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Everforth
(NYSE:EFOR)
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Rating:55Neutral
Price Target:
$31.00
▲(50.49% Upside)
Action:Reiterated
Date:07/30/26
EFOR scores in the mid-range primarily due to deteriorating fundamentals (sharp TTM revenue decline, compressed margins, rising leverage, and weakening FCF growth). The earnings call provides some stabilization positives (Q2 margin improvement guidance, strong commercial book-to-bill and sizable federal backlog), while valuation is relatively modest (P/E ~10.3). Technically, the stock shows a short-term rebound above the 20/50-day averages but remains in a longer-term downtrend below the 100/200-day averages.
Positive Factors
Material federal backlog provides multi-quarter revenue visibility
A ~$2.8B federal backlog covering ~2.4x trailing revenues offers durable, multi-quarter revenue visibility that de-risks near-term top-line volatility. This backlog supports predictable cash flow ramps for federal programs and underpins planning and resource allocation over several quarters.
Negative Factors
Sharp TTM revenue decline
A 34.2% TTM revenue decline that extends multi-year negative growth materially weakens operating leverage and the company's growth trajectory. Sustained top-line contraction limits margin recovery, reduces scale benefits, and requires structural improvements in sales execution or new offerings to restore durable growth.
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Positive Factors
Negative Factors
Material federal backlog provides multi-quarter revenue visibility
A ~$2.8B federal backlog covering ~2.4x trailing revenues offers durable, multi-quarter revenue visibility that de-risks near-term top-line volatility. This backlog supports predictable cash flow ramps for federal programs and underpins planning and resource allocation over several quarters.
Read all positive factors
Everforth (EFOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.17B
Dividend YieldN/A
Average Volume (3M)1.00M
Price to Earnings (P/E)14.7
Beta (1Y)0.90
Revenue Growth-0.95%
EPS Growth-38.61%
CountryUS
Employees22,400
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.94
Shares Outstanding41,000,000
10 Day Avg. Volume884,954
30 Day Avg. Volume1,003,425
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.16
Price to Sales (P/S)0.53
P/FCF Ratio7.26
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$26.80Price Target Upside30.10% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)3.64
Revenue Forecast (FY)$3.94B
Everforth Business Overview & Revenue Model
Company Description
Everforth, Inc. delivers a comprehensive array of information technology services and solutions, structured into two core operational divisions: Commercial and Federal Government. The Commercial division focuses on offering expert consulting, inno...
How the Company Makes Money
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Everforth Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call reflects a mixed but steady position: top-line revenue was stable and several strategic positives were highlighted (book-to-bill >1 in commercial, meaningful federal backlog, strategic acquisition of Quinox, key partner recognitions, and targeted leadership additions). However, these positives were offset in the near term by margin pressure (adjusted EBITDA margin miss and gross margin compression), one-time integration and tax impacts, softer free cash flow due to higher DSO, and leverage above target. Management provided constructive Q2 guidance and articulated initiatives to improve margins and integrate acquisitions, but near-term execution and timing of higher‑margin work remain watch items.Positive Updates
Stable Top-Line — Q1 Revenues In Line with Guidance
Total revenues of $968.3 million for Q1 2026, essentially flat year-over-year and within guidance, reflecting resilience in a cautious spending environment.
Negative Updates
Adjusted EBITDA Margin Miss
Adjusted EBITDA of $83.6 million and adjusted EBITDA margin of 8.6% for Q1 2026 was below company expectations and below prior guidance, driven primarily by gross margin mix headwinds.
Read all updates
Q1-2026 Updates
Positive
Negative
Stable Top-Line — Q1 Revenues In Line with Guidance
Total revenues of $968.3 million for Q1 2026, essentially flat year-over-year and within guidance, reflecting resilience in a cautious spending environment.
