Evertec (EVTC) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 0.58%
• Average Volume (3M): 337.27K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.73
• Revenue Growth: 12.92%
• EPS Growth: 101.57%
• Country: US
• Employees: 4,800
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 0.89
• Shares Outstanding: 63,982,006
• 10 Day Avg. Volume: 294,133
• 30 Day Avg. Volume: 337,274
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 3.40
• Enterprise Value/Gross Profit: 6.63
• Enterprise Value/Ebitda: 8.74
• 1Y Price Target: $39.00
• Price Target Upside: 13.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $39.00 ▲(13.14% Upside)

Evertec's strong financial performance and positive earnings call are the primary drivers of its stock score. While technical indicators suggest caution, the company's solid growth prospects and strategic initiatives provide a balanced outlook.

Positive Factors

Acquisitions and Investments

Evertec announced a $144 million investment for a 75% stake in Tecnobank, enhancing its diversification strategy outside Puerto Rico.

Growth and Expansion

Growth in Brazil (Sinqia) continues to accelerate, outperforming internal expectations.

Negative Factors

Margin Pressure

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

Revenue Headwinds

Management expressed confidence in various cost initiatives to mitigate the upcoming revenue headwind 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 through multiple key streams, including transaction processing fees, service fees from payment solutions, and technology services for its clients. The company earns a significant portion of its income from processing electronic payments and transactions for merchants and financial institutions, charging fees for each transaction processed. Additionally, Evertec offers value-added services such as fraud detection and analytics, which provide further revenue opportunities. Strategic partnerships with banks and financial organizations enhance its market presence and capabilities, contributing to recurring revenue through long-term contracts and service agreements. Overall, Evertec's diversified service offerings and strong client relationships are critical to its financial performance.

Evertec Financial Statement Overview

Summary

Evertec demonstrates strong financial performance with robust revenue growth, solid profit margins, and efficient cash flow management. Despite a leveraged balance sheet, the company maintains effective equity utilization and operational efficiency.

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	886.59M	845.49M	694.71M	618.41M	589.80M	510.59M
Gross Profit	455.43M	439.07M	357.95M	325.79M	339.63M	283.72M
EBITDA	345.37M	322.20M	211.29M	374.35M	278.38M	221.26M
Net Income	137.91M	112.62M	79.72M	239.01M	161.13M	104.44M
Balance Sheet
Total Assets	1.96B	1.86B	2.06B	1.13B	1.14B	1.07B
Cash, Cash Equivalents and Short-Term Investments	290.58M	273.64M	295.60M	197.23M	266.35M	202.65M
Total Debt	948.67M	966.58M	986.41M	446.97M	486.57M	523.52M
Total Liabilities	1.30B	1.34B	1.42B	657.00M	674.49M	730.15M
Stockholders Equity	612.33M	472.52M	594.29M	471.51M	466.21M	337.74M
Cash Flow
Free Cash Flow	134.27M	171.63M	139.31M	140.83M	161.51M	150.45M
Operating Cash Flow	166.36M	260.06M	224.29M	223.36M	228.42M	199.09M
Investing Cash Flow	-90.44M	-118.28M	-507.93M	-133.32M	-83.82M	-48.63M
Financing Cash Flow	-94.33M	-152.56M	403.27M	-156.77M	-81.28M	-62.62M

Evertec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.47
• 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 34.47 is below the 20-day moving average (MA) of 36.05, below the 50-day MA of 35.27, and below the 200-day MA of 35.00, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 13.95 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
EVTC	75 Outperform	$2.21B	16.13	25.17%	0.58%	12.92%	101.57%
PAYO	75 Outperform	$2.41B	25.26	13.86%	―	13.02%	-2.57%
DLO	73 Outperform	$3.84B	1,109.09	30.92%	―	12.75%	3.42%
PAGS	73 Outperform	$3.05B	7.31	14.59%	1.44%	0.09%	5.38%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
MQ	61 Neutral	$2.74B	56.63	-6.51%	―	17.47%	-544.72%
STNE	56 Neutral	$4.48B	8.73	-8.77%	―	-20.82%	-154.29%

Evertec Corporate Events

Evertec’s Sinqia Faces Security Breach in Pix System

On August 29, 2025, Sinqia S.A., a Brazilian subsidiary of Evertec, identified unauthorized activity in its Pix real-time payment system, leading to a halt in transaction processing. The incident, involving approximately R$710 million in unauthorized transactions, was linked to exploited credentials of legitimate IT vendors. While some funds have been recovered, the Brazilian Central Bank has yet to approve the resumption of operations. The incident’s financial and reputational impacts are still uncertain, and the company is working to address potential liabilities and insurance coverage.

Evertec Acquires 75% Stake in Tecnobank Brazil

On August 21, 2025, Evertec, Inc. announced a definitive agreement to acquire a 75% controlling stake in Tecnobank Tecnologia Bancária S.A., a fintech company in Brazil’s digital vehicle financing contract registration sector, through its subsidiary Evertec Brasil Informática S.A. The transaction, valued at approximately USD $144 million, aims to expand EVERTEC’s product offerings in Brazil and is expected to close in the fourth quarter of 2025, pending regulatory approval from Brazil’s Administrative Council for Economic Defense (CADE).

Evertec Increases Share Repurchase Authorization to $150M

On July 30, 2025, Evertec‘s Board of Directors approved an increase in the company’s share repurchase authorization, allowing for the repurchase of up to $150 million worth of shares by December 31, 2026. This decision follows a strong second quarter where Evertec reported an 8% increase in revenue to $229.6 million and a 27% rise in GAAP net income to $40.5 million. The company also raised its full-year financial outlook, reflecting confidence in continued organic growth and successful pricing initiatives. The increased share repurchase program and positive financial results are likely to enhance Evertec’s market positioning and provide value to its stakeholders.

Evertec Declares Quarterly Cash Dividend Announcement

On July 24, 2025, EVERTEC, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.05 per share, to be paid on September 5, 2025, to stockholders of record as of August 4, 2025. The Board anticipates maintaining this dividend in future quarters, though future declarations will depend on Board approval and may change based on business needs or market conditions.