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Why EVERTEC INC (NYSE:EVTC) qualifies as a quality stock.

By Mill Chart

Last update: Dec 21, 2023

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.

A Deep Dive into EVERTEC INC's Quality Metrics.

  • EVERTEC INC has shown strong performance in revenue growth over the past 5 years, with a 8.72% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • The ROIC excluding cash and goodwill of EVERTEC INC stands at 123.0%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • EVERTEC INC maintains a healthy Debt/Free Cash Flow Ratio of 2.68, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • EVERTEC INC exhibits impressive Profit Quality (5-year) with a 114.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • 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 impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 7 out of 10 to EVTC. EVTC was compared to 102 industry peers in the Financial Services industry. EVTC gets an excellent profitability rating and is at the same time showing great financial health properties. EVTC has a decent growth rate and is not valued too expensively. These ratings would make EVTC suitable for quality investing!

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 article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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