Evertec (EVTC) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: 0.7%
• Average Volume (3M): 356.75K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.69
• Revenue Growth: 9.67%
• EPS Growth: 75.67%
• Country: US
• Employees: 4,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.92
• Shares Outstanding: 63,982,006
• 10 Day Avg. Volume: 420,801
• 30 Day Avg. Volume: 356,749
• PEG Ratio: 0.47
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 12.93
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 8.82
• 1Y Price Target: $32.75
• Price Target Upside: 12.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $31.00 ▲(6.24% Upside)

Evertec's overall stock score is driven by strong financial performance and positive earnings call guidance, highlighting growth in revenue and strategic acquisitions. However, the technical analysis indicates bearish momentum, which is a concern. The stock's valuation suggests it may be undervalued, providing potential upside. The cybersecurity incident and margin pressure are risks to monitor.

Positive Factors

Revenue Growth

Evertec's increased revenue guidance for FY25 indicates strong business momentum and effective strategic execution, enhancing long-term growth prospects.

Strategic Acquisitions

The Tecnobank acquisition enhances Evertec's capabilities and market presence in Brazil, supporting long-term growth and competitive positioning in Latin America.

Management Changes

The appointment of experienced leaders to key roles can drive strategic initiatives and improve operational efficiency, positively impacting long-term performance.

Negative Factors

Cybersecurity Risks

The cybersecurity incident in Brazil highlights vulnerabilities that could lead to financial and reputational damage, affecting long-term trust and operational stability.

Margin Pressure

Margin pressure indicates challenges in maintaining cost efficiency, which could impact profitability and cash flow if not addressed over the long term.

High Leverage

High leverage can limit financial flexibility and increase risk during economic downturns, potentially affecting long-term financial health and investment capacity.

Evertec Business Overview & Revenue Model

Company Description

Evertec, Inc. (EVTC) is a leading payment processing and technology solutions company operating primarily in Latin America and the Caribbean. The company provides a wide range of services, including transaction processing, payment processing, and technology solutions for financial institutions, merchants, and government entities. Evertec’s core products encompass electronic payments, card processing, and a suite of value-added services designed to enhance the efficiency of financial operations.

How the Company Makes Money

Evertec generates revenue through multiple key streams, including transaction processing fees, service fees from payment solutions, and technology services for its clients. The company earns a significant portion of its income from processing electronic payments and transactions for merchants and financial institutions, charging fees for each transaction processed. Additionally, Evertec offers value-added services such as fraud detection and analytics, which provide further revenue opportunities. Strategic partnerships with banks and financial organizations enhance its market presence and capabilities, contributing to recurring revenue through long-term contracts and service agreements. Overall, Evertec's diversified service offerings and strong client relationships are critical to its financial performance.

Evertec Financial Statement Overview

Summary

Evertec demonstrates strong revenue growth and profitability, supported by efficient cost management and robust margins. However, the high leverage on the balance sheet poses potential risks, and the recent decline in free cash flow growth warrants attention. Overall, the company maintains a solid financial position with opportunities for improvement in cash flow management and debt reduction.

Income Statement

Evertec's income statement shows a solid performance with a consistent revenue growth trajectory, evidenced by a 2.03% TTM revenue growth rate. The gross profit margin remains strong at 51.37%, indicating efficient cost management. The net profit margin of 15.55% and EBIT margin of 25.22% reflect healthy profitability, although slightly lower than historical highs. The company has shown resilience with steady EBITDA margins, maintaining a robust 39.03% in the TTM period.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.55, indicating significant leverage, which could pose risks in volatile market conditions. However, the return on equity is strong at 25.90%, showcasing effective use of equity to generate profits. The equity ratio stands at a moderate level, suggesting a balanced asset structure, but the high leverage remains a concern.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 16.63% in the TTM period, which is a concern. However, the operating cash flow to net income ratio of 0.83 indicates a reasonable conversion of net income into cash. The free cash flow to net income ratio of 0.76 suggests that the company is generating adequate cash relative to its net income, despite the recent decline in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	903.38M	845.49M	694.71M	618.41M	589.80M	510.59M
Gross Profit	449.98M	439.07M	357.95M	325.79M	339.63M	283.72M
EBITDA	341.97M	322.20M	211.29M	374.35M	279.58M	221.26M
Net Income	146.09M	112.62M	79.72M	239.01M	161.13M	104.44M
Balance Sheet
Total Assets	2.15B	1.86B	2.06B	1.13B	1.14B	1.07B
Cash, Cash Equivalents and Short-Term Investments	499.74M	273.64M	295.60M	185.27M	266.35M	202.65M
Total Debt	1.09B	966.58M	986.41M	446.97M	486.57M	523.52M
Total Liabilities	1.44B	1.34B	1.42B	657.00M	674.49M	730.15M
Stockholders Equity	663.75M	472.52M	594.29M	471.51M	466.21M	337.74M
Cash Flow
Free Cash Flow	100.38M	171.63M	139.31M	140.83M	161.51M	150.45M
Operating Cash Flow	161.29M	260.06M	224.29M	223.36M	228.42M	199.09M
Investing Cash Flow	-95.50M	-118.28M	-507.93M	-133.32M	-83.82M	-48.63M
Financing Cash Flow	-62.60M	-152.56M	403.27M	-156.77M	-81.28M	-62.62M

