EVERTZ TECHNOLOGIES LTD (ET.CA) Stock Fundamental Analysis
TSX:ET - Toronto Stock Exchange - CA30041N1078 - Common Stock - Currency: CAD
ET gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 10 industry peers in the Communications Equipment industry. ET gets an excellent profitability rating and is at the same time showing great financial health properties. ET has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ET had positive earnings in the past year.
In the past year ET had a positive cash flow from operations.
In the past 5 years ET has always been profitable.
Each year in the past 5 years ET had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ET (12.74%) is better than 100.00% of its industry peers.
ET has a better Return On Equity (22.31%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.04%, ET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ET is significantly above the industry average of 7.76%.
The 3 year average ROIC (26.03%) for ET is well above the current ROIC(19.04%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 22.31% | ||
| ROIC | 19.04% |
ROA(3y)15.39%
ROA(5y)14.18%
ROE(3y)28.02%
ROE(5y)24.32%
ROIC(3y)26.03%
ROIC(5y)23.02%
1.3 Margins
With an excellent Profit Margin value of 12.11%, ET belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ET has declined.
The Operating Margin of ET (15.07%) is better than 100.00% of its industry peers.
ET's Operating Margin has declined in the last couple of years.
The Gross Margin of ET (58.86%) is better than 70.00% of its industry peers.
ET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.07% | ||
| PM (TTM) | 12.11% | ||
| GM | 58.86% |
OM growth 3Y-2.87%
OM growth 5Y-2.92%
PM growth 3Y3.81%
PM growth 5Y-4.93%
GM growth 3Y0.35%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ET is creating value.
ET has about the same amout of shares outstanding than it did 1 year ago.
ET has less shares outstanding than it did 5 years ago.
ET has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.85 indicates that ET is not in any danger for bankruptcy at the moment.
ET has a better Altman-Z score (4.85) than 80.00% of its industry peers.
The Debt to FCF ratio of ET is 0.26, which is an excellent value as it means it would take ET, only 0.26 years of fcf income to pay off all of its debts.
ET has a Debt to FCF ratio of 0.26. This is amongst the best in the industry. ET outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that ET is not too dependend on debt financing.
ET has a Debt to Equity ratio of 0.06. This is in the better half of the industry: ET outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 4.85 |
ROIC/WACC2.33
WACC8.16%
2.3 Liquidity
ET has a Current Ratio of 2.13. This indicates that ET is financially healthy and has no problem in meeting its short term obligations.
ET has a Current ratio of 2.13. This is in the better half of the industry: ET outperforms 70.00% of its industry peers.
ET has a Quick Ratio of 1.07. This is a normal value and indicates that ET is financially healthy and should not expect problems in meeting its short term obligations.
ET has a Quick ratio (1.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for ET have decreased strongly by -18.56% in the last year.
Measured over the past years, ET shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.26% on average per year.
The Revenue has decreased by -4.64% in the past year.
ET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
EPS 1Y (TTM)-18.56%
EPS 3Y19%
EPS 5Y-2.26%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-4.64%
Revenue growth 3Y14.49%
Revenue growth 5Y3.01%
Sales Q2Q%1.21%
3.2 Future
Based on estimates for the next years, ET will show a decrease in Earnings Per Share. The EPS will decrease by -0.13% on average per year.
ET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.49% yearly.
EPS Next Y-15.11%
EPS Next 2Y-14.23%
EPS Next 3Y-0.13%
EPS Next 5YN/A
Revenue Next Year-3.72%
Revenue Next 2Y0.77%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 13.85, ET is valued correctly.
100.00% of the companies in the same industry are more expensive than ET, based on the Price/Earnings ratio.
ET is valuated cheaply when we compare the Price/Earnings ratio to 28.98, which is the current average of the S&P500 Index.
ET is valuated correctly with a Price/Forward Earnings ratio of 16.34.
Based on the Price/Forward Earnings ratio, ET is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, ET is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ET indicates a somewhat cheap valuation: ET is cheaper than 80.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ET is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.06 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
ET has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.23%
EPS Next 3Y-0.13%
5. Dividend
5.1 Amount
ET has a Yearly Dividend Yield of 7.44%, which is a nice return.
Compared to an average industry Dividend Yield of 5.06, ET pays a better dividend. On top of this ET pays more dividend than 100.00% of the companies listed in the same industry.
ET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.44% |
5.2 History
The dividend of ET has a limited annual growth rate of 1.33%.
