NYSE:EVTC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

EVTC

-3.5%

US IT

-2.4%

US Market


1 Year Return

12.8%

EVTC

30.5%

US IT

18.2%

US Market

Return vs Industry: EVTC underperformed the US IT industry which returned 30.2% over the past year.

Return vs Market: EVTC underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

EVTCIndustryMarket
7 Day-0.9%-3.5%-2.4%
30 Day2.0%3.4%4.2%
90 Day16.4%5.4%6.3%
1 Year13.6%12.8%31.9%30.5%20.9%18.2%
3 Year151.3%147.4%92.8%85.2%41.2%31.8%
5 Year106.5%92.9%152.1%132.1%84.8%63.9%

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?

2.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EVTC ($35.5) is trading below our estimate of fair value ($36.23)

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


Price To Earnings Ratio

PE vs Industry: EVTC is good value based on its PE Ratio (29.2x) compared to the US IT industry average (33.1x).

PE vs Market: EVTC is poor value based on its PE Ratio (29.2x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: EVTC is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: EVTC is overvalued based on its PB Ratio (9.1x) compared to the US IT industry average (3.8x).


Next Steps

Future Growth

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

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVTC's forecast earnings growth (20.3% per year) is above the savings rate (2.2%).

Earnings vs Market: EVTC's earnings (20.3% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EVTC's revenue (5.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: EVTC's revenue (5.6% 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 (31.3%)


Next Steps

Past Performance

How has EVERTEC performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVTC has high quality earnings.

Growing Profit Margin: EVTC's current net profit margins (18%) are lower than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: EVTC's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: EVTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EVTC had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the IT industry average (8.1%).


Return on Equity

High ROE: Whilst EVTC's Return on Equity (31.45%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is EVERTEC's financial position?


Financial Position Analysis

Short Term Liabilities: EVTC's short term assets ($303.0M) exceed its short term liabilities ($151.5M).

Long Term Liabilities: EVTC's short term assets ($303.0M) do not cover its long term liabilities ($581.3M).


Debt to Equity History and Analysis

Debt Level: EVTC's debt to equity ratio (195.3%) is considered high.

Reducing Debt: EVTC's debt to equity ratio has reduced from 490.2% to 195.3% over the past 5 years.

Debt Coverage: EVTC's debt is well covered by operating cash flow (35.1%).

Interest Coverage: EVTC's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

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

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EVTC's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: EVTC's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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?

2.4yrs

Average management tenure


CEO

Mac Schuessler (47 yo)

5.5yrs

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 ($USD4.55M) is about average for companies of similar size in the US market ($USD5.61M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Morgan Schuessler
President5.5yrsUS$4.55m0.15%
$ 3.7m
Joaquin Castrillo-Salgado
Executive VP & CFO2.08yrsUS$1.23m0.025%
$ 618.5k
Philip Steurer
Executive VP & COO8.17yrsUS$1.15m0.059%
$ 1.5m
Miguel Vizcarrondo Carrión
Executive VP of Payment Services8.5yrsUS$1.16m0.18%
$ 4.6m
Guillermo Rospigliosi
Executive VP and Chief Product & Innovation Officer0.58yrUS$1.15m0.028%
$ 700.4k
Paola Surillo
Executive VP & Chief Administrative Officer0.58yrno data0.029%
$ 731.4k
Kay Sharpton
Vice President of Investor Relationsno datano datano data
Luis Rodríguez-González
General Counselno dataUS$1.11m0.027%
$ 685.5k
Alexandra López-Soler
Senior Vice President of Marketing & Communication0.50yrno datano data
Carlos Ramírez
Executive Vice President of Puerto Rico Sales8.5yrsUS$984.41k0.069%
$ 1.7m
Enrique Candanoza
Country Head Colombia1.67yrsno datano data
Rodrigo Castillo
Executive Vice President of Payment Services - Latin America2.75yrsno data0.014%
$ 341.9k

2.4yrs

Average Tenure

47yo

Average Age

Experienced Management: EVTC's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Morgan Schuessler
President5.5yrsUS$4.55m0.15%
$ 3.7m
Jorge Junquera
Independent Director8.5yrsUS$213.02k0.029%
$ 725.4k
Alan Schumacher
Independent Director7.5yrsUS$222.49k0.035%
$ 874.5k
Thomas Swidarski
Independent Director5.83yrsUS$208.38k0.030%
$ 756.6k
Brian Smith
Independent Director5.67yrsUS$214.81k0.040%
$ 999.1k
Frank D'Angelo
Independent Chairman of the Board6.67yrsUS$292.32k0.055%
$ 1.4m
Olga Botero
Independent Director6.08yrsUS$210.70k0.029%
$ 735.4k
Iván Pagán
Independent Director1.42yrsUS$170.70k0.0049%
$ 122.4k
Aldo Polak-Gelber
Independent Director1.42yrsUS$169.18k0.0052%
$ 130.3k

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: EVTC's board of directors are considered experienced (5.8 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.


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$2.497b
  • Shares outstanding: 70.34m
  • 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 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 Analysis2020/10/20 01:15
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.