DB:2EV

Stock Analysis Report

Executive Summary

EVERTEC, Inc. engages in transaction processing business serving financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean.


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2EV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.0%

2EV

-12.6%

DE IT

-9.1%

DE Market


1 Year Return

15.4%

2EV

13.5%

DE IT

2.9%

DE Market

Return vs Industry: 2EV exceeded the German IT industry which returned 13.5% over the past year.

Return vs Market: 2EV exceeded the German Market which returned 2.9% over the past year.


Shareholder returns

2EVIndustryMarket
7 Day-10.0%-12.6%-9.1%
30 Day-7.1%-11.3%-7.2%
90 Day-3.4%-0.4%-6.5%
1 Year15.9%15.4%14.2%13.5%6.1%2.9%
3 Year80.2%76.1%124.4%118.2%3.5%-5.6%
5 Year61.3%50.0%199.1%186.5%8.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2EV (€28.8) is trading below our estimate of fair value (€32.07)

Significantly Below Fair Value: 2EV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2EV is good value based on its PE Ratio (21.4x) compared to the IT industry average (29.4x).

PE vs Market: 2EV is poor value based on its PE Ratio (21.4x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2EV is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 2EV is overvalued based on its PB Ratio (8.1x) compared to the DE IT industry average (4.3x).


Next Steps

Future Growth

How is EVERTEC forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2EV's forecast earnings growth (8.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2EV's earnings (8.7% per year) are forecast to grow slower than the German market (13.1% per year).

High Growth Earnings: 2EV's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2EV's revenue (4.6% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: 2EV's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2EV's Return on Equity is forecast to be high in 3 years time (32.7%)


Next Steps

Past Performance

How has EVERTEC performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2EV has high quality earnings.

Growing Profit Margin: 2EV's current net profit margins (21.2%) are higher than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: 2EV's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: 2EV's earnings growth over the past year (19.9%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: 2EV earnings growth over the past year (19.9%) exceeded the IT industry 13.5%.


Return on Equity

High ROE: Whilst 2EV's Return on Equity (38.18%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EVERTEC's financial position?


Financial Position Analysis

Short Term Liabilities: 2EV's short term assets ($276.0M) exceed its short term liabilities ($144.3M).

Long Term Liabilities: 2EV's short term assets ($276.0M) do not cover its long term liabilities ($595.7M).


Debt to Equity History and Analysis

Debt Level: 2EV's debt to equity ratio (193.4%) is considered high.

Reducing Debt: 2EV's debt to equity ratio has reduced from 724.7% to 193.4% over the past 5 years.

Debt Coverage: 2EV's debt is well covered by operating cash flow (34.3%).

Interest Coverage: 2EV's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: 2EV has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2EV's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

0.65%

Current Dividend Yield


Upcoming Dividend Payment

Purchase EVERTEC before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.9%industryaverage0.6%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: 2EV's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: 2EV's dividend (0.65%) is low compared to the top 25% of dividend payers in the German market (3.92%).


Stability and Growth of Payments

Stable Dividend: 2EV is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: 2EV is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2EV is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2EV's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Mac Schuessler (46yo)

4.8yrs

Tenure

US$4,713,242

Compensation

Mr. Morgan M. Schuessler, Jr., also known as Mac, has been the Chief Executive Officer and President at EVERTEC, Inc. since April 2015. Mr. Schuessler has over 20 years of payment industry experience. He s ...


CEO Compensation Analysis

Compensation vs Market: Mac's total compensation ($USD4.71M) is above average for companies of similar size in the German market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Morgan Schuessler
President4.8yrsUS$4.71m0.087% $1.8m
Philip Steurer
Executive VP & COO7.5yrsUS$1.17m0.048% $995.7k
Luis Rodríguez-González
Executive VP0yrsUS$1.11m0.016% $331.2k
Miguel Vizcarrondo Carrión
Executive VP of Payment Services7.8yrsUS$1.18m0.17% $3.5m
Joaquin Castrillo-Salgado
Executive VP & CFO1.4yrsno data0.049% $1.0m
Alan Cohen-Shoreman
Head of Investor Relations5.3yrsno datano data
Kay Sharpton
Vice President of Investor Relations0yrsno datano data
Guillermo Rospigliosi
Executive Vice President of Product3.8yrsUS$1.52m0.074% $1.5m
Paola Surillo
Executive Vice President of People & Culture2yrsno data0.070% $1.4m
Carlos Ramírez
Executive Vice President of Sales for Puerto Rico7.8yrsUS$984.41k0.066% $1.4m

5.1yrs

Average Tenure

46yo

Average Age

Experienced Management: 2EV's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Morgan Schuessler
President4.8yrsUS$4.71m0.087% $1.8m
Jorge Junquera
Independent Director7.8yrsUS$209.99k0.030% $608.6k
Alan Schumacher
Independent Director6.8yrsUS$222.49k0.035% $728.1k
Thomas Swidarski
Independent Director5.2yrsUS$217.49k0.031% $631.8k
Brian Smith
Independent Director5yrsUS$214.99k0.040% $827.5k
Frank D'Angelo
Chairman of the Board6yrsUS$282.49k0.056% $1.1m
Olga Botero
Independent Director5.4yrsUS$207.49k0.030% $615.6k
Iván Pagán
Director0.8yrsno data0.0054% $111.9k
Aldo Polak-Gelber
Director0.8yrsno data0.0054% $111.9k

5.2yrs

Average Tenure

60yo

Average Age

Experienced Board: 2EV's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

EVERTEC, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EVERTEC, Inc.
  • Ticker: 2EV
  • Exchange: DB
  • Founded: 1988
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$2.254b
  • Listing Market Cap: US$2.053b
  • Shares outstanding: 70.30m
  • Website: https://www.evertecinc.com

Number of Employees


Location

  • EVERTEC, Inc.
  • Cupey Center Building
  • Road 176
  • San Juan
  • Puerto Rico
  • 926
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVTCNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2013
2EVDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2013
EVTC NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2013

Biography

EVERTEC, Inc. engages in transaction processing business serving financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean. The company operates in four segments: Payment Services - Puerto Rico & Caribbean; Payment Services - Latin America; Merchant Acquiring; and Business Solutions. It provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards. The company also offers payment processing services that enable financial institutions and other issuers to manage, support, and facilitate the processing for credit, debit, prepaid, automated teller machines and EBT card programs; credit and debit card processing, authorization and settlement, and fraud monitoring and control services to debit or credit issuers; and EBT services. In addition, it provides business process management solutions comprising core bank processing, network hosting and management, IT consulting services, business process outsourcing, item and cash processing, and fulfillment solutions to financial institutions, and corporate and government customers. The company manages a system of electronic payment networks that process approximately two billion transactions. It sells and distributes its services primarily through a proprietary direct sales force. The company was formerly known as Carib Latam Holdings, Inc. EVERTEC, Inc. was founded in 1988 and is based in San Juan, Puerto Rico. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 22:26
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.