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Evertz Technologies (TSE:ET)
:ET
Canadian Market
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Evertz Technologies (ET) AI Stock Analysis

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TSE:ET

Evertz Technologies

(TSX:ET)

Rating:78Outperform
Price Target:
C$14.00
▲(16.18%Upside)
Evertz Technologies' robust financial performance and positive technical indicators are the most significant strengths, contributing to a solid stock score. While valuation is fair with an attractive dividend yield, mixed sentiments from the earnings call and revenue decline slightly temper the outlook.
Positive Factors
Competitive Position
Evertz benefits from a strong competitive position in the broadcast technology market, driving earnings and dividend growth.
Financial Performance
Evertz reported significantly above consensus on EBITDA, helped by a record-high gross margin as software/services revenue grows.
Negative Factors
Backlog Concerns
The backlog at quarter-end showed a decrease, indicating potential challenges in meeting future revenue expectations.
Revenue Expectations
Evertz's Q4/25 revenue is expected to be below consensus estimates, with February shipments indicating a lower figure.

Evertz Technologies (ET) vs. iShares MSCI Canada ETF (EWC)

Evertz Technologies Business Overview & Revenue Model

Company DescriptionEvertz Technologies Limited is a Canadian technology company that operates in the media and entertainment industry. It specializes in the design and manufacturing of hardware and software solutions for the broadcast, telecommunications, and new-media sectors. The company's core products include video routing systems, production and post-production editing tools, media asset management systems, and IPTV solutions. Evertz serves a diverse range of clients, including broadcasters, cable and satellite providers, and content creators worldwide.
How the Company Makes MoneyEvertz 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 Earnings Call Summary

Earnings Call Date:Jun 25, 2025
(Q4-2025)
|
% Change Since: 1.95%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While there are significant achievements such as strong software revenue growth, improved margins, and increased cash reserves, these are offset by a decline in overall annual revenue and substantial drops in international sales. Additionally, foreign exchange losses present a concern. Evertz's strategic focus on IP and cloud technologies and successful industry recognition indicate potential for future growth.
Q4-2025 Updates
Positive Updates
Strong Recurring Software Revenue Growth
Recurring software services and other software revenues increased by 17.8% year-over-year, totaling $222.6 million, which represents 44.4% of the total revenue.
U.S./Canada Revenue Increase
Revenues in the U.S./Canada region rose by 10.8% from the previous year, totaling $374.4 million.
Improved Gross Margin
Gross margin rates strengthened to 61.7% in the fourth quarter and 59.5% on an annual basis.
Increased Cash Position
The company ended the year with $111.7 million in cash and cash equivalents, up from $86.3 million in April 2024.
Awards and Recognition
Evertz received the TV Tech Best of Show Award and the TVB Europe Best of Show Award at the NAB Show for its advanced technology solutions.
Negative Updates
Decline in Annual Revenue
Annual revenues declined by 2.5% from the prior year, totaling $501.6 million.
International Revenue Drop
International region revenues decreased by 28% year-over-year, due to factors such as regional unrest and non-recurring large orders from the previous year.
Foreign Exchange Loss
The company reported a foreign exchange loss of $4.4 million in the fourth quarter due to a weakening U.S. dollar compared to the Canadian dollar.
Company Guidance
During the Evertz Technologies fourth-quarter conference call for fiscal year 2025, the company reported annual revenues of $501.6 million, down 2.5% from the previous year, with notable growth in the U.S./Canada region where revenues increased by 10.8% to $374.4 million. Recurring software services revenues rose by 17.8%, comprising 44.4% of total revenue at $222.6 million. The gross margin was $298.5 million, or 59.5% annually, with net earnings of $59.7 million, equating to $0.77 per fully diluted share. Research and development investments increased to $146.8 million, while the company ended the year with a strengthened cash position of $111.7 million. Quarterly revenue for Q4 was $127.8 million, with a gross margin of $78.9 million at a rate of 61.7%. The company emphasized its robust backlog exceeding $259 million and highlighted its strategic focus on IP, IT, and cloud-based solutions, alongside its significant presence at industry events and accolades received.

