Nuvei (TSX:NVEI) Revenue Climbs 80%. Worth A Buy?

Summary

  • The electronic payment processing company posted revenue of US$ 149.9 million in Q1 2021.
  • In September 2020, when Nuvei made its debut on the Toronto Stock Exchange (TSX).
  • Over 185K NVEI shares were traded on an average in the past 90 days.

Stocks of Nuvei Corporation (TSX:NVEI) climbed three per cent at market open on Monday, May 10, as the company announced strong first-quarter 2021 financial results. It was trading at C$ 83.96 apiece at the time of writing this article (10 AM EST). The electronic payment processing company posted revenue of US$ 149.9 million in Q1 2021, representing an increase of 80 per cent from the same quarter of the previous year.

Last week, the company announced plans of exploring the cryptocurrency space and said that it is buying Simplex in a deal worth US$ 250 million. Simplex is a startup that provides fiat infrastructure to the cryptocurrency sector.

It was only in September 2020, when Nuvei made its debut on the Toronto Stock Exchange (TSX) and in the past six months, the stock has surged by 59 per cent. Let's explore the Nuvei (TSX:NVEI) stock and find out whether it is worth buying or not.

Here's What You Must Know About Nuvei & Its Stock


Over 185,000 NVEI shares were traded on an average in the past 90 days and the stock grew by nine per cent in three months. In terms of year-to-date growth, the stock grew by 8.8 per cent.

On March 16, it had reached a 52-week high of C$ 90.82 and the last closing price of the shares was C$ 84.63 (May 7, 2021). The company's market cap is C$ 4.7 billion and its debt-to-equity (D/E) ratio is 015, as per TMX.

In Q1 2021, the total volume from current customers and surging new clients was a booster for the company as it increased by 132 per cent to US$ 20.6 billion.

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A Look At Key Financial Outcomes


Compared to a net loss of US$ 62.3 million in Q1 2020, the company posted a net income of US$ 27.8 million in Q1 2021. The adjusted EBITDA increased to US$ 65.5 million, which represents an increase of 97 per cent year-over-year (YoY).

Nuvei's gross profit was US$ 120.9 million, an increase of US$ 52.8 million in Q1 2020. Expecting continuous growth throughout the year, the company updated its full-year financial outlook ending December 31, 2020.

From estimated revenue of US$ 570-600 million in 2021, the company updated it to US$ 610-640 million.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.


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