EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - NYSE:EVTC - PR30040P1032 - Common Stock
29.18 USD
+0.52 (+1.81%)
29.18 USD
0 (0%)
Taking everything into account, EVTC scores 6 out of 10 in our fundamental rating. EVTC was compared to 97 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, EVTC could be worth investigating further for value investing!.
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.
EVTC had positive earnings in each of the past 5 years.
Each year in the past 5 years EVTC had a positive operating cash flow.
1.2 Ratios
EVTC has a Return On Assets of 7.03%. This is amongst the best in the industry. EVTC outperforms 80.41% of its industry peers.
EVTC has a better Return On Equity (22.52%) than 85.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.88%, EVTC is in the better half of the industry, outperforming 79.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EVTC is above the industry average of 8.15%.
| 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 Profit Margin of 15.55%. This is in the better half of the industry: EVTC outperforms 64.95% of its industry peers.
EVTC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.59%, EVTC is in the better half of the industry, outperforming 68.04% of the companies in the same industry.
In the last couple of years the Operating Margin of EVTC has declined.
Looking at the Gross Margin, with a value of 51.37%, EVTC is in the better half of the industry, outperforming 69.07% of the companies in the same industry.
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.
EVTC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EVTC has a worse debt to assets ratio.
2.2 Solvency
EVTC has an Altman-Z score of 2.27. 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.
The Altman-Z score of EVTC (2.27) is better than 80.41% 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.
EVTC's Debt to FCF ratio of 6.68 is fine compared to the rest of the industry. EVTC outperforms 60.82% of its industry peers.
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 is not doing good in the industry: 61.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.25
WACC7.13%
2.3 Liquidity
EVTC has a Current Ratio of 2.20. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EVTC (2.20) is better than 78.35% 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.
Looking at the Quick ratio, with a value of 2.20, EVTC is in the better half of the industry, outperforming 79.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.16% over the past year.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
Looking at the last year, EVTC shows a very strong growth in Revenue. The Revenue has grown by 21.70%.
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)17.16%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%6.98%
Revenue 1Y (TTM)21.7%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
3.2 Future
EVTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.04% yearly.
The Revenue is expected to grow by 6.00% on average over the next years.
EPS Next Y8.43%
EPS Next 2Y6.51%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue Next Year7.32%
Revenue Next 2Y6.07%
Revenue Next 3Y6%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.22 indicates a reasonable valuation of EVTC.
EVTC's Price/Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 77.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of EVTC to the average of the S&P500 Index (26.34), we can say EVTC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.84, the valuation of EVTC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 69.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EVTC to the average of the S&P500 Index (34.43), we can say EVTC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.22 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EVTC is valued a bit cheaper than 77.32% 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 69.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 8.15 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EVTC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)0.76
EPS Next 2Y6.51%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
EVTC has a yearly dividend return of 0.69%, which is pretty low.
In the last 3 months the price of EVTC has falen by -20.60%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.47, EVTC has a dividend in line with its industry peers.
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 | 0.69% |
5.2 History
The dividend of EVTC has a limited annual growth rate of 0.01%.
EVTC has been paying a dividend for at least 10 years, so it has 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 2Y6.51%
EPS Next 3Y7.04%
29.18
+0.52 (+1.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.11%
Inst Owner Change-0.29%
Ins Owners0.73%
Ins Owner Change-2.98%
Market Cap1.87B
Revenue(TTM)845.49M
Net Income(TTM)137.91M
Analysts78.33
Price Target39.37 (34.92%)
Short Float %2.37%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.22 | ||
| Fwd PE | 7.84 | ||
| P/S | 2.11 | ||
| P/FCF | 13.29 | ||
| P/OCF | 8.69 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.15 |
EPS(TTM)3.55
EY12.17%
EPS(NY)3.72
Fwd EY12.75%
FCF(TTM)2.2
FCFY7.52%
OCF(TTM)3.36
OCFY11.51%
SpS13.86
BVpS9.57
TBVpS-9.47
PEG (NY)0.98
PEG (5Y)0.76
Graham Number27.65
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%
ROICexgc growth 3Y-12.99%
ROICexgc 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 | 2.27 |
F-Score8
WACC7.13%
ROIC/WACC1.25
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)17.16%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%6.98%
EPS Next Y8.43%
EPS Next 2Y6.51%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue 1Y (TTM)21.7%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
Revenue Next Year7.32%
Revenue Next 2Y6.07%
Revenue Next 3Y6%
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%
EVERTEC INC / EVTC FAQ
What is the ChartMill fundamental rating of EVERTEC INC (EVTC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to EVTC.
Can you provide the valuation status for EVERTEC INC?
ChartMill assigns a valuation rating of 7 / 10 to EVERTEC INC (EVTC). This can be considered as Undervalued.
How profitable is EVERTEC INC (EVTC) stock?
EVERTEC INC (EVTC) has a profitability rating of 6 / 10.
What is the expected EPS growth for EVERTEC INC (EVTC) stock?
The Earnings per Share (EPS) of EVERTEC INC (EVTC) is expected to grow by 8.43% in the next year.
Can you provide the dividend sustainability for EVTC stock?
The dividend rating of EVERTEC INC (EVTC) is 5 / 10 and the dividend payout ratio is 9.25%.