EVERTEC INC (EVTC) Stock Fundamental Analysis
NYSE:EVTC - New York Stock Exchange, Inc. - PR30040P1032 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EVTC. EVTC was compared to 102 industry peers in the Financial Services industry. EVTC has an excellent profitability rating, but there are some minor concerns on its financial health. EVTC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
EVTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EVTC has a Return On Assets of 4.43%. This is in the better half of the industry: EVTC outperforms 74.51% of its industry peers.
Looking at the Return On Equity, with a value of 16.72%, EVTC is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
The Return On Invested Capital of EVTC (8.38%) is better than 82.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EVTC is significantly above the industry average of 7.94%.
The 3 year average ROIC (15.04%) for EVTC is well above the current ROIC(8.38%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 16.72% | ||
| ROIC | 8.38% |
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
EVTC's Profit Margin of 10.20% is in line compared to the rest of the industry. EVTC outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of EVTC has declined.
With a decent Operating Margin value of 18.10%, EVTC is doing good in the industry, outperforming 64.71% of the companies in the same industry.
EVTC's Operating Margin has been stable in the last couple of years.
EVTC has a Gross Margin of 51.31%. This is in the better half of the industry: EVTC outperforms 69.61% of its industry peers.
In the last couple of years the Gross Margin of EVTC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.1% | ||
| PM (TTM) | 10.2% | ||
| GM | 51.31% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EVTC is creating value.
EVTC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EVTC has been reduced compared to 5 years ago.
The debt/assets ratio for EVTC is higher compared to a year ago.
2.2 Solvency
EVTC has an Altman-Z score of 2.17. 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 has a Altman-Z score of 2.17. This is in the better half of the industry: EVTC outperforms 74.51% of its industry peers.
EVTC has a debt to FCF ratio of 6.75. This is a slightly negative value and a sign of low solvency as EVTC would need 6.75 years to pay back of all of its debts.
EVTC has a Debt to FCF ratio (6.75) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.85 is on the high side and indicates that EVTC has dependencies on debt financing.
EVTC has a Debt to Equity ratio of 1.85. This is in the lower half of the industry: EVTC underperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.05
WACC7.99%
2.3 Liquidity
EVTC has a Current Ratio of 1.97. This is a normal value and indicates that EVTC is financially healthy and should not expect problems in meeting its short term obligations.
EVTC has a better Current ratio (1.97) than 74.51% of its industry peers.
A Quick Ratio of 1.97 indicates that EVTC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.97, EVTC is in the better half of the industry, outperforming 75.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.32% 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 8.91% on average per year.
Looking at the last year, EVTC shows a very strong growth in Revenue. The Revenue has grown by 24.45%.
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)24.45%
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 small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
The Revenue is expected to grow by 11.78% on average over the next years. This is quite good.
EPS Next Y12.74%
EPS Next 2Y8.51%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue Next Year24.54%
Revenue Next 2Y15.04%
Revenue Next 3Y11.78%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.80 indicates a reasonable valuation of EVTC.
EVTC's Price/Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 66.67% of the companies in the same industry.
EVTC is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.86 indicates a reasonable valuation of EVTC.
Based on the Price/Forward Earnings ratio, EVTC is valued a bit cheaper than 62.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, EVTC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
EVTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 76.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 72.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.72 | ||
| EV/EBITDA | 9.86 |
4.3 Compensation for Growth
EVTC's 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)0.85
PEG (5Y)1.21
EPS Next 2Y8.51%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, EVTC is not a good candidate for dividend investing.
EVTC's Dividend Yield is comparable with the industry average which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.28, EVTC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 Years6
5.3 Sustainability
15.49% 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.
