EVERTZ TECHNOLOGIES LTD (ET.CA) Stock Fundamental Analysis
Canada - TSX:ET - CA30041N1078 - Common Stock
12.13 CAD
+0.01 (+0.08%)
Overall ET gets a fundamental rating of 7 out of 10. We evaluated ET against 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years ET has always been profitable.
ET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.61%, ET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ET's Return On Equity of 23.49% is amongst the best of the industry. ET outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 21.64%, ET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ET is significantly above the industry average of 12.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.61% | ||
| ROE | 23.49% | ||
| ROIC | 21.64% |
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
With an excellent Profit Margin value of 12.26%, ET belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
ET's Profit Margin has declined in the last couple of years.
ET has a better Operating Margin (16.52%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of ET has declined.
The Gross Margin of ET (59.96%) is better than 83.33% of its industry peers.
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 | 16.52% | ||
| PM (TTM) | 12.26% | ||
| GM | 59.96% |
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
ET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ET has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ET has less shares outstanding
Compared to 1 year ago, ET has an improved debt to assets ratio.
2.2 Solvency
ET has an Altman-Z score of 4.76. This indicates that ET is financially healthy and has little risk of bankruptcy at the moment.
ET's Altman-Z score of 4.76 is fine compared to the rest of the industry. ET outperforms 75.00% of its industry peers.
The Debt to FCF ratio of ET is 0.21, which is an excellent value as it means it would take ET, only 0.21 years of fcf income to pay off all of its debts.
ET's Debt to FCF ratio of 0.21 is amongst the best of the industry. ET outperforms 100.00% of its industry peers.
ET has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.05, ET is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 4.76 |
ROIC/WACC2.44
WACC8.86%
2.3 Liquidity
ET has a Current Ratio of 1.98. 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 better Current ratio (1.98) than 83.33% of its industry peers.
ET has a Quick Ratio of 1.11. 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 1.11. This is in the better half of the industry: ET outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
ET shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.76%.
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.
ET shows a small growth in Revenue. In the last year, the Revenue has grown by 0.34%.
ET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)-4.76%
EPS 3Y-5.86%
EPS 5Y-2.82%
EPS Q2Q%15.38%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y4.39%
Revenue growth 5Y2.82%
Sales Q2Q%0.45%
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 2.60% on average per year.
ET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y0.8%
EPS Next 2Y5.11%
EPS Next 3Y2.6%
EPS Next 5YN/A
Revenue Next Year2.12%
Revenue Next 2Y3.55%
Revenue Next 3Y5.29%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.16, ET is valued correctly.
ET's Price/Earnings ratio is rather cheap when compared to the industry. ET is cheaper than 91.67% of the companies in the same industry.
ET is valuated rather cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.08, which indicates a correct valuation of ET.
Based on the Price/Forward Earnings ratio, ET is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
ET's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ET is valued cheaper than 83.33% of the companies in the same industry.
91.67% 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 | 8.83 | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ET does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ET may justify a higher PE ratio.
PEG (NY)18.98
PEG (5Y)N/A
EPS Next 2Y5.11%
EPS Next 3Y2.6%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 6.62%, which is a nice return.
Compared to an average industry Dividend Yield of 3.38, 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 2.44, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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 97.93% of its income as dividend. This is not a sustainable payout ratio.
DP97.93%
EPS Next 2Y5.11%
EPS Next 3Y2.6%
TSX:ET (10/6/2025, 7:00:00 PM)
12.13
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners4.76%
Inst Owner ChangeN/A
Ins Owners65.01%
Ins Owner ChangeN/A
Market Cap914.97M
Analysts81.67
Price Target13.83 (14.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend0.79
Dividend Growth(5Y)-13.43%
DP97.93%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.03%
Min EPS beat(2)10.03%
Max EPS beat(2)12.02%
EPS beat(4)4
Avg EPS beat(4)16.13%
Min EPS beat(4)10.03%
Max EPS beat(4)24.83%
EPS beat(8)6
Avg EPS beat(8)7.45%
EPS beat(12)8
Avg EPS beat(12)6.77%
EPS beat(16)12
Avg EPS beat(16)11.09%
Revenue beat(2)0
Avg Revenue beat(2)-5.3%
Min Revenue beat(2)-7.78%
Max Revenue beat(2)-2.82%
Revenue beat(4)2
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-7.78%
Max Revenue beat(4)3.29%
Revenue beat(8)4
Avg Revenue beat(8)-2.77%
Revenue beat(12)7
Avg Revenue beat(12)-1.01%
Revenue beat(16)9
Avg Revenue beat(16)-0.05%
PT rev (1m)-2.55%
PT rev (3m)-3.12%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-22.83%
EPS NY rev (1m)5.29%
EPS NY rev (3m)17.44%
Revenue NQ rev (1m)-2.83%
Revenue NQ rev (3m)-6.27%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)-3.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 14.08 | ||
| P/S | 1.82 | ||
| P/FCF | 8.83 | ||
| P/OCF | 8.25 | ||
| P/B | 3.49 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)0.8
EY6.6%
EPS(NY)0.86
Fwd EY7.1%
FCF(TTM)1.37
FCFY11.32%
OCF(TTM)1.47
OCFY12.11%
SpS6.66
BVpS3.47
TBVpS3.21
PEG (NY)18.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.61% | ||
| ROE | 23.49% | ||
| ROCE | 29.65% | ||
| ROIC | 21.64% | ||
| ROICexc | 38.94% | ||
| ROICexgc | 44.74% | ||
| OM | 16.52% | ||
| PM (TTM) | 12.26% | ||
| GM | 59.96% | ||
| FCFM | 20.63% |
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-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 46.05% | ||
| Cap/Sales | 1.45% | ||
| Interest Coverage | 84.47 | ||
| Cash Conversion | 112.28% | ||
| Profit Quality | 168.25% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.76 |
F-Score6
WACC8.86%
ROIC/WACC2.44
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)-4.76%
EPS 3Y-5.86%
EPS 5Y-2.82%
EPS Q2Q%15.38%
EPS Next Y0.8%
EPS Next 2Y5.11%
EPS Next 3Y2.6%
EPS Next 5YN/A
Revenue 1Y (TTM)0.34%
Revenue growth 3Y4.39%
Revenue growth 5Y2.82%
Sales Q2Q%0.45%
Revenue Next Year2.12%
Revenue Next 2Y3.55%
Revenue Next 3Y5.29%
Revenue Next 5YN/A
EBIT growth 1Y-6.24%
EBIT growth 3Y-4.97%
EBIT growth 5Y-1.86%
EBIT Next Year19.54%
EBIT Next 3Y6.59%
EBIT Next 5YN/A
FCF growth 1Y19.57%
FCF growth 3Y13.2%
FCF growth 5Y-1.56%
OCF growth 1Y17.24%
OCF growth 3Y13.2%
OCF growth 5Y-1.84%