Evertec (EVTC) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: 0.54%
• Average Volume (3M): 277.30K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.71
• Revenue Growth: 17.39%
• EPS Growth: 100.46%
• Country: US
• Employees: 4,800
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): 0.87
• Shares Outstanding: 64,028,080
• 10 Day Avg. Volume: 354,026
• 30 Day Avg. Volume: 277,298
• PEG Ratio: 0.17
• Price to Book (P/B): 4.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.80
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 2.12
• 1Y Price Target: $40.00
• Price Target Upside: 6.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 81 Outperform
• Price Target: $42.00 ▲(11.97%Upside)

Evertec scores an 80.6, reflecting a solid financial foundation with strong revenue and profit growth. The stock shows positive technical momentum, though caution is advised due to potential overbought conditions. Valuation is fair, considering the growth prospects. The positive earnings call further reinforces confidence in the company's future growth, despite some external challenges.

Positive Factors

Financial Performance

Evertec reported solid results with revenue and adjusted EBITDA ahead of estimates, highlighting strong financial performance.

Market Expansion

The LatAm business is expected to grow at a double-digit organic rate, driven by larger economies and populations in these markets.

Mergers and Acquisitions

Evertec cleared restrictions related to the Bank Holding Company Act, enabling a more aggressive approach in mergers and acquisitions to diversify into faster-growing markets.

Negative Factors

Economic Pressures

These pressures are weighing on the company, with $18 million impact on BPOP alone into 2026.

Margin Compression

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

Revenue Headwinds

Management is confident in cost initiatives to mitigate upcoming revenue headwinds related to the renegotiated contract with Popular.

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 generates revenue primarily through its three main business segments: Merchant Acquiring, Payment Processing, and Business Solutions. In the Merchant Acquiring segment, Evertec earns fees by facilitating electronic transactions between merchants and consumers, often taking a small percentage of each transaction processed. The Payment Processing segment involves providing financial institutions with the infrastructure and services needed to process electronic payments, for which Evertec charges service fees. In the Business Solutions segment, Evertec offers a variety of technology and outsourcing services that include network and system management, and business process automation, earning revenue through service contracts. Additionally, partnerships with banks and financial institutions enhance its service offerings, contributing significantly to its earnings.

Evertec Financial Statement Overview

Summary

Evertec's financial performance is strong, with robust revenue and profit growth, efficient cost management, and solid cash flow generation. Despite a leveraged balance sheet, the company maintains operational efficiency, with potential risks mitigated by profitability and cash flow trends.

Income Statement

Evertec's income statement reveals robust revenue growth with a 4.4% increase over the last year as per TTM data. Gross profit margin stands at a solid 48.0%, indicating healthy profitability. The net profit margin improved to 14.9%, demonstrating effective cost management. EBIT and EBITDA margins of 21.0% and 34.0% respectively reflect strong operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.76, which indicates a leveraged position. However, return on equity has improved to 23.9%, showing effective use of equity to generate profits. The equity ratio is 28.3%, suggesting a reasonable equity cushion against liabilities.

Cash Flow

Evertec demonstrates strong cash flow management with a free cash flow to net income ratio of 1.51, indicating significant cash generation capability. Operating cash flow to net income ratio is 2.02, further highlighting efficient cash operations. Free cash flow growth rate of 13.7% underlines a positive cash flow trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	868.96M	845.49M	694.71M	618.41M	589.80M	510.59M
Gross Profit	417.43M	439.07M	357.95M	325.79M	339.63M	283.72M
EBITDA	295.48M	337.37M	211.29M	374.35M	278.38M	221.26M
Net Income	129.34M	112.62M	79.72M	239.01M	161.13M	104.44M
Balance Sheet
Total Assets	1.92B	1.86B	2.06B	1.13B	1.14B	1.07B
Cash, Cash Equivalents and Short-Term Investments	265.86M	273.64M	295.60M	197.23M	266.35M	202.65M
Total Debt	955.37M	966.58M	986.41M	446.97M	486.57M	523.52M
Total Liabilities	1.33B	1.34B	1.42B	657.00M	674.49M	730.15M
Stockholders Equity	542.10M	472.52M	594.29M	471.51M	466.21M	337.74M
Cash Flow
Free Cash Flow	195.18M	171.63M	139.31M	140.83M	161.51M	150.45M
Operating Cash Flow	261.73M	260.06M	224.29M	223.36M	228.42M	199.09M
Investing Cash Flow	-118.61M	-118.28M	-507.93M	-133.32M	-83.82M	-48.63M
Financing Cash Flow	-163.75M	-152.56M	403.27M	-156.77M	-81.28M	-62.62M

Evertec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 37.51 is above the 20-day moving average (MA) of 36.49, above the 50-day MA of 35.93, and above the 200-day MA of 34.64, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 72.65 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
EVTC	81 Outperform	$2.39B	18.70	24.65%	0.54%	17.39%	100.46%
DLO	81 Outperform	$3.19B	24.71	26.10%	―	―	―
PAYO	75 Outperform	$2.52B	23.34	15.97%	―	14.86%	-0.94%
PAGS	75 Outperform	$3.10B	7.66	14.36%	1.49%	2.38%	9.88%
MQ	68 Neutral	$2.74B	58.42	5.01%	―	-8.44%	―
STNE	64 Neutral	$4.34B	8.73	-8.85%	―	-14.03%	-167.03%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%

Evertec Corporate Events

Evertec Stockholders Approve Key Proposals at Annual Meeting

On May 22, 2025, Evertec, Inc. held its Annual Meeting of Stockholders, where stockholders approved three proposals. These included the election of directors, an advisory vote on executive compensation, and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The meeting saw participation from holders of 60,531,533 shares, constituting a quorum.

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 Declares Quarterly Dividend for Shareholders

On May 2, 2025, EVERTEC, Inc.’s Board of Directors declared a regular quarterly cash dividend of $0.05 per share, to be paid on June 6, 2025, to stockholders of record as of May 13, 2025. The Board anticipates continuing this dividend in future quarters, although future declarations are subject to approval and may change based on business needs or market conditions.