EVERTEC INC (EVTC)
PR30040P1032 - Common Stock
EVTC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. While EVTC has a great profitability rating, there are some minor concerns on its financial health. EVTC is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year EVTC was profitable.
EVTC had a positive operating cash flow in the past year.
In the past 5 years EVTC has always been profitable.
In the past 5 years EVTC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.43%, EVTC is in the better half of the industry, outperforming 73.74% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.72%, EVTC is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.38%, EVTC belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
EVTC had an Average Return On Invested Capital over the past 3 years of 15.04%. This is significantly above the industry average of 7.84%.
The last Return On Invested Capital (8.38%) for EVTC is well below the 3 year average (15.04%), which needs to be investigated, but indicates that EVTC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 16.72% | ||
| ROIC | 8.38% |
ROA(3y)13.02%
ROA(5y)11.8%
ROE(3y)32.89%
ROE(5y)33.66%
ROIC(3y)15.04%
ROIC(5y)14.88%
1.3 Margins
EVTC has a Profit Margin (10.20%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EVTC has declined.
With a decent Operating Margin value of 18.10%, EVTC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
EVTC's Operating Margin has been stable in the last couple of years.
EVTC has a better Gross Margin (51.31%) than 68.69% of its industry peers.
In the last couple of years the Gross Margin of EVTC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.1% | ||
| PM (TTM) | 10.2% | ||
| GM | 51.31% |
OM growth 3Y-0.47%
OM growth 5Y-0.19%
PM growth 3Y-17.51%
PM growth 5Y-9.6%
GM growth 3Y-2.48%
GM growth 5Y-1.86%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EVTC is creating value.
The number of shares outstanding for EVTC has been increased compared to 1 year ago.
Compared to 5 years ago, EVTC has less shares outstanding
Compared to 1 year ago, EVTC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.20 indicates that EVTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.20, EVTC is doing good in the industry, outperforming 74.75% of the companies in the same industry.
The Debt to FCF ratio of EVTC is 6.75, which is on the high side as it means it would take EVTC, 6.75 years of fcf income to pay off all of its debts.
EVTC has a Debt to FCF ratio (6.75) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.85 is on the high side and indicates that EVTC has dependencies on debt financing.
The Debt to Equity ratio of EVTC (1.85) is worse than 64.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 2.2 |
ROIC/WACC1.03
WACC8.15%
2.3 Liquidity
EVTC has a Current Ratio of 1.97. This is a normal value and indicates that EVTC is financially healthy and should not expect problems in meeting its short term obligations.
EVTC has a better Current ratio (1.97) than 73.74% of its industry peers.
EVTC has a Quick Ratio of 1.97. This is a normal value and indicates that EVTC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.97, EVTC is in the better half of the industry, outperforming 74.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.32% 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 8.91% yearly.
EVTC shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.45%.
Measured over the past years, EVTC shows a quite strong growth in Revenue. The Revenue has been growing by 8.89% on average per year.
EPS 1Y (TTM)6.32%
EPS 3Y10.68%
EPS 5Y8.91%
EPS Q2Q%7.5%
Revenue 1Y (TTM)24.45%
Revenue growth 3Y10.81%
Revenue growth 5Y8.89%
Sales Q2Q%22.28%
3.2 Future
Based on estimates for the next years, EVTC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.11% on average per year.
The Revenue is expected to grow by 11.78% on average over the next years. This is quite good.
EPS Next Y11.78%
EPS Next 2Y8.49%
EPS Next 3Y8.11%
EPS Next 5YN/A
Revenue Next Year24.63%
Revenue Next 2Y15.04%
Revenue Next 3Y11.78%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.09, which indicates a very decent valuation of EVTC.
EVTC's Price/Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 64.65% of the companies in the same industry.
EVTC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 10.13 indicates a reasonable valuation of EVTC.
EVTC's Price/Forward Earnings is on the same level as the industry average.
EVTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
73.74% 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 the industry average as 68.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 10.06 |
4.3 Compensation for Growth
The 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)0.94
PEG (5Y)1.24
EPS Next 2Y8.49%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, EVTC is not a good candidate for dividend investing.
EVTC's Dividend Yield is comparable with the industry average which is at 3.76.
With a Dividend Yield of 0.60, EVTC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
On average, the dividend of EVTC grows each year by 14.69%, which is quite nice.
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)14.69%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
EVTC pays out 15.49% of its income as dividend. This is a sustainable payout ratio.
