EVERTZ TECHNOLOGIES LTD (ET.CA) Stock Fundamental Analysis
Canada - TSX:ET - CA30041N1078 - Common Stock
12.66 CAD
-0.16 (-1.25%)
Taking everything into account, ET scores 7 out of 10 in our fundamental rating. 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years ET has always been profitable.
In the past 5 years ET always reported a positive cash flow from operatings.
1.2 Ratios
ET has a better Return On Assets (12.61%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 23.49%, ET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.64%, ET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ET had an Average Return On Invested Capital over the past 3 years of 23.85%. This 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
ET has a Profit Margin of 12.26%. This is amongst the best in the industry. ET outperforms 92.31% of its industry peers.
ET's Profit Margin has declined in the last couple of years.
The Operating Margin of ET (16.52%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of ET has declined.
ET has a better Gross Margin (59.96%) than 84.62% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| 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
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 4.87. This indicates that ET is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.87, ET is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
ET has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
ET has a better Debt to FCF ratio (0.21) 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 Debt to Equity ratio of 0.05. This is in the better half of the industry: ET outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 4.87 |
ROIC/WACC2.64
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.98 indicates that ET should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.98, ET is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.11, ET is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for ET have decreased by -4.76% 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.
Looking at the last year, ET shows a small growth in Revenue. The Revenue has grown by 0.34% in the last year.
The Revenue has been growing slightly by 2.82% on average over the past years.
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.
The Revenue is expected to grow by 5.29% on average over the next years.
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 15.82, ET is valued correctly.
Based on the Price/Earnings ratio, ET is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
ET is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.69, the valuation of ET can be described as correct.
92.31% of the companies in the same industry are more expensive than ET, based on the Price/Forward Earnings ratio.
ET is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
ET's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ET is cheaper than 92.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ET is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.22 | ||
| EV/EBITDA | 8.63 |
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)19.81
PEG (5Y)N/A
EPS Next 2Y5.11%
EPS Next 3Y2.6%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 6.36%, which is a nice return.
ET's Dividend Yield is rather good when compared to the industry average which is at 4.29. ET pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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.
The dividend of ET decreased 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 (11/3/2025, 7:00:00 PM)
12.66
-0.16 (-1.25%)
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 Cap954.94M
Revenue(TTM)502.13M
Net Income(TTM)61.57M
Analysts81.67
Price Target13.83 (9.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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)-3.7%
PT rev (3m)-2.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0%
EPS NY rev (3m)17.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 14.69 | ||
| P/S | 1.9 | ||
| P/FCF | 9.22 | ||
| P/OCF | 8.62 | ||
| P/B | 3.64 | ||
| P/tB | 3.95 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)0.8
EY6.32%
EPS(NY)0.86
Fwd EY6.81%
FCF(TTM)1.37
FCFY10.85%
OCF(TTM)1.47
OCFY11.61%
SpS6.66
BVpS3.47
TBVpS3.21
PEG (NY)19.81
PEG (5Y)N/A
Graham Number7.91
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%
ROICexgc growth 3Y3.29%
ROICexgc 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 | 4.87 |
F-Score6
WACC8.18%
ROIC/WACC2.64
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%
EVERTZ TECHNOLOGIES LTD / ET.CA FAQ
What is the ChartMill fundamental rating of EVERTZ TECHNOLOGIES LTD (ET.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ET.CA.
What is the valuation status of EVERTZ TECHNOLOGIES LTD (ET.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to EVERTZ TECHNOLOGIES LTD (ET.CA). This can be considered as Fairly Valued.
How profitable is EVERTZ TECHNOLOGIES LTD (ET.CA) stock?
EVERTZ TECHNOLOGIES LTD (ET.CA) has a profitability rating of 8 / 10.
What is the financial health of EVERTZ TECHNOLOGIES LTD (ET.CA) stock?
The financial health rating of EVERTZ TECHNOLOGIES LTD (ET.CA) is 8 / 10.
How sustainable is the dividend of EVERTZ TECHNOLOGIES LTD (ET.CA) stock?
The dividend rating of EVERTZ TECHNOLOGIES LTD (ET.CA) is 5 / 10 and the dividend payout ratio is 97.93%.