EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
30.17 USD
-0.12 (-0.4%)
30.17 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. EVTC may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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
The Return On Assets of EVTC (6.80%) is better than 79.59% of its industry peers.
Looking at the Return On Equity, with a value of 22.01%, EVTC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
EVTC has a Return On Invested Capital of 8.10%. This is in the better half of the industry: EVTC outperforms 76.53% 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
EVTC's Profit Margin of 16.17% is fine compared to the rest of the industry. EVTC outperforms 61.22% of its industry peers.
EVTC's Profit Margin has declined in the last couple of years.
EVTC's Operating Margin of 21.49% is fine compared to the rest of the industry. EVTC outperforms 70.41% 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 68.37% of its industry peers.
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
The debt/assets ratio for EVTC is higher compared to a year ago.
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 80.61% 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.
Looking at the Debt to FCF ratio, with a value of 7.44, EVTC is in line with its industry, outperforming 48.98% of the companies in the same industry.
A Debt/Equity ratio of 1.60 is on the high side and indicates that EVTC has dependencies on debt financing.
EVTC's Debt to Equity ratio of 1.60 is on the low side compared to the rest of the industry. EVTC is outperformed by 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.01
WACC8.01%
2.3 Liquidity
A Current Ratio of 2.91 indicates that EVTC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.91, EVTC belongs to the top of the industry, outperforming 84.69% of the companies in the same industry.
EVTC has a Quick Ratio of 2.91. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
EVTC has a better Quick ratio (2.91) than 85.71% of its industry peers.
| 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.
EVTC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
The Revenue has grown by 9.67% in the past year. This is quite good.
EVTC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.65% yearly.
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 8.50, which indicates a very decent valuation of EVTC.
Compared to the rest of the industry, the Price/Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 74.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, EVTC is valued rather cheaply.
The Price/Forward Earnings ratio is 7.89, which indicates a rather cheap valuation of EVTC.
Based on the Price/Forward Earnings ratio, EVTC is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
EVTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EVTC is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 67.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.25 | ||
| EV/EBITDA | 8.29 |
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.
The decent profitability rating of EVTC 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
EVTC has a yearly dividend return of 0.66%, which is pretty low.
EVTC's Dividend Yield is comparable with the industry average which is at 2.49.
Compared to an average S&P500 Dividend Yield of 1.92, 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%
30.17
-0.12 (-0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.98%
Inst Owner Change0.05%
Ins Owners0.73%
Ins Owner Change0%
Market Cap1.93B
Revenue(TTM)903.38M
Net Income(TTM)146.09M
Analysts78.33
Price Target33.46 (10.9%)
Short Float %2.84%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.2
Dividend Growth(5Y)0.01%
DP8.74%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
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)0%
PT rev (3m)-15.03%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)7.78%
EPS NY rev (1m)0%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 7.89 | ||
| P/S | 2.14 | ||
| P/FCF | 13.25 | ||
| P/OCF | 8.31 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.29 |
EPS(TTM)3.55
EY11.77%
EPS(NY)3.82
Fwd EY12.68%
FCF(TTM)2.28
FCFY7.54%
OCF(TTM)3.63
OCFY12.03%
SpS14.12
BVpS10.37
TBVpS-8.81
PEG (NY)0.77
PEG (5Y)0.78
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 | 2.22 |
F-Score6
WACC8.01%
ROIC/WACC1.01
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 Y11.08%
EPS Next 2Y7.98%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue 1Y (TTM)9.67%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
Revenue Next Year9.5%
Revenue Next 2Y7.45%
Revenue Next 3Y6.99%
Revenue Next 5YN/A
EBIT growth 1Y30.22%
EBIT growth 3Y-6.72%
EBIT growth 5Y2.24%
EBIT Next Year132.69%
EBIT Next 3Y37.79%
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.
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%.