EVERTEC (NYSE:EVTC) - Share price, News & Analysis

Q: What is the Fair Price of EVTC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EVTC ($36.68) is trading below our estimate of [[fair value]] ($90.09)

EVTC fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

EVTC Stock Overview

EVERTEC, Inc. engages in transaction processing business in Latin America and the Caribbean.

Rewards

Trading at 59.3% below our estimate of its fair value

Earnings are forecast to grow 2.89% per year

Earnings grew by 39.7% over the past year

Risk Analysis

EVTC passed our risk checks.

EVERTEC Competitors

Verra Mobility

NasdaqCM:VRRM

US$2.5b

WNS (Holdings)

NYSE:WNS

US$3.7b

TTEC Holdings

NasdaqGS:TTEC

US$3.3b

CSG Systems International

NasdaqGS:CSGS

US$1.9b

Price History & Performance

Summary of all time highs, changes and price drops for EVERTEC
Historical stock prices
Current Share Price	US$36.21
52 Week High	US$51.06
52 Week Low	US$33.57
Beta	0.96
1 Month Change	-5.53%
3 Month Change	-12.79%
1 Year Change	-16.37%
3 Year Change	11.83%
5 Year Change	104.58%
Change since IPO	77.15%

Recent News & Updates

Jun 17

What Does EVERTEC, Inc.'s (NYSE:EVTC) Share Price Indicate?

EVERTEC, Inc. ( NYSE:EVTC ), is not the largest company out there, but it saw significant share price movement during...

Jun 04

We Like EVERTEC's (NYSE:EVTC) Returns And Here's How They're Trending

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...

May 04

Does EVERTEC (NYSE:EVTC) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

	EVTC	US IT	US Market
7D	5.5%	7.8%	6.3%
1Y	-16.4%	-32.5%	-18.8%

Return vs Industry: EVTC exceeded the US IT industry which returned -32% over the past year.

Return vs Market: EVTC exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is EVTC's price volatile compared to industry and market?
EVTC volatility
EVTC Average Weekly Movement	4.4%
IT Industry Average Movement	10.2%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: EVTC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EVTC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	2,500	Mac Schuessler	https://www.evertecinc.com

EVERTEC, Inc. engages in transaction processing business in Latin America and the Caribbean. The company operates through Payment Services - Puerto Rico & Caribbean; Payment Services - Latin America; Merchant Acquiring; Business Solutions, and Corporate and Other segments. 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.

EVERTEC Fundamentals Summary

How do EVERTEC's earnings and revenue compare to its market cap?
EVTC fundamental statistics
Market Cap	US$2.62b
Earnings (TTM)	US$164.53m
Revenue (TTM)	US$600.52m

15.7x

P/E Ratio

4.3x

P/S Ratio

Is EVTC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EVTC income statement (TTM)
Revenue	US$600.52m
Cost of Revenue	US$255.62m
Gross Profit	US$344.90m
Other Expenses	US$180.37m
Earnings	US$164.53m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.30
Gross Margin	57.43%
Net Profit Margin	27.40%
Debt/Equity Ratio	93.5%

How did EVTC perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

9%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is EVTC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EVTC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EVTC. This is calculated by dividing EVTC's market cap by their current preferred multiple.
What is EVTC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.62b

EVTC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.7x
Enterprise Value/EBITDA	11.4x
PEG Ratio	5.5x

Price to Earnings Ratio vs Peers

How does EVTC's PE Ratio compare to its peers?

EVTC PE Ratio vs Peers

The above table shows the PE ratio for EVTC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	31.8x
VRRM Verra Mobility	41.6x	24.5%	US$2.5b
WNS WNS (Holdings)	27.8x	10.1%	US$3.7b
TTEC TTEC Holdings	26.6x	18.3%	US$3.3b
CSGS CSG Systems International	32.2x	22.0%	US$1.9b
EVTC EVERTEC	16x	2.9%	US$2.6b

Forward PE

Price-To-Earnings vs Peers: EVTC is good value based on its Price-To-Earnings Ratio (16x) compared to the peer average (32.1x).

Price to Earnings Ratio vs Industry

How does EVTC's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Earnings vs Industry: EVTC is good value based on its Price-To-Earnings Ratio (16x) compared to the US IT industry average (28.2x)

Price to Earnings Ratio vs Fair Ratio

What is EVTC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EVTC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.7x
Fair PE Ratio	26x

Price-To-Earnings vs Fair Ratio: EVTC is good value based on its Price-To-Earnings Ratio (16x) compared to the estimated Fair Price-To-Earnings Ratio (26x).

Share Price vs Fair Value

What is the Fair Price of EVTC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EVTC ($36.68) is trading below our estimate of fair value ($90.09)

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

Price to Earnings Growth Ratio

PEG Ratio: EVTC is poor value based on its PEG Ratio (5.5x)

Discover undervalued companies

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVTC's forecast earnings growth (2.9% per year) is above the savings rate (1.9%).

Earnings vs Market: EVTC's earnings (2.9% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: EVTC's revenue (4.4% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: EVTC's revenue (4.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EVTC's Return on Equity is forecast to be high in 3 years time (23.4%)

Discover growth companies

Past Performance

How has EVERTEC performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EVTC has high quality earnings.

Growing Profit Margin: EVTC's current net profit margins (27.4%) are higher than last year (22.3%).

Past Earnings Growth Analysis

Earnings Trend: EVTC's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: EVTC's earnings growth over the past year (39.7%) exceeds its 5-year average (19.6% per year).

Earnings vs Industry: EVTC earnings growth over the past year (39.7%) exceeded the IT industry 21.4%.

Return on Equity

High ROE: EVTC's Return on Equity (33.2%) is considered high.

Discover strong past performing companies

Financial Health

How is EVERTEC's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EVTC's short term assets ($473.6M) exceed its short term liabilities ($160.5M).

Long Term Liabilities: EVTC's short term assets ($473.6M) do not cover its long term liabilities ($505.9M).

Debt to Equity History and Analysis

Debt Level: EVTC's net debt to equity ratio (36.2%) is considered satisfactory.

Reducing Debt: EVTC's debt to equity ratio has reduced from 513.5% to 93.5% over the past 5 years.

Debt Coverage: EVTC's debt is well covered by operating cash flow (57.1%).

Interest Coverage: EVTC's interest payments on its debt are well covered by EBIT (9.8x coverage).

Balance Sheet

Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.55%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EVTC's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: EVTC's dividend (0.55%) is low compared to the top 25% of dividend payers in the US market (4.23%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: EVTC is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: EVTC is not paying a notable dividend for the US market.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Mac Schuessler (48 yo)

7.17yrs

Tenure

US$7,498,179

Compensation

Mr. Morgan M. Schuessler, Jr., also known as Mac, has been the Chief Executive Officer, President and Director at EVERTEC, Inc. since April 1, 2015. Mr. Schuessler has over many years of payment industry e...

CEO Compensation Analysis

Compensation vs Market: Mac's total compensation ($USD7.50M) is about average for companies of similar size in the US market ($USD6.87M).

Compensation vs Earnings: Mac's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: EVTC's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: EVTC's board of directors are considered experienced (7.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: EVTC 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31