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Market Cap

US$2.9b

Last Updated

2021/04/16 22:52 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with questionable track record.


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: EVTC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EVTC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

EVTC

1.0%

US IT

1.3%

US Market


1 Year Return

70.3%

EVTC

58.8%

US IT

53.9%

US Market

Return vs Industry: EVTC exceeded the US IT industry which returned 58.8% over the past year.

Return vs Market: EVTC exceeded the US Market which returned 53.9% over the past year.


Shareholder returns

EVTCIndustryMarket
7 Day3.0%1.0%1.3%
30 Day4.3%3.3%3.3%
90 Day6.1%10.5%8.9%
1 Year71.4%70.3%60.3%58.8%56.6%53.9%
3 Year133.8%129.5%108.3%100.8%64.4%53.6%
5 Year205.0%188.3%211.5%190.4%120.4%95.7%

Long-Term 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

Valuation

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

28.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EVTC ($40.74) is trading above our estimate of fair value ($37.85)

Significantly Below Fair Value: EVTC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EVTC is good value based on its PE Ratio (28.1x) compared to the US IT industry average (39.7x).

PE vs Market: EVTC is poor value based on its PE Ratio (28.1x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: EVTC is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: EVTC is overvalued based on its PB Ratio (8.6x) compared to the US IT industry average (5.3x).


Future Growth

How is EVERTEC forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVTC's forecast earnings growth (12.5% per year) is above the savings rate (2%).

Earnings vs Market: EVTC's earnings (12.5% per year) are forecast to grow slower than the US market (18.1% per year).

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

Revenue vs Market: EVTC's revenue (5.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: EVTC's revenue (5.5% 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 (21.3%)


Past Performance

How has EVERTEC performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVTC has high quality earnings.

Growing Profit Margin: EVTC's current net profit margins (20.5%) are lower than last year (21.2%).


Past Earnings Growth Analysis

Earnings Trend: EVTC's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: EVTC's earnings growth over the past year (1%) is below its 5-year average (5.8% per year).

Earnings vs Industry: EVTC earnings growth over the past year (1%) underperformed the IT industry 8.4%.


Return on Equity

High ROE: Whilst EVTC's Return on Equity (30.62%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is EVERTEC's financial position?


Financial Position Analysis

Short Term Liabilities: EVTC's short term assets ($359.0M) exceed its short term liabilities ($153.0M).

Long Term Liabilities: EVTC's short term assets ($359.0M) do not cover its long term liabilities ($577.2M).


Debt to Equity History and Analysis

Debt Level: EVTC's debt to equity ratio (152.1%) is considered high.

Reducing Debt: EVTC's debt to equity ratio has reduced from 669.8% to 152.1% over the past 5 years.

Debt Coverage: EVTC's debt is well covered by operating cash flow (38.2%).

Interest Coverage: EVTC's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Dividend

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

0.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EVTC's dividend (0.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: EVTC's dividend (0.49%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Mac Schuessler (47 yo)

6yrs

Tenure

US$4,552,043

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 ($USD4.55M) is about average for companies of similar size in the US market ($USD5.13M).

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


Leadership Team

Experienced Management: EVTC's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: EVTC's board of directors are considered experienced (6.3 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.


Top Shareholders

Company Information

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


Key Information

  • Name: EVERTEC, Inc.
  • Ticker: EVTC
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$2.931b
  • Shares outstanding: 71.08m
  • Website: https://www.evertecinc.com

Number of Employees


Location

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

Listings


Biography

EVERTEC, Inc. engages in transaction processing business in Latin America and the Caribbean. The company operates through four segments: Payment Services - Puerto Rico & Caribbean; Payment Services - Latin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:52
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.