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Evertec
(NYSE:EVTC)
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Rating:70Outperform
Price Target:
$34.00
▲(14.36% Upside)
Action:Upgraded
Date:08/05/26
The score is driven primarily by solid profitability and free-cash-flow generation, supported by a positive earnings call with raised 2026 guidance and stable EBITDA margins. Technicals are constructive with price above key moving averages and positive MACD. The main constraints are elevated leverage and weaker cash conversion versus earnings, plus moderated TTM revenue growth; valuation is reasonable but the dividend yield is small.
Positive Factors
High profitability and margins
Evertec’s multi-year trailing margins (gross ~46%, operating ~22%, EBITDA ~37%) indicate durable operating leverage in transaction processing. High margins support reinvestment in platforms, sustainability of earnings through cycles, and provide a buffer against regional volatility.
Negative Factors
Elevated leverage
Evertec’s meaningful leverage elevates sensitivity to earnings softness and rising rates. Higher debt levels constrain financial flexibility for large bolt-on M&A, increase interest expense risk, and make capital returns more dependent on consistent cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Evertec’s multi-year trailing margins (gross ~46%, operating ~22%, EBITDA ~37%) indicate durable operating leverage in transaction processing. High margins support reinvestment in platforms, sustainability of earnings through cycles, and provide a buffer against regional volatility.
Read all positive factors
Evertec (EVTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.88B
Dividend Yield0.66%
Average Volume (3M)356.75K
Price to Earnings (P/E)14.6
Beta (1Y)0.72
Revenue Growth9.44%
EPS Growth3.45%
CountryUS
Employees5,327
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)2.08
Shares Outstanding61,620,342
10 Day Avg. Volume420,801
30 Day Avg. Volume356,749
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)2.98
Price to Sales (P/S)1.99
P/FCF Ratio13.68
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$29.00Price Target Upside-2.46% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.92
Revenue Forecast (FY)$1.08B
Evertec Business Overview & Revenue Model
Company Description
EVERTEC, Inc. specializes in transaction processing services, with a strong presence throughout Latin America and the Caribbean. The company's operations are divided into distinct segments: Payment Services for Puerto Rico & the Caribbean, Payment...
How the Company Makes Money
Evertec makes money by charging fees for processing and enabling electronic transactions and for providing outsourced technology and business services. Its core revenue streams include: (1) Payment services: fees tied to merchant acquiring and pay...
Evertec Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive momentum: solid quarter with revenue and adjusted EBITDA growth, margin stability despite headwinds, meaningful reacceleration in Latin America, successful closing of the DIMENSA acquisition (neutral-to-slightly accretive in 2026 with synergies expected in 2027+), and an upward revision to full-year guidance. Notable challenges include a mid-single-digit decline in Business Solutions revenue due to the Popular discount, merchant acquiring margin pressure, mixed FX impacts across countries, and a modest rise in leverage versus last year. Overall, the company emphasized disciplined cost management, healthy liquidity, continued M&A integration priorities, and confidence in organic and inorganic growth opportunities.Positive Updates
Quarterly Revenue Growth
Total revenue of $247.9 million, up ~8% year-over-year (≈+5% on a constant currency basis), driven by organic growth across segments and full-quarter contribution from Tecnobank.
Negative Updates
Business Solutions Revenue Decline
Business Solutions revenue declined ~9% year-over-year to $59.5 million, primarily due to the ongoing 10% discount to Popular and the absence of a prior-year one-time hardware/software sale.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Total revenue of $247.9 million, up ~8% year-over-year (≈+5% on a constant currency basis), driven by organic growth across segments and full-quarter contribution from Tecnobank.
