EVERTEC INC (EVTC) Stock Fundamental Analysis
NYSE:EVTC - New York Stock Exchange, Inc. - PR30040P1032 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to EVTC. EVTC was compared to 99 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EVTC was profitable.
EVTC had a positive operating cash flow in the past year.
EVTC had positive earnings in each of the past 5 years.
In the past 5 years EVTC always reported a positive cash flow from operatings.
1.2 Ratios
EVTC has a Return On Assets of 6.75%. This is amongst the best in the industry. EVTC outperforms 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 23.86%, EVTC belongs to the top of the industry, outperforming 85.86% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.62%, EVTC is doing good in the industry, outperforming 77.78% of the companies in the same industry.
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 11.83%.
| 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
The Profit Margin of EVTC (14.88%) is better than 63.64% of its industry peers.
In the last couple of years the Profit Margin of EVTC has declined.
Looking at the Operating Margin, with a value of 20.56%, EVTC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of EVTC has declined.
The Gross Margin of EVTC (51.83%) is better than 69.70% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EVTC is still 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
EVTC has an Altman-Z score of 2.40. 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 Altman-Z score of 2.40. This is in the better half of the industry: EVTC outperforms 79.80% 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 66.67% of the companies in the same industry.
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 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 5.46 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.08
WACC7.97%
2.3 Liquidity
EVTC has a Current 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.
The Current ratio of EVTC (1.99) is better than 75.76% of its industry peers.
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.
With a decent Quick ratio value of 1.99, EVTC is doing good in the industry, outperforming 76.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
EVTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.35%, which is quite impressive.
EVTC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
EVTC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.39%.
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
EVTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.49% yearly.
Based on estimates for the next years, EVTC will show a small growth in Revenue. The Revenue will grow by 5.55% on average per year.
EPS Next Y6.24%
EPS Next 2Y5.61%
EPS Next 3Y5.49%
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.
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
EVTC is valuated reasonably with a Price/Earnings ratio of 10.65.
Compared to the rest of the industry, the Price/Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 64.65% of the companies listed in the same industry.
EVTC is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.98, the valuation of EVTC can be described as reasonable.
EVTC's Price/Forward Earnings ratio is in line with the industry average.
EVTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than EVTC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EVTC is valued a bit cheaper than 65.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.44 | ||
| EV/EBITDA | 9.92 |
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)1.71
PEG (5Y)0.98
EPS Next 2Y5.61%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
EVTC has a yearly dividend return of 0.54%, which is pretty low.
EVTC's Dividend Yield is comparable with the industry average which is at 4.73.
Compared to an average S&P500 Dividend Yield of 2.40, EVTC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
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%
NYSE:EVTC (6/18/2025, 12:27:49 PM)
36.52
+0.3 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.91%
Inst Owner Change-2.29%
Ins Owners0.73%
Ins Owner Change7.93%
Market Cap2.32B
Analysts80
Price Target40.8 (11.72%)
Short Float %2.69%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)9.89%
PT rev (3m)9.89%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)0%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 9.98 | ||
| P/S | 2.67 | ||
| P/FCF | 13.44 | ||
| P/OCF | 8.88 | ||
| P/B | 4.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.92 |
EPS(TTM)3.43
EY9.39%
EPS(NY)3.66
Fwd EY10.02%
FCF(TTM)2.72
FCFY7.44%
OCF(TTM)4.11
OCFY11.27%
SpS13.66
BVpS8.52
TBVpS-10.18
PEG (NY)1.71
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 | 2.4 |
F-Score8
WACC7.97%
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 Y6.24%
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%
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%