looked interesting.
When I was updating my spreadsheet, I noticed that this stock went public September 17, 2020 on TSX and Nasdaq. See article on Bloomberg. Also see article on Newswire. This company reports in US$ and is listed on the TSX and NASDAQ.
If you had invested in this company in December 2020, for $1,011.27 you would have bought 13 shares at $77.79 per share. In December 2023, after 2 years you would have received $0.00 in dividends. The stock would be worth $447.33. Your total return would have been $447.33. This would be a total loss of 33.49% per year with 33.49% from capital loss and 0% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $77.79 | $1,011.27 | 13 | 2 | $0.00 | $447.33 | $447.33 |
The current dividend yield is Low with dividend growth for the future unknown. The current dividend yield is low (below 2%) at 1.60%. Dividend were just started in halfway through 2023. Future dividend is up to discretion of the Board. This is the usual case.
The Dividend Payout Ratios (DPR) are good with dividends just starting in 2023. The DPR for 2023 for Earnings per Share (EPS) are awful, but it is the DPR for AEPS that counts. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 12%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 10%. The DPR for 2023 for Free Cash Flow (FCF) is good at 9%. They just started to pay dividends in 2023 and these are the values for 2023.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | -194.86% | -16.23% |
| AEPS | 11.92% | 2.38% |
| CFPS | 9.95% | 2.61% |
| FCF | 9.22% | 3.28% |
Debt Ratios mostly fine, but all the ratios have declined between 2022 year-end and the third quarter of 2023. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.14 and currently at 0.34. The Liquidity Ratio for 2023 is good at 1.69 and too low currently at 1.03. I like this to be at 1.50 or higher. If you added in Cash Flow after dividends, the ratios are good at 1.96 and too low currently at 1.00. The Debt Ratio for 2023 is good at 1.69 and too low at 1.0. currently. I also like to see this ratio at 1.50 or higher. The Leverage and Debt/Equity Ratios for 2023 are good at 1.79 and 0.78 and fine currently at 2.32 and 1.31.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.14 | 0.34 |
| Intang/GW | 0.51 | 0.90 |
| Liquidity | 1.69 | 1.03 |
| Liq. + CF | 1.96 | 1.00 |
| Debt Ratio | 1.69 | 1.03 |
| Leverage | 1.79 | 2.32 |
| D/E Ratio | 0.78 | 1.31 |
The Total Return per year is shown below for 2 years to the end of 2023 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 2 | 0.00% | -33.49% | -33.49% | 0.00% |
The Total Return per year is shown below for 2 years to the end of 2023 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 2 | 0.00% | -35.31% | -35.31% | 0.00% |
The 2-year low, median, and high median Price/Earnings per Share Ratios are 61.77, 122.23 and 182.88. The 2023 P/E Ratio is negative and so unusable. The P/E Ratio for 2024 is 57.90 based on a stock price of $33.64 and EPS estimate for 2024 of $0.58 ($0.43 US$). This ratio is below the low ratio of the 2 year median ratios. This stock price testing suggests that the stock price is relatively cheap. The ratios are very high, so if you buy, it is best to keep an eye on this stock. This testing was in CDN$.
I also have Adjusted Earnings per Share data. The 2-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 27.96, 54.63 and 71.44. The current P/AEPS Ratio is 11.82 based on a stock price of $24.93 and a AEPS estimate for 2024 of $2.11. The current ratio is below the low ratio of the 2 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I get a Graham Price of $30.37. The 2-year low, median, and high median Price/Graham Price Ratios are 1.82, 3.06 and 3.80. The current P/GP Ratio is 0.82 based on a stock price of $24.93. This ratio is below the low ratio of the 2 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I get a 2-year median Price/Book Value per Share Ratio of 4.66. The current P/B Ratio is 0.94 based on Book Value of $1,200M, Book Value per Share of $26.43 and a stock price of $24.93. The current ratio is 80% below the 2 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
I get a 2-year median Price/Cash Flow per Share Ratio of 24.47. The current P/B Ratio is 8.17 based on Cash Flow per Share for 2024 of $3.05 and a stock price of $24.93. The current ratio is based on Cash Flow per Share estimate for 2024 of $3.05, Cash Flow of $425.6M and a stock price of $24.93. The current ratio is 83% below the 2 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
The stock just started to pay a dividend in 2023, so there are no real comparisons to be made. What I can say is that the dividend yield in 2023 was 1.52% and it is now 1.60% and therefore 5% higher.
The 4-year median Price/Sales (Revenue) Ratio is 17.99. The current P/S Ratio is 2.52 based on Revenue estimate for 2024 of $1,381, Revenue per Share of $9.90, and a stock price of $24.93. the current ratio is 86% below the 4 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.
Results of stock price testing is that the stock price is testing as cheap, but the company only when public in September 2020 and it is a Tech stock. When looking at stock prices, everything is relative. I have Revenue information going back 4 years and P/S Ratio tests says the stock is relatively cheap. Also, the P/GP Ratio is below 1.00 at 0.82.
When I look at analysts’ recommendations, I find Strong Buy (7), Buy (8) and Hold (3). The consensus would be a Strong Buy. The 12 months stock price consensus is $38.59 ($28.47 US$) with a high of $46.09 ($34.00 US$) and low of $27.11 ($20.00 US$). The consensus price of $38.59 CDN$ implies a total return of 16.34% with 14.73% from capital gains and 1.61% from dividends based on a current stock price of $33.64.
The two recent recommendations on Stock Chase from analysts are Do Not Buy and Buy. Stock Chase gave this stock 4 stars out of 5. Adam Othman on Motley Fool thinks this is a good stock for your TFSA. Brian Paradza on Motley Fool says this stock is beaten down but has recovery potential. The company put out a Press Release on their fourth quarter results. The company put out a press release via Newswire about their third quarter of 2023. The company talks about their payment systems via Yahoo Finance.
Simply Wall Street via Yahoo Finance talks about who owns shares in the company. Nuvei Corp is a provider of payment technology solutions to merchants and partners. The solutions provided are mobile payments, online payments, and In-store payments. Its geographical segments are North America; Europe, the Middle East, and Africa; Latin America; and the Asia Pacific. The vast majority of its revenue is generated from North America and EMEA. Its web site is here Nuvei Corp.
The last stock I wrote about was about was Manulife Financial Corp (TSX-MFC, NYSE-MFC) ... learn more. The next stock I will write about will be Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) ... learn more on Wednesday, February 28, 2024 around 5 pm. Tomorrow on my other blog I will write about Can You Live on Dividends.... learn more on Tuesday, February 27, 2024 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
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