Read all positive updates
Company Guidance
EVERTEC raised its 2026 outlook to reported revenue of $1.073–$1.085 billion (15.1%–16.4% YoY), reflecting ~135 bps of foreign‑currency tailwind and implying constant‑currency revenue growth of 13.8%–15.0% (up from a prior 8.7%–10.0% range); management expects adjusted EBITDA margin of 39%–40% and adjusted EPS to grow 6.6%–9.9% from a $3.62 2025 base (5.2%–8.6% on a constant‑currency basis). The guide includes DIMENSA (assumed neutral to slightly accretive in 2026 with no synergies baked in until 2027+), an effective tax rate of ~11%–12%, capex of about $90 million, and segment assumptions of mid‑single‑digit growth for Merchant Acquiring and Payments Puerto Rico & Caribbean, high‑30s reported / mid‑30s constant‑currency growth for Latin America, and low‑ to mid‑single‑digit declines in Business Solutions.Evertec Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 950.95M | 931.82M | 845.49M | 694.71M | 618.41M | 589.80M |
| Gross Profit | 440.92M | 462.69M | 439.07M | 357.95M | 325.79M | 339.63M |
| EBITDA | 348.92M | 344.74M | 322.20M | 211.29M | 371.24M | 279.58M |
| Net Income | 132.64M | 141.59M | 112.62M | 79.72M | 239.01M | 161.13M |
Balance Sheet | ||||||
| Total Assets | 2.30B | 2.24B | 1.86B | 2.06B | 1.13B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 290.89M | 305.99M | 273.64M | 295.60M | 185.27M | 266.35M |
| Total Debt | 1.13B | 1.13B | 966.58M | 986.41M | 446.97M | 486.57M |
| Total Liabilities | 1.53B | 1.53B | 1.34B | 1.42B | 657.00M | 674.49M |
| Stockholders Equity | 668.30M | 621.61M | 472.52M | 594.29M | 471.51M | 466.21M |
Cash Flow | ||||||
| Free Cash Flow | 148.67M | 135.51M | 171.64M | 126.24M | 137.37M | 146.76M |
| Operating Cash Flow | 220.57M | 227.01M | 260.06M | 211.19M | 219.90M | 228.42M |
| Investing Cash Flow | -239.09M | -238.24M | -118.28M | -507.93M | -133.32M | -83.82M |
| Financing Cash Flow | 22.28M | 28.45M | -152.56M | 416.37M | -153.31M | -81.28M |
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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.42B | 35.64 | 10.01% | ― | 7.19% | -36.03% | |
70 Outperform | $1.88B | 14.63 | 20.68% | 0.67% | 9.44% | 3.45% | |
70 Outperform | $2.18B | 68.48 | 4.48% | ― | -11.45% | ― | |
65 Neutral | $588.24M | 28.17 | 4.95% | ― | -10.20% | -95.64% | |
64 Neutral | $2.13B | 46.94 | 21.19% | 0.70% | 12.08% | -8.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
EVTC
Evertec
31.11
-3.23
-9.40%
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29.95
12.37
70.39%
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I3 Verticals
21.37
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PAYO
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9.38%
EVCM
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11.98
1.96
19.56%
Evertec Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Evertec Raises 2026 Outlook Amid Strong Q2 Performance
Positive
Aug 4, 2026
On August 4, 2026, Evertec reported second-quarter 2026 revenue of $274.8 million, up 20% year on year, with adjusted EBITDA rising 18% to $109.3 million and adjusted earnings per share climbing 18% to $1.05. Despite GAAP net income falling to $5....
Business Operations and StrategyDividends
Evertec Board Declares Ongoing Quarterly Cash Dividend
Positive
Jul 23, 2026
On July 23, 2026, Evertec’s board of directors declared a regular quarterly cash dividend of $0.05 per share on its common stock, to be paid on September 4, 2026 to shareholders of record as of August 3, 2026. The board indicated it anticipa...
Business Operations and StrategyRegulatory Filings and Compliance
Evertec Investigates Potential Data Breach at Third-Party Platform
Negative
Jun 9, 2026
On May 13, 2026, Evertec discovered potential unauthorized access to customer data involving a third-party support platform used by its financial institution clients. The company says the breach appears to involve transaction records, some custome...
Executive/Board ChangesShareholder Meetings
Evertec Stockholders Approve Directors, Pay and Auditor Oversight
Positive
May 21, 2026
On May 21, 2026, Evertec, Inc. held its 2026 Annual Meeting of Stockholders, where a quorum of 58,025,701 shares out of 61,620,344 outstanding shares was present in person or by proxy. Stockholders voted to elect the full slate of director nominee...
Business Operations and StrategyPrivate Placements and Financing
Evertec amends credit agreement, adds Term Loan B
Neutral
May 20, 2026
On May 18, 2026, Evertec, Inc. and its subsidiary Evertec Group, LLC entered into a sixth amendment to their existing credit agreement with a syndicate of lenders, with Truist Bank serving as administrative and collateral agent. The amendment esta...
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.