EVERTEC INC (EVTC) Stock Fundamental Analysis
NYSE:EVTC - PR30040P1032 - Common Stock
35.8 USD
-0.36 (-1%)
35.8 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EVTC. EVTC was compared to 100 industry peers in the Financial Services industry. Both the profitability and the financial health of EVTC get a neutral evaluation. Nothing too spectacular is happening here. EVTC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EVTC was profitable.
In the past year EVTC had a positive cash flow from operations.
In the past 5 years EVTC has always been profitable.
EVTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.03%, EVTC belongs to the top of the industry, outperforming 83.00% of the companies in the same industry.
EVTC has a better Return On Equity (22.52%) than 86.00% of its industry peers.
EVTC's Return On Invested Capital of 8.88% is fine compared to the rest of the industry. EVTC outperforms 78.00% of its industry peers.
EVTC had an Average Return On Invested Capital over the past 3 years of 10.42%. This is above the industry average of 7.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 22.52% | ||
| ROIC | 8.88% |
ROA(3y)10.35%
ROA(5y)10.97%
ROE(3y)29.31%
ROE(5y)30.68%
ROIC(3y)10.42%
ROIC(5y)11.85%
1.3 Margins
EVTC has a better Profit Margin (15.55%) than 67.00% of its industry peers.
In the last couple of years the Profit Margin of EVTC has declined.
The Operating Margin of EVTC (21.59%) is better than 67.00% of its industry peers.
EVTC's Operating Margin has declined in the last couple of years.
EVTC has a better Gross Margin (51.37%) than 68.00% of its industry peers.
EVTC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.59% | ||
| PM (TTM) | 15.55% | ||
| GM | 51.37% |
OM growth 3Y-17.27%
OM growth 5Y-8.42%
PM growth 3Y-21.29%
PM growth 5Y-8.91%
GM growth 3Y-3.38%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EVTC is still creating some value.
EVTC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EVTC has been reduced compared to 5 years ago.
The debt/assets ratio for EVTC is higher compared to a year ago.
2.2 Solvency
EVTC has an Altman-Z score of 2.45. This is not the best score and indicates that EVTC is in the grey zone with still only limited risk for bankruptcy at the moment.
EVTC's Altman-Z score of 2.45 is amongst the best of the industry. EVTC outperforms 81.00% of its industry peers.
The Debt to FCF ratio of EVTC is 6.68, which is on the high side as it means it would take EVTC, 6.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.68, EVTC is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
A Debt/Equity ratio of 1.49 is on the high side and indicates that EVTC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.49, EVTC perfoms like the industry average, outperforming 41.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.12
WACC7.9%
2.3 Liquidity
A Current Ratio of 2.20 indicates that EVTC has no problem at all paying its short term obligations.
EVTC's Current ratio of 2.20 is fine compared to the rest of the industry. EVTC outperforms 78.00% of its industry peers.
EVTC has a Quick Ratio of 2.20. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
EVTC's Quick ratio of 2.20 is fine compared to the rest of the industry. EVTC outperforms 79.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
EVTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.51%, which is quite good.
EVTC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
Looking at the last year, EVTC shows a quite strong growth in Revenue. The Revenue has grown by 12.92% in the last year.
The Revenue has been growing by 11.65% on average over the past years. This is quite good.
EPS 1Y (TTM)17.51%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%7.23%
Revenue 1Y (TTM)12.92%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%8.32%
3.2 Future
The Earnings Per Share is expected to grow by 6.55% on average over the next years.
The Revenue is expected to grow by 5.59% on average over the next years.
EPS Next Y6.3%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue Next Year5.99%
Revenue Next 2Y5.52%
Revenue Next 3Y5.59%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.26, the valuation of EVTC can be described as reasonable.
EVTC's Price/Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 69.00% of the companies in the same industry.
EVTC is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.79, which indicates a very decent valuation of EVTC.
Based on the Price/Forward Earnings ratio, EVTC is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
EVTC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.79 |
4.2 Price Multiples
EVTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 71.00% of the companies in the same industry.
65.00% of the companies in the same industry are more expensive than EVTC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.21 | ||
| EV/EBITDA | 9.48 |
4.3 Compensation for Growth
EVTC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of EVTC may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)0.95
EPS Next 2Y5.58%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, EVTC is not a good candidate for dividend investing.
