TSX:ET

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Evertz Technologies

Executive Summary

Evertz Technologies Limited designs, manufactures, and distributes video and audio infrastructure solutions for the television broadcast, new-media, and telecommunications industries in Canada, the United States, and internationally. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Evertz Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

-3.2%

ET

0.2%

CA Communications

0.7%

CA Market


1 Year Return

-29.9%

ET

-3.6%

CA Communications

-2.0%

CA Market

Return vs Industry: ET underperformed the Canadian Communications industry which returned -3.1% over the past year.

Return vs Market: ET underperformed the Canadian Market which returned -1.8% over the past year.


Shareholder returns

ETIndustryMarket
7 Day-3.2%0.2%0.7%
30 Day6.3%1.9%5.3%
90 Day-1.0%1.1%4.0%
1 Year-26.9%-29.9%-1.3%-3.6%1.6%-2.0%
3 Year-21.7%-34.6%-15.5%-22.0%10.2%-0.5%
5 Year6.0%-23.6%8.7%-5.8%44.5%22.3%

Long-Term Price Volatility Vs. Market

How volatile is Evertz Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ET (CA$12.53) is trading below our estimate of fair value (CA$15.38)

Significantly Below Fair Value: ET is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ET is good value based on its PE Ratio (17.1x) compared to the CA Communications industry average (30.4x).

PE vs Market: ET is poor value based on its PE Ratio (17.1x) compared to the Canadian market (15x).


Price to Earnings Growth Ratio

PEG Ratio: ET is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ET is overvalued based on its PB Ratio (3.3x) compared to the CA Communications industry average (1.7x).


Next Steps

Future Growth

How is Evertz Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ET's forecast earnings growth (9.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ET's earnings (9.8% per year) are forecast to grow slower than the Canadian market (26.1% per year).

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

Revenue vs Market: ET's revenue (11.3% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: ET's revenue (11.3% 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


Next Steps

Past Performance

How has Evertz Technologies performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ET has high quality earnings.

Growing Profit Margin: ET's current net profit margins (14.4%) are lower than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: ET's earnings have declined by 0.3% 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 (-24%) over the past year, making it difficult to compare to the Communications industry average (4.7%).


Return on Equity

High ROE: ET's Return on Equity (19.3%) is considered low.


Next Steps

Financial Health

How is Evertz Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ET's short term assets (CA$345.2M) exceed its short term liabilities (CA$126.4M).

Long Term Liabilities: ET's short term assets (CA$345.2M) exceed its long term liabilities (CA$24.3M).


Debt to Equity History and Analysis

Debt Level: ET's debt to equity ratio (0.06%) is considered satisfactory.

Reducing Debt: ET's debt to equity ratio has reduced from 0.3% to 0.06% over the past 5 years.

Debt Coverage: ET's debt is well covered by operating cash flow (74046.2%).

Interest Coverage: ET's interest payments on its debt are well covered by EBIT (72.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ET's dividend (2.87%) is higher than the bottom 25% of dividend payers in the Canadian market (1.66%).

High Dividend: ET's dividend (2.87%) is low compared to the top 25% of dividend payers in the Canadian market (5.45%).


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 reasonable payout ratio (73.8%), ET's dividend payments are 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?

12.4yrs

Average management tenure


CEO

Romolo Magarelli (53 yo)

no data

Tenure

CA$1,128,083

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 ($USD863.43K) is below average for companies of similar size in the Canadian market ($USD1.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas DeBruin
Executive Chairman & Executive VP of Administrationno dataCA$1.13m31.64%
CA$ 302.8m
Romolo Magarelli
Presidentno dataCA$1.13m31.64%
CA$ 302.8m
Douglas Moore
CFO & Secretary0.92yrCA$577.40k0.0078%
CA$ 75.1k
Rakesh Patel
CTO & Director18.83yrsCA$3.92m1.64%
CA$ 15.7m
Brian Campbell
Executive Vice-President of Business Development15.83yrsCA$898.00kno data
Jonathan Pannaman
Executive Vice-President of Advanced Architecture & Solutions Engineering1.83yrsno datano data
Antoniella Assalone
Controller12.42yrsno datano data

12.4yrs

Average Tenure

55yo

Average Age

Experienced Management: ET's management team is seasoned and experienced (12.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas DeBruin
Executive Chairman & Executive VP of Administrationno dataCA$1.13m31.64%
CA$ 302.8m
Romolo Magarelli
Presidentno dataCA$1.13m31.64%
CA$ 302.8m
Rakesh Patel
CTO & Director18.83yrsCA$3.92m1.64%
CA$ 15.7m
Brian Piccioni
Independent Director5.83yrsCA$36.60k0.030%
CA$ 283.8k
Ian McWalter
Independent Director14.83yrsCA$55.10k0.066%
CA$ 632.1k
Thomas Pistor
Independent Director14.83yrsCA$41.10k0.060%
CA$ 578.9k
Christopher Colclough
Independent Director15.83yrsCA$50.10k0.0013%
CA$ 12.5k

15.3yrs

Average Tenure

53yo

Average Age

Experienced Board: ET's board of directors are seasoned and experienced ( 15.3 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 company bio, 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$957.164m
  • Shares outstanding: 76.39m
  • Website: https://www.evertz.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2006
EVTZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2006

Biography

Evertz Technologies Limited designs, manufactures, and distributes video and audio infrastructure solutions for the television broadcast, new-media, and telecommunications industries in Canada, the United ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 00:10
End of Day Share Price2020/11/20 00:00
Earnings2020/07/31
Annual Earnings2020/04/30


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.