EVERTEC INC (EVTC)
PR30040P1032 - Common Stock
Taking everything into account, EVTC scores 6 out of 10 in our fundamental rating. EVTC was compared to 102 industry peers in the Financial Services industry. While EVTC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EVTC is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
In the past 5 years EVTC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.87%, EVTC is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
EVTC's Return On Equity of 13.42% is fine compared to the rest of the industry. EVTC outperforms 62.75% of its industry peers.
With an excellent Return On Invested Capital value of 9.84%, EVTC belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
EVTC had an Average Return On Invested Capital over the past 3 years of 15.04%. This is significantly above the industry average of 7.93%.
The last Return On Invested Capital (9.84%) for EVTC is well below the 3 year average (15.04%), which needs to be investigated, but indicates that EVTC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 13.42% | ||
| ROIC | 9.84% |
ROA(3y)13.02%
ROA(5y)11.8%
ROE(3y)32.89%
ROE(5y)33.66%
ROIC(3y)15.04%
ROIC(5y)14.88%
1.3 Margins
EVTC has a Profit Margin of 11.48%. This is in the better half of the industry: EVTC outperforms 60.78% of its industry peers.
In the last couple of years the Profit Margin of EVTC has declined.
EVTC has a better Operating Margin (27.32%) than 79.41% of its industry peers.
EVTC's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 51.52%, EVTC is doing good in the industry, outperforming 70.59% of the companies in the same industry.
In the last couple of years the Gross Margin of EVTC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.32% | ||
| PM (TTM) | 11.48% | ||
| GM | 51.52% |
OM growth 3Y-0.47%
OM growth 5Y-0.19%
PM growth 3Y-17.51%
PM growth 5Y-9.6%
GM growth 3Y-2.48%
GM growth 5Y-1.86%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EVTC is creating value.
The number of shares outstanding for EVTC has been increased compared to 1 year ago.
Compared to 5 years ago, EVTC has less shares outstanding
EVTC has a worse debt/assets ratio than last year.
2.2 Solvency
EVTC has an Altman-Z score of 2.15. 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 has a better Altman-Z score (2.15) than 77.45% of its industry peers.
EVTC has a debt to FCF ratio of 6.97. This is a slightly negative value and a sign of low solvency as EVTC would need 6.97 years to pay back of all of its debts.
The Debt to FCF ratio of EVTC (6.97) is comparable to the rest of the industry.
EVTC has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.59, EVTC is doing worse than 65.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 6.97 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.21
WACC8.13%
2.3 Liquidity
EVTC has a Current Ratio of 1.88. This is a normal value and indicates that EVTC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EVTC (1.88) is better than 74.51% of its industry peers.
EVTC has a Quick Ratio of 1.88. This is a normal value and indicates that EVTC is financially healthy and should not expect problems in meeting its short term obligations.
EVTC has a better Quick ratio (1.88) than 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
EVTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.50%, 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 8.91% yearly.
EVTC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.34%.
EVTC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.89% yearly.
EPS 1Y (TTM)17.5%
EPS 3Y10.68%
EPS 5Y8.91%
EPS growth Q2Q-4.62%
Revenue 1Y (TTM)12.34%
Revenue growth 3Y10.81%
Revenue growth 5Y8.89%
Revenue growth Q2Q20.28%
3.2 Future
EVTC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.96% yearly.
The Revenue is expected to grow by 12.92% on average over the next years. This is quite good.
EPS Next Y4.04%
EPS Next 2Y7.39%
EPS Next 3Y8.96%
EPS Next 5YN/A
Revenue Next Year25.44%
Revenue Next 2Y15.91%
Revenue Next 3Y12.92%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 12.67, EVTC is valued correctly.
EVTC's Price/Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 63.73% of the companies in the same industry.
EVTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.55.
The Price/Forward Earnings ratio is 12.18, which indicates a correct valuation of EVTC.
The rest of the industry has a similar Price/Forward Earnings ratio as EVTC.
When comparing the Price/Forward Earnings ratio of EVTC to the average of the S&P500 Index (20.92), we can say EVTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 12.18 |
4.2 Price Multiples
EVTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 71.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EVTC is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.52 | ||
| EV/EBITDA | 10.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EVTC may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)1.42
EPS Next 2Y7.39%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
EVTC has a yearly dividend return of 0.53%, which is pretty low.
EVTC's Dividend Yield is comparable with the industry average which is at 3.60.
Compared to an average S&P500 Dividend Yield of 2.39, EVTC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
On average, the dividend of EVTC grows each year by 14.69%, which is quite nice.
EVTC has been paying a dividend for at least 10 years, so it has a reliable track record.
EVTC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.69%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
16.33% of the earnings are spent on dividend by EVTC. This is a low number and sustainable payout ratio.
EVTC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.33%
EPS Next 2Y7.39%
EPS Next 3Y8.96%
EVERTEC INC
NYSE:EVTC (5/2/2024, 3:15:00 PM)
After market: 35.74 0 (0%)35.74
-1.88 (-5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 12.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.14
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 13.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.32% | ||
| PM (TTM) | 11.48% | ||
| GM | 51.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.5%
EPS 3Y10.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.34%
Revenue growth 3Y10.81%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y