Evertec (EVTC) AI Stock Analysis

• Market Cap: $2.38B
• Dividend Yield: 0.53%
• Average Volume (3M): 378.11K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.83
• Revenue Growth: 21.70%
• EPS Growth: 43.10%
• Country: US
• Employees: 5,000
• Sector: Technology
• Sector Strength: 46
• Industry: Software
• EPS (TTM): 1.73
• Shares Outstanding: 63,614,080
• 10 Day Avg. Volume: 311,726
• 30 Day Avg. Volume: 378,111
• PEG Ratio: 0.50
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.80
• Price to Cash Flow (P/CF): 7.90
• P/FCF Ratio: 7.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.67
• Price Target Upside: -4.50% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Evertec's overall stock score reflects its strong financial performance and positive earnings call sentiment. The company shows robust growth and effective cost management, although its high leverage and valuation metrics suggest moderate financial risk. Technical indicators show positive momentum but caution is advised due to overbought conditions.

Positive Factors

Diversification Benefits

Evertec's revenue diversification into the faster-growing LatAm market through Sinqia lowers concentration risk and makes stock performance less tied to the Puerto Rico economy.

Earnings Performance

Evertec reported solid results with revenue and adjusted EBITDA ahead of estimates.

Growth Prospects

Management has expressed confidence in low-double-digit growth for the LatAm segment due to the Sinqia acquisition.

Negative Factors

Contract Renegotiation Impact

Management expressed confidence in the ability to mitigate the upcoming revenue headwind related to the renegotiated contract with Popular.

Margin Compression

The downgrade of EVTC was anchored on prospective margin compression primarily from the downside leverage from the LatAm expansion and the BPOP renewal.

Revenue Headwinds

These pressures are weighing - e.g., $18 mln on BPOP alone into 2026.

Evertec Business Overview & Revenue Model

Company Description

EVERTEC, Inc. engages in transaction processing business in Latin America and the Caribbean. The company operates through Payment Services - Puerto Rico & Caribbean; Payment Services - Latin America; Merchant Acquiring; Business Solutions, and Corporate and Other segments. It provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards. The company also offers payment processing services that enable financial institutions and other issuers to manage, support, and facilitate the processing for credit, debit, prepaid, automated teller machines, and EBT card programs; credit and debit card processing, authorization and settlement, and fraud monitoring and control services to debit or credit issuers; and EBT services. In addition, it provides business process management solutions comprising core bank processing, network hosting and management, IT consulting, business process outsourcing, item and cash processing, and fulfillment solutions to financial institutions, and corporate and government customers. Further, the company owns and operates the ATH network, an automated teller machine and personal identification number debit networks. It manages a system of electronic payment networks that process approximately three billion transactions. The company sells and distributes its services primarily through direct sales force. It serves financial institutions, merchants, corporations, and government agencies. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.

How the Company Makes Money

Evertec makes money primarily through transaction fees and service agreements associated with its payment processing and merchant acquiring services. In the Merchant Acquiring segment, Evertec earns revenue by charging transaction fees to merchants for processing credit and debit card payments. The Payment Processing segment generates income by providing financial institutions with processing services for ATM, POS, and electronic transactions. Additionally, the Business Solutions segment contributes to revenue through software licensing fees and IT service contracts for a variety of business applications. Strategic partnerships with banks and financial institutions, as well as expanding its service offerings, play a significant role in driving Evertec's earnings.

Evertec Financial Statement Overview

Summary

Evertec's financial performance is strong, with robust revenue and profit growth, solid operational efficiency, and effective cash management. The income statement shows impressive growth and profitability metrics, while the balance sheet indicates stability despite high leverage, and the cash flow statement reflects strong cash generation with some variability.

Income Statement

Evertec has demonstrated robust revenue growth, with a significant increase in total revenue from previous years. The gross profit margin is strong, reflecting effective cost management and profitability in its operations. The net profit margin is impressive, indicating healthy net earnings relative to revenue. EBIT and EBITDA margins are also strong, showcasing consistent operational efficiency. Overall, Evertec's income statement reflects a strong financial performance with positive growth trends.

Balance Sheet

The balance sheet shows a solid equity position with a healthy equity ratio, indicating that a substantial portion of assets are financed by equity. Although the debt-to-equity ratio is relatively high, suggesting reliance on debt financing, the company's return on equity is commendable, reflecting effective use of equity to generate profits. Overall, the balance sheet is stable, but the high leverage presents moderate financial risk.

Cash Flow

Evertec's cash flow statement reflects a positive free cash flow, which is a good indicator of the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio is robust, suggesting strong cash generation relative to earnings. However, the free cash flow growth rate shows some fluctuations, indicating potential variability in cash generation. Overall, the cash flow position is strong, with some room for improvement in consistency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
845.49M	694.71M	618.41M	589.80M	510.59M
	Gross Profit
439.07M	357.95M	325.79M	339.63M	283.72M
	EBIT
165.67M	136.16M	157.40M	196.51M	141.39M
	EBITDA
322.20M	211.29M	374.35M	278.38M	221.26M
	Net Income Common Stockholders
112.62M	79.72M	239.01M	161.13M	104.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
273.64M	295.60M	197.23M	266.35M	202.65M
	Total Assets
1.86B	2.06B	1.13B	1.14B	1.07B
	Total Debt
966.58M	986.41M	446.97M	486.57M	523.52M
	Net Debt
692.94M	690.81M	249.74M	220.22M	320.87M
	Total Liabilities
1.25B	1.42B	657.00M	674.49M	730.15M
	Stockholders Equity
603.15M	594.29M	471.51M	466.21M	337.74M
Cash Flow		Free Cash Flow
171.63M	139.31M	140.83M	161.51M	150.45M
	Operating Cash Flow
260.06M	224.29M	223.36M	228.42M	199.09M
	Investing Cash Flow
-118.28M	-507.93M	-133.32M	-83.82M	-48.63M
	Financing Cash Flow
-152.56M	403.27M	-156.77M	-81.28M	-62.62M

Evertec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVTC, the sentiment is Positive. The current price of 37.35 is above the 20-day moving average (MA) of 37.03, above the 50-day MA of 34.61, and above the 200-day MA of 33.90, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 84.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVTC.

Evertec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MA	79 Outperform	$508.34B	39.54	191.95%	0.50%	12.07%	17.27%
EVTC	78 Outperform	$2.38B	21.67	21.11%	0.53%	21.70%	43.10%
XYZ	73 Outperform	$35.30B	12.52	14.50%	―	10.06%	38060.98%
GPN	73 Outperform	$24.57B	16.05	6.94%	1.00%	4.68%	63.39%
WEX	66 Neutral	$6.03B	20.70	18.71%	―	3.15%	21.82%
Sector *	58 Neutral	$21.67B	10.60	-18.43%	2.42%	4.66%	-24.45%
FIS	51 Neutral	$39.50B	52.31	4.65%	1.93%	-17.38%	―

Evertec Corporate Events

Evertec Declares Quarterly Cash Dividend for 2025

On February 20, 2025, EVERTEC, Inc.’s Board of Directors declared a regular quarterly cash dividend of $0.05 per share, to be paid on March 21, 2025, to stockholders of record as of March 3, 2025. The Board anticipates continuing this dividend in future quarters, although future declarations will depend on business needs or market conditions, reflecting a potential impact on shareholder returns and financial strategy.