Evertz Technologies (ET) AI Stock Analysis

• Market Cap: C$1.21B
• Dividend Yield: 5.97%
• Average Volume (3M): 44.56K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.69
• Revenue Growth: 2.96%
• EPS Growth: 11.50%
• Country: CA
• Employees: 1,591
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.24
• Shares Outstanding: 75,528,850
• 10 Day Avg. Volume: 74,107
• 30 Day Avg. Volume: 44,564
• PEG Ratio: 1.59
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 7.85
• 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$16.67
• Price Target Upside: 3.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): C$515.14M

• Rating: 76 Outperform
• Price Target: C$18.00 ▲(12.15% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by strong profitability and a low-leverage balance sheet, supported by attractive income/valuation (4.57% yield and 13.05 P/E). Technicals are positive but tempered by overbought signals, while the earnings call adds confidence from record sales and backlog but highlights near-term liquidity pressure from large dividend payouts and some hardware softness.

Positive Factors

High Profitability

Sustained high gross and operating margins indicate durable pricing power and efficient cost structure across products. This supports reinvestment in R&D and product upgrades, funds dividends, and provides a buffer against cyclical demand downturns over the next several quarters.

Recurring Software & Services Growth

A growing recurring software and services mix (~45% of revenue) increases revenue predictability and margin resilience versus hardware. This structural shift supports higher lifetime customer value, stickier contracts, and smoother revenue through project cycles over 2–6 months and beyond.

Low Leverage & Strong ROE

Very low leverage and a robust ROE provide financial flexibility to invest in R&D, secure components, and return capital to shareholders without stressing the balance sheet. This structural strength reduces refinancing risk and supports strategic optionality over multiple quarters.

Negative Factors

Free Cash Flow Drop

A steep fall in free cash flow growth materially reduces internally available capital for R&D, inventory builds, and dividend sustainability. Even if partly timing-related, such a decline can constrain operational flexibility and raise reliance on external funding within a multi-quarter horizon.

Large Cash/Working Capital Decline

A sharp decline in cash and working capital following significant dividends reduces the buffer for procurement, FX shocks, and project timing mismatches. Lower liquidity heightens vulnerability to supply constraints and may force trade-offs between capex, inventory and shareholder returns over coming quarters.

Hardware Revenue Softness & Volatile Backlog

Declining hardware sales and backlog sensitivity to project timing imply revenue lumpiness tied to large projects. Despite healthy backlog, shipment variability and procurement-led timing risk can produce uneven top-line and cash flows across reporting periods, challenging stable growth.

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 makes money primarily through the sale of its broadcast and media production equipment, software solutions, and related services. The company's revenue streams include direct sales of its hardware products, licensing fees from its software solutions, and ongoing support and maintenance services. Evertz also generates income from custom solutions tailored to specific client needs and from partnerships with major broadcasters and media companies. Its earnings are significantly influenced by the adoption of new technologies in the media industry, such as the shift to IP-based workflows and the increasing demand for high-definition and ultra-high-definition content delivery.

Evertz Technologies Financial Statement Overview

Summary

Strong profitability (TTM gross margin 59.96%, EBIT margin 17.17%, EBITDA margin 20.31%) and a solid balance sheet with low leverage (debt-to-equity 0.0676, equity ratio 57.41%) support the score. The main offset is the sharp decline in free cash flow growth (-86.2%), despite healthy cash conversion (operating cash flow to net income 1.79).

Income Statement

Evertz Technologies demonstrates strong profitability with a TTM gross profit margin of 59.96% and a net profit margin of 12.26%. The revenue growth rate of 1.49% in the TTM indicates steady growth, although slightly lower than previous periods. The EBIT and EBITDA margins are healthy at 17.17% and 20.31%, respectively, showcasing efficient operational management.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.0676, indicating low leverage. The return on equity is robust at 23.18%, reflecting effective use of equity to generate profits. The equity ratio stands at 57.41%, suggesting a strong equity base relative to total assets.

Cash Flow

Evertz Technologies shows a decline in free cash flow growth at -86.2%, which is a concern. However, the operating cash flow to net income ratio is 1.79, indicating strong cash generation relative to net income. The free cash flow to net income ratio is high at 93.45%, reflecting efficient cash flow management despite the recent decline.