EVTC's Dividend Yield is comparable with the industry average which is at 5.32.
Compared to an average S&P500 Dividend Yield of 2.36, EVTC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of EVTC has a limited annual growth rate of 0.01%.
EVTC has paid a dividend for at least 10 years, which is a reliable track record.
As EVTC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
EVTC pays out 9.25% of its income as dividend. This is a sustainable payout ratio.
EVTC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.25%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
35.8
-0.36 (-1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.26%
Inst Owner Change0.03%
Ins Owners0.73%
Ins Owner Change8.52%
Market Cap2.28B
Analysts78.33
Price Target39.37 (9.97%)
Short Float %2.73%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.2
Dividend Growth(5Y)0.01%
DP9.25%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.66%
Min EPS beat(2)1.93%
Max EPS beat(2)7.38%
EPS beat(4)4
Avg EPS beat(4)10.96%
Min EPS beat(4)1.93%
Max EPS beat(4)19.07%
EPS beat(8)7
Avg EPS beat(8)9.95%
EPS beat(12)9
Avg EPS beat(12)5.2%
EPS beat(16)11
Avg EPS beat(16)5.11%
Revenue beat(2)2
Avg Revenue beat(2)2.09%
Min Revenue beat(2)1.27%
Max Revenue beat(2)2.9%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)2.9%
Revenue beat(8)4
Avg Revenue beat(8)1.66%
Revenue beat(12)6
Avg Revenue beat(12)1.45%
Revenue beat(16)10
Avg Revenue beat(16)1.64%
PT rev (1m)-3.5%
PT rev (3m)6.04%
EPS NQ rev (1m)1.83%
EPS NQ rev (3m)4.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)1.47%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.79 | ||
| P/S | 2.57 | ||
| P/FCF | 16.21 | ||
| P/OCF | 10.6 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.48 |
EPS(TTM)3.49
EY9.75%
EPS(NY)3.66
Fwd EY10.21%
FCF(TTM)2.21
FCFY6.17%
OCF(TTM)3.38
OCFY9.43%
SpS13.94
BVpS9.63
TBVpS-9.53
PEG (NY)1.63
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 22.52% | ||
| ROCE | 11.25% | ||
| ROIC | 8.88% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 78.5% | ||
| OM | 21.59% | ||
| PM (TTM) | 15.55% | ||
| GM | 51.37% | ||
| FCFM | 15.84% |
ROA(3y)10.35%
ROA(5y)10.97%
ROE(3y)29.31%
ROE(5y)30.68%
ROIC(3y)10.42%
ROIC(5y)11.85%
ROICexc(3y)12.85%
ROICexc(5y)15.16%
ROICexgc(3y)98.61%
ROICexgc(5y)108.08%
ROCE(3y)13.32%
ROCE(5y)15.08%
ROICexcg growth 3Y-12.99%
ROICexcg growth 5Y-2.59%
ROICexc growth 3Y-23.28%
ROICexc growth 5Y-8.31%
OM growth 3Y-17.27%
OM growth 5Y-8.42%
PM growth 3Y-21.29%
PM growth 5Y-8.91%
GM growth 3Y-3.38%
GM growth 5Y-1.57%
F-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 6.68 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 63.46% | ||
| Cap/Sales | 8.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.62% | ||
| Profit Quality | 101.84% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z | 2.45 |
F-Score8
WACC7.9%
ROIC/WACC1.12
Cap/Depr(3y)88.3%
Cap/Depr(5y)84.39%
Cap/Sales(3y)12.01%
Cap/Sales(5y)11.38%
Profit Quality(3y)128.7%
Profit Quality(5y)126.1%
High Growth Momentum
Growth
EPS 1Y (TTM)17.51%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%7.23%
EPS Next Y6.3%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)12.92%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%8.32%
Revenue Next Year5.99%
Revenue Next 2Y5.52%
Revenue Next 3Y5.59%
Revenue Next 5YN/A
EBIT growth 1Y5.07%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year128.04%
EBIT Next 3Y36.81%
EBIT Next 5YN/A
FCF growth 1Y-0.61%
FCF growth 3Y2.05%
FCF growth 5Y7.42%
OCF growth 1Y-2.21%
OCF growth 3Y4.42%
OCF growth 5Y7.65%