Evertz Technologies (ET) AI Stock Analysis

• Market Cap: C$776.88M
• Dividend Yield: 7.23%
• 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: 69
• 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: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Evertz Technologies scores a 77, reflecting strong financial performance and robust earnings call highlights, particularly in its U.S. and Canada operations. The valuation is reasonable with a solid dividend yield, although technical indicators present mixed signals with potential overbought conditions. The main risks involve declining international sales and potential tariff impacts, but the company's strong market position and order backlog provide a positive outlook.

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.

Valuation

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

Negative Factors

International Performance

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 advanced hardware and software solutions tailored for the media and entertainment industry. The company's key revenue streams include the sale of broadcasting equipment, such as video routers and signal processors, and software solutions, including automation and media asset management systems. Additionally, Evertz offers support and maintenance services, which provide a steady stream of recurring income. Significant partnerships with major broadcasters and media companies around the world further bolster Evertz's market presence and contribute to its earnings. The company's focus on innovation and the development of new technologies also plays a crucial role in maintaining its competitive edge and driving revenue growth.

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

Evertz Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.00
• 50DMA: Positive
• 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 Neutral. The current price of 11 is above the 20-day moving average (MA) of 10.49, above the 50-day MA of 10.80, and below the 200-day MA of 11.72, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ET.

Evertz Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ET	77 Outperform	C$776.88M	12.93	22.71%	7.23%	-4.64%	-19.57%
CSU	71 Outperform	C$105.66B	105.51	30.90%	0.11%	21.56%	31.90%
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%

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.