EVERTEC, Inc. (NYSE:EVTC) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of EVTC, it is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on EVERTEC here.
Solid track record with adequate balance sheet
EVTC delivered a bottom-line expansion of 57% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did EVTC outperformed its past performance, its growth also surpassed the IT industry expansion, which generated a 15% earnings growth. This is an notable feat for the company. EVTC’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that EVTC manages its cash and cost levels well, which is a crucial insight into the health of the company. EVTC appears to have made good use of debt, producing operating cash levels of 0.32x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For EVERTEC, there are three pertinent factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for EVTC’s future growth? Take a look at our free research report of analyst consensus for EVTC’s outlook.
- Valuation: What is EVTC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EVTC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EVTC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.