Evertz Technologies (ET) AI Stock Analysis

• Market Cap: C$776.88M
• Dividend Yield: 7.6%
• Average Volume (3M): 32.56K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.50
• Revenue Growth: -4.64%
• EPS Growth: -19.57%
• Country: CA
• Employees: 1,591
• Sector: Technology
• Sector Strength: 55
• Industry: Communication Equipment
• EPS (TTM): 0.27
• Shares Outstanding: 75,941,010
• 10 Day Avg. Volume: 44,110
• 30 Day Avg. Volume: 32,565
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.68
• Price to Cash Flow (P/CF): 3.90
• P/FCF Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$13.75
• Price Target Upside: 32.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Evertz Technologies is well-positioned with a strong financial foundation, highlighted by low debt and efficient cash flow management. The positive sentiment from the recent earnings call, underpinned by record sales and a robust order backlog, supports future growth prospects. However, concerns about declining international sales and bearish market momentum temper the outlook. The stock shows fair valuation with a solid dividend yield, appealing to value and income investors.

Positive Factors

Competitive Position

Evertz is benefiting from a strong competitive position in the broadcast technology market, which is expected to drive earnings and dividend growth.

Sales Performance

NA sales reversed declining trend this quarter, growing 28% year-over-year.

Valuation

Evertz's stock valuation is considered attractive due to its dividend yield and a growing mix of software/cloud services.

Negative Factors

Backlog

The backlog at quarter-end showed a decrease, indicating potential challenges in meeting future revenue expectations.

International Segment

International segment continued to struggle, posting a 46% year-over-year decline this quarter.

Revenue Expectations

Evertz's Q4/25 revenue is expected to be below consensus estimates, with February shipments pointing to a lower figure.

Evertz Technologies Business Overview & Revenue Model

Company Description

Evertz Technologies Limited engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and internationally. The company offers contribution encoder, decoder, receiver, processing, and modulation products; and control panels, unified controls, accessories, and network management systems. It also provides encoding, transcoding, and multiplexing products comprising ASI/IP converters, multiplexers, scramblers, and modulators; contribution encoders/decoders; transport stream processors; and software defined accelerated encoding/transcoding/muxing products, as well as audio/data/RF transporters, CWDM/DWDM multiplexors, fiber routers, SONET/SDH transporters, and video transporters. In addition, the company offers infrastructure and conversion products, including audio/data embedder/de-embedder, keyers, media and logo inserters, master control switchers, audio processing, closed captioning, conversion, audio/video delay system, distribution amplifier, and frame synchronizer products; and IP audio/video processing, media gateway, switch routing, timing, and software defined network orchestration products. Further, it provides 3D, auto changeover, film/post graticule generator, master clock/SPG, slave clock, test/reference generator, and timecode products for live media production; EMS media server, mediator content manager, and live integrated playout products; and multi viewers. Additionally, the company offers antennas, demodulators, fiber transporters, routers/switchers, and splitters and distribution amplifiers; and audio, bypass and auto changeover, data/LTC/tally, fiber/RF, magnum unified control, video routers, and panels. It serves content creators, broadcasters, specialty channels, and television service providers. The company was founded in 1966 and is headquartered in Burlington, Canada.

How the Company Makes Money

Evertz Technologies generates revenue primarily through the sale of its hardware and software solutions designed for the broadcasting industry. The company offers a wide range of products, including video routers, processing equipment, and monitoring systems, which are sold directly to broadcasters, media companies, and telecommunications providers. Additionally, Evertz earns income from software licensing fees for its proprietary software solutions, which are critical for managing and optimizing broadcasting operations. The company also provides after-sales services such as maintenance, support, and training, contributing to a recurring revenue stream. Significant partnerships with major media networks and technology companies further bolster Evertz's market position and revenue generation capabilities.

Evertz Technologies Financial Statement Overview

Summary

Evertz Technologies demonstrates a resilient financial standing with strong profitability and efficiency, especially in its operational management and cash conversion. However, the decrease in revenue over the TTM period raises concerns about growth prospects. Despite this, the low debt levels and high equity ratio ensure financial stability, positioning the company well for future opportunities if revenue can be stabilized and grown.

