EVERTEC INC (EVTC) Stock Fundamental Analysis
NYSE:EVTC - New York Stock Exchange, Inc. - PR30040P1032 - Common Stock - Currency: USD
Overall EVTC gets a fundamental rating of 5 out of 10. We evaluated EVTC against 101 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
EVTC had positive earnings in the past year.
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 6.75%. This is amongst the best in the industry. EVTC outperforms 82.18% of its industry peers.
EVTC has a Return On Equity of 23.86%. This is amongst the best in the industry. EVTC outperforms 86.14% of its industry peers.
The Return On Invested Capital of EVTC (8.62%) is better than 79.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EVTC is in line with the industry average of 11.69%.
| 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.
In the last couple of years the Profit Margin of EVTC has declined.
The Operating Margin of EVTC (20.56%) is better than 68.32% of its industry peers.
In the last couple of years the Operating Margin of EVTC has declined.
Looking at the Gross Margin, with a value of 51.83%, EVTC is in the better half of the industry, outperforming 71.29% 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
Compared to 1 year ago, EVTC has a worse debt to assets ratio.
2.2 Solvency
EVTC has an Altman-Z score of 2.43. 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 (2.43) than 81.19% of its industry peers.
The Debt to FCF ratio of EVTC is 5.46, which is a neutral value as it means it would take EVTC, 5.46 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.46, EVTC is doing good in the industry, outperforming 64.36% of the companies in the same industry.
EVTC has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.70, EVTC is not doing good in the industry: 61.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 5.46 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.09
WACC7.9%
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.
Looking at the last year, EVTC shows a quite strong growth in Revenue. The Revenue has grown by 17.39% in the last year.
EVTC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.65% yearly.
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
The Earnings Per Share is expected to grow by 5.49% on average over the next years.
Based on estimates for the next years, EVTC will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y6.24%
EPS Next 2Y5.61%
EPS Next 3Y5.49%
EPS Next 5YN/A
Revenue Next Year6.09%
Revenue Next 2Y5.53%
Revenue Next 3Y5.31%
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.
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
The Price/Earnings ratio is 10.59, which indicates a very decent valuation of EVTC.
Based on the Price/Earnings ratio, EVTC is valued a bit cheaper than 64.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, EVTC is valued rather cheaply.
EVTC is valuated reasonably with a Price/Forward Earnings ratio of 9.93.
The rest of the industry has a similar Price/Forward Earnings ratio as EVTC.
EVTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
EVTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 66.34% 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 69.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.46 | ||
| EV/EBITDA | 10.15 |
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)1.7
PEG (5Y)0.98
EPS Next 2Y5.61%
EPS Next 3Y5.49%
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 4.86.
With a Dividend Yield of 0.53, EVTC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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 2Y5.61%
EPS Next 3Y5.49%
36.34
-0.73 (-1.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners104.15%
Inst Owner Change-2.22%
Ins Owners0.66%
Ins Owner Change5.59%
Market Cap2.31B
Analysts78.33
Price Target37.13 (2.17%)
Short Float %2.39%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)1.11%
EPS NQ rev (1m)-2.55%
EPS NQ rev (3m)2.27%
EPS NY rev (1m)0.23%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 9.93 | ||
| P/S | 2.68 | ||
| P/FCF | 13.46 | ||
| P/OCF | 8.89 | ||
| P/B | 4.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)3.43
EY9.44%
EPS(NY)3.66
Fwd EY10.07%
FCF(TTM)2.7
FCFY7.43%
OCF(TTM)4.09
OCFY11.25%
SpS13.57
BVpS8.47
TBVpS-10.11
PEG (NY)1.7
PEG (5Y)0.98
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 | 2.43 |
F-Score8
WACC7.9%
ROIC/WACC1.09
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 Y6.24%
EPS Next 2Y5.61%
EPS Next 3Y5.49%
EPS Next 5YN/A
Revenue 1Y (TTM)17.39%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%11.43%
Revenue Next Year6.09%
Revenue Next 2Y5.53%
Revenue Next 3Y5.31%
Revenue Next 5YN/A
EBIT growth 1Y-1.18%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year124.93%
EBIT Next 3Y35.87%
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%