Why NYSE:EVTC qualifies as a quality stock.

In this article we will dive into EVERTEC INC (NYSE:EVTC) as a possible candidate for quality investing. Investors should always do their own research, but we noticed EVERTEC INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:EVTC highlighted

• EVERTEC INC has achieved substantial revenue growth over the past 5 years, with a 8.72% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 110.0%, EVERTEC INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 2.83, EVERTEC INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 114.0%, EVERTEC INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• EVERTEC INC has consistently achieved strong EBIT growth over the past 5 years, with a 15.27% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• EVERTEC INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NYSE:EVTC telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall EVTC gets a fundamental rating of 6 out of 10. We evaluated EVTC against 96 industry peers in the Financial Services industry. EVTC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EVTC is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of EVTC contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.