Outerwall (NASDAQ:OUTR) is a stock I’ve seen pop up recently on our screens. It is especially intriguing because, despite a very cheap valuation, Outerwall has a 5-year compound annual revenue growth rate of 17.7%. Growth-at-
ecoATM is an interesting concept, and certainly there is plenty of room to expand from the current 900 kiosk install base. But Outerwall has had trouble with new concepts in the past (e.g., shuttering self-serve coffee machine Rubi), and ecoATM is such a small contributor that it is difficult seeing it as a major growth engine. To reinvigorate double-digit growth, Outerwall is going to have to find a more scalable concept.