Evertec, Inc.

Technology
EDP Services
www.evertecinc.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.20B
PE 19
Debt $965.34M
Cash $314.65M
EV $2.85B
FCF $234.68M

Earnings

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Sales & Net Margins

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Earnings	$112.62M
EBIT	$165.67M
ROE	24%
ROA	9%
FCF	$234.68M
Equity	$475.80M
Growth Stability	47%
PE	19.5
PEG	-5.76
PB	4.61
P/FCF	9.36
P/S	2.6
Price/Cash	0.14
Debt/Equity	2.03
Debt/FCF	4.11
Net Margins	13%
Op. Margins	20%
Earnings CAGR	8%
Sales Growth YoY	11%
Sales Growth QoQ	2%
Sales CAGR	9%
FCF CAGR	6%
Equity CAGR	22%
Earnings Stability	0.23
Earnings Growth YoY	244%
Earnings Growth QoQ	62%
Earnings CAGR 5Y	-3%

Sales CAGR 5Y	12%
FCF CAGR 5Y	4%
Equity CAGR 5Y	14%
Earnings CAGR 3Y	14%
Sales CAGR 3Y	14%
FCF CAGR 3Y	1%
Equity CAGR 3Y	1%
Market Cap	$2.20B
Revenue	$845.49M
Dividend Yield	1%
Payout Ratio	11%
Assets	$1.86B
Total Debt	$965.34M
Cash	$314.65M
Shares Outstanding	63.61M
EV	2.85B
Earnings Score	11%
Moat Score	92%
Safety Score	57%
Final Score	54%
Working Capital	249.41M
Current Ratio	1.89
Shares Growth 3y	-3%
Equity Growth QoQ	-6%
Equity Growth YoY	-20%

Assets & ROA

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Stockholders Equity & ROE

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Evertec Inc is a transaction processing business in Latin America and the Caribbean. Its business segments are Merchant Acquiring, Payment Services - Puerto Rico & Caribbean, Payment Services - Latin America, and Business Solutions. The company serves a diversified customer base of financial institutions, merchants, corporations and government agencies with mission-critical technology solutions that enable them to issue, process and accept transactions securely. The company derives revenue based on transaction or discount fees or fees based on the number of accounts on file.

SEC Filings

Direct access to Evertec, Inc. (EVTC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Evertec, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Evertec, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 23%

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Evertec, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Evertec, Inc..

Years

Calculation mode

= $3.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$235M	$249M	$264M	$280M	$297M	$315M	$333M	$354M	$375M	$398M	$422M	$4.2B
DCF		$226M	$218M	$210M	$203M	$195M	$188M	$181M	$175M	$169M	$163M	$1.6B
Value	$3.6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	23%	19%	14%	19%	21%	20%	27%	39%	11%	13%	13%
ROA	-	12%	10%	13%	14%	13%	17%	24%	7%	9%	9%
ROE	-	69%	37%	40%	38%	30%	34%	50%	13%	24%	24%

Good Net Margins (13.32%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	4.54	4.93	3.48	3.45	2.81	2.39	2.2	4.94	4.11	4.11
Debt over Equity	7.04	6.27	4.48	2.56	1.99	1.49	1.03	0.91	1.67	2.03	2.03
Growth Stability	-	-	-	100%	100%	100%	100%	100%	47%	70%	47%

Bad Debt/FCF ratio (4.11)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (2.03)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (47%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	4%	5%	11%	7%	5%	16%	5%	12%	22%	12%
Earnings YoY growth	-	-12%	-27%	57%	20%	1%	54%	48%	-67%	41%	-3%
Equity YoY growth	-	10%	37%	46%	26%	26%	37%	1%	26%	-20%	14%
FCF YoY growth	-	6%	-10%	18%	-1%	16%	12%	-3%	3%	16%	4%