i3 Verticals, Inc. provides electronic-based payment processing solutions for small- and medium-sized businesses and organizations in the United States. Its payment processing services enable clients to accept electronic payments, facilitate the exchange of funds, and transact data between clients, financial institutions, and payment networks. The company’s payment processing services include merchant onboarding, risk and underwriting, authorization, settlement, chargeback processing, and other merchant support services. It also provides software licensing subscriptions, ongoing support, and other POS-related solutions. The company distributes its payment technology and proprietary software solutions to its clients through direct sales force, as well as through a network of distribution partners, including independent software vendors, value-added resellers, independent sales organizations, and other referral partners, including financial institutions. Its primary vertical markets include education, non-profit, public sector, property management, and healthcare. The company was founded in 2012 and is based in Nashville, Tennessee.
IIIV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for i3 Verticals Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that i3 Verticals Inc ranked in the 21th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 71.5%. The most interesting components of our discounted cash flow analysis for i3 Verticals Inc ended up being:
The compound growth rate in the free cash flow of i3 Verticals Inc over the past 1.68 years is 0.03%; that's higher than only 22.29% of free cash flow generating stocks in the Technology sector.
i3 Verticals Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as IIIV, try MTCH, OMCL, VRSN, HPQ, and IIJIY.
Raymond James upgraded i3 Verticals ([[IIIV]] +9.6%) to Strong Buy (PT, $36) from Outperform.In the past one month, the stock has shed 19.3% while YTD it has lost 18.6%; all the six Wall Street Analysts covering the stock are Very Bullish (PT, $33.67).Analyst John Davis is "perplexed" by the recent...
i3 Verticals (IIIV) has priced its public offering of 3.25M shares of Class A common stock at $23.50/share, for expected gross proceeds of $76.4M.Underwriters' overallotment is an additional 487,500 shares. Closing date is September 15.Shares are down 2% premarket, trading at $25.Previously: i3 Verticals readies equity offering (Sept. 9)...
i3 Verticals, Inc. (Nasdaq: IIIV) ("i3 Verticals" or the "Company"), announced today that it will release its financial results for the third quarter ended June 30, 2020, on Monday, August 10, 2020, after the Nasdaq market close.
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