Evertec (EVTC)
NYSE:EVTC
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Evertec
(NYSE:EVTC)
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Rating:64Neutral
Price Target:
$30.00
▲(2.67% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by solid underlying fundamentals (growth and profitability) tempered by leverage and uneven cash conversion. Earnings call guidance and strategy (LATAM-driven growth, stable margins, M&A pipeline) add support, while technicals are the main drag given negative momentum and trading below key longer-term moving averages. Valuation is moderately supportive due to the relatively low P/E.
Positive Factors
LatAm growth and market expansion
Durable, high-single- to mid-double-digit LATAM growth reflects scalable payment volumes, successful client conversions (e.g., Banco de Chile, Grupo Aval) and localized M&A. Expanding Brazilian footprint via acquisitions deepens addressable market and supports multi-year revenue compounding beyond cyclical headwinds.
Negative Factors
Elevated leverage
Leverage around 2x EBITDA constrains financial flexibility for larger inorganic moves and raises sensitivity to interest costs or earnings softness. While within stated targets, recent acquisitions and modest incremental debt mean balance-sheet headroom is limited versus less leveraged peers across a 2–6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
LatAm growth and market expansion
Durable, high-single- to mid-double-digit LATAM growth reflects scalable payment volumes, successful client conversions (e.g., Banco de Chile, Grupo Aval) and localized M&A. Expanding Brazilian footprint via acquisitions deepens addressable market and supports multi-year revenue compounding beyond cyclical headwinds.
Read all positive factors
Evertec (EVTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.79B
Dividend Yield0.68%
Average Volume (3M)356.75K
Price to Earnings (P/E)13.0
Beta (1Y)0.66
Revenue Growth9.67%
EPS Growth75.67%
CountryUS
Employees4,800
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.93
Shares Outstanding61,758,700
10 Day Avg. Volume420,801
30 Day Avg. Volume356,749
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)2.95
Price to Sales (P/S)1.97
P/FCF Ratio8.69
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit7.73
Enterprise Value/Ebitda7.54
Forecast
1Y Price Target
$33.67Price Target Upside15.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)3.91
Revenue Forecast (FY)$1.03B
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 Cor...
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 te...
Evertec Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call communicated a largely positive performance for 2025 with record revenue, double-digit growth in Latin America, improved adjusted EBITDA and EPS, strong operating cash flow, disciplined capital allocation and strategic M&A (Tecnobank closed; Dimensa announced). Management provided constructive 2026 guidance with continued LATAM-driven growth and stable margins. Offsetting items include margin pressure in certain segments (Business Solutions, Merchant Acquiring, Payments Puerto Rico), the impact of the 10% Banco-Popular discount, some one-time benefits in the quarter, modest incremental leverage from acquisitions, and a higher expected tax rate. On balance, the company’s growth drivers, liquidity position, and pipeline conversions outweigh the headwinds outlined.Positive Updates
Record Annual Revenue and Strong Top-Line Growth
Total 2025 revenue of approximately $932.0M, up ~10% year-over-year (11% on a constant currency basis). Fourth-quarter revenue of $244.8M, up ~13% YoY (≈11.4% constant currency). 2026 revenue outlook of $1.024B–$1.036B, representing growth of ~9.9%–11.2% YoY (8.7%–10% on a constant currency basis).
Negative Updates
Business Solutions Revenue Decline and Banco-Popular Discount Impact
Q4 Business Solutions revenue declined ~7% YoY and adjusted EBITDA decreased ~15% YoY; EBITDA margin contracted ~370 basis points to 35.3%, primarily due to the 10% Banco-Popular discount that began in October 2025. Management expects Business Solutions revenue to decline low- to mid-single digits in 2026 as the reset persists.
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Q4-2025 Updates
Positive
Negative
Record Annual Revenue and Strong Top-Line Growth
Total 2025 revenue of approximately $932.0M, up ~10% year-over-year (11% on a constant currency basis). Fourth-quarter revenue of $244.8M, up ~13% YoY (≈11.4% constant currency). 2026 revenue outlook of $1.024B–$1.036B, representing growth of ~9.9%–11.2% YoY (8.7%–10% on a constant currency basis).
