EVERTEC, Inc. Fundamental Analysis (NYSE: EVTC)
EVERTEC, Inc. (NYSE: EVTC) shows strong financial fundamentals with a PE ratio of 15.53, profit margin of 13.95%, and ROE of 20.68%. The company generates $0.9B in annual revenue with strong year-over-year growth of 10.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EVTC's fundamental strength across five key dimensions:
Efficiency Score
WeakEVTC struggles to generate sufficient returns from assets.
Valuation Score
ModerateEVTC shows balanced valuation metrics.
Growth Score
ExcellentEVTC delivers strong and consistent growth momentum.
Financial Health Score
ModerateEVTC shows balanced financial health with some risks.
Profitability Score
ModerateEVTC maintains healthy but balanced margins.
Key Financial Metrics
Is EVTC Expensive or Cheap?
P/E Ratio
EVTC trades at 15.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EVTC's PEG of 6.30 indicates potential overvaluation.
Price to Book
The market values EVERTEC, Inc. at 2.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.29 times EBITDA. This is generally considered low.
How Well Does EVTC Make Money?
Net Profit Margin
For every $100 in sales, EVERTEC, Inc. keeps $13.95 as profit after all expenses.
Operating Margin
Core operations generate 19.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.68 in profit for every $100 of shareholder equity.
ROA
EVERTEC, Inc. generates $5.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EVERTEC, Inc. produces operating cash flow of $219.95M, showing steady but balanced cash generation.
Free Cash Flow
EVERTEC, Inc. generates strong free cash flow of $148.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.41 in free cash annually.
FCF Yield
EVTC converts 7.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How EVTC Stacks Against Its Sector Peers
| Metric | EVTC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.53 | 36.60 | Better (Cheaper) |
| ROE | 20.68% | 654.00% | Weak |
| Net Margin | 13.95% | -129691.00% (disorted) | Strong |
| Debt/Equity | 1.70 | 0.27 | Weak (High Leverage) |
| Current Ratio | 1.97 | 5.91 | Neutral |
| ROA | 5.78% | 235.00% | Weak |
EVTC outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EVERTEC, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
106.11%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
53.11%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
28.77%
Industry Style: Growth, Innovation, High Beta
High Growth