EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
28.95 USD
-0.3 (-1.03%)
28.95 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on EVTC. These ratings would make EVTC suitable for value investing!
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.
Each year in the past 5 years EVTC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.80%, EVTC is doing good in the industry, outperforming 79.59% of the companies in the same industry.
EVTC's Return On Equity of 22.01% is amongst the best of the industry. EVTC outperforms 85.71% of its industry peers.
EVTC's Return On Invested Capital of 8.10% is fine compared to the rest of the industry. EVTC outperforms 77.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EVTC is above the industry average of 8.20%.
| 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
The Profit Margin of EVTC (16.17%) is better than 61.22% of its industry peers.
In the last couple of years the Profit Margin of EVTC has declined.
EVTC has a Operating Margin of 21.49%. This is in the better half of the industry: EVTC outperforms 69.39% of its industry peers.
In the last couple of years the Operating Margin of EVTC has declined.
EVTC has a better Gross Margin (49.81%) than 69.39% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EVTC is creating some value.
EVTC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EVTC has been reduced compared to 5 years ago.
Compared to 1 year ago, EVTC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.19 indicates that EVTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
EVTC has a better Altman-Z score (2.19) than 79.59% of its industry peers.
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 of 7.44. This is comparable to the rest of the industry: EVTC outperforms 51.02% of its industry peers.
A Debt/Equity ratio of 1.60 is on the high side and indicates that EVTC has dependencies on debt financing.
EVTC has a worse Debt to Equity ratio (1.60) than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.14
WACC7.08%
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 Current ratio of 2.91. This is amongst the best in the industry. EVTC outperforms 82.65% 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 83.67% of the companies in the same industry.
| 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 7.04% on average per year.
EVTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y8.43%
EPS Next 2Y6.51%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue Next Year7.32%
Revenue Next 2Y6.07%
Revenue Next 3Y6%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 8.15, the valuation of EVTC can be described as reasonable.
Based on the Price/Earnings ratio, EVTC is valued a bit cheaper than the industry average as 77.55% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.65. EVTC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.78, which indicates a rather cheap valuation of EVTC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 68.37% of the companies listed 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 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EVTC is valued a bit cheaper than 74.49% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EVTC is valued a bit cheaper than 68.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | 8.04 |
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)0.97
PEG (5Y)0.75
EPS Next 2Y6.51%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, EVTC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.20, EVTC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, EVTC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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.
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
EVTC pays out 8.74% of its income as dividend. This is a sustainable payout ratio.
The dividend of EVTC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.74%
EPS Next 2Y6.51%
EPS Next 3Y7.04%
28.95
-0.3 (-1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.11%
Inst Owner Change0.56%
Ins Owners0.73%
Ins Owner Change-0.16%
Market Cap1.85B
Revenue(TTM)903.38M
Net Income(TTM)146.09M
Analysts78.33
Price Target33.46 (15.58%)
Short Float %2.43%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.2
Dividend Growth(5Y)0.01%
DP8.74%
Div Incr Years0
Div Non Decr Years6
Ex-Date
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)-15.03%
PT rev (3m)-15.03%
EPS NQ rev (1m)6.59%
EPS NQ rev (3m)6.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)6.5%
Revenue NQ rev (3m)6.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 7.78 | ||
| P/S | 2.05 | ||
| P/FCF | 12.72 | ||
| P/OCF | 7.98 | ||
| P/B | 2.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.04 |
EPS(TTM)3.55
EY12.26%
EPS(NY)3.72
Fwd EY12.85%
FCF(TTM)2.28
FCFY7.86%
OCF(TTM)3.63
OCFY12.53%
SpS14.12
BVpS10.37
TBVpS-8.81
PEG (NY)0.97
PEG (5Y)0.75
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 | 2.19 |
F-Score6
WACC7.08%
ROIC/WACC1.14
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 Y8.43%
EPS Next 2Y6.51%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue 1Y (TTM)9.67%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
Revenue Next Year7.32%
Revenue Next 2Y6.07%
Revenue Next 3Y6%
Revenue Next 5YN/A
EBIT growth 1Y30.22%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year128.04%
EBIT Next 3Y36.81%
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.
Can you provide the valuation status for EVERTEC INC?
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.
What is the expected EPS growth for EVERTEC INC (EVTC) stock?
The Earnings per Share (EPS) of EVERTEC INC (EVTC) is expected to grow by 8.43% in the next year.
Can you provide the dividend sustainability for EVTC stock?
The dividend rating of EVERTEC INC (EVTC) is 5 / 10 and the dividend payout ratio is 8.74%.