EVERTEC INC (EVTC) Stock Fundamental Analysis
USA - NYSE:EVTC - PR30040P1032 - Common Stock
28.31 USD
-0.74 (-2.55%)
28.31 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EVTC. EVTC was compared to 99 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.
EVTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EVTC has a better Return On Assets (7.03%) than 80.81% of its industry peers.
EVTC has a Return On Equity of 22.52%. This is amongst the best in the industry. EVTC outperforms 85.86% of its industry peers.
With a decent Return On Invested Capital value of 8.88%, EVTC is doing good in the industry, outperforming 79.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EVTC is above the industry average of 8.15%.
| 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 better Profit Margin (15.55%) than 65.66% of its industry peers.
EVTC's Profit Margin has declined in the last couple of years.
EVTC's Operating Margin of 21.59% is fine compared to the rest of the industry. EVTC outperforms 69.70% of its industry peers.
In the last couple of years the Operating Margin of EVTC has declined.
With a decent Gross Margin value of 51.37%, EVTC is doing good in the industry, outperforming 68.69% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EVTC is creating some value.
The number of shares outstanding for EVTC has been reduced compared to 1 year ago.
Compared to 5 years ago, EVTC has less shares outstanding
Compared to 1 year ago, EVTC has a worse debt to assets ratio.
2.2 Solvency
EVTC has an Altman-Z score of 2.27. 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 2.27, EVTC is in the better half of the industry, outperforming 79.80% of the companies in the same industry.
The Debt to FCF ratio of EVTC is 6.68, which is on the high side as it means it would take EVTC, 6.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EVTC (6.68) is better than 60.61% of its industry peers.
A Debt/Equity ratio of 1.49 is on the high side and indicates that EVTC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.49, EVTC is doing worse than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.25
WACC7.11%
2.3 Liquidity
A Current Ratio of 2.20 indicates that EVTC has no problem at all paying its short term obligations.
EVTC has a better Current ratio (2.20) than 78.79% of its industry peers.
EVTC has a Quick Ratio of 2.20. This indicates that EVTC is financially healthy and has no problem in meeting its short term obligations.
EVTC has a Quick ratio of 2.20. This is in the better half of the industry: EVTC outperforms 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.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
EVTC shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.70%.
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)21.7%
Revenue growth 3Y12.75%
Revenue growth 5Y11.65%
Sales Q2Q%7.93%
3.2 Future
The Earnings Per Share is expected to grow by 7.04% on average over the next years.
Based on estimates for the next years, EVTC will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
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
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.
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 7.97, the valuation of EVTC can be described as very cheap.
76.77% of the companies in the same industry are more expensive than EVTC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.56, EVTC is valued rather cheaply.
The Price/Forward Earnings ratio is 7.61, 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 68.69% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EVTC to the average of the S&P500 Index (34.62), we can say EVTC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
EVTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 75.76% of the companies in the same industry.
EVTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EVTC is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.9 | ||
| EV/EBITDA | 8.12 |
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)0.95
PEG (5Y)0.74
EPS Next 2Y6.51%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
EVTC has a yearly dividend return of 0.68%, which is pretty low.
In the last 3 months the price of EVTC has falen by -22.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
EVTC's Dividend Yield is comparable with the industry average which is at 4.67.
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.
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
9.25% 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.
DP9.25%
EPS Next 2Y6.51%
EPS Next 3Y7.04%
28.31
-0.74 (-2.55%)
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 Cap1.81B
Revenue(TTM)845.49M
Net Income(TTM)137.91M
Analysts78.33
Price Target39.37 (39.07%)
Short Float %2.37%
Short Ratio4.46
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 | 7.97 | ||
| Fwd PE | 7.61 | ||
| P/S | 2.04 | ||
| P/FCF | 12.9 | ||
| P/OCF | 8.43 | ||
| P/B | 2.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.12 |
EPS(TTM)3.55
EY12.54%
EPS(NY)3.72
Fwd EY13.14%
FCF(TTM)2.2
FCFY7.75%
OCF(TTM)3.36
OCFY11.86%
SpS13.86
BVpS9.57
TBVpS-9.47
PEG (NY)0.95
PEG (5Y)0.74
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 | 2.27 |
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%.