EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
29.56 USD
+0.19 (+0.65%)
29.56 USD
0 (0%)
Taking everything into account, EVTC scores 6 out of 10 in our fundamental rating. EVTC was compared to 98 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. These ratings would make EVTC suitable for value investing!
1. Profitability
1.1 Basic Checks
EVTC had positive earnings in the past year.
EVTC had a positive operating cash flow in the past year.
Each year in the past 5 years EVTC has 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 (6.80%) is better than 79.59% of its industry peers.
The Return On Equity of EVTC (22.01%) is better than 85.71% of its industry peers.
EVTC has a better Return On Invested Capital (8.10%) than 76.53% of its industry peers.
EVTC had an Average Return On Invested Capital over the past 3 years of 10.42%. This is in line with the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 22.01% | ||
| ROIC | 8.1% |
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
The Profit Margin of EVTC (16.17%) is better than 61.22% of its industry peers.
In the last couple of years the Profit Margin of EVTC has declined.
The Operating Margin of EVTC (21.49%) is better than 70.41% of its industry peers.
EVTC's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 49.81%, EVTC is doing good in the industry, outperforming 69.39% 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 | 21.49% | ||
| PM (TTM) | 16.17% | ||
| GM | 49.81% |
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.
Compared to 5 years ago, EVTC has less shares outstanding
The debt/assets ratio for EVTC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.21 indicates that EVTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.21, EVTC belongs to the best of the industry, outperforming 80.61% of the companies in the same industry.
The Debt to FCF ratio of EVTC is 7.44, which is on the high side as it means it would take EVTC, 7.44 years of fcf income to pay off all of its debts.
EVTC has a Debt to FCF ratio (7.44) which is comparable to the rest of the industry.
EVTC has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
EVTC has a Debt to Equity ratio of 1.60. This is in the lower half of the industry: EVTC underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.13
WACC7.15%
2.3 Liquidity
EVTC has a Current Ratio of 2.91. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EVTC (2.91) is better than 83.67% of its industry peers.
EVTC has a Quick Ratio of 2.91. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.91, EVTC belongs to the best of the industry, outperforming 84.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.16% 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 9.67% in the past year. This is quite good.
The Revenue has been growing by 11.65% on average over the past years. This is quite good.
EPS 1Y (TTM)17.16%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%6.98%
Revenue 1Y (TTM)9.67%
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 7.73% yearly.
EVTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.99% yearly.
EPS Next Y11.08%
EPS Next 2Y7.98%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue Next Year9.5%
Revenue Next 2Y7.45%
Revenue Next 3Y6.99%
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 8.33, 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 76.53% of the companies in the same industry.
EVTC is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
EVTC is valuated cheaply with a Price/Forward Earnings ratio of 7.73.
EVTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 73.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. EVTC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 74.49% of the companies listed in the same industry.
69.39% 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 | 12.99 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
EVTC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EVTC may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)0.77
EPS Next 2Y7.98%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
EVTC has a yearly dividend return of 0.68%, which is pretty low.
EVTC's Dividend Yield is comparable with the industry average which is at 2.36.
Compared to an average S&P500 Dividend Yield of 2.00, EVTC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
8.74% of the earnings are spent on dividend by EVTC. This is a low number and sustainable payout ratio.
The dividend of EVTC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.74%
EPS Next 2Y7.98%
EPS Next 3Y7.73%
29.56
+0.19 (+0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.91%
Inst Owner Change0.57%
Ins Owners0.73%
Ins Owner Change0%
Market Cap1.89B
Revenue(TTM)903.38M
Net Income(TTM)146.09M
Analysts78.33
Price Target33.46 (13.19%)
Short Float %2.86%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.2
Dividend Growth(5Y)0.01%
DP8.74%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.73%
Min EPS beat(2)1.53%
Max EPS beat(2)1.93%
EPS beat(4)4
Avg EPS beat(4)7.48%
Min EPS beat(4)1.53%
Max EPS beat(4)19.07%
EPS beat(8)7
Avg EPS beat(8)7.67%
EPS beat(12)10
Avg EPS beat(12)8.06%
EPS beat(16)12
Avg EPS beat(16)5.32%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)1.27%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.9%
Revenue beat(8)3
Avg Revenue beat(8)0.6%
Revenue beat(12)6
Avg Revenue beat(12)1.52%
Revenue beat(16)9
Avg Revenue beat(16)1.6%
PT rev (1m)0%
PT rev (3m)-15.03%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)7.78%
EPS NY rev (1m)2.45%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.5%
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 7.73 | ||
| P/S | 2.09 | ||
| P/FCF | 12.99 | ||
| P/OCF | 8.15 | ||
| P/B | 2.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.17 |
EPS(TTM)3.55
EY12.01%
EPS(NY)3.82
Fwd EY12.94%
FCF(TTM)2.28
FCFY7.7%
OCF(TTM)3.63
OCFY12.28%
SpS14.12
BVpS10.37
TBVpS-8.81
PEG (NY)0.75
PEG (5Y)0.77
Graham Number28.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 22.01% | ||
| ROCE | 10.25% | ||
| ROIC | 8.1% | ||
| ROICexc | 10.81% | ||
| ROICexgc | 80.44% | ||
| OM | 21.49% | ||
| PM (TTM) | 16.17% | ||
| GM | 49.81% | ||
| FCFM | 16.12% |
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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 77.25% | ||
| Cap/Sales | 9.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.84% | ||
| Profit Quality | 99.69% | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | 2.21 |
F-Score6
WACC7.15%
ROIC/WACC1.13
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 Y11.08%
EPS Next 2Y7.98%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue 1Y (TTM)9.67%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
Revenue Next Year9.5%
Revenue Next 2Y7.45%
Revenue Next 3Y6.99%
Revenue Next 5YN/A
EBIT growth 1Y30.22%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year132.69%
EBIT Next 3Y37.79%
EBIT Next 5YN/A
FCF growth 1Y-2.91%
FCF growth 3Y2.05%
FCF growth 5Y7.42%
OCF growth 1Y1.87%
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 11.08% 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 8.74%.