EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EVTC - PR30040P1032 - Common Stock
29.56 USD
-0.23 (-0.77%)
29.56 USD
0 (0%)
Taking everything into account, EVTC scores 6 out of 10 in our fundamental rating. EVTC was compared to 97 industry peers in the Financial Services industry. EVTC has only an average score on both its financial health and profitability. EVTC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make EVTC suitable 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.
- In the past 5 years EVTC has always been profitable.
- Each year in the past 5 years EVTC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.80%, EVTC belongs to the top of the industry, outperforming 80.41% of the companies in the same industry.
- The Return On Equity of EVTC (22.01%) is better than 85.57% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.10%, EVTC is in the better half of the industry, outperforming 76.29% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for EVTC is in line with the industry average of 8.46%.
| 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
- Looking at the Profit Margin, with a value of 16.17%, EVTC is in the better half of the industry, outperforming 61.86% of the companies in the same industry.
- EVTC's Profit Margin has declined in the last couple of years.
- The Operating Margin of EVTC (21.49%) is better than 71.13% of its industry peers.
- EVTC's Operating Margin has declined in the last couple of years.
- EVTC has a better Gross Margin (49.81%) than 68.04% of its industry peers.
- EVTC's Gross Margin has declined in the last couple of years.
| 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
- The number of shares outstanding for EVTC has been reduced compared to 5 years ago.
- Compared to 1 year ago, EVTC has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.21 indicates that EVTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of EVTC (2.21) is better than 79.38% of its industry peers.
- 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 comparable to the rest of the industry.
- A Debt/Equity ratio of 1.60 is on the high side and indicates that EVTC has dependencies on debt financing.
- EVTC has a Debt to Equity ratio of 1.60. This is in the lower half of the industry: EVTC underperforms 63.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.03
WACC7.89%
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.
- Looking at the Current ratio, with a value of 2.91, EVTC belongs to the top of the industry, outperforming 84.54% 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.
- With an excellent Quick ratio value of 2.91, EVTC belongs to the best of the industry, outperforming 85.57% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
- 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 quite strong growth in Earnings Per Share. The EPS will grow by 8.03% on average per year.
- The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y11.44%
EPS Next 2Y7.98%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue Next Year9.5%
Revenue Next 2Y7.56%
Revenue Next 3Y7.1%
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
- A Price/Earnings ratio of 8.33 indicates a reasonable 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 75.26% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. EVTC is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 7.73 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 73.20% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of EVTC to the average of the S&P500 Index (25.98), we can say EVTC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EVTC is valued a bit cheaper than the industry average as 74.23% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, EVTC is valued a bit cheaper than the industry average as 69.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 8.17 |
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)0.73
PEG (5Y)0.77
EPS Next 2Y7.98%
EPS Next 3Y8.03%
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 2.09.
- With a Dividend Yield of 0.66, EVTC pays less dividend than the S&P500 average, which is at 1.82.
| 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 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)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 3Y8.03%
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%.