Last Updated: 19 Sep 2024
Executive Summary
i3 Verticals Inc. (IIIV) is a provider of integrated payment and software solutions to small and medium-sized businesses in various markets. The company has a market capitalization of $739.6 million and is headquartered in Nashville, Tennessee. Despite a challenging operating environment, i3 Verticals has maintained a strong financial position with positive EBITDA and a solid balance sheet. The company's shares are currently trading at $21.89, below the analyst target price of $27.5.
Company Overview
i3 Verticals offers a range of payment processing, software, and consulting services to its clients. The company's solutions are designed to help businesses improve their efficiency, reduce costs, and increase revenue. i3 Verticals has a strong customer base in the education, nonprofit, public sector, property management, and healthcare markets. The company has a team of experienced professionals who are committed to providing high-quality service to its clients.
Fundamental Analysis
i3 Verticals has a strong financial profile with positive EBITDA and a solid balance sheet. The company's revenue has grown steadily in recent years, and it has maintained a healthy profit margin. However, the company's earnings per share (EPS) have been negative in recent quarters due to increased expenses.
Revenue: $371.2 million (TTM)
Gross Profit: $244.5 million (TTM)
EBITDA: $60.2 million (TTM)
Net Income: -$11.9 million (TTM)
EPS: -$0.05 (TTM)
Technical Analysis
The technical analysis of i3 Verticals' stock shows that the shares are currently trading below their 50-day and 200-day moving averages. The stock has been in a downtrend since early 2023, and it has recently broken below a key support level at $22.50. The technical indicators suggest that the stock could continue to decline in the short term.
Short Term Outlook
The short-term outlook for i3 Verticals is uncertain. The company is facing headwinds from the challenging economic environment, and its earnings have been impacted by increased expenses. The technical analysis suggests that the stock could continue to decline in the short term. Investors should be cautious about buying i3 Verticals' stock at this time.
Long Term Outlook
The long-term outlook for i3 Verticals is more positive. The company has a strong market position and a loyal customer base. The company's solutions are in high demand, and it is well-positioned to benefit from the growing trend towards digital payments. Investors who are willing to take a long-term view could consider buying i3 Verticals' stock at current levels.
Analyst Recommendations
Analysts are mixed on i3 Verticals' stock. Three analysts have a "Strong Buy" rating on the stock, three have a "Buy" rating, and two have a "Hold" rating. The average analyst target price is $27.5, which represents a potential upside of 25.7% from the current price.
