Evertec (EVTC) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: 0.68%
• Average Volume (3M): 356.75K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.64
• 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: 63,983,840
• 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: 1.61
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 8.82
• 1Y Price Target: $32.75
• Price Target Upside: 12.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $32.00 ▲(10.19% Upside)

Evertec's overall stock score reflects a solid financial performance with strong revenue growth and profitability, despite high leverage and declining free cash flow growth. The technical analysis indicates a bearish trend, but the stock's valuation suggests potential undervaluation. Positive earnings call guidance and strategic corporate events, such as the expansion in Brazil and enhanced financial flexibility, contribute positively to the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Strategic Acquisitions

Acquisitions like Tecnobank enhance Evertec's market position and expand its technological capabilities, fostering sustainable growth.

Financial Flexibility

Increased financial flexibility allows Evertec to invest in growth opportunities and manage debt more effectively, supporting long-term stability.

Negative Factors

High Leverage

High leverage can pose risks in volatile markets, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

Declining Free Cash Flow

A decline in free cash flow growth may impact Evertec's ability to fund operations and investments, posing a risk to long-term growth.

Margin Pressure

Margin pressure can affect profitability, reducing the company's ability to reinvest in growth and maintain competitive pricing.

Evertec Business Overview & Revenue Model

Company Description

Evertec, Inc. (EVTC) is a leading technology and payment processing company based in Puerto Rico, specializing in payment processing solutions, technology services, and the management of electronic payment networks. The company operates in various sectors, including financial services and information technology, providing services such as payment processing for merchants, card issuer services, and technology solutions for banking and financial institutions. Its core products include transaction processing services, software solutions for financial institutions, and the operation of automated teller machines (ATMs).

How the Company Makes Money

Evertec generates revenue primarily through transaction processing fees charged to merchants for payment transactions processed through its platform. Additionally, the company earns income from service fees related to its software solutions and technology services provided to banks and financial institutions. Key revenue streams include merchant services, card processing services, and ATM services. Significant partnerships with financial institutions and businesses enhance its reach and service offerings, while the company's focus on expanding its service portfolio and geographic presence contributes to its earnings growth.

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: Positive
• Last Price: 29.04
• 50DMA: Positive
• 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 Positive. The current price of 29.04 is below the 20-day moving average (MA) of 29.33, below the 50-day MA of 29.33, and below the 200-day MA of 33.63, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 57.73 is Neutral, 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
ATEN	79 Outperform	$1.30B	26.38	23.88%	1.32%	10.27%	3.52%
EVTC	71 Outperform	$1.88B	13.02	25.05%	0.68%	9.67%	75.67%
IIIV	71 Outperform	$856.40M	158.91	0.58%	―	-23.69%	-95.61%
PAYO	69 Neutral	$2.06B	29.31	9.79%	―	10.58%	-45.52%
EVCM	65 Neutral	$2.17B	-3,064.10	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 Secures Additional $150 Million Loan Facility

On November 25, 2025, Evertec, Inc. and its subsidiary, Evertec Group, LLC, entered into a fifth amendment to their existing credit agreement, securing an additional $150 million term loan B facility. This amendment allows Evertec to repay outstanding indebtedness under the revolving facility, maintaining the same interest margins as the previous agreement, which could enhance the company’s financial flexibility and operational capacity.

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.

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.