EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
30.12 USD
+0.7 (+2.38%)
30.12 USD
0 (0%)
Taking everything into account, EVTC scores 6 out of 10 in our fundamental rating. EVTC was compared to 97 industry peers in the Financial Services industry. EVTC has an average financial health and profitability rating. EVTC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make EVTC a good candidate 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's Return On Assets of 6.80% is fine compared to the rest of the industry. EVTC outperforms 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.
- EVTC has a better Return On Invested Capital (8.10%) than 76.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EVTC 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
- With a decent Profit Margin value of 16.17%, EVTC is doing good in the industry, outperforming 60.82% of the companies in the same industry.
- In the last couple of years the Profit Margin of EVTC has declined.
- 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.
- Looking at the Gross Margin, with a value of 49.81%, EVTC is in the better half of the industry, outperforming 68.04% 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 | 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EVTC is creating some value.
- Compared to 1 year ago, EVTC has less shares outstanding
- 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
- EVTC has an Altman-Z score of 2.22. This is not the best score and indicates that EVTC is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.22, EVTC belongs to the top of the industry, outperforming 80.41% of the companies in the same industry.
- The Debt to FCF ratio of EVTC is 7.44, which is on the high side as it means it would take EVTC, 7.44 years of fcf income to pay off all of its debts.
- EVTC has a Debt to FCF ratio (7.44) which 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 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 | 2.22 |
ROIC/WACC1.02
WACC7.92%
2.3 Liquidity
- A Current Ratio of 2.91 indicates that EVTC has no problem at all paying its short term obligations.
- EVTC has a better Current ratio (2.91) 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.
- EVTC has a better Quick ratio (2.91) than 85.57% of its industry peers.
| 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.
- 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.
- Based on estimates for the next years, EVTC will show a small growth in Revenue. The Revenue will grow by 6.99% on average per year.
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 8.48, 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 74.23% of the companies in the same industry.
- EVTC is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- EVTC is valuated cheaply with a Price/Forward Earnings ratio of 7.88.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 72.16% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. EVTC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
- EVTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 74.23% of the companies in the same industry.
- EVTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 69.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| EV/EBITDA | 8.28 |
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)0.77
PEG (5Y)0.78
EPS Next 2Y7.98%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.66%, EVTC is not a good candidate for dividend investing.
- EVTC's Dividend Yield is comparable with the industry average which is at 2.24.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- EVTC pays out 8.74% of its income as dividend. This is a 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%
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%.