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

-0.7%

ET

-0.5%

CA Electronic

-0.1%

CA Market


1 Year Return

5.2%

ET

-21.5%

CA Electronic

0.9%

CA Market

Return vs Industry: ET exceeded the Canadian Electronic industry which returned -21.5% over the past year.

Return vs Market: ET exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

ETIndustryMarket
7 Day-0.7%-0.5%-0.1%
30 Day-5.1%-8.4%-2.1%
90 Day-14.3%-9.7%-1.6%
1 Year15.7%5.2%-19.2%-21.5%4.4%0.9%
3 Year26.0%-1.2%-10.4%-17.4%15.5%5.2%
5 Year48.9%7.1%6.2%-5.6%25.7%7.5%

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?

9.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ET (CA$16.08) is trading below our estimate of fair value (CA$17.74)

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


Price To Earnings Ratio

PE vs Industry: ET is poor value based on its PE Ratio (16.7x) compared to the Electronic industry average (14.4x).

PE vs Market: ET is poor value based on its PE Ratio (16.7x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ET is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ET is overvalued based on its PB Ratio (3.5x) compared to the CA Electronic industry average (2.1x).


Next Steps

Future Growth

How is Evertz Technologies forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ET's forecast earnings growth (11% per year) is above the savings rate (1.9%).

Earnings vs Market: ET's earnings (11% per year) are forecast to grow slower than the Canadian market (13.2% per year).

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

Revenue vs Market: ET's revenue (5.8% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: ET's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ET's earnings have declined by -1.2% per year over the past 5 years.

Accelerating Growth: ET's earnings growth over the past year (28.6%) exceeds its 5-year average (-1.2% per year).

Earnings vs Industry: ET earnings growth over the past year (28.6%) underperformed the Electronic industry 94.5%.


Return on Equity

High ROE: ET's Return on Equity (21.1%) is considered high.


Return on Assets

ROA vs Industry: ET has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: ET has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Evertz Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ET's short term assets (CA$388.9M) exceeds its short term liabilities (CA$108.7M)

Long Term Liabilities: ET's short term assets (388.9M) exceeds its long term liabilities (29.4M)


Debt to Equity History and Analysis

Debt Level: ET's debt to equity ratio (0.1%) is considered satisfactory

Reducing Debt: ET's debt to equity ratio has reduced from 0.5% to 0.1% over the past 5 years.

Debt Coverage: ET's debt is well covered by operating cash flow (16028.7%).

Interest Coverage: ET earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ET has a high level of physical assets or inventory.

Debt Coverage by Assets: ET's debt is covered by short term assets (assets are 864.126660x debt).


Next Steps

Dividend

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

4.48%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.0%markettop25%6.0%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ET's dividend (4.48%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: ET's dividend (4.48%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

Stable Dividend: ET's dividends per share have been stable 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 (74.8%), 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

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$1,300,000

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

Compensation vs. Market: Romolo's total compensation ($USD982.40K) is about average for companies of similar size in the Canadian market ($USD1.55M).

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


Management Age and Tenure

11.3yrs

Average Tenure

55yo

Average Age

Experienced Management: ET's management team is seasoned and experienced (11.3 years average tenure).


Board Age and Tenure

13.8yrs

Average Tenure

52yo

Average Age

Experienced Board: ET's board of directors are seasoned and experienced ( 13.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 14.8yrs
    • Compensation: CA$898.00k
  • Simon Reed (55yo)

    Managing Director of Evertz UK

    • Tenure: 0yrs
    • Compensation: CA$248.39k
  • Romolo Magarelli (52yo)

    President

    • Tenure: 0yrs
    • Compensation: CA$1.30m
  • Anthony Gridley (54yo)

    CFO & Corporate Secretary

    • Tenure: 11.3yrs
    • Compensation: CA$480.00k
  • Eric Fankhauser (55yo)

    Vice President of Product Development

    • Tenure: 19.8yrs
    • Compensation: CA$800.00k
  • Doug DeBruin (56yo)

    Executive Chairman & Executive VP of Administration

    • Tenure: 0yrs
    • Compensation: CA$1.30m
  • Rakesh Patel (47yo)

    CTO & Director

    • Tenure: 4.8yrs
    • Compensation: CA$1.21m
  • Antoniella Assalone

    Controller

    • Tenure: 11.3yrs
  • Vince Silvestri

    Vice-President of Software Systems

    • Tenure: 8.8yrs
    • Compensation: CA$1.35m
  • Doug Moore

    Director of Finance

    • Tenure: 0yrs

Board Members

  • Brian Piccioni

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$24.00k
  • Ian McWalter

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$42.00k
  • Thomas Pistor (47yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$27.00k
  • Romolo Magarelli (52yo)

    President

    • Tenure: 0yrs
    • Compensation: CA$1.30m
  • Doug DeBruin (56yo)

    Executive Chairman & Executive VP of Administration

    • Tenure: 0yrs
    • Compensation: CA$1.30m
  • Chris Colclough (77yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: CA$37.00k
  • Rakesh Patel (47yo)

    CTO & Director

    • Tenure: 4.8yrs
    • Compensation: CA$1.21m

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$1.232b
  • 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 Analysis2019/10/14 23:48
End of Day Share Price2019/10/11 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.