EVERTEC INC (EVTC) Stock Fundamental Analysis
NYSE:EVTC - New York Stock Exchange, Inc. - PR30040P1032 - Common Stock - Currency: USD
EVTC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. EVTC has only an average score on both its financial health and profitability. EVTC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EVTC had positive earnings in the past year.
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
The Return On Assets of EVTC (6.75%) is better than 81.19% of its industry peers.
EVTC has a better Return On Equity (23.86%) than 86.14% of its industry peers.
EVTC has a Return On Invested Capital of 8.62%. This is in the better half of the industry: EVTC outperforms 78.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EVTC is in line with the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 23.86% | ||
| ROIC | 8.62% |
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 Profit Margin of 14.88%. This is in the better half of the industry: EVTC outperforms 63.37% of its industry peers.
EVTC's Profit Margin has declined in the last couple of years.
EVTC has a Operating Margin of 20.56%. This is in the better half of the industry: EVTC outperforms 67.33% of its industry peers.
In the last couple of years the Operating Margin of EVTC has declined.
With a decent Gross Margin value of 51.83%, EVTC is doing good in the industry, outperforming 69.31% of the companies in the same industry.
EVTC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.56% | ||
| PM (TTM) | 14.88% | ||
| GM | 51.83% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EVTC is creating some value.
The number of shares outstanding for EVTC has been reduced 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
An Altman-Z score of 2.32 indicates that EVTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.32, EVTC is doing good in the industry, outperforming 78.22% of the companies in the same industry.
EVTC has a debt to FCF ratio of 5.46. This is a neutral value as EVTC would need 5.46 years to pay back of all of its debts.
EVTC has a Debt to FCF ratio of 5.46. This is in the better half of the industry: EVTC outperforms 67.33% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that EVTC has dependencies on debt financing.
EVTC has a Debt to Equity ratio of 1.70. This is in the lower half of the industry: EVTC underperforms 60.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 5.46 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.08
WACC8%
2.3 Liquidity
A Current Ratio of 1.99 indicates that EVTC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.99, EVTC is doing good in the industry, outperforming 75.25% of the companies in the same industry.
EVTC has a Quick Ratio of 1.99. This is a normal value and indicates that EVTC is financially healthy and should not expect problems in meeting its short term obligations.
EVTC's Quick ratio of 1.99 is fine compared to the rest of the industry. EVTC outperforms 76.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.35% over the past year.
EVTC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
The Revenue has grown by 17.39% in the past year. This is quite good.
Measured over the past years, EVTC shows a quite strong growth in Revenue. The Revenue has been growing by 11.65% on average per year.
EPS 1Y (TTM)20.35%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%20.83%
Revenue 1Y (TTM)17.39%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%11.43%
3.2 Future
Based on estimates for the next years, EVTC will show a small growth in Earnings Per Share. The EPS will grow by 6.55% on average per year.
EVTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
EPS Next Y6.3%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue Next Year6%
Revenue Next 2Y5.49%
Revenue Next 3Y5.55%
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
EVTC is valuated reasonably with a Price/Earnings ratio of 9.75.
EVTC's Price/Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 68.32% of the companies in the same industry.
EVTC is valuated cheaply when we compare the Price/Earnings ratio to 27.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.15, the valuation of EVTC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 62.38% of the companies listed in the same industry.
EVTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
EVTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 71.29% of the companies in the same industry.
EVTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 69.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.3 | ||
| EV/EBITDA | 9.33 |
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)1.55
PEG (5Y)0.9
EPS Next 2Y5.58%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, EVTC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.23, EVTC has a dividend in line with its industry peers.
With a Dividend Yield of 0.60, EVTC pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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.
EVTC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
EVTC pays out 9.88% 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.
DP9.88%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
33.44
+0.31 (+0.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.91%
Inst Owner Change0.01%
Ins Owners0.73%
Ins Owner Change8.52%
Market Cap2.13B
Analysts80
Price Target40.8 (22.01%)
Short Float %2.34%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.2
Dividend Growth(5Y)0.01%
DP9.88%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.22%
Min EPS beat(2)7.38%
Max EPS beat(2)19.07%
EPS beat(4)4
Avg EPS beat(4)14.76%
Min EPS beat(4)7.38%
Max EPS beat(4)19.07%
EPS beat(8)7
Avg EPS beat(8)10.37%
EPS beat(12)8
Avg EPS beat(12)4.81%
EPS beat(16)11
Avg EPS beat(16)7.14%
Revenue beat(2)1
Avg Revenue beat(2)0.72%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)2.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)2.9%
Revenue beat(8)3
Avg Revenue beat(8)1.49%
Revenue beat(12)6
Avg Revenue beat(12)1.66%
Revenue beat(16)10
Avg Revenue beat(16)1.91%
PT rev (1m)0%
PT rev (3m)9.89%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 9.15 | ||
| P/S | 2.45 | ||
| P/FCF | 12.3 | ||
| P/OCF | 8.13 | ||
| P/B | 3.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.33 |
EPS(TTM)3.43
EY10.26%
EPS(NY)3.66
Fwd EY10.93%
FCF(TTM)2.72
FCFY8.13%
OCF(TTM)4.11
OCFY12.3%
SpS13.66
BVpS8.52
TBVpS-10.18
PEG (NY)1.55
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 23.86% | ||
| ROCE | 10.91% | ||
| ROIC | 8.62% | ||
| ROICexc | 10.29% | ||
| ROICexgc | 77.41% | ||
| OM | 20.56% | ||
| PM (TTM) | 14.88% | ||
| GM | 51.83% | ||
| FCFM | 19.9% |
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 | 1.7 | ||
| Debt/FCF | 5.46 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 72.88% | ||
| Cap/Sales | 10.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.08% | ||
| Profit Quality | 133.68% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 2.32 |
F-Score8
WACC8%
ROIC/WACC1.08
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)20.35%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%20.83%
EPS Next Y6.3%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)17.39%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%11.43%
Revenue Next Year6%
Revenue Next 2Y5.49%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
EBIT growth 1Y-1.18%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year125.39%
EBIT Next 3Y36.41%
EBIT Next 5YN/A
FCF growth 1Y34.35%
FCF growth 3Y2.05%
FCF growth 5Y7.42%
OCF growth 1Y24.51%
OCF growth 3Y4.42%
OCF growth 5Y7.65%