EVERTEC INC (EVTC)
PR30040P1032 - Common Stock
Overall EVTC gets a fundamental rating of 6 out of 10. We evaluated EVTC against 100 industry peers in the Financial Services industry. While EVTC has a great profitability rating, there are some minor concerns on its financial health. EVTC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EVTC was profitable.
EVTC had a positive operating cash flow in the past year.
EVTC had positive earnings in each of the past 5 years.
In the past 5 years EVTC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.67%, EVTC is doing good in the industry, outperforming 71.00% of the companies in the same industry.
EVTC has a better Return On Equity (14.35%) than 67.00% of its industry peers.
EVTC has a Return On Invested Capital of 10.41%. This is amongst the best in the industry. EVTC outperforms 84.00% of its industry peers.
EVTC had an Average Return On Invested Capital over the past 3 years of 15.04%. This is significantly above the industry average of 7.54%.
The last Return On Invested Capital (10.41%) 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 | 3.67% | ||
| ROE | 14.35% | ||
| ROIC | 10.41% |
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
Looking at the Profit Margin, with a value of 8.83%, EVTC is in line with its industry, outperforming 48.00% of the companies in the same industry.
In the last couple of years the Profit Margin of EVTC has declined.
EVTC has a Operating Margin of 23.20%. This is in the better half of the industry: EVTC outperforms 69.00% of its industry peers.
In the last couple of years the Operating Margin of EVTC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 51.62%, EVTC is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Gross Margin of EVTC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.2% | ||
| PM (TTM) | 8.83% | ||
| GM | 51.62% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EVTC is creating value.
The number of shares outstanding for EVTC has been increased compared to 1 year ago.
EVTC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EVTC is higher compared to a year ago.
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.
EVTC's Altman-Z score of 2.23 is fine compared to the rest of the industry. EVTC outperforms 77.00% of its industry peers.
EVTC has a debt to FCF ratio of 7.76. This is a slightly negative value and a sign of low solvency as EVTC would need 7.76 years to pay back of all of its debts.
EVTC has a Debt to FCF ratio of 7.76. This is comparable to the rest of the industry: EVTC outperforms 55.00% of its industry peers.
EVTC has a Debt/Equity ratio of 1.94. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EVTC (1.94) is worse than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 7.76 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.31
WACC7.92%
2.3 Liquidity
EVTC has a Current Ratio of 1.82. This is a normal value and indicates that EVTC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.82, EVTC is doing good in the industry, outperforming 72.00% of the companies in the same industry.
A Quick Ratio of 1.82 indicates that EVTC should not have too much problems paying its short term obligations.
The Quick ratio of EVTC (1.82) is better than 73.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
EVTC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.32%.
The Earnings Per Share has been growing by 8.91% 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 12.34% in the last year.
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)12.34%
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 8.71% on average per year.
EVTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.43% yearly.
EPS Next Y10.32%
EPS Next 2Y8.54%
EPS Next 3Y8.71%
EPS Next 5YN/A
Revenue Next Year24.96%
Revenue Next 2Y15.5%
Revenue Next 3Y12.43%
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
EVTC is valuated reasonably with a Price/Earnings ratio of 11.90.
Compared to the rest of the industry, the Price/Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 65.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. EVTC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.85, the valuation of EVTC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EVTC is valued a bit cheaper than 61.00% 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 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EVTC is valued a bit cheaper than the industry average as 77.00% of the companies are valued more expensively.
EVTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.55 | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EVTC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.15
PEG (5Y)1.33
EPS Next 2Y8.54%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
EVTC has a yearly dividend return of 0.58%, which is pretty low.
EVTC's Dividend Yield is comparable with the industry average which is at 3.55.
With a Dividend Yield of 0.58, EVTC pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
The dividend of EVTC is nicely growing with an annual growth rate of 14.69%!
EVTC has paid a dividend for at least 10 years, which is 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)14.69%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
18.77% of the earnings are spent on dividend by EVTC. This is a low number and sustainable payout ratio.
The dividend of EVTC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.77%
EPS Next 2Y8.54%
EPS Next 3Y8.71%
EVERTEC INC
NYSE:EVTC (11/21/2024, 8:25:31 PM)
After market: 36.06 0 (0%)36.06
+1.22 (+3.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.15
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 14.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.2% | ||
| PM (TTM) | 8.83% | ||
| GM | 51.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.32%
EPS 3Y10.68%
EPS 5Y
EPS Q2Q%
EPS Next Y10.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.34%
Revenue growth 3Y10.81%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y