Evertec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVTC, the sentiment is Negative. The current price of 29.18 is below the 20-day moving average (MA) of 29.27, below the 50-day MA of 31.55, and below the 200-day MA of 34.27, indicating a bearish trend. The MACD of -1.03 indicates Negative momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 53.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVTC.

Evertec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.23B	25.22	23.88%	1.37%	10.27%	3.52%
IIIV	71 Outperform	$971.18M	6.06	4.11%	―	-29.93%	389400.00%
EVTC	70 Outperform	$1.80B	13.19	25.05%	0.70%	9.67%	75.67%
PAYO	69 Neutral	$2.02B	29.68	9.79%	―	10.58%	-45.52%
EVCM	63 Neutral	$1.59B	―	0.04%	―	-11.61%	99.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVDX	60 Neutral	―	―	-1.17%	―	8.04%	39.57%

Evertec Corporate Events

EVERTEC Reports Strong Q3 2025 Results

EVERTEC, Inc. is a prominent full-service transaction processor and financial technology provider operating in Latin America, Puerto Rico, and the Caribbean, offering a wide array of merchant acquiring, payment services, and business process management solutions. The company is known for managing the ATH® network, a leading PIN debit network in the region, and providing critical technology solutions to financial institutions, merchants, and government agencies.

Evertec Declares Quarterly Cash Dividend

On October 23, 2025, EVERTEC’s Board of Directors declared a regular quarterly cash dividend of $0.05 per share, to be paid on December 5, 2025, to stockholders of record as of November 3, 2025. The Board plans to continue this dividend in future quarters, though future declarations are subject to approval and may change based on business needs or market conditions.

The most recent analyst rating on (EVTC) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Evertec stock, see the EVTC Stock Forecast page.

Evertec Expands in Brazil with Tecnobank Acquisition

On September 29, 2025, Evertec, Inc. announced key executive appointments effective November 1, 2025. Joaquín A. Castrillo was promoted to Senior Executive Vice President and Chief Operating Officer, Karla M. Cruz-Jusino was appointed as Executive Vice President and Chief Financial Officer and Treasurer, and Diego Viglianco was named Executive Vice President and Chief Information Officer. These appointments reflect the company’s strategic focus on strengthening its leadership team with experienced professionals, potentially enhancing its operational efficiency and market competitiveness. Additionally, on October 1, 2025, Evertec Brasil Informática S.A., a subsidiary of Evertec, completed the acquisition of 75% of Tecnobank Tecnologia Bancária S.A. for approximately USD 148 million, marking a significant expansion in Brazil’s fintech sector.

The most recent analyst rating on (EVTC) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Evertec stock, see the EVTC Stock Forecast page.

Evertec’s Sinqia Faces Security Breach in Pix System

On August 29, 2025, Sinqia S.A., a Brazilian subsidiary of Evertec, identified unauthorized activity in its Pix real-time payment system, leading to a halt in transaction processing. The incident, involving approximately R$710 million in unauthorized transactions, was linked to exploited credentials of legitimate IT vendors. While some funds have been recovered, the Brazilian Central Bank has yet to approve the resumption of operations. The incident’s financial and reputational impacts are still uncertain, and the company is working to address potential liabilities and insurance coverage.

The most recent analyst rating on (EVTC) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Evertec stock, see the EVTC Stock Forecast page.

Evertec Acquires 75% Stake in Tecnobank Brazil

On August 21, 2025, Evertec, Inc. announced a definitive agreement to acquire a 75% controlling stake in Tecnobank Tecnologia Bancária S.A., a fintech company in Brazil’s digital vehicle financing contract registration sector, through its subsidiary Evertec Brasil Informática S.A. The transaction, valued at approximately USD $144 million, aims to expand EVERTEC’s product offerings in Brazil and is expected to close in the fourth quarter of 2025, pending regulatory approval from Brazil’s Administrative Council for Economic Defense (CADE).

The most recent analyst rating on (EVTC) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Evertec stock, see the EVTC Stock Forecast page.