EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - NYSE:EVTC - PR30040P1032 - Common Stock
28.95 USD
+0.09 (+0.31%)
28.95 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. 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! This makes EVTC very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EVTC was profitable.
EVTC had a positive operating cash flow in the past year.
EVTC had positive earnings in each of the past 5 years.
EVTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.03%, EVTC belongs to the top of the industry, outperforming 80.81% of the companies in the same industry.
With an excellent Return On Equity value of 22.52%, EVTC belongs to the best of the industry, outperforming 85.86% of the companies in the same industry.
EVTC has a Return On Invested Capital of 8.88%. This is in the better half of the industry: EVTC outperforms 79.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EVTC 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
EVTC has a Profit Margin of 15.55%. This is in the better half of the industry: EVTC outperforms 65.66% of its industry peers.
EVTC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 21.59%, EVTC is doing good in the industry, outperforming 69.70% of the companies in the same industry.
In the last couple of years the Operating Margin of EVTC has declined.
EVTC has a Gross Margin of 51.37%. This is in the better half of the industry: EVTC outperforms 68.69% of its industry peers.
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
EVTC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
EVTC has less shares outstanding than it did 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.
With a decent Altman-Z score value of 2.26, EVTC is doing good in the industry, outperforming 79.80% of the companies in the same industry.
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.
The Debt to FCF ratio of EVTC (6.68) is better than 60.61% of its industry peers.
EVTC has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external 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
WACC7.11%
2.3 Liquidity
EVTC has a Current Ratio of 2.20. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
EVTC's Current ratio of 2.20 is fine compared to the rest of the industry. EVTC outperforms 78.79% of its industry peers.
A Quick Ratio of 2.20 indicates that EVTC has no problem at all paying its short term obligations.
EVTC has a better Quick ratio (2.20) than 79.80% of its industry peers.
| 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.
The Revenue has grown by 21.70% in the past year. This is a very strong growth!
The Revenue has been growing by 11.65% on average over the past years. This is quite good.
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
EVTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.04% yearly.
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
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
Based on the Price/Earnings ratio of 8.15, the valuation of EVTC can be described as reasonable.
Based on the Price/Earnings ratio, EVTC is valued a bit cheaper than 75.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of EVTC to the average of the S&P500 Index (25.47), we can say EVTC is valued rather cheaply.
A Price/Forward Earnings ratio of 7.78 indicates a rather cheap valuation of EVTC.
Based on the Price/Forward Earnings ratio, EVTC is valued a bit cheaper than 68.69% of the companies 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 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
EVTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 74.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EVTC is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.19 | ||
| EV/EBITDA | 8.08 |
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)0.97
PEG (5Y)0.75
EPS Next 2Y6.51%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, EVTC is not a good candidate for dividend investing.
The stock price of EVTC dropped by -21.47% 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 2.44, 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.
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
9.25% 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 earnings are growing more, so the dividend growth is sustainable.
DP9.25%
EPS Next 2Y6.51%
EPS Next 3Y7.04%
28.95
+0.09 (+0.31%)
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 Cap1.85B
Revenue(TTM)845.49M
Net Income(TTM)137.91M
Analysts78.33
Price Target39.37 (35.99%)
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 | 8.15 | ||
| Fwd PE | 7.78 | ||
| P/S | 2.09 | ||
| P/FCF | 13.19 | ||
| P/OCF | 8.62 | ||
| P/B | 3.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.08 |
EPS(TTM)3.55
EY12.26%
EPS(NY)3.72
Fwd EY12.85%
FCF(TTM)2.2
FCFY7.58%
OCF(TTM)3.36
OCFY11.6%
SpS13.86
BVpS9.57
TBVpS-9.47
PEG (NY)0.97
PEG (5Y)0.75
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
WACC7.11%
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%.