EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
29.79 USD
-0.33 (-1.1%)
29.79 USD
0 (0%)
Overall EVTC gets a fundamental rating of 6 out of 10. We evaluated EVTC against 97 industry peers in the Financial Services industry. EVTC has only an average score on both its financial health and profitability. EVTC may be a bit undervalued, certainly considering the very reasonable score on growth This makes EVTC very considerable for value investing!
1. Profitability
1.1 Basic Checks
- EVTC had positive earnings in the past year.
- In the past year EVTC had a positive cash flow from operations.
- EVTC had positive earnings in each of the past 5 years.
- Each year in the past 5 years EVTC had a positive operating cash flow.
1.2 Ratios
- EVTC has a better Return On Assets (6.80%) than 79.38% of its industry peers.
- EVTC has a Return On Equity of 22.01%. This is amongst the best in the industry. EVTC outperforms 85.57% of its industry peers.
- With a decent Return On Invested Capital value of 8.10%, EVTC is doing good in the industry, outperforming 76.29% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for EVTC is in line with the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 22.01% | ||
| ROIC | 8.1% |
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
- EVTC's Profit Margin of 16.17% is fine compared to the rest of the industry. EVTC outperforms 60.82% of its industry peers.
- EVTC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 21.49%, EVTC is in the better half of the industry, outperforming 70.10% of the companies in the same industry.
- EVTC's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 49.81%, EVTC is doing good in the industry, outperforming 68.04% of the companies in the same industry.
- EVTC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.49% | ||
| PM (TTM) | 16.17% | ||
| GM | 49.81% |
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.
- Compared to 1 year ago, EVTC has less shares outstanding
- The number of shares outstanding for EVTC has been reduced compared to 5 years ago.
- EVTC has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.21 indicates that EVTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- EVTC's Altman-Z score of 2.21 is amongst the best of the industry. EVTC outperforms 80.41% of its industry peers.
- EVTC has a debt to FCF ratio of 7.44. This is a slightly negative value and a sign of low solvency as EVTC would need 7.44 years to pay back of all of its debts.
- EVTC has a Debt to FCF ratio of 7.44. This is comparable to the rest of the industry: EVTC outperforms 48.45% of its industry peers.
- EVTC has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
- EVTC has a Debt to Equity ratio of 1.60. This is in the lower half of the industry: EVTC underperforms 63.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.03
WACC7.89%
2.3 Liquidity
- EVTC has a Current Ratio of 2.91. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of EVTC (2.91) is better than 84.54% of its industry peers.
- A Quick Ratio of 2.91 indicates that EVTC has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.91, EVTC belongs to the best of the industry, outperforming 85.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.16% over the past year.
- Measured over the past years, EVTC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.85% on average per year.
- EVTC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.67%.
- 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)17.16%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%6.98%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
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 8.03% on average per year.
- EVTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
EPS Next Y11.44%
EPS Next 2Y7.98%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue Next Year9.5%
Revenue Next 2Y7.56%
Revenue Next 3Y7.1%
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.
- 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 8.39, the valuation of EVTC can be described as very reasonable.
- EVTC's Price/Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 74.23% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. EVTC is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 7.79, the valuation of EVTC can be described as very cheap.
- 72.16% of the companies in the same industry are more expensive than EVTC, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. EVTC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EVTC is valued a bit cheaper than the industry average as 74.23% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, EVTC is valued a bit cheaper than the industry average as 69.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.09 | ||
| EV/EBITDA | 8.21 |
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.
- EVTC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.73
PEG (5Y)0.77
EPS Next 2Y7.98%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.66%, EVTC is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.09, EVTC has a dividend in line with its industry peers.
- With a Dividend Yield of 0.66, EVTC pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
- 8.74% of the earnings are spent on dividend by EVTC. This is a low number and sustainable payout ratio.
- EVTC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.74%
EPS Next 2Y7.98%
EPS Next 3Y8.03%
EVERTEC INC / EVTC FAQ
What is the ChartMill fundamental rating of EVERTEC INC (EVTC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to EVTC.
What is the valuation status for EVTC stock?
ChartMill assigns a valuation rating of 7 / 10 to EVERTEC INC (EVTC). This can be considered as Undervalued.
How profitable is EVERTEC INC (EVTC) stock?
EVERTEC INC (EVTC) has a profitability rating of 6 / 10.
How financially healthy is EVERTEC INC?
The financial health rating of EVERTEC INC (EVTC) is 6 / 10.
Is the dividend of EVERTEC INC sustainable?
The dividend rating of EVERTEC INC (EVTC) is 5 / 10 and the dividend payout ratio is 8.74%.