Evertec (EVTC) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 0.68%
• Average Volume (3M): 356.75K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.66
• Revenue Growth: 9.67%
• EPS Growth: 75.67%
• Country: US
• Employees: 4,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.93
• Shares Outstanding: 63,983,840
• 10 Day Avg. Volume: 420,801
• 30 Day Avg. Volume: 356,749
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00113
• P/FCF Ratio: <0.01
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: $36.00
• Price Target Upside: 36.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.75
• Revenue Forecast (FY): $976.03M

• Rating: 64 Neutral
• Price Target: $28.00 ▲(6.22% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

EVTC’s score is supported by solid underlying profitability/growth (through 2024), constructive 2026 guidance, and a low P/E. The biggest drag is weak technicals (below major moving averages with negative MACD), alongside balance-sheet leverage and inconsistent cash conversion that limit flexibility despite positive corporate actions like buybacks and M&A expansion.

Positive Factors

Latin America revenue momentum

Sustained high-teens to mid-20s growth in Latin America reflects structural market share gains, successful pipeline conversions (Banco de Chile, Grupo Aval) and Brazil reacceleration. This durable regional expansion underpins multi-year revenue diversification and higher growth potential versus core markets.

High and stable gross/EBITDA margins

Robust gross margins and sustained ~40% adjusted EBITDA indicate strong unit economics and pricing power in payment processing and software services. Margin durability supports reinvestment, M&A integration and shareholder returns, making core profitability a lasting competitive strength.

Positive cash generation and shareholder returns

Consistent operating cash flow and substantial liquidity provide durable funding for capex, strategic M&A (Dimensa), and buybacks/dividends. Strong free cash flow even if variable supports disciplined capital allocation and signals management confidence in sustaining growth investments and returns.

Negative Factors

Elevated leverage relative to peers

Debt levels around 2x EBITDA reduce financial flexibility for further M&A or downside absorption. Incremental acquisition financing (Tecnobank/Dimensa) and term loan facilities raise refinancing and interest-rate exposure, making balance-sheet risk a persistent constraint on strategic optionality.

Inconsistent free cash flow conversion

Variable FCF conversion, driven by working capital, taxes, and reinvestment, limits the company’s ability to consistently pay down debt or sustain buybacks/dividends. This uneven cash profile can prolong deleveraging and constrain predictable capital allocation over the medium term.

Segment margin pressure & contractual discount

Ongoing margin compression in Business Solutions and merchant acquiring (cloud and POS costs) plus the multi-quarter Banco-Popular discount create structural pressure on segment profitability. Persistent contract-driven revenue reductions and rising operating costs could erode consolidated margins if not offset by higher-margin LATAM growth.

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

Profitable and growing through 2024 with strong ~51–52% gross margins and improving net margin, but constrained by elevated leverage (debt/equity ~2.05x in 2024) and uneven cash conversion (FCF ~60–70% of net income in most years). 2025 annual figures appear inconsistent versus prior years, reducing confidence in the latest-year trend.

Income Statement

Revenue growth has been solid through 2023–2024 (about 12% then ~22%), with healthy profitability supported by ~51–52% gross margins and improving net margin (from ~11% in 2023 to ~13% in 2024). Profitability was unusually high in 2022 (net margin ~39%) and then normalized, which adds some volatility to the earnings profile. The 2025 annual figures appear inconsistent versus prior years (extreme revenue and growth), so the latest-year trend is less reliable, but the underlying multi-year pattern still points to a profitable, growing business.

Balance Sheet

Leverage is the main constraint: debt relative to equity is elevated in recent years (about 1.66x in 2023 and ~2.05x in 2024), which reduces financial flexibility versus peers. That said, returns on equity are strong (mid-teens in 2023, improving to ~24% in 2024, with unusually high levels in 2022), indicating the company has historically generated attractive profits on shareholder capital. Overall, the balance sheet looks serviceable but more debt-heavy than ideal.

