EVERTEC, Inc. (EVTC) stock analysis

P/E above its 5-year median

Evertec's P/E of 21.4 is above its own 5-year median of 17.3.

P/E below the industry

Evertec's P/E of 21.4 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

Evertec's EV/EBITDA of 13.7 is below its 5-year median of 14.6.

P/B below the industry

Evertec's price-to-book of 3.00 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $32.56 is below our fair value estimate of $39.23.

Margin of safety under 20%

The price is 17.0% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 14.6% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -13.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -35.3% over the last twelve months, against a 5-year average of 6.3% a year.

Growing faster than the industry

Revenue grew 16.3% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

Evertec raised its Outlook 2026 Constant currency revenues (Non-GAAP) outlook on Aug 4, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 14.4% over the last twelve months and averaged 30.6% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Evertec's return on equity of 14.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings grew over 5 years

Net income grew 6.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.0% over the last twelve months, against a 5-year average of 21.2%.

Net margin above the industry

Evertec's net margin of 9.0% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

High debt

Debt is 197% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 147% five years ago to 197%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 19.3% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.5 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.66 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.81; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Evertec paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Evertec yields 0.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 13.0% of net income.

Covered by free cash flow

Dividends take 5.5% of free cash flow.