DP15.49%
EPS Next 2Y8.51%
EPS Next 3Y7.74%
EVERTEC INC
NYSE:EVTC (2/4/2025, 8:04:00 PM)
After market: 32.73 0 (0%)32.73
+0.53 (+1.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners103.72%
Inst Owner Change0.06%
Ins Owners0.86%
Ins Owner Change-9.62%
Market Cap2.08B
Analysts76.67
Price Target36.72 (12.19%)
Short Float %3.5%
Short Ratio7.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend0.2
Dividend Growth(5Y)14.69%
DP15.49%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.29%
Min EPS beat(2)15.45%
Max EPS beat(2)17.14%
EPS beat(4)3
Avg EPS beat(4)7.86%
Min EPS beat(4)-4.53%
Max EPS beat(4)17.14%
EPS beat(8)6
Avg EPS beat(8)8.35%
EPS beat(12)8
Avg EPS beat(12)4.6%
EPS beat(16)11
Avg EPS beat(16)6.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.55%
Revenue beat(4)1
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)6.23%
Revenue beat(8)4
Avg Revenue beat(8)1.97%
Revenue beat(12)7
Avg Revenue beat(12)1.93%
Revenue beat(16)10
Avg Revenue beat(16)1.91%
PT rev (1m)0%
PT rev (3m)-3.74%
EPS NQ rev (1m)-1.83%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)0%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 9.86 | ||
| P/S | 2.53 | ||
| P/FCF | 14.72 | ||
| P/OCF | 8.47 | ||
| P/B | 4.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.86 |
EPS(TTM)3.03
EY9.26%
EPS(NY)3.32
Fwd EY10.14%
FCF(TTM)2.22
FCFY6.8%
OCF(TTM)3.86
OCFY11.8%
SpS12.95
BVpS7.9
TBVpS-10.87
PEG (NY)0.85
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 16.72% | ||
| ROCE | 9.18% | ||
| ROIC | 8.38% | ||
| ROICexc | 10.1% | ||
| ROICexgc | 87.76% | ||
| OM | 18.1% | ||
| PM (TTM) | 10.2% | ||
| GM | 51.31% | ||
| FCFM | 17.18% |
ROA(3y)13.02%
ROA(5y)11.8%
ROE(3y)32.89%
ROE(5y)33.66%
ROIC(3y)15.04%
ROIC(5y)14.88%
ROICexc(3y)19.44%
ROICexc(5y)18.76%
ROICexgc(3y)131.46%
ROICexgc(5y)127.84%
ROCE(3y)16.6%
ROCE(5y)16.37%
ROICexcg growth 3Y-5.21%
ROICexcg growth 5Y-8.37%
ROICexc growth 3Y-13.11%
ROICexc growth 5Y-5.71%
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%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 6.75 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 79.56% | ||
| Cap/Sales | 12.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.74% | ||
| Profit Quality | 168.36% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 2.17 |
F-Score5
WACC7.99%
ROIC/WACC1.05
Cap/Depr(3y)94.94%
Cap/Depr(5y)88.15%
Cap/Sales(3y)12.31%
Cap/Sales(5y)11.74%
Profit Quality(3y)111.32%
Profit Quality(5y)118.81%
High Growth Momentum
Growth
EPS 1Y (TTM)6.32%
EPS 3Y10.68%
EPS 5Y8.91%
EPS Q2Q%7.5%
EPS Next Y12.74%
EPS Next 2Y8.51%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue 1Y (TTM)24.45%
Revenue growth 3Y10.81%
Revenue growth 5Y8.89%
Sales Q2Q%22.28%
Revenue Next Year24.54%
Revenue Next 2Y15.04%
Revenue Next 3Y11.78%
Revenue Next 5YN/A
EBIT growth 1Y-26.61%
EBIT growth 3Y10.29%
EBIT growth 5Y8.68%
EBIT Next Year33.07%
EBIT Next 3Y14.08%
EBIT Next 5YN/A
FCF growth 1Y-4.08%
FCF growth 3Y-2.54%
FCF growth 5Y1.18%
OCF growth 1Y16.16%
OCF growth 3Y4.05%
OCF growth 5Y5.37%