Read all positive updates
Company Guidance
EVERTEC guided 2026 reported revenue of $1.024–$1.036 billion (up 9.9%–11.2% YoY, ~120 bps FX tailwind from a stronger Brazilian real; +8.7%–10% on a constant currency basis) and expected adjusted EPS to grow 6.1%–9.4% from $3.62 (or 4.7%–8% on a constant currency basis), assuming an adjusted EBITDA margin of 39.5%–40.5% and an adjusted effective tax rate of 11%–12%; capital spending is targeted at about $90 million, interest expense is expected to be roughly in line with 2025, and the outlook excludes any contribution from the pending Dimensa acquisition. Segment assumptions: Merchant Acquiring mid-single-digit growth, Payments Puerto Rico & Caribbean mid-single-digit growth (driven by ATH Móvil and POS volumes), Latin America Payments & Solutions mid-20s growth (low-20s constant currency) with second-half acceleration from pipeline conversions and implementations, and Business Solutions revenue down low- to mid-single digits (reflecting the embedded 10% Banco-Popular discount).Evertec Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 931.82M | 845.49M | 694.71M | 618.41M | 589.80M |
| Gross Profit | 340.60M | 439.07M | 357.95M | 325.79M | 339.63M |
| EBITDA | 351.61M | 322.20M | 211.29M | 374.35M | 279.58M |
| Net Income | 141.59M | 112.62M | 79.72M | 239.01M | 161.13M |
Balance Sheet | |||||
| Total Assets | 2.24B | 1.86B | 2.06B | 1.13B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 331.83M | 273.64M | 295.60M | 185.27M | 266.35M |
| Total Debt | 1.16B | 966.58M | 986.41M | 446.97M | 486.57M |
| Total Liabilities | 1.53B | 1.34B | 1.42B | 657.00M | 674.49M |
| Stockholders Equity | 621.61M | 472.52M | 594.29M | 471.51M | 466.21M |
Cash Flow | |||||
| Free Cash Flow | 211.04M | 171.63M | 126.22M | 137.37M | 161.51M |
| Operating Cash Flow | 234.38M | 260.06M | 211.19M | 219.90M | 228.42M |
| Investing Cash Flow | -243.40M | -118.28M | -507.93M | -133.32M | -83.82M |
| Financing Cash Flow | 26.24M | -152.56M | 416.37M | -153.31M | -81.28M |
Evertec Technical Analysis
Positive
29.22
Price Trends
27.89
Positive
28.61
Positive
30.92
Negative
Market Momentum
0.05
Negative
55.87
Neutral
61.98
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 29.22 is above the 20-day moving average (MA) of 28.32, above the 50-day MA of 27.89, and below the 200-day MA of 30.92, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 61.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVTC.
Evertec Risk Analysis
Evertec disclosed 39 risk factors in its most recent earnings report. Evertec 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
Evertec Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.66B | 27.73 | 9.84% | ― | 10.58% | -45.52% | |
70 Outperform | $1.79B | 30.33 | 20.61% | 1.33% | 10.27% | 3.52% | |
70 Outperform | $2.06B | 124.82 | 0.04% | ― | -11.61% | 99.07% | |
64 Neutral | $1.79B | 12.96 | 23.21% | 0.68% | 9.67% | 75.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $634.81M | 308.05 | 0.58% | ― | -23.69% | -95.61% |
* Technology Sector Average
EVTC
Evertec
29.22
-4.21
-12.59%
ATEN
A10 Networks
25.05
9.28
58.86%
IIIV
I3 Verticals
21.43
-3.48
-13.97%
PAYO
Payoneer
4.97
-1.46
-22.71%
EVCM
EverCommerce
11.91
1.80
17.80%
Evertec Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Evertec Posts Strong 2025 Results, Expands Buyback Program
Positive
Feb 26, 2026
On February 25 and 26, 2026, Evertec reported strong fourth‑quarter and full‑year 2025 results and expanded its capital return program, underscoring momentum in its Latin American and Puerto Rico payments franchise. Revenue rose 13.1% ...
Dividends
Evertec Board Declares Regular Quarterly Cash Dividend
Positive
Feb 19, 2026
On February 19, 2026, Evertec’s board of directors declared a regular quarterly cash dividend of $0.05 per share on its common stock, reinforcing a shareholder-return component in its capital allocation strategy. The dividend is scheduled to...
Business Operations and StrategyM&A Transactions
Evertec to Acquire Dimensa, Expanding Brazil Fintech Presence
Positive
Feb 2, 2026
On February 2, 2026, Evertec announced that its wholly owned subsidiary Evertec Brasil Informática S.A. had agreed to acquire 100% of Brazil-based Dimensa S.A., a B2B technology provider to financial institutions, from TOTVS S.A. for approxim...
Business Operations and StrategyPrivate Placements and Financing
Evertec Secures Additional $150 Million Loan Facility
Positive
Dec 2, 2025
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 outstan...
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.