Evertz Technologies Financial Statement Overview

Summary
Evertz Technologies showcases strong profitability and efficient cash flow management, with a solid balance sheet and operational efficiency. However, the slight decline in revenue requires attention for sustained growth.
Income Statement
75
Positive
Evertz Technologies has maintained solid profit margins with a gross profit margin of approximately 59.5% and a net profit margin of 11.8% in 2025. However, the company experienced a slight decline in revenue growth at -2.5% in 2025 compared to the previous year. Their EBIT margin stands at 16.2% and EBITDA margin at 19.8%, indicating efficient operational performance despite the dip in revenue.
Balance Sheet
80
Positive
The company exhibits a healthy balance sheet with a low debt-to-equity ratio of 0.07 in 2025, suggesting robust financial stability. The return on equity remains strong at 22.1%, reflecting efficient use of equity capital. The equity ratio is at 57.1%, indicating a solid equity base compared to total assets.
Cash Flow
78
Positive
Evertz Technologies shows strong cash flow management with a positive operating cash flow to net income ratio of 1.68 in 2025. Although the free cash flow decreased by 32.2% in 2025, the company maintains a healthy free cash flow to net income ratio of 1.54, demonstrating effective cash utilization.
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue501.62M514.62M454.58M441.02M342.89M
Gross Profit298.50M293.97M268.26M255.31M199.42M
EBITDA99.56M110.99M100.28M107.10M62.65M
Net Income59.39M70.17M64.03M71.75M41.76M
Balance Sheet
Total Assets469.49M484.72M436.65M420.98M451.79M
Cash, Cash Equivalents and Short-Term Investments111.67M86.33M12.47M33.90M108.77M
Total Debt18.87M23.22M28.82M26.85M25.37M
Total Liabilities198.19M218.04M190.57M187.33M156.89M
Stockholders Equity268.12M263.27M243.10M230.94M292.73M
Cash Flow
Free Cash Flow91.68M135.12M47.24M63.20M91.42M
Operating Cash Flow99.63M144.67M53.81M68.67M101.00M
Investing Cash Flow-6.73M-2.26M-17.12M-4.96M-18.64M
Financing Cash Flow-71.43M-70.21M-58.02M-137.52M-49.38M

Evertz Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.05
Price Trends
50DMA
11.97
Positive
100DMA
11.30
Positive
200DMA
11.54
Positive
Market Momentum
MACD
0.04
Positive
RSI
56.31
Neutral
STOCH
33.33
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 12.05 is below the 20-day moving average (MA) of 12.13, above the 50-day MA of 11.97, and above the 200-day MA of 11.54, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$920.30M15.6122.35%7.72%-2.52%-15.21%
72
Outperform
C$78.00M131.347.04%41.67%-23.86%
68
Neutral
C$260.41M70.411.61%2.05%9.13%-77.24%
63
Neutral
$34.94B5.14-11.21%1.86%5.61%-19.33%
55
Neutral
$514.13M8.35-12.49%-20.40%-161.60%
50
Neutral
$149.95M-11.53%4.23%47.22%
46
Neutral
C$40.57M24.42-5.22%5.21%-41.82%-149.06%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ET
Evertz Technologies
12.20
0.06
0.49%
TSE:QTRH
Quarterhill
1.27
-0.38
-23.03%
TSE:CMI
C-Com Satellite Systems
0.96
-0.26
-21.31%
TSE:BEW
BeWhere Holdings
0.88
0.40
83.33%
TSE:VCM
Vecima Networks
10.71
-10.74
-50.07%
TSE:TSAT
Telesat Corp
34.75
23.48
208.34%

Evertz Technologies Corporate Events

Financial Disclosures
Evertz Technologies Surpasses Half Billion in Annual Revenue for Fiscal 2025
Neutral
Jun 25, 2025

Evertz Technologies Limited reported its fiscal 2025 results, achieving over half a billion dollars in annual revenue, totaling $501.6 million. The company saw an 18% increase in reoccurring software and services revenue, which now represents 44% of total revenue. Despite a decrease in international sales, the company experienced growth in the Canada/US region, contributing to a net earnings of $59.7 million. The results indicate a strong performance in the North American market, although overall earnings per share decreased compared to the previous year.

The most recent analyst rating on (TSE:ET) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Evertz Technologies stock, see the TSE:ET Stock Forecast page.

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.Date of analysis: Jul 08, 2025