Cash Flow

Cash generation is positive and generally supportive of the business, with operating cash flow consistently positive across years and free cash flow also positive. However, cash conversion is not consistently strong: free cash flow has covered only ~60–70% of net income in most years (2020–2024), suggesting working capital, taxes, or reinvestment needs can weigh on cash relative to reported earnings. Free cash flow improved in 2024 and growth rebounded, but year-to-year variability remains a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.62T	845.49M	694.71M	618.41M	589.80M
Gross Profit	810.26B	439.07M	357.95M	325.79M	339.63M
EBITDA	357.73B	322.20M	211.29M	374.35M	279.58M
Net Income	247.36B	112.62M	79.72M	239.01M	161.13M
Balance Sheet
Total Assets	2.24T	1.86B	2.06B	1.13B	1.14B
Cash, Cash Equivalents and Short-Term Investments	305.99B	273.64M	295.60M	185.27M	266.35M
Total Debt	1.12T	966.58M	986.41M	446.97M	486.57M
Total Liabilities	1.53T	1.34B	1.42B	657.00M	674.49M
Stockholders Equity	713.99B	472.52M	594.29M	471.51M	466.21M
Cash Flow
Free Cash Flow	227.01B	171.63M	126.22M	137.37M	161.51M
Operating Cash Flow	227.01B	260.06M	211.19M	219.90M	228.42M
Investing Cash Flow	-238.24B	-118.28M	-507.93M	-133.32M	-83.82M
Financing Cash Flow	0.00	-152.56M	416.37M	-153.31M	-81.28M

Evertec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 26.36 is below the 20-day moving average (MA) of 27.17, below the 50-day MA of 28.58, and below the 200-day MA of 32.23, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 36.86 is Neutral, neither overbought nor oversold. The STOCH value of 15.26 is Positive, 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
PAYO	71 Outperform	$1.79B	27.62	9.79%	―	10.58%	-45.52%
ATEN	70 Outperform	$1.36B	33.32	19.01%	1.33%	10.27%	3.52%
EVCM	65 Neutral	$1.84B	-2,738.46	0.04%	―	-11.61%	99.07%
EVTC	64 Neutral	$1.61B	11.17	25.05%	0.68%	9.67%	75.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IIIV	59 Neutral	$664.07M	217.29	0.58%	―	-23.69%	-95.61%

Evertec Corporate Events

Evertec Posts Strong 2025 Results, Expands Buyback Program

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% in the fourth quarter to $244.8 million and 10.2% for 2025 to $931.8 million, while adjusted EBITDA grew 11.5% in the quarter and 9.8% for the year, driven by organic growth, higher transaction volumes and contributions from recent acquisitions including Tecnobank.

Despite higher depreciation, amortization and operating costs tied to acquisitions and cloud and personnel investments, 2025 GAAP net income attributable to common shareholders increased 25.7% to $141.6 million, and adjusted earnings per share climbed 10.4% to $3.62, aided by lower interest expense and a reduced share count. The board also increased and extended the share repurchase authorization on February 25, 2026 to allow up to $150 million of buybacks through December 31, 2027, after Evertec returned $82.1 million to shareholders in 2025, reinforcing management’s confidence in cash generation and balance‑sheet strength as it targets further revenue and earnings growth in 2026.

The most recent analyst rating on (EVTC) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Evertec stock, see the EVTC Stock Forecast page.

Evertec Board Declares Regular Quarterly Cash Dividend

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 be paid on March 6, 2026, to stockholders of record as of March 2, 2026, signaling ongoing confidence in the company’s cash generation and financial stability.

The board indicated it anticipates declaring this dividend on a regular basis in future quarters, while stressing that any future payments will remain subject to board approval and could be adjusted in response to business needs or changing market conditions. This measured stance balances a commitment to predictable income for investors with flexibility to adapt capital deployment as the regional fintech and payments environment evolves.

The most recent analyst rating on (EVTC) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Evertec stock, see the EVTC Stock Forecast page.

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.