Logo image of ET.CA

EVERTZ TECHNOLOGIES LTD (ET.CA) Stock Fundamental Analysis

TSX:ET - Toronto Stock Exchange - CA30041N1078 - Common Stock - Currency: CAD

11.96  +0.07 (+0.59%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ET. ET was compared to 13 industry peers in the Communications Equipment industry. ET has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ET has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

ET had positive earnings in the past year.
In the past year ET had a positive cash flow from operations.
ET had positive earnings in each of the past 5 years.
Each year in the past 5 years ET had a positive operating cash flow.
ET.CA Yearly Net Income VS EBIT VS OCF VS FCFET.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M

1.2 Ratios

With an excellent Return On Assets value of 12.85%, ET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 22.08%, ET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ET's Return On Invested Capital of 20.74% is amongst the best of the industry. ET outperforms 100.00% of its industry peers.
ET had an Average Return On Invested Capital over the past 3 years of 26.03%. This is significantly above the industry average of 9.50%.
The 3 year average ROIC (26.03%) for ET is well above the current ROIC(20.74%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 12.85%
ROE 22.08%
ROIC 20.74%
ROA(3y)15.39%
ROA(5y)14.18%
ROE(3y)28.02%
ROE(5y)24.32%
ROIC(3y)26.03%
ROIC(5y)23.02%
ET.CA Yearly ROA, ROE, ROICET.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

ET has a Profit Margin of 11.71%. This is in the better half of the industry: ET outperforms 76.92% of its industry peers.
ET's Profit Margin has declined in the last couple of years.
ET has a Operating Margin of 16.14%. This is in the better half of the industry: ET outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of ET has declined.
ET has a Gross Margin of 59.18%. This is in the better half of the industry: ET outperforms 61.54% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.14%
PM (TTM) 11.71%
GM 59.18%
OM growth 3Y-2.87%
OM growth 5Y-2.92%
PM growth 3Y3.81%
PM growth 5Y-4.93%
GM growth 3Y0.35%
GM growth 5Y0.57%
ET.CA Yearly Profit, Operating, Gross MarginsET.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ET is creating value.
Compared to 1 year ago, ET has about the same amount of shares outstanding.
The number of shares outstanding for ET has been reduced compared to 5 years ago.
ET has a better debt/assets ratio than last year.
ET.CA Yearly Shares OutstandingET.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ET.CA Yearly Total Debt VS Total AssetsET.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

An Altman-Z score of 5.38 indicates that ET is not in any danger for bankruptcy at the moment.
ET has a better Altman-Z score (5.38) than 76.92% of its industry peers.
The Debt to FCF ratio of ET is 0.36, which is an excellent value as it means it would take ET, only 0.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ET (0.36) is better than 100.00% of its industry peers.
ET has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
ET has a better Debt to Equity ratio (0.06) than 84.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.36
Altman-Z 5.38
ROIC/WACC2.58
WACC8.03%
ET.CA Yearly LT Debt VS Equity VS FCFET.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

2.3 Liquidity

ET has a Current Ratio of 2.18. This indicates that ET is financially healthy and has no problem in meeting its short term obligations.
ET has a better Current ratio (2.18) than 76.92% of its industry peers.
A Quick Ratio of 0.96 indicates that ET may have some problems paying its short term obligations.
ET has a Quick ratio of 0.96. This is comparable to the rest of the industry: ET outperforms 53.85% of its industry peers.
Industry RankSector Rank
Current Ratio 2.18
Quick Ratio 0.96
ET.CA Yearly Current Assets VS Current LiabilitesET.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2

3. Growth

3.1 Past

ET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.61%.
Measured over the past years, ET shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.26% on average per year.
Looking at the last year, ET shows a decrease in Revenue. The Revenue has decreased by -0.28% in the last year.
Measured over the past years, ET shows a small growth in Revenue. The Revenue has been growing by 3.01% on average per year.
EPS 1Y (TTM)-14.61%
EPS 3Y19%
EPS 5Y-2.26%
EPS Q2Q%-27.59%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y14.49%
Revenue growth 5Y3.01%
Sales Q2Q%-4.2%

3.2 Future

Based on estimates for the next years, ET will show a decrease in Earnings Per Share. The EPS will decrease by -0.13% on average per year.
ET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.49% yearly.
EPS Next Y-16.19%
EPS Next 2Y-1.65%
EPS Next 3Y-0.13%
EPS Next 5YN/A
Revenue Next Year-4.38%
Revenue Next 2Y0.82%
Revenue Next 3Y1.49%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ET.CA Yearly Revenue VS EstimatesET.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
ET.CA Yearly EPS VS EstimatesET.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

6

4. Valuation

4.1 Price/Earnings Ratio

ET is valuated correctly with a Price/Earnings ratio of 15.74.
Based on the Price/Earnings ratio, ET is valued cheaper than 84.62% of the companies in the same industry.
ET's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.43.
Based on the Price/Forward Earnings ratio of 13.59, the valuation of ET can be described as correct.
Based on the Price/Forward Earnings ratio, ET is valued cheaper than 84.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. ET is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.74
Fwd PE 13.59
ET.CA Price Earnings VS Forward Price EarningsET.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

ET's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ET is cheaper than 61.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ET is valued a bit cheaper than 69.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.07
EV/EBITDA 9.11
ET.CA Per share dataET.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

The excellent profitability rating of ET may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.65%
EPS Next 3Y-0.13%