EVTC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.49%
EPS Next 2Y8.49%
EPS Next 3Y8.11%
EVERTEC INC
NYSE:EVTC (12/20/2024, 8:07:51 PM)
After market: 33.61 0 (0%)33.61
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners103.72%
Inst Owner Change-0.67%
Ins Owners0.86%
Ins Owner Change-9.36%
Market Cap2.14B
Analysts76.67
Price Target36.72 (9.25%)
Short Float %3.89%
Short Ratio7.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Dividend Growth(5Y)14.69%
DP15.49%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.29%
Min EPS beat(2)15.45%
Max EPS beat(2)17.14%
EPS beat(4)3
Avg EPS beat(4)7.86%
Min EPS beat(4)-4.53%
Max EPS beat(4)17.14%
EPS beat(8)6
Avg EPS beat(8)8.35%
EPS beat(12)8
Avg EPS beat(12)4.6%
EPS beat(16)11
Avg EPS beat(16)6.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.55%
Revenue beat(4)1
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)6.23%
Revenue beat(8)4
Avg Revenue beat(8)1.97%
Revenue beat(12)7
Avg Revenue beat(12)1.93%
Revenue beat(16)10
Avg Revenue beat(16)1.91%
PT rev (1m)-3.74%
PT rev (3m)-8.63%
EPS NQ rev (1m)-1.66%
EPS NQ rev (3m)-3.97%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 10.13 | ||
| P/S | 2.6 | ||
| P/FCF | 15.11 | ||
| P/OCF | 8.7 | ||
| P/B | 4.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.06 |
EPS(TTM)3.03
EY9.02%
EPS(NY)3.32
Fwd EY9.87%
FCF(TTM)2.22
FCFY6.62%
OCF(TTM)3.86
OCFY11.49%
SpS12.95
BVpS7.9
TBVpS-10.87
PEG (NY)0.94
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 16.72% | ||
| ROCE | 9.18% | ||
| ROIC | 8.38% | ||
| ROICexc | 10.1% | ||
| ROICexgc | 87.76% | ||
| OM | 18.1% | ||
| PM (TTM) | 10.2% | ||
| GM | 51.31% | ||
| FCFM | 17.18% |
ROA(3y)13.02%
ROA(5y)11.8%
ROE(3y)32.89%
ROE(5y)33.66%
ROIC(3y)15.04%
ROIC(5y)14.88%
ROICexc(3y)19.44%
ROICexc(5y)18.76%
ROICexgc(3y)131.46%
ROICexgc(5y)127.84%
ROCE(3y)16.6%
ROCE(5y)16.37%
ROICexcg growth 3Y-5.21%
ROICexcg growth 5Y-8.37%
ROICexc growth 3Y-13.11%
ROICexc growth 5Y-5.71%
OM growth 3Y-0.47%
OM growth 5Y-0.19%
PM growth 3Y-17.51%
PM growth 5Y-9.6%
GM growth 3Y-2.48%
GM growth 5Y-1.86%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 6.75 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 79.56% | ||
| Cap/Sales | 12.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.74% | ||
| Profit Quality | 168.36% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 2.2 |
F-Score5
WACC8.15%
ROIC/WACC1.03
Cap/Depr(3y)94.94%
Cap/Depr(5y)88.15%
Cap/Sales(3y)12.31%
Cap/Sales(5y)11.74%
Profit Quality(3y)111.32%
Profit Quality(5y)118.81%
High Growth Momentum
Growth
EPS 1Y (TTM)6.32%
EPS 3Y10.68%
EPS 5Y8.91%
EPS Q2Q%7.5%
EPS Next Y11.78%
EPS Next 2Y8.49%
EPS Next 3Y8.11%
EPS Next 5YN/A
Revenue 1Y (TTM)24.45%
Revenue growth 3Y10.81%
Revenue growth 5Y8.89%
Sales Q2Q%22.28%
Revenue Next Year24.63%
Revenue Next 2Y15.04%
Revenue Next 3Y11.78%
Revenue Next 5YN/A
EBIT growth 1Y-26.61%
EBIT growth 3Y10.29%
EBIT growth 5Y8.68%
EBIT Next Year32.2%
EBIT Next 3Y14.24%
EBIT Next 5YN/A
FCF growth 1Y-4.08%
FCF growth 3Y-2.54%
FCF growth 5Y1.18%
OCF growth 1Y16.16%
OCF growth 3Y4.05%
OCF growth 5Y5.37%