company background image
ET

Evertz TechnologiesTSX:ET Stock Report

Market Cap

CA$1.0b

7D

-2.7%

1Y

0.8%

Updated

26 Nov, 2021

Data

Company Financials +
ET fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends3/6

ET Stock Overview

Evertz Technologies Limited designs, manufactures, and distributes video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets industries in Canada, the United States, and internationally.

Evertz Technologies Competitors

Cisco Systems

NasdaqGS:CSCO

US$230.6b

L3Harris Technologies

NYSE:LHX

US$42.2b

Belden

NYSE:BDC

US$2.8b

Avid Technology

NasdaqGS:AVID

US$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for Evertz Technologies
Historical stock prices
Current Share PriceCA$13.07
52 Week HighCA$15.90
52 Week LowCA$12.53
Beta0.68
1 Month Change-7.96%
3 Month Change-0.76%
1 Year Change0.77%
3 Year Change-20.01%
5 Year Change-24.97%
Change since IPO8.02%

Recent News & Updates

Sep 30
Here's Why Evertz Technologies Limited's (TSE:ET) CEO Compensation Is The Least Of Shareholders Concerns

Here's Why Evertz Technologies Limited's (TSE:ET) CEO Compensation Is The Least Of Shareholders Concerns

Performance at Evertz Technologies Limited ( TSE:ET ) has been rather uninspiring recently and shareholders may be...

Aug 11
Is There An Opportunity With Evertz Technologies Limited's (TSE:ET) 34% Undervaluation?

Is There An Opportunity With Evertz Technologies Limited's (TSE:ET) 34% Undervaluation?

Does the August share price for Evertz Technologies Limited ( TSE:ET ) reflect what it's really worth? Today, we will...

Shareholder Returns

ETCA CommunicationsCA Market
7D-2.7%-3.6%-1.8%
1Y0.8%6.3%22.1%

Return vs Industry: ET underperformed the Canadian Communications industry which returned 11.4% over the past year.

Return vs Market: ET underperformed the Canadian Market which returned 25% over the past year.

Price Volatility

Is ET's price volatile compared to industry and market?
ET volatility
ET Average Weekly Movement4.0%
Communications Industry Average Movement6.4%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market3.5%

Stable Share Price: ET is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ET's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1966n/aRomolo Magarellihttps://www.evertz.com

Evertz Technologies Limited designs, manufactures, and distributes video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets industries in Canada, the United States, and internationally. The company offers contribution encoder, decoder, receiver, processing, and modulation products; and control panels, unified controls, accessories, and network management systems. It also provides encoding, transcoding, and multiplexing products comprising ASI/IP converters, multiplexers, scramblers, and modulators; contribution encoders/decoders; transport stream processors; and software defined accelerated encoding/transcoding/muxing products, as well as audio/data/RF transporters, CWDM/DWDM multiplexors, fiber routers, SONET/SDH transporters, and video transporters.

Evertz Technologies Fundamentals Summary

How do Evertz Technologies's earnings and revenue compare to its market cap?
ET fundamental statistics
Market CapCA$1.02b
Earnings (TTM)CA$55.82m
Revenue (TTM)CA$383.72m

17.9x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ET income statement (TTM)
RevenueCA$383.72m
Cost of RevenueCA$159.83m
Gross ProfitCA$223.89m
ExpensesCA$168.07m
EarningsCA$55.82m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 08, 2021

Earnings per share (EPS)0.73
Gross Margin58.35%
Net Profit Margin14.55%
Debt/Equity Ratio0%

How did ET perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

98%

Payout Ratio

Valuation

Is Evertz Technologies undervalued compared to its fair value and its price relative to the market?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ET (CA$13.4) is trading below our estimate of fair value (CA$23.08)

Significantly Below Fair Value: ET is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ET is good value based on its PE Ratio (18.3x) compared to the North American Communications industry average (27.9x).

PE vs Market: ET is poor value based on its PE Ratio (18.3x) compared to the Canadian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: ET is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ET is overvalued based on its PB Ratio (3.5x) compared to the CA Communications industry average (2.8x).


Future Growth

How is Evertz Technologies forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ET's forecast earnings growth (13.9% per year) is above the savings rate (1.6%).

Earnings vs Market: ET's earnings (13.9% per year) are forecast to grow faster than the Canadian market (10.6% per year).

High Growth Earnings: ET's earnings are forecast to grow, but not significantly.

Revenue vs Market: ET's revenue (8.8% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: ET's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ET's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Evertz Technologies performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ET has high quality earnings.

Growing Profit Margin: ET's current net profit margins (14.5%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: ET's earnings have declined by 3.6% per year over the past 5 years.

Accelerating Growth: ET's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ET had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Communications industry average (18.6%).


Return on Equity

High ROE: ET's Return on Equity (18.8%) is considered low.


Financial Health

How is Evertz Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ET's short term assets (CA$378.9M) exceed its short term liabilities (CA$161.9M).

Long Term Liabilities: ET's short term assets (CA$378.9M) exceed its long term liabilities (CA$22.9M).


Debt to Equity History and Analysis

Debt Level: ET is debt free.

Reducing Debt: ET has no debt compared to 5 years ago when its debt to equity ratio was 0.3%.

Debt Coverage: ET has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ET has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Evertz Technologies's current dividend yield, its reliability and sustainability?

4.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ET's dividend (4.7%) is higher than the bottom 25% of dividend payers in the Canadian market (1.52%).

High Dividend: ET's dividend (4.7%) is in the top 25% of dividend payers in the Canadian market (4.47%)


Stability and Growth of Payments

Stable Dividend: ET's dividend payments have been volatile in the past 10 years.

Growing Dividend: ET's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (98.4%), ET's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.4yrs

Average management tenure


CEO

Romolo Magarelli (54 yo)

no data

Tenure

CA$1,044,000

Compensation

Mr. Romolo Magarelli serves as the Chief Executive Officer and President of Evertz Technologies Limited and joined since 1997. Mr. Magarelli was employed at Leitch Corporation from 1991 to 1997 and served...


CEO Compensation Analysis

Compensation vs Market: Romolo's total compensation ($USD825.04K) is about average for companies of similar size in the Canadian market ($USD1.08M).

Compensation vs Earnings: Romolo's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ET's management team is seasoned and experienced (13.4 years average tenure).


Board Members

Experienced Board: ET's board of directors are seasoned and experienced ( 15.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ET insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Evertz Technologies Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Evertz Technologies Limited
  • Ticker: ET
  • Exchange: TSX
  • Founded: 1966
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$1.022b
  • Shares outstanding: 76.28m
  • Website: https://www.evertz.com

Number of Employees


Location

  • Evertz Technologies Limited
  • 5292 John Lucas Drive
  • Burlington
  • Ontario
  • L7L 5Z9
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:34
End of Day Share Price2021/11/26 00:00
Earnings2021/07/31
Annual Earnings2021/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.