5

5. Dividend

5.1 Amount

ET has a Yearly Dividend Yield of 6.73%, which is a nice return.
Compared to an average industry Dividend Yield of 3.93, ET pays a better dividend. On top of this ET pays more dividend than 100.00% of the companies listed in the same industry.
ET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 6.73%

5.2 History

The dividend of ET has a limited annual growth rate of 1.33%.
ET has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ET decreased recently.
Dividend Growth(5Y)1.33%
Div Incr Years1
Div Non Decr Years1
ET.CA Yearly Dividends per shareET.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

ET pays out 102.41% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of ET has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP102.41%
EPS Next 2Y-1.65%
EPS Next 3Y-0.13%
ET.CA Yearly Income VS Free CF VS DividendET.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ET.CA Dividend Payout.ET.CA Dividend Payout, showing the Payout Ratio.ET.CA Dividend Payout.PayoutRetained Earnings

EVERTZ TECHNOLOGIES LTD

TSX:ET (2/14/2025, 7:00:00 PM)

11.96

+0.07 (+0.59%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)12-10 2024-12-10/amc
Earnings (Next)03-05 2025-03-05
Inst Owners6.96%
Inst Owner ChangeN/A
Ins Owners64.43%
Ins Owner ChangeN/A
Market Cap908.24M
Analysts83.64
Price Target15.81 (32.19%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.73%
Yearly Dividend0.77
Dividend Growth(5Y)1.33%
DP102.41%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.06%
Min EPS beat(2)-25.76%
Max EPS beat(2)17.63%
EPS beat(4)2
Avg EPS beat(4)-5.87%
Min EPS beat(4)-25.76%
Max EPS beat(4)17.63%
EPS beat(8)4
Avg EPS beat(8)-0.42%
EPS beat(12)8
Avg EPS beat(12)10.74%
EPS beat(16)9
Avg EPS beat(16)4.06%
Revenue beat(2)1
Avg Revenue beat(2)-4.75%
Min Revenue beat(2)-10.49%
Max Revenue beat(2)0.99%
Revenue beat(4)2
Avg Revenue beat(4)-3.73%
Min Revenue beat(4)-10.49%
Max Revenue beat(4)4.37%
Revenue beat(8)5
Avg Revenue beat(8)-0.86%
Revenue beat(12)8
Avg Revenue beat(12)0.71%
Revenue beat(16)8
Avg Revenue beat(16)-0.55%
PT rev (1m)0%
PT rev (3m)0.54%
EPS NQ rev (1m)-14.87%
EPS NQ rev (3m)-26.32%
EPS NY rev (1m)-5.06%
EPS NY rev (3m)-5.06%
Revenue NQ rev (1m)-1.46%
Revenue NQ rev (3m)-9.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 15.74
Fwd PE 13.59
P/S 1.84
P/FCF 13.07
P/OCF 11.79
P/B 3.46
P/tB 3.79
EV/EBITDA 9.11
EPS(TTM)0.76
EY6.35%
EPS(NY)0.88
Fwd EY7.36%
FCF(TTM)0.92
FCFY7.65%
OCF(TTM)1.01
OCFY8.48%
SpS6.52
BVpS3.46
TBVpS3.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 12.85%
ROE 22.08%
ROCE 28.33%
ROIC 20.74%
ROICexc 26.56%
ROICexgc 29.63%
OM 16.14%
PM (TTM) 11.71%
GM 59.18%
FCFM 14.04%
ROA(3y)15.39%
ROA(5y)14.18%
ROE(3y)28.02%
ROE(5y)24.32%
ROIC(3y)26.03%
ROIC(5y)23.02%
ROICexc(3y)31.52%
ROICexc(5y)29.28%
ROICexgc(3y)35.24%
ROICexgc(5y)32.74%
ROCE(3y)35.8%
ROCE(5y)31.59%
ROICexcg growth 3Y12.75%
ROICexcg growth 5Y4.88%
ROICexc growth 3Y13.14%
ROICexc growth 5Y4.4%
OM growth 3Y-2.87%
OM growth 5Y-2.92%
PM growth 3Y3.81%
PM growth 5Y-4.93%
GM growth 3Y0.35%
GM growth 5Y0.57%
F-Score7
Asset Turnover1.1
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.36
Debt/EBITDA 0.17
Cap/Depr 47.57%
Cap/Sales 1.52%
Interest Coverage 67.62
Cash Conversion 80.48%
Profit Quality 119.9%
Current Ratio 2.18
Quick Ratio 0.96
Altman-Z 5.38
F-Score7
WACC8.03%
ROIC/WACC2.58
Cap/Depr(3y)44.1%
Cap/Depr(5y)49.84%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.93%
Profit Quality(3y)118.14%
Profit Quality(5y)143.54%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.61%
EPS 3Y19%
EPS 5Y-2.26%
EPS Q2Q%-27.59%
EPS Next Y-16.19%
EPS Next 2Y-1.65%
EPS Next 3Y-0.13%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y14.49%
Revenue growth 5Y3.01%
Sales Q2Q%-4.2%
Revenue Next Year-4.38%
Revenue Next 2Y0.82%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
EBIT growth 1Y-22.91%
EBIT growth 3Y11.2%
EBIT growth 5Y0.01%
EBIT Next Year-9.67%
EBIT Next 3Y3%
EBIT Next 5YN/A
FCF growth 1Y100.93%
FCF growth 3Y13.92%
FCF growth 5Y11.93%
OCF growth 1Y85.98%
OCF growth 3Y12.73%
OCF growth 5Y10.33%