EVERTZ TECHNOLOGIES LTD (ET.CA) Stock Fundamental Analysis
TSX:ET - CA30041N1078 - Common Stock
12.03 CAD
-0.05 (-0.41%)
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. Both the health and profitability get an excellent rating, making ET a very profitable company, without any liquidiy or solvency issues. ET has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ET was profitable.
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.
1.2 Ratios
ET has a Return On Assets of 12.65%. This is amongst the best in the industry. ET outperforms 100.00% of its industry peers.
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 has a Return On Invested Capital of 20.72%. This is amongst the best in the industry. ET outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
ET has a Profit Margin of 11.84%. This is amongst the best in the industry. ET outperforms 91.67% of its industry peers.
ET's Profit Margin has declined in the last couple of years.
ET has a better Operating Margin (16.21%) than 100.00% of its industry peers.
ET's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 59.51%, ET belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of ET has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ET is creating value.
The number of shares outstanding for ET has been reduced compared to 1 year ago.
ET has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ET has been reduced compared to a year ago.
2.2 Solvency
ET has an Altman-Z score of 5.16. This indicates that ET is financially healthy and has little risk of bankruptcy at the moment.
ET has a Altman-Z score of 5.16. This is in the better half of the industry: ET outperforms 75.00% of its industry peers.
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 has a better Debt to FCF ratio (0.25) than 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 better Debt to Equity ratio (0.05) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 5.16 |
ROIC/WACC2.27
WACC9.12%
2.3 Liquidity
ET has a Current Ratio of 2.14. This indicates that ET is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ET (2.14) is better than 75.00% of its industry peers.
ET has a Quick Ratio of 1.15. This is a normal value and indicates that ET is financially healthy and should not expect problems in meeting its short term obligations.
ET has a Quick ratio of 1.15. This is in the better half of the industry: ET outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for ET have decreased strongly by -14.29% in the last year.
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.
The Revenue has decreased by -2.52% in the past year.
The Revenue has been growing slightly by 2.82% on average over the past years.
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
Based on estimates for the next years, ET will show a small growth in Earnings Per Share. The EPS will grow by 2.46% on average per year.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y-4.26%
EPS Next 2Y2.46%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 15.42, ET is valued correctly.
Based on the Price/Earnings ratio, ET is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.07, ET is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.11 indicates a correct valuation of ET.
Based on the Price/Forward Earnings ratio, ET is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.59, ET is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ET is valued a bit cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ET is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 8.44 |
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 2Y2.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.50%, ET is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.36, ET pays a better dividend. On top of this ET pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
5.2 History
The dividend of ET decreases each year by -13.43%.
ET has been paying a dividend for at least 10 years, so it has 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
ET pays out 101.11% of its income as dividend. This is not a sustainable payout ratio.
DP101.11%
EPS Next 2Y2.46%
EPS Next 3YN/A
TSX:ET (9/9/2025, 7:00:00 PM)
12.03
-0.05 (-0.41%)
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 Cap907.42M
Analysts83.64
Price Target14.2 (18.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
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%
PT rev (3m)-0.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.18%
EPS NY rev (1m)11.54%
EPS NY rev (3m)11.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 16.11 | ||
| P/S | 1.81 | ||
| P/FCF | 9.9 | ||
| P/OCF | 9.11 | ||
| P/B | 3.38 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)0.78
EY6.48%
EPS(NY)0.75
Fwd EY6.21%
FCF(TTM)1.22
FCFY10.1%
OCF(TTM)1.32
OCFY10.98%
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 | 5.16 |
F-Score8
WACC9.12%
ROIC/WACC2.27
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-4.26%
EPS Next 2Y2.46%
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%