Read all positive updates
Company Guidance
For Q2 2026 the company guided to revenues of $970 million to $1.0 billion, net income of $8.0 million to $13.7 million, adjusted EBITDA of $85 million to $95 million (implying adjusted EBITDA margin of 8.8% to 9.5%), and indicated the quarter includes $8 million to $10 million of strategic planning/integration expenses tied to the Next Wave program (which management expects to decline over subsequent quarters); guidance assumes no further market deterioration. Context and related metrics: Q1 adjusted EBITDA was $83.6 million (8.6% margin) and included $12.8 million of integration/strategic expenses, free cash flow conversion is expected to be roughly 60% of adjusted EBITDA on a full‑year basis, cash was $143.6 million at quarter end with ~$160 million available on the $500 million revolver, net leverage was 3.1x (target ~2.5x), the Quinox acquisition is expected to contribute about $100 million of revenue for the year with low‑to‑mid‑teens growth and low‑20s EBITDA margin, and ~$934 million remains available under the $1 billion share repurchase authorization.Everforth Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.97B | 3.98B | 4.10B | 4.45B | 4.58B | 4.01B |
| Gross Profit | 1.13B | 1.15B | 1.18B | 1.28B | 1.37B | 1.14B |
| EBITDA | 311.30M | 343.80M | 400.70M | 464.40M | 500.90M | 440.50M |
| Net Income | 83.00M | 113.50M | 175.20M | 219.30M | 268.10M | 409.90M |
Balance Sheet | ||||||
| Total Assets | 4.02B | 3.68B | 3.43B | 3.54B | 3.59B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 52.20M | 161.20M | 205.20M | 175.90M | 70.30M | 529.60M |
| Total Debt | 1.44B | 1.17B | 1.10B | 1.11B | 1.12B | 1.10B |
| Total Liabilities | 2.22B | 1.87B | 1.65B | 1.65B | 1.68B | 1.64B |
| Stockholders Equity | 1.81B | 1.80B | 1.78B | 1.89B | 1.90B | 1.87B |
Cash Flow | ||||||
| Free Cash Flow | 221.10M | 288.10M | 364.70M | 417.00M | 270.30M | 159.00M |
| Operating Cash Flow | 256.90M | 327.90M | 400.00M | 456.90M | 307.80M | 193.70M |
| Investing Cash Flow | -317.40M | -343.90M | -35.30M | -40.50M | -510.00M | 246.50M |
| Financing Cash Flow | 74.60M | -29.40M | -333.20M | -310.90M | -256.50M | -184.40M |
Everforth Technical Analysis
Positive
20.60
Price Trends
20.82
Positive
25.24
Positive
35.64
Negative
Market Momentum
3.13
Negative
81.96
Negative
98.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFOR, the sentiment is Positive. The current price of 20.6 is below the 20-day moving average (MA) of 22.64, below the 50-day MA of 20.82, and below the 200-day MA of 35.64, indicating a neutral trend. The MACD of 3.13 indicates Negative momentum. The RSI at 81.96 is Negative, neither overbought nor oversold. The STOCH value of 98.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EFOR.
Everforth Risk Analysis
Everforth disclosed 30 risk factors in its most recent earnings report. Everforth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Everforth Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $555.88M | 5.19 | 24.65% | ― | 15.95% | 88.76% | |
71 Outperform | $1.62B | 2.58 | 59.71% | 1.77% | 3.32% | 665.04% | |
67 Neutral | $1.58B | 14.72 | 5.14% | ― | -0.20% | -28.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $1.17B | 14.66 | 4.59% | ― | -0.95% | -38.61% | |
54 Neutral | $1.82B | 14.79 | 3.97% | ― | -2.42% | -65.01% | |
45 Neutral | $1.43B | -2.74 | -63.91% | ― | -35.67% | -49.96% |
* Technology Sector Average
EFOR
Everforth
31.57
-18.63
-37.11%
FORTY
Formula Systems
104.00
3.67
3.66%
GLOB
Globant SA
37.25
-40.69
-52.21%
DXC
DXC Technology
11.09
-2.16
-16.30%
AI
C3ai
9.86
-12.80
-56.49%
TASK
TaskUs
7.82
-3.27
-29.50%
Everforth Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Everforth Upsizes Revolving Credit Facility, Boosts Liquidity
Positive
Jul 9, 2026
On July 7, 2026, Everforth, Inc. amended its credit agreement to refinance and upsize its revolving credit facility from $500 million to $600 million, extend the potential maturity to 2031 and adjust pricing to a SOFR-based range tied to leverage,...
Executive/Board ChangesShareholder Meetings
Everforth Shareholders Back Directors, Pay and Auditor Choices
Positive
Jun 16, 2026
At Everforth’s 2026 Annual Meeting of Stockholders, held with 38,990,956 shares represented by proxy as of the April 16, 2026 record date, shareholders elected Mark A. Frantz, Carol J. Lindstrom and Arshad Matin to the Board to serve until t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.