Income Statement

The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at around 58.4%, indicating efficient cost management. However, the TTM net profit margin is relatively lower at 12.1%, suggesting that while gross profits are high, operational and other expenses are impacting the bottom line. The revenue growth rate from the previous annual period to TTM is negative, indicating a contraction in sales, which is a concern. Despite this, EBIT and EBITDA margins remain healthy, suggesting strong operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.08, indicating low financial leverage and risk. The return on equity (ROE) for TTM is approximately 22.3%, demonstrating effective use of shareholders' equity to generate profit. The equity ratio is robust at 57.1%, indicating a strong capital structure with a significant portion of assets financed by equity rather than debt.

Cash Flow

The cash flow statement is strong, with a healthy operating cash flow to net income ratio of 1.65, indicating that the company effectively converts its earnings into cash. The free cash flow to net income ratio is also robust at 1.52. Although the free cash flow growth rate is negative, due to a decrease compared to the previous year, the company maintains solid cash generation capabilities.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
496.59M	514.62M	454.58M	441.02M	342.89M	436.59M
	Gross Profit
290.06M	293.97M	268.26M	255.31M	199.42M	248.38M
	EBIT
25.88M	85.53M	93.66M	94.74M	72.85M	89.07M
	EBITDA
97.36M	114.12M	100.28M	107.10M	62.65M	102.48M
	Net Income Common Stockholders
60.15M	70.17M	64.03M	71.75M	41.76M	68.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.73M	86.33M	12.47M	33.90M	108.77M	75.03M
	Total Assets
451.17M	484.72M	436.65M	420.98M	451.79M	443.67M
	Total Debt
21.24M	23.22M	28.82M	26.85M	25.37M	30.10M
	Net Debt
-40.49M	-63.11M	16.35M	-7.05M	-83.40M	-44.92M
	Total Liabilities
185.62M	218.04M	190.57M	187.33M	156.89M	146.25M
	Stockholders Equity
262.48M	263.27M	243.10M	230.94M	292.73M	295.01M
Cash Flow		Free Cash Flow
91.42M	135.12M	47.24M	63.20M	91.42M	99.24M
	Operating Cash Flow
99.51M	144.67M	53.81M	68.67M	101.00M	109.29M
	Investing Cash Flow
-7.90M	-2.26M	-17.12M	-4.96M	-18.64M	-5.74M
	Financing Cash Flow
-67.47M	-70.21M	-58.02M	-137.52M	-49.38M	-132.66M

Evertz Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ET, the sentiment is Negative. The current price of 10.39 is below the 20-day moving average (MA) of 10.44, below the 50-day MA of 11.01, and below the 200-day MA of 11.80, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 51.17 is Neutral, neither overbought nor oversold. The STOCH value of 85.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ET.

Evertz Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ET	73 Outperform	C$776.88M	12.93	22.71%	7.60%	-4.64%	-19.57%
CSU	63 Neutral	C$98.84B	98.70	30.90%	0.12%	21.56%	31.90%
Sector *	58 Neutral	$11.04B	9.83	-6.56%	3.16%	7.59%	-10.43%

Evertz Technologies Corporate Events

Evertz Technologies Achieves Record Revenue in Q3 2025

Evertz Technologies reported a record quarterly revenue of $136.9 million for the third quarter ending January 31, 2025, marking a 9% increase from the previous quarter. The company saw significant growth in its reoccurring software and services revenue, which rose by 6% from the prior year, alongside an 8% increase in earnings from operations. This financial performance underscores Evertz’s strong market positioning and operational efficiency, particularly in the United States and Canada, despite a decline in international revenues.

Evertz Technologies to Release Q3 2025 Financial Results

Evertz Technologies Limited is set to announce its third quarter 2025 financial results on March 5, 2025, followed by a conference call with financial analysts. This announcement may provide insights into the company’s financial health and operational strategies, potentially impacting its market positioning and stakeholder interests.