EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
30.38 USD
+0.21 (+0.7%)
30.38 USD
0 (0%)
Overall EVTC gets a fundamental rating of 6 out of 10. We evaluated EVTC against 98 industry peers in the Financial Services industry. EVTC has only an average score on both its financial health and profitability. EVTC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make EVTC suitable for value investing!
1. Profitability
1.1 Basic Checks
EVTC had positive earnings in the past year.
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
The Return On Assets of EVTC (6.80%) is better than 79.59% of its industry peers.
EVTC has a better Return On Equity (22.01%) than 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.10%, EVTC is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
EVTC had an Average Return On Invested Capital over the past 3 years of 10.42%. This is in line with the industry average of 8.44%.
| 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
Looking at the Profit Margin, with a value of 16.17%, EVTC is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
In the last couple of years the Profit Margin of EVTC has declined.
The Operating Margin of EVTC (21.49%) is better than 70.41% of its industry peers.
EVTC's Operating Margin has declined in the last couple of years.
EVTC's Gross Margin of 49.81% is fine compared to the rest of the industry. EVTC outperforms 68.37% of its industry peers.
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
Compared to 5 years ago, EVTC has less shares outstanding
EVTC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.23 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 2.23, EVTC is doing good in the industry, outperforming 79.59% of the companies in the same industry.
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.
The Debt to FCF ratio of EVTC (7.44) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.60 is on the high side and indicates that EVTC has dependencies on debt financing.
EVTC's Debt to Equity ratio of 1.60 is on the low side compared to the rest of the industry. EVTC is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.02
WACC7.95%
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.
EVTC has a Current ratio of 2.91. This is amongst the best in the industry. EVTC outperforms 83.67% of its industry peers.
A Quick Ratio of 2.91 indicates that EVTC has no problem at all paying its short term obligations.
EVTC's Quick ratio of 2.91 is amongst the best of the industry. EVTC outperforms 84.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
EVTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.16%, which is quite good.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
Looking at the last year, EVTC shows a quite strong growth in Revenue. The Revenue has grown by 9.67% in the last year.
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 small growth in Earnings Per Share. The EPS will grow by 7.73% on average per year.
EVTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.99% yearly.
EPS Next Y11.08%
EPS Next 2Y7.98%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue Next Year9.5%
Revenue Next 2Y7.45%
Revenue Next 3Y6.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.56, which indicates a very decent valuation of EVTC.
Based on the Price/Earnings ratio, EVTC is valued a bit cheaper than 74.49% of the companies in the same industry.
EVTC is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.94, which indicates a rather cheap valuation of EVTC.
Based on the Price/Forward Earnings ratio, EVTC is valued a bit cheaper than 71.43% of the companies in the same industry.
EVTC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.56 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 73.47% of the companies listed in the same industry.
EVTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 66.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.35 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
EVTC's 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)0.77
PEG (5Y)0.79
EPS Next 2Y7.98%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
EVTC has a yearly dividend return of 0.66%, which is pretty low.
EVTC's Dividend Yield is comparable with the industry average which is at 2.49.
Compared to an average S&P500 Dividend Yield of 1.92, EVTC's dividend is way lower than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
EVTC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 3Y7.73%
30.38
+0.21 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.98%
Inst Owner Change0.05%
Ins Owners0.73%
Ins Owner Change0%
Market Cap1.94B
Revenue(TTM)903.38M
Net Income(TTM)146.09M
Analysts78.33
Price Target33.46 (10.14%)
Short Float %2.84%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.2
Dividend Growth(5Y)0.01%
DP8.74%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.73%
Min EPS beat(2)1.53%
Max EPS beat(2)1.93%
EPS beat(4)4
Avg EPS beat(4)7.48%
Min EPS beat(4)1.53%
Max EPS beat(4)19.07%
EPS beat(8)7
Avg EPS beat(8)7.67%
EPS beat(12)10
Avg EPS beat(12)8.06%
EPS beat(16)12
Avg EPS beat(16)5.32%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)1.27%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.9%
Revenue beat(8)3
Avg Revenue beat(8)0.6%
Revenue beat(12)6
Avg Revenue beat(12)1.52%
Revenue beat(16)9
Avg Revenue beat(16)1.6%
PT rev (1m)0%
PT rev (3m)-15.03%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)7.78%
EPS NY rev (1m)0%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.56 | ||
| Fwd PE | 7.94 | ||
| P/S | 2.15 | ||
| P/FCF | 13.35 | ||
| P/OCF | 8.37 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.34 |
EPS(TTM)3.55
EY11.69%
EPS(NY)3.82
Fwd EY12.59%
FCF(TTM)2.28
FCFY7.49%
OCF(TTM)3.63
OCFY11.94%
SpS14.12
BVpS10.37
TBVpS-8.81
PEG (NY)0.77
PEG (5Y)0.79
Graham Number28.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 22.01% | ||
| ROCE | 10.25% | ||
| ROIC | 8.1% | ||
| ROICexc | 10.81% | ||
| ROICexgc | 80.44% | ||
| OM | 21.49% | ||
| PM (TTM) | 16.17% | ||
| GM | 49.81% | ||
| FCFM | 16.12% |
ROA(3y)10.35%
ROA(5y)10.97%
ROE(3y)29.31%
ROE(5y)30.68%
ROIC(3y)10.42%
ROIC(5y)11.85%
ROICexc(3y)12.85%
ROICexc(5y)15.16%
ROICexgc(3y)98.61%
ROICexgc(5y)108.08%
ROCE(3y)13.32%
ROCE(5y)15.08%
ROICexgc growth 3Y-12.99%
ROICexgc growth 5Y-2.59%
ROICexc growth 3Y-23.28%
ROICexc growth 5Y-8.31%
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%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 77.25% | ||
| Cap/Sales | 9.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.84% | ||
| Profit Quality | 99.69% | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | 2.23 |
F-Score6
WACC7.95%
ROIC/WACC1.02
Cap/Depr(3y)88.3%
Cap/Depr(5y)84.39%
Cap/Sales(3y)12.01%
Cap/Sales(5y)11.38%
Profit Quality(3y)128.7%
Profit Quality(5y)126.1%
High Growth Momentum
Growth
EPS 1Y (TTM)17.16%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%6.98%
EPS Next Y11.08%
EPS Next 2Y7.98%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue 1Y (TTM)9.67%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
Revenue Next Year9.5%
Revenue Next 2Y7.45%
Revenue Next 3Y6.99%
Revenue Next 5YN/A
EBIT growth 1Y30.22%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year132.69%
EBIT Next 3Y37.79%
EBIT Next 5YN/A
FCF growth 1Y-2.91%
FCF growth 3Y2.05%
FCF growth 5Y7.42%
OCF growth 1Y1.87%
OCF growth 3Y4.42%
OCF growth 5Y7.65%
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%.