EVERTZ TECHNOLOGIES LTD (ET.CA) Stock Fundamental Analysis
TSX:ET - Toronto Stock Exchange - CA30041N1078 - Common Stock - Currency: CAD
Taking everything into account, ET scores 6 out of 10 in our fundamental rating. ET was compared to 12 industry peers in the Communications Equipment industry. ET gets an excellent profitability rating and is at the same time showing great financial health properties. ET has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ET had positive earnings in the past year.
ET had a positive operating cash flow in the past year.
ET had positive earnings in each of the past 5 years.
In the past 5 years ET always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.65%, ET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.15%, ET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ET's Return On Invested Capital of 20.72% is amongst the best of the industry. ET outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ET is significantly above the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 22.15% | ||
| ROIC | 20.72% |
ROA(3y)13.93%
ROA(5y)13.62%
ROE(3y)25.05%
ROE(5y)24.1%
ROIC(3y)23.85%
ROIC(5y)23.04%
1.3 Margins
The Profit Margin of ET (11.84%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of ET has declined.
Looking at the Operating Margin, with a value of 16.21%, ET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ET's Operating Margin has declined in the last couple of years.
ET's Gross Margin of 59.51% is amongst the best of the industry. ET outperforms 83.33% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.21% | ||
| PM (TTM) | 11.84% | ||
| GM | 59.51% |
OM growth 3Y-8.97%
OM growth 5Y-4.55%
PM growth 3Y-10.05%
PM growth 5Y-5.5%
GM growth 3Y0.92%
GM growth 5Y0.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ET is creating value.
Compared to 1 year ago, ET has less shares outstanding
Compared to 5 years ago, ET has less shares outstanding
The debt/assets ratio for ET has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.19 indicates that ET is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.19, ET is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of ET is 0.25, which is an excellent value as it means it would take ET, only 0.25 years of fcf income to pay off all of its debts.
ET's Debt to FCF ratio of 0.25 is amongst the best of the industry. ET outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that ET is not too dependend on debt financing.
ET has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. ET outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 5.19 |
ROIC/WACC2.53
WACC8.19%
2.3 Liquidity
A Current Ratio of 2.14 indicates that ET has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.14, ET is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that ET should not have too much problems paying its short term obligations.
ET has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
ET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.29%.
Measured over the past years, ET shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.82% on average per year.
Looking at the last year, ET shows a decrease in Revenue. The Revenue has decreased by -2.52% in the last year.
Measured over the past years, ET shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
EPS 1Y (TTM)-14.29%
EPS 3Y-5.86%
EPS 5Y-2.82%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)-2.52%
Revenue growth 3Y4.39%
Revenue growth 5Y2.82%
Sales Q2Q%4.1%
3.2 Future
The Earnings Per Share is expected to grow by 7.80% on average over the next years.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y-14.17%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.81%
Revenue Next 2Y4.81%
Revenue Next 3YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ET is valuated correctly with a Price/Earnings ratio of 15.65.
Based on the Price/Earnings ratio, ET is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, ET is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.24 indicates a rather expensive valuation of ET.
Based on the Price/Forward Earnings ratio, ET is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, ET is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 18.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ET indicates a somewhat cheap valuation: ET is cheaper than 75.00% of the companies listed in the same industry.
75.00% of the companies in the same industry are more expensive than ET, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
ET has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 6.64%, which is a nice return.
ET's Dividend Yield is rather good when compared to the industry average which is at 4.72. ET pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
5.2 History
The dividend of ET decreases each year by -13.43%.
ET has paid a dividend for at least 10 years, which is a reliable track record.
ET has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.43%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
101.11% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
DP101.11%
EPS Next 2Y7.8%
EPS Next 3YN/A
TSX:ET (8/7/2025, 7:00:00 PM)
12.21
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.82%
Inst Owner ChangeN/A
Ins Owners64.69%
Ins Owner ChangeN/A
Market Cap921.00M
Analysts83.64
Price Target14.2 (16.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
Yearly Dividend0.79
Dividend Growth(5Y)-13.43%
DP101.11%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.43%
Min EPS beat(2)10.03%
Max EPS beat(2)24.83%
EPS beat(4)3
Avg EPS beat(4)6.68%
Min EPS beat(4)-25.76%
Max EPS beat(4)24.83%
EPS beat(8)5
Avg EPS beat(8)4.83%
EPS beat(12)8
Avg EPS beat(12)7.14%
EPS beat(16)11
Avg EPS beat(16)10.05%
Revenue beat(2)1
Avg Revenue beat(2)0.24%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)3.29%
Revenue beat(4)2
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-10.49%
Max Revenue beat(4)3.29%
Revenue beat(8)5
Avg Revenue beat(8)-1.63%
Revenue beat(12)7
Avg Revenue beat(12)-0.76%
Revenue beat(16)9
Avg Revenue beat(16)0.09%
PT rev (1m)-0.59%
PT rev (3m)-0.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)-1.58%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 18.24 | ||
| P/S | 1.84 | ||
| P/FCF | 10.05 | ||
| P/OCF | 9.24 | ||
| P/B | 3.43 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)0.78
EY6.39%
EPS(NY)0.67
Fwd EY5.48%
FCF(TTM)1.22
FCFY9.95%
OCF(TTM)1.32
OCFY10.82%
SpS6.65
BVpS3.55
TBVpS3.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 22.15% | ||
| ROCE | 28.39% | ||
| ROIC | 20.72% | ||
| ROICexc | 33.96% | ||
| ROICexgc | 38.44% | ||
| OM | 16.21% | ||
| PM (TTM) | 11.84% | ||
| GM | 59.51% | ||
| FCFM | 18.28% |
ROA(3y)13.93%
ROA(5y)13.62%
ROE(3y)25.05%
ROE(5y)24.1%
ROIC(3y)23.85%
ROIC(5y)23.04%
ROICexc(3y)32.37%
ROICexc(5y)30.7%
ROICexgc(3y)36.3%
ROICexgc(5y)34.53%
ROCE(3y)32.95%
ROCE(5y)31.73%
ROICexcg growth 3Y3.29%
ROICexcg growth 5Y5.88%
ROICexc growth 3Y3.02%
ROICexc growth 5Y5.26%
OM growth 3Y-8.97%
OM growth 5Y-4.55%
PM growth 3Y-10.05%
PM growth 5Y-5.5%
GM growth 3Y0.92%
GM growth 5Y0.9%
F-Score8
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 49.38% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 81.46 | ||
| Cash Conversion | 102.3% | ||
| Profit Quality | 154.36% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 5.19 |
F-Score8
WACC8.19%
ROIC/WACC2.53
Cap/Depr(3y)50.18%
Cap/Depr(5y)47.25%
Cap/Sales(3y)1.63%
Cap/Sales(5y)1.79%
Profit Quality(3y)140.23%
Profit Quality(5y)145.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.29%
EPS 3Y-5.86%
EPS 5Y-2.82%
EPS Q2Q%-5.56%
EPS Next Y-14.17%
EPS Next 2Y7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.52%
Revenue growth 3Y4.39%
Revenue growth 5Y2.82%
Sales Q2Q%4.1%
Revenue Next Year3.81%
Revenue Next 2Y4.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.9%
EBIT growth 3Y-4.97%
EBIT growth 5Y-1.86%
EBIT Next Year15.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.15%
FCF growth 3Y13.2%
FCF growth 5Y-1.56%
OCF growth 1Y-31.14%
OCF growth 3Y13.2%
OCF growth 5Y-1.84%