ET has paid a dividend for at least 10 years, which is a reliable track record.
ET has decreased its dividend recently.
Dividend Growth(5Y)1.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
99.28% of the earnings are spent on dividend by ET. This is not a sustainable payout ratio.
The Dividend Rate of ET has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP99.28%
EPS Next 2Y-14.23%
EPS Next 3Y-0.13%
TSX:ET (4/29/2025, 7:00:00 PM)
10.94
+0.23 (+2.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners6.85%
Inst Owner ChangeN/A
Ins Owners64.52%
Ins Owner ChangeN/A
Market Cap830.35M
Analysts83.64
Price Target14.28 (30.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.44% |
Yearly Dividend0.77
Dividend Growth(5Y)1.33%
DP99.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.23%
Min EPS beat(2)17.63%
Max EPS beat(2)24.83%
EPS beat(4)2
Avg EPS beat(4)-1.55%
Min EPS beat(4)-25.76%
Max EPS beat(4)24.83%
EPS beat(8)5
Avg EPS beat(8)5.64%
EPS beat(12)8
Avg EPS beat(12)9.62%
EPS beat(16)10
Avg EPS beat(16)7.08%
Revenue beat(2)2
Avg Revenue beat(2)2.14%
Min Revenue beat(2)0.99%
Max Revenue beat(2)3.29%
Revenue beat(4)2
Avg Revenue beat(4)-4%
Min Revenue beat(4)-10.49%
Max Revenue beat(4)3.29%
Revenue beat(8)6
Avg Revenue beat(8)0.33%
Revenue beat(12)8
Avg Revenue beat(12)0.11%
Revenue beat(16)9
Avg Revenue beat(16)-0.14%
PT rev (1m)-9.68%
PT rev (3m)-9.68%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)-35.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.85%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 16.34 | ||
| P/S | 1.67 | ||
| P/FCF | 9.06 | ||
| P/OCF | 8.32 | ||
| P/B | 3.08 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)0.79
EY7.22%
EPS(NY)0.67
Fwd EY6.12%
FCF(TTM)1.21
FCFY11.04%
OCF(TTM)1.31
OCFY12.02%
SpS6.54
BVpS3.55
TBVpS3.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 22.31% | ||
| ROCE | 26% | ||
| ROIC | 19.04% | ||
| ROICexc | 28.61% | ||
| ROICexgc | 32.45% | ||
| OM | 15.07% | ||
| PM (TTM) | 12.11% | ||
| GM | 58.86% | ||
| FCFM | 18.47% |
ROA(3y)15.39%
ROA(5y)14.18%
ROE(3y)28.02%
ROE(5y)24.32%
ROIC(3y)26.03%
ROIC(5y)23.02%
ROICexc(3y)31.52%
ROICexc(5y)29.28%
ROICexgc(3y)35.24%
ROICexgc(5y)32.74%
ROCE(3y)35.8%
ROCE(5y)31.59%
ROICexcg growth 3Y12.75%
ROICexcg growth 5Y4.88%
ROICexc growth 3Y13.14%
ROICexc growth 5Y4.4%
OM growth 3Y-2.87%
OM growth 5Y-2.92%
PM growth 3Y3.81%
PM growth 5Y-4.93%
GM growth 3Y0.35%
GM growth 5Y0.57%
F-Score7
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | 50.28% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 72.73 | ||
| Cash Conversion | 109.74% | ||
| Profit Quality | 152.44% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 4.85 |
F-Score7
WACC8.16%
ROIC/WACC2.33
Cap/Depr(3y)44.1%
Cap/Depr(5y)49.84%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.93%
Profit Quality(3y)118.14%
Profit Quality(5y)143.54%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.56%
EPS 3Y19%
EPS 5Y-2.26%
EPS Q2Q%12.5%
EPS Next Y-15.11%
EPS Next 2Y-14.23%
EPS Next 3Y-0.13%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.64%
Revenue growth 3Y14.49%
Revenue growth 5Y3.01%
Sales Q2Q%1.21%
Revenue Next Year-3.72%
Revenue Next 2Y0.77%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
EBIT growth 1Y-33.8%
EBIT growth 3Y11.2%
EBIT growth 5Y0.01%
EBIT Next Year-18.72%
EBIT Next 3Y3%
EBIT Next 5YN/A
FCF growth 1Y117.42%
FCF growth 3Y13.92%
FCF growth 5Y11.93%
OCF growth 1Y101.97%
OCF growth 3Y12.73%
OCF growth 5Y10.33%