EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
29.25 USD
+0.3 (+1.04%)
29.25 USD
0 (0%)
Taking everything into account, EVTC scores 6 out of 10 in our fundamental rating. EVTC was compared to 99 industry peers in the Financial Services industry. Both the profitability and the financial health of EVTC get a neutral evaluation. Nothing too spectacular is happening here. EVTC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make EVTC suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EVTC was profitable.
In the past year EVTC had a positive cash flow from operations.
Each year in the past 5 years EVTC has been profitable.
Each year in the past 5 years EVTC had a positive operating cash flow.
1.2 Ratios
EVTC's Return On Assets of 7.03% is amongst the best of the industry. EVTC outperforms 80.81% of its industry peers.
EVTC's Return On Equity of 22.52% is amongst the best of the industry. EVTC outperforms 85.86% of its industry peers.
The Return On Invested Capital of EVTC (8.88%) is better than 79.80% of its industry peers.
EVTC had an Average Return On Invested Capital over the past 3 years of 10.42%. This is above the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 22.52% | ||
| ROIC | 8.88% |
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 15.55%, EVTC is doing good in the industry, outperforming 65.66% of the companies in the same industry.
EVTC's Profit Margin has declined in the last couple of years.
EVTC has a Operating Margin of 21.59%. This is in the better half of the industry: EVTC outperforms 69.70% of its industry peers.
EVTC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.37%, EVTC is in the better half of the industry, outperforming 68.69% of the companies in the same industry.
EVTC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.59% | ||
| PM (TTM) | 15.55% | ||
| GM | 51.37% |
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.
The number of shares outstanding for EVTC has been reduced compared to 1 year ago.
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
EVTC has an Altman-Z score of 2.26. 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.
EVTC's Altman-Z score of 2.26 is fine compared to the rest of the industry. EVTC outperforms 79.80% of its industry peers.
EVTC has a debt to FCF ratio of 6.68. This is a slightly negative value and a sign of low solvency as EVTC would need 6.68 years to pay back of all of its debts.
EVTC has a Debt to FCF ratio of 6.68. This is in the better half of the industry: EVTC outperforms 60.61% of its industry peers.
A Debt/Equity ratio of 1.49 is on the high side and indicates that EVTC has dependencies on debt financing.
EVTC's Debt to Equity ratio of 1.49 is on the low side compared to the rest of the industry. EVTC is outperformed by 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.25
WACC7.12%
2.3 Liquidity
A Current Ratio of 2.20 indicates that EVTC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.20, EVTC is doing good in the industry, outperforming 78.79% of the companies in the same industry.
EVTC has a Quick Ratio of 2.20. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.20, EVTC is doing good in the industry, outperforming 79.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 |
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.
Looking at the last year, EVTC shows a very strong growth in Revenue. The Revenue has grown by 21.70%.
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)21.7%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
3.2 Future
The Earnings Per Share is expected to grow by 7.04% on average over the next years.
The Revenue is expected to grow by 6.00% on average over the next years.
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
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 8.24, the valuation of EVTC can be described as very reasonable.
Based on the Price/Earnings ratio, EVTC is valued a bit cheaper than 74.75% of the companies in the same industry.
EVTC is valuated cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.86, the valuation of EVTC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 68.69% 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 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 7.86 |
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 74.75% of the companies listed in the same industry.
66.67% of the companies in the same industry are more expensive than EVTC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.32 | ||
| EV/EBITDA | 8.1 |
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)0.98
PEG (5Y)0.76
EPS Next 2Y6.51%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
EVTC has a yearly dividend return of 0.68%, which is pretty low.
The stock price of EVTC dropped by -20.41% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
EVTC's Dividend Yield is comparable with the industry average which is at 4.68.
Compared to an average S&P500 Dividend Yield of 2.45, EVTC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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.
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
9.25% 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.
DP9.25%
EPS Next 2Y6.51%
EPS Next 3Y7.04%
29.25
+0.3 (+1.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.11%
Inst Owner Change0.54%
Ins Owners0.73%
Ins Owner Change-0.85%
Market Cap1.87B
Revenue(TTM)845.49M
Net Income(TTM)137.91M
Analysts78.33
Price Target39.37 (34.6%)
Short Float %2.43%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.2
Dividend Growth(5Y)0.01%
DP9.25%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.66%
Min EPS beat(2)1.93%
Max EPS beat(2)7.38%
EPS beat(4)4
Avg EPS beat(4)10.96%
Min EPS beat(4)1.93%
Max EPS beat(4)19.07%
EPS beat(8)7
Avg EPS beat(8)9.95%
EPS beat(12)9
Avg EPS beat(12)5.2%
EPS beat(16)11
Avg EPS beat(16)5.11%
Revenue beat(2)2
Avg Revenue beat(2)2.09%
Min Revenue beat(2)1.27%
Max Revenue beat(2)2.9%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)2.9%
Revenue beat(8)4
Avg Revenue beat(8)1.66%
Revenue beat(12)6
Avg Revenue beat(12)1.45%
Revenue beat(16)10
Avg Revenue beat(16)1.64%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 7.86 | ||
| P/S | 2.11 | ||
| P/FCF | 13.32 | ||
| P/OCF | 8.71 | ||
| P/B | 3.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)3.55
EY12.14%
EPS(NY)3.72
Fwd EY12.72%
FCF(TTM)2.2
FCFY7.5%
OCF(TTM)3.36
OCFY11.48%
SpS13.86
BVpS9.57
TBVpS-9.47
PEG (NY)0.98
PEG (5Y)0.76
Graham Number27.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 22.52% | ||
| ROCE | 11.25% | ||
| ROIC | 8.88% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 78.5% | ||
| OM | 21.59% | ||
| PM (TTM) | 15.55% | ||
| GM | 51.37% | ||
| FCFM | 15.84% |
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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 6.68 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 63.46% | ||
| Cap/Sales | 8.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.62% | ||
| Profit Quality | 101.84% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z | 2.26 |
F-Score8
WACC7.12%
ROIC/WACC1.25
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)21.7%
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 1Y5.07%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year128.04%
EBIT Next 3Y36.81%
EBIT Next 5YN/A
FCF growth 1Y-0.61%
FCF growth 3Y2.05%
FCF growth 5Y7.42%
OCF growth 1Y-2.21%
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 9.25%.