Evertec (EVTC) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: 0.68%
• Average Volume (3M): 356.75K
• Price to Earnings (P/E): 12.6
• 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: 1.33
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 7.00
• 1Y Price Target: $32.75
• Price Target Upside: 16.34% 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: $33.00 ▲(17.23% Upside)

The score is driven primarily by solid fundamentals (profitable growth and positive free cash flow) and a constructive earnings outlook with raised FY2025 guidance. These positives are tempered by elevated leverage and only middling technical momentum, while valuation is supportive but not exceptionally cheap and yield is modest.

Positive Factors

Multi-year Revenue Growth & Healthy Margins

Sustained revenue expansion and mid-teens net margins reflect durable demand for Evertec's payment processing and software services. Recurring transaction fees plus high gross margins support predictable cash generation and scalable profitability if organic growth and cross-sell in existing markets continue.

Consistent Free Cash Flow Generation

Strong TTM free cash flow and high conversion versus net income signal robust internal funding capacity. That cash generation underpins reinvestment in product development, bolt-on acquisitions, and debt service, reducing reliance on external financing over the medium term if conversion remains stable.

Scale and Product Depth via Brazil Acquisitions

Targeted M&A in Brazil deepens Evertec's footing in a large, high-growth payments market and broadens offerings into funds, insurance, and risk tech. Building scale and product breadth in-country creates network effects, stickier client relationships, and long-term revenue diversification across verticals.

Negative Factors

Elevated Financial Leverage

Material leverage increases sensitivity to higher interest rates, refinancing risk, and earnings shocks. While leverage has improved from prior peaks, the sizable debt burden limits financial flexibility for organic investment or larger acquisitions and raises solvency risk if revenue or margins weaken.

Operating Cash Conversion Risk

Operating cash flow trailing accrual net income indicates working-capital or timing pressures that could reduce available cash in stress periods. If OCF conversion remains depressed, it constrains organic reinvestment, debt reduction, and makes the company more reliant on external funding for growth or payouts.

Cybersecurity Incident Risk

A payments-related cybersecurity event in Brazil highlights operational and legal exposure inherent to processing platforms. Such breaches can generate remediation costs, client claims, and reputational damage that undermine client trust and slow new business in core markets if controls aren't strengthened.

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 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

Income statement strength (78) reflects solid multi-year revenue growth, healthy profitability, and improving net income. Cash flow is positive (70) with decent free-cash-flow conversion, but operating cash flow trailing net income is a watch-out. The main drag is the balance sheet (62): leverage remains elevated (debt-to-equity ~1.64), increasing sensitivity to slower earnings or refinancing conditions.

Income Statement

EVTC shows solid top-line momentum, with revenue rising from $511M (2020) to $845M (2024) and up to $903M in TTM (Trailing-Twelve-Months). Profitability is generally healthy with a TTM gross margin ~50% and net margin ~16%, and net income has improved versus 2023/2024. The main weakness is margin volatility over time (notably the unusually high 2022 margins versus more normalized levels afterward) and a modest step-down in gross margin versus 2024.

Balance Sheet

The balance sheet is serviceable but more leveraged than ideal. Total debt is $1.09B in TTM (Trailing-Twelve-Months) versus $664M of equity, implying elevated leverage (debt-to-equity ~1.64), though improved from 2024 (~2.05). Returns on equity are strong (TTM ~26%), but the combination of sizable debt and only moderate equity cushion increases sensitivity to higher rates, refinancing needs, or an earnings slowdown.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow of $232M and free cash flow of $146M, and strong TTM free-cash-flow growth. Free cash flow runs at ~76% of net income in TTM (Trailing-Twelve-Months), which is a reasonable conversion rate. The key watch-out is that operating cash flow is below net income in TTM (Trailing-Twelve-Months) (about 0.63x), suggesting working-capital or timing effects that could pressure near-term cash conversion if sustained.

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	421.55M	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	145.64M	171.63M	126.22M	137.37M	161.51M	150.45M
Operating Cash Flow	232.16M	260.06M	211.19M	219.90M	228.42M	199.09M
Investing Cash Flow	-122.42M	-118.28M	-507.93M	-133.32M	-83.82M	-48.63M
Financing Cash Flow	66.84M	-152.56M	416.37M	-153.31M	-81.28M	-62.62M

Evertec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 28.15 is below the 20-day moving average (MA) of 29.56, below the 50-day MA of 29.43, and below the 200-day MA of 32.77, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 33.75 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
EVTC	70 Outperform	$1.80B	12.63	25.05%	0.68%	9.67%	75.67%
ATEN	69 Neutral	$1.26B	25.31	23.88%	1.33%	10.27%	3.52%
PAYO	67 Neutral	$2.15B	31.84	9.79%	―	10.58%	-45.52%
EVCM	65 Neutral	$1.97B	-2,815.38	0.04%	―	-11.61%	99.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IIIV	51 Neutral	$642.14M	125.20	0.58%	―	-23.69%	-95.61%

Evertec Corporate Events

Evertec to Acquire Dimensa, Expanding Brazil Fintech Presence

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 approximately R$950 million (about $181 million), to be funded with existing liquidity. The deal, subject to customary conditions including Brazilian antitrust approval by CADE and expected to close in the second quarter of 2026, is set to expand Evertec’s Brazilian customer base to more than 15,000 and significantly deepen its presence in funds, banking, risk and insurance technology. The transaction will also broaden Evertec’s product portfolio into the insurance vertical, enhance its funds and risk management offerings, and leverage Dimensa’s technology and talent to accelerate product innovation, marking Evertec’s fourth acquisition in Brazil following PaySmart and Sinqia in 2023 and Tecnobank in 2025 and reinforcing its strategy to build scale and market leadership in the country’s financial technology sector.

The most recent analyst rating on (EVTC) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Evertec stock, see the EVTC Stock Forecast page.

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.

The most recent analyst rating on (EVTC) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Evertec stock, see the EVTC Stock Forecast page.