TSX:ET

Stock Analysis Report

Evertz Technologies

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


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


Market Performance


7 Day Return

1.1%

ET

-0.3%

CA Electronic

0.9%

CA Market


1 Year Return

0.5%

ET

-20.1%

CA Electronic

-0.2%

CA Market

ET outperformed the Electronic industry which returned -20.2% over the past year.

ET matched the Canada Market (-0.1%) over the past year.


Share holder returns

ETIndustryMarket
7 Day1.1%-0.3%0.9%
30 Day-7.1%1.3%5.7%
90 Day-5.5%-2.5%1.8%
1 Year10.5%0.5%-17.6%-20.1%3.3%-0.2%
3 Year27.4%-0.1%-4.6%-12.3%19.2%8.5%
5 Year39.6%0.4%6.0%-6.1%23.3%5.8%

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

2 weeks ago | Simply Wall St

Evertz Technologies Limited (TSE:ET) Is Yielding 4.1% - But Is It A Buy?

Valuation

Is Evertz Technologies undervalued based on future cash flows and its price relative to the stock market?

5%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Evertz Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Evertz Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Evertz Technologies is overvalued based on earnings compared to the CA Electronic industry average.

Evertz Technologies is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Evertz Technologies is poor value based on expected growth next year.


Price Based on Value of Assets

Evertz Technologies is overvalued based on assets compared to the CA Electronic industry average.


Next Steps

Future Growth

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

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Evertz Technologies's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

Evertz Technologies's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Evertz Technologies's revenue growth is expected to exceed the Canada market average.

Evertz Technologies's earnings growth is positive but not above the Canada market average.

Evertz Technologies's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Evertz Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Evertz Technologies performed over the past 5 years?

-1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Evertz Technologies's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Evertz Technologies's 1-year earnings growth exceeds its 5-year average (28.6% vs -1.2%)

Evertz Technologies's earnings growth has not exceeded the CA Electronic industry average in the past year (28.6% vs 94.5%).


Return on Equity

Evertz Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Evertz Technologies used its assets more efficiently than the CA Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Evertz Technologies has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Evertz Technologies's financial position?


Financial Position Analysis

Evertz Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Evertz Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Evertz Technologies's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (0.5% vs 0.1% today).

Debt is well covered by operating cash flow (16028.7%, greater than 20% of total debt).

Evertz Technologies earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 864.1x debt.


Next Steps

Dividend

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

4.28%

Current Dividend Yield


Dividend Yield and Payments Analysis

Evertz Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

Evertz Technologies's dividend is below the markets top 25% of dividend payers in Canada (5.78%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Evertz Technologies's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average management tenure


CEO

Romolo Magarelli (52yo)

0yrs

Tenure

CA$1,140,000

Compensation

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


CEO Compensation Analysis

Romolo's remuneration is lower than average for companies of similar size in Canada.

Romolo's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.3yrs

Average Tenure

55yo

Average Age

The average tenure for the Evertz Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

13.7yrs

Average Tenure

52yo

Average Age

The average tenure for the Evertz Technologies board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCA$1,701,25401 Apr 19
Rakesh Patel
EntityIndividual
Role
Member of the Board of Directors
CTO & Director
Shares100,000
Max PriceCA$17.02

Ownership Breakdown


Management Team

  • Brian Campbell (57yo)

    Executive Vice-President of Business Development

    • Tenure: 14.7yrs
    • Compensation: CA$898.00k
  • Simon Reed (55yo)

    Managing Director of Evertz UK

    • Tenure: 14.7yrs
    • Compensation: CA$248.39k
  • Romolo Magarelli (52yo)

    President

    • Tenure: 0yrs
    • Compensation: CA$1.14m
  • Anthony Gridley (54yo)

    CFO & Corporate Secretary

    • Tenure: 11.3yrs
    • Compensation: CA$440.00k
  • Eric Fankhauser (55yo)

    Vice President of Product Development

    • Tenure: 19.7yrs
    • Compensation: CA$800.00k
  • Doug DeBruin (56yo)

    Executive Chairman & Executive VP of Administration

    • Tenure: 0yrs
    • Compensation: CA$1.14m
  • Rakesh Patel (47yo)

    CTO & Director

    • Tenure: 4.7yrs
    • Compensation: CA$2.39m
  • Antoniella Assalone

    Controller

    • Tenure: 11.3yrs
  • Vince Silvestri

    Vice-President of Software Systems

    • Tenure: 8.7yrs
    • Compensation: CA$1.35m
  • Doug Moore

    Director of Finance

    • Tenure: 0yrs

Board Members

  • Brian Piccioni

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: CA$24.00k
  • Ian McWalter

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: CA$42.00k
  • Thomas Pistor (47yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: CA$27.00k
  • Romolo Magarelli (52yo)

    President

    • Tenure: 0yrs
    • Compensation: CA$1.14m
  • Doug DeBruin (56yo)

    Executive Chairman & Executive VP of Administration

    • Tenure: 0yrs
    • Compensation: CA$1.14m
  • Chris Colclough (77yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: CA$37.00k
  • Rakesh Patel (47yo)

    CTO & Director

    • Tenure: 4.7yrs
    • Compensation: CA$2.39m

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: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CA$1.289b
  • Shares outstanding: 76.61m
  • 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, new-media, and telecommunications industries in Canada, the United States, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 00:00
End of Day Share Price2019/09/20 00:00
Earnings2019/07/31
Annual Earnings2019/04/30


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.