EVERTEC INC (EVTC) Stock Fundamental Analysis
NYSE:EVTC - New York Stock Exchange, Inc. - PR30040P1032 - Common Stock - Currency: USD
Taking everything into account, EVTC scores 5 out of 10 in our fundamental rating. EVTC was compared to 100 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 has a correct valuation and a medium growth rate.
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.
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
With an excellent Return On Assets value of 6.75%, EVTC belongs to the best of the industry, outperforming 81.00% of the companies in the same industry.
The Return On Equity of EVTC (23.86%) is better than 86.00% of its industry peers.
The Return On Invested Capital of EVTC (8.62%) is better than 78.00% of its industry peers.
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 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 23.86% | ||
| ROIC | 8.62% |
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 14.88%, EVTC is doing good in the industry, outperforming 63.00% 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 (20.56%) is better than 67.00% of its industry peers.
In the last couple of years the Operating Margin of EVTC has declined.
EVTC has a Gross Margin of 51.83%. This is in the better half of the industry: EVTC outperforms 69.00% of its industry peers.
EVTC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.56% | ||
| PM (TTM) | 14.88% | ||
| GM | 51.83% |
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.
Compared to 5 years ago, EVTC has less shares outstanding
EVTC has a worse debt/assets ratio than last year.
2.2 Solvency
EVTC has an Altman-Z score of 2.39. 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 2.39 is fine compared to the rest of the industry. EVTC outperforms 79.00% of its industry peers.
The Debt to FCF ratio of EVTC is 5.46, which is a neutral value as it means it would take EVTC, 5.46 years of fcf income to pay off all of its debts.
EVTC has a Debt to FCF ratio of 5.46. This is in the better half of the industry: EVTC outperforms 67.00% of its industry peers.
EVTC has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
EVTC's Debt to Equity ratio of 1.70 is on the low side compared to the rest of the industry. EVTC is outperformed by 61.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 5.46 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.16
WACC7.46%
2.3 Liquidity
EVTC has a Current Ratio of 1.99. This is a normal value and indicates that EVTC is financially healthy and should not expect problems in meeting its short term obligations.
EVTC's Current ratio of 1.99 is fine compared to the rest of the industry. EVTC outperforms 75.00% of its industry peers.
A Quick Ratio of 1.99 indicates that EVTC should not have too much problems paying its short term obligations.
EVTC has a better Quick ratio (1.99) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
EVTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.35%, which is quite impressive.
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.
The Revenue has grown by 17.39% in the past year. This is quite good.
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)20.35%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%20.83%
Revenue 1Y (TTM)17.39%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%11.43%
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 6.55% on average per year.
The Revenue is expected to grow by 5.55% on average over the next years.
EPS Next Y6.3%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue Next Year6%
Revenue Next 2Y5.49%
Revenue Next 3Y5.55%
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
EVTC is valuated reasonably with a Price/Earnings ratio of 10.51.
Based on the Price/Earnings ratio, EVTC is valued a bit cheaper than the industry average as 67.00% of the companies are valued more expensively.
EVTC is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
EVTC is valuated reasonably with a Price/Forward Earnings ratio of 9.86.
The rest of the industry has a similar Price/Forward Earnings ratio as EVTC.
The average S&P500 Price/Forward Earnings ratio is at 21.60. EVTC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 9.86 |
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 68.00% of the companies listed in the same industry.
67.00% 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 | 13.26 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of EVTC may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)0.97
EPS Next 2Y5.58%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, EVTC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.97, EVTC has a dividend in line with its industry peers.
With a Dividend Yield of 0.55, EVTC pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
9.88% 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.
DP9.88%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
36.05
+0.15 (+0.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.91%
Inst Owner Change-2.29%
Ins Owners0.73%
Ins Owner Change8.51%
Market Cap2.29B
Analysts80
Price Target40.8 (13.18%)
Short Float %2.69%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.2
Dividend Growth(5Y)0.01%
DP9.88%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.22%
Min EPS beat(2)7.38%
Max EPS beat(2)19.07%
EPS beat(4)4
Avg EPS beat(4)14.76%
Min EPS beat(4)7.38%
Max EPS beat(4)19.07%
EPS beat(8)7
Avg EPS beat(8)10.37%
EPS beat(12)8
Avg EPS beat(12)4.81%
EPS beat(16)11
Avg EPS beat(16)7.14%
Revenue beat(2)1
Avg Revenue beat(2)0.72%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)2.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)2.9%
Revenue beat(8)3
Avg Revenue beat(8)1.49%
Revenue beat(12)6
Avg Revenue beat(12)1.66%
Revenue beat(16)10
Avg Revenue beat(16)1.91%
PT rev (1m)9.89%
PT rev (3m)9.89%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 9.86 | ||
| P/S | 2.64 | ||
| P/FCF | 13.26 | ||
| P/OCF | 8.76 | ||
| P/B | 4.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.85 |
EPS(TTM)3.43
EY9.51%
EPS(NY)3.66
Fwd EY10.14%
FCF(TTM)2.72
FCFY7.54%
OCF(TTM)4.11
OCFY11.41%
SpS13.66
BVpS8.52
TBVpS-10.18
PEG (NY)1.67
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 23.86% | ||
| ROCE | 10.91% | ||
| ROIC | 8.62% | ||
| ROICexc | 10.29% | ||
| ROICexgc | 77.41% | ||
| OM | 20.56% | ||
| PM (TTM) | 14.88% | ||
| GM | 51.83% | ||
| FCFM | 19.9% |
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%
ROICexcg growth 3Y-12.99%
ROICexcg 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 | 1.7 | ||
| Debt/FCF | 5.46 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 72.88% | ||
| Cap/Sales | 10.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.08% | ||
| Profit Quality | 133.68% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 2.39 |
F-Score8
WACC7.46%
ROIC/WACC1.16
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)20.35%
EPS 3Y6.18%
EPS 5Y10.85%
EPS Q2Q%20.83%
EPS Next Y6.3%
EPS Next 2Y5.58%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)17.39%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%11.43%
Revenue Next Year6%
Revenue Next 2Y5.49%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
EBIT growth 1Y-1.18%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year125.39%
EBIT Next 3Y36.41%
EBIT Next 5YN/A
FCF growth 1Y34.35%
FCF growth 3Y2.05%
FCF growth 5Y7.42%
OCF growth 1Y24.51%
OCF growth 3Y4.42%
OCF growth 5Y7.65%