EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
29.44 USD
+0.2 (+0.68%)
29.44 USD
0 (0%)
EVTC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. EVTC has an average financial health and profitability rating. EVTC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make EVTC a good candidate 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.
EVTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EVTC's Return On Assets of 6.80% is fine compared to the rest of the industry. EVTC outperforms 79.38% of its industry peers.
EVTC's Return On Equity of 22.01% is amongst the best of the industry. EVTC outperforms 85.57% of its industry peers.
With a decent Return On Invested Capital value of 8.10%, EVTC is doing good in the industry, outperforming 76.29% of the companies in the same industry.
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 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
With a decent Profit Margin value of 16.17%, EVTC is doing good in the industry, outperforming 60.82% of the companies in the same industry.
In the last couple of years the Profit Margin of EVTC has declined.
EVTC has a better Operating Margin (21.49%) than 70.10% of its industry peers.
EVTC's Operating Margin has declined in the last couple of years.
EVTC's Gross Margin of 49.81% is fine compared to the rest of the industry. EVTC outperforms 69.07% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EVTC is still creating some value.
Compared to 1 year ago, EVTC has less shares outstanding
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 2.21. 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 2.21, EVTC is in the better half of the industry, outperforming 79.38% 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.
EVTC has a Debt to FCF ratio (7.44) which is in line with its industry peers.
EVTC has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external 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 63.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.13
WACC7.16%
2.3 Liquidity
EVTC has a Current Ratio of 2.91. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
EVTC's Current ratio of 2.91 is amongst the best of the industry. EVTC outperforms 82.47% of its industry peers.
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 83.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.16% over the past year.
EVTC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
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 7.73% on average per year.
The Revenue is expected to grow by 6.99% on average over the next years.
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
Based on the Price/Earnings ratio of 8.29, the valuation of EVTC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EVTC indicates a somewhat cheap valuation: EVTC is cheaper than 77.32% of the companies listed in the same industry.
EVTC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.22.
A Price/Forward Earnings ratio of 7.70 indicates a rather cheap valuation of EVTC.
EVTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 72.16% of the companies in the same industry.
EVTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 7.7 |
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 75.26% of the companies listed in the same industry.
EVTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 69.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 8.14 |
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.
EVTC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)0.76
EPS Next 2Y7.98%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, EVTC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.16, EVTC has a dividend in line with its industry peers.
With a Dividend Yield of 0.67, EVTC pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
8.74% 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.
DP8.74%
EPS Next 2Y7.98%
EPS Next 3Y7.73%
29.44
+0.2 (+0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.91%
Inst Owner Change0.57%
Ins Owners0.73%
Ins Owner Change-0.12%
Market Cap1.88B
Revenue(TTM)903.38M
Net Income(TTM)146.09M
Analysts78.33
Price Target33.46 (13.65%)
Short Float %2.86%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)5.75%
EPS NQ rev (3m)6.59%
EPS NY rev (1m)2.45%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)3.86%
Revenue NQ rev (3m)6.5%
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 7.7 | ||
| P/S | 2.09 | ||
| P/FCF | 12.93 | ||
| P/OCF | 8.11 | ||
| P/B | 2.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.14 |
EPS(TTM)3.55
EY12.06%
EPS(NY)3.82
Fwd EY12.99%
FCF(TTM)2.28
FCFY7.73%
OCF(TTM)3.63
OCFY12.33%
SpS14.12
BVpS10.37
TBVpS-8.81
PEG (NY)0.75
PEG (5Y)0.76
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 | 2.21 |
F-Score6
WACC7.16%
ROIC/WACC1.13
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.
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 11.08% 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%.