VeriFone Systems Inc.

Overview Key strengths Key risks Good brand recognition within the point-of-sale (POS) hardware market as one of the two leading global vendors. Global supply chain disruptions and semiconductor chip shortage will prevent VeriFone from meeting hardware shipment demand. Improving services revenue (at about 52% currently) should provide better revenue visibility over time. Elevated leverage exceeding 9x and ongoing restructuring activities depressing free operating cash flow (FOCF) generation. Reducing restructuring costs provides a path to sustainable positive free cash flow generation in the near-term. Access to revolver could become restricted by the third quarter of fiscal 2022 (period ending July 2022) if there is not a material improvement in performance. Despite macro headwinds with regards to the supply chain shortages and

...The stable outlook reflects S&P Global Ratings' expectation that while VeriFone Systems Inc. faces operational risk and an uncertain global macro environment, we expect a gradual business recovery and margin improvements from a decline in restructuring costs to support deleveraging to below 8x and FOCF remaining positive over the next 12 months. The outlook also considers our expectation for VeriFone's liquidity to remain sufficient over the same period....

Full Report