Breakdown	TTM	Apr 2024	Apr 2022	Apr 2021	Apr 2020	Apr 2019
Income Statement
Total Revenue	509.60M	501.62M	454.58M	441.02M	342.89M	443.56M
Gross Profit	302.60M	298.50M	268.26M	255.31M	199.42M	253.36M
EBITDA	101.16M	99.56M	100.28M	107.10M	62.65M	117.00M
Net Income	64.29M	59.39M	64.03M	71.75M	41.76M	77.88M
Balance Sheet
Total Assets	466.69M	469.49M	436.65M	420.98M	451.79M	466.60M
Cash, Cash Equivalents and Short-Term Investments	96.69M	111.67M	12.47M	33.90M	108.77M	108.61M
Total Debt	27.63M	18.87M	28.82M	26.85M	25.37M	533.00K
Total Liabilities	195.65M	198.19M	190.57M	187.33M	156.89M	111.19M
Stockholders Equity	268.00M	268.12M	243.10M	230.94M	292.73M	353.12M
Cash Flow
Free Cash Flow	102.69M	91.68M	47.24M	63.20M	91.42M	76.82M
Operating Cash Flow	114.88M	99.63M	53.81M	68.67M	101.00M	88.47M
Investing Cash Flow	-10.16M	-6.73M	-17.12M	-4.96M	-18.64M	-23.51M
Financing Cash Flow	-72.92M	-71.43M	-58.02M	-137.52M	-49.38M	-54.83M

Evertz Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ET, the sentiment is Positive. The current price of 16.05 is above the 20-day moving average (MA) of 15.48, above the 50-day MA of 14.58, and above the 200-day MA of 12.09, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 71.13 is Negative, neither overbought nor oversold. The STOCH value of 72.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ET.

Evertz Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ET	76 Outperform	C$1.21B	13.05	24.24%	5.97%	2.96%	11.50%
VCM	64 Neutral	C$296.88M	565.37	-8.77%	2.14%	-11.70%	-199.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QTRH	56 Neutral	C$115.92M	-6.48	-15.76%	―	1.48%	11.75%
BEW	55 Neutral	C$88.15M	35.74	7.70%	―	27.55%	-39.69%
CMI	50 Neutral	C$42.26M	67.38	-4.10%	1.52%	-46.11%	-149.26%
TSAT	44 Neutral	C$680.14M	-5.31	-21.63%	―	-25.79%	-413.48%

Evertz Technologies Corporate Events

Evertz Delivers Record Revenue but Cash Dips After Special Dividend

Evertz Technologies reported record third-quarter revenue of $139.3 million for the period ended January 31, 2026, up 2% year-over-year, driven by a 15.5% increase in international sales to $43.7 million even as U.S. and Canadian revenue declined. Gross margin rose to 58.3% and earnings from operations before foreign exchange climbed 16% to $28.1 million, but net earnings fell to $18.7 million, or $0.24 per diluted share, reflecting foreign exchange impacts and a higher dividend payout.

The company’s balance sheet showed a sharp reduction in cash and working capital, with cash falling to $24.8 million from $111.7 million and working capital dropping to $133.2 million, largely due to $91 million in dividends, including a sizable special dividend, and capital spending such as a $4.4 million airplane purchase. Despite lower cash generation from operations versus a year earlier, Evertz reported a robust purchase order backlog exceeding $246 million at the end of February 2026, indicating strong future demand and underpinning its competitive position in global broadcast and media infrastructure markets.

The most recent analyst rating on (TSE:ET) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Evertz Technologies stock, see the TSE:ET Stock Forecast page.

Evertz Technologies Reports Strong Q2 Financial Results and Declares Special Dividend

Evertz Technologies reported a quarterly revenue of $132.7 million for the second quarter ended October 31, 2025, marking a 6% increase from the previous year. The company also saw significant growth in international revenue and net earnings, with a special dividend declared, indicating strong financial performance and shareholder value enhancement.

The most recent analyst rating on (TSE:ET) stock is a Hold with a C$12.00 price target. To see the full list of analyst forecasts on Evertz Technologies stock, see the TSE:ET Stock Forecast page.

Evertz Technologies Secures TSX Approval for Share Buyback Program

Evertz Technologies Limited has received approval from the Toronto Stock Exchange to initiate a Normal Course Issuer Bid, allowing the company to repurchase up to 3,774,227 of its common shares over a 12-month period. This move reflects Evertz’s belief that its shares are undervalued and represents a strategic use of corporate funds. The company has also established an automatic securities purchase plan to facilitate share repurchases during blackout periods, underscoring its commitment to enhancing shareholder value.

The most recent analyst rating on (TSE:ET) stock is a Buy with a C$15.50 price target. To see the full list of analyst forecasts on Evertz Technologies stock, see the TSE:ET Stock Forecast page.