Hi there,
NVEI is one we brought forward to members at the time of its IPO as one that was undervalued in comparison to peers. Prior to going public, it was the largest privately held fintech in the country.
It is well diversified with over 50,000 merchants in over 200 markets worldwide. It is also one of the leading payment systems for online sports betting. Given that states across the U.S. (even here in canada) are beginning to legalize sports betting, that is a significant avenue for growth for the company. Recently it Nuvei received regulatory approval for sports betting in Colorado & Indiana.
It has only posted 1 quarter since going public and it beat ont he top and bottom lines. A good start. That being said, as a recent IPO it still has much to prove in terms of consistency and reliability. Analysts expect the company to grow revenue by approximately 30% annually over the next couple of years.
That being said, the company is no longer as 'cheap' as it once was. It is now trading at 18.11 time forward sales and has an EV of 39 times sales. It is also nearing overbought territory with a 14-day RSI of 67 - not quit there, but nearing.
Overall, this is a high growth company that is trading at high valuations (albeit cheaper than some of its peers like LSPD) - the entire industry is getting pretty expensive. Long-term, we like its potential to deliver strong results. With these types of companies, it is always best to average into positions and be prepared for considerable volatility. Likewise, as a recent IPO if NVEI starts to miss estimates, the company can be hit pretty hard as a result. It is all about execution for newly-listed companies.
Mat
(Of note, I am long NVEI